Connect with us

Hi, what are you looking for?


White House expands investment ban on Chinese tech and telecom companies

The Biden administration has replaced and expanded Trump-era restrictions on investing in certain Chinese firms deemed supportive of that country’s surveillance and military apparatus. Major tech, space, and telecom companies are listed in the initial 59 covered by the Executive Order, with more to come by order of the Treasury.

“I find that the use of Chinese surveillance technology outside the PRC and the development or use of Chinese surveillance technology to facilitate repression or serious human rights abuse, constitute unusual and extraordinary threats,” writes President Biden in the introduction to the order.

The E.O. has its roots in the Trump administration’s long-running and evolving blacklist of Chinese companies, whether for government procurement, private investment by U.S. firms, or other purposes. Major tech companies like ZTE and Huawei were put on the list straight away in 2019, but others were steadily added over time.

The Biden order refines these orders, revising certain portions and expanding others, particularly in the definition of what constitutes dangerous behavior or collaboration with Chinese authorities. Notably it stretches this to cover companies involved in domestic surveillance of Uygur Muslims in China and political dissidents in Hong Kong and elsewhere.

The new list of companies includes many of those listed over the last two years, and adds plenty more. Seemingly any major company that deals with tech, communications or aerospace is at risk of being entered on the list, from China Mobile and China Unicom to China Aerospace, Hikvision, and SMIC. Direct investment in the companies is disallowed, as is investing in an intermediary such as an index fund that includes one of the prohibited companies.

The Treasury — rather than the Defense Department, as it was previously — is given the responsibility of maintaining and updating the list, either adding to or subtracting from it.

“Tackling these challenges head-on is consistent with the Biden Administration’s commitment to protecting core U.S. national security interests and democratic values, and the Administration will continue to update the list of PRC entities as appropriate,” read a fact sheet accompanying the order.

Clearly the White House aims to continue and refine the trade war with China started by Trump. Whether U.S. pressure will be enough to influence Chinese policy or if the international community’s support will be necessary may soon be clear as the President goes to visit allies in search of support on this and other measures.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like


Stock Markets25 minutes ago (Jul 16, 2021 05:46PM ET) (C) Reuters. FILE PHOTO: Johnson & Johnson’s Neutrogena Cool Dry Sport sunscreen, which is part...


Builders, creators and developers, this one’s for you! TechCrunch has always been about discovering fresh solutions and shining the light on exciting, new products...


(C) Reuters. FILE PHOTO: Indian billionaire Gautam Adani speaks during an interview with Reuters at his office in the western Indian city of Ahmedabad...

Disclaimer: it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Wise Gazette. All Rights Reserved