US President Joe Biden’s stance on Trump’s orders has been closely watched by Wall Street and Congress. Lawmakers from both parties have called for a tough stance against China on issues ranging from trade to human rights.
President Joe Biden signed an order on Thursday to amend the ban on US investment in Chinese companies started by his predecessor, appointing 59 companies connected to the Chinese military or surveillance industry, including Huawei Technologies Co., Ltd. and China’s three major companies. Telecommunications company.
According to a government official who asked not to be named, the new investment ban will take effect in New York at 12:01 am on August 2. Investors will have a year to completely divest themselves.
Biden’s order is largely a continuation of the policy issued by former President Donald Trump, which has been challenged in court and has left investors confused about the scope of its influence on the company’s subsidiaries. Biden’s stance on Trump’s orders has been closely watched by Wall Street and Congress, and lawmakers from both parties have called for a strong stance against China on issues ranging from trade to human rights.
Many companies ordered by Biden are already on the Trump administration’s list, including the largest telecommunications companies in the United States: China Mobile Communications Corporation, China Unicom, and China Telecom Corporation.
Defense companies on Biden’s list include China Aviation Industry Corporation, one of China’s most famous military giants; China North Industries Corporation; China Aerospace Science and Industry Corporation; and China Shipbuilding Industry Corporation.
Biden’s list also includes Hangzhou Hikvision Digital Technology Co., Ltd., a developer of surveillance cameras and facial recognition technology that helped Chinese authorities launch a “safe city” program in Xinjiang, where Uighurs are facing persecution.
Companies on Biden’s list not covered by Trump’s initial ban include AVIC Electronic Measuring Instruments Co., Ltd. and Jiangxi Hongdu Aviation Industry Co., Ltd.
Others include: Proven Honor Capital Ltd.; Proven Glory Capital Ltd.; Shaanxi Zhongtian Rocket Technology Co., Ltd.; Inner Mongolia First Machinery Group Co., Ltd.; Changsha Jingjia Microelectronics Co., Ltd.; China Avionics System Co., Ltd.; China Satellite Communications Co., Ltd. Companies; China Costa Group Co., Ltd.; Fujian Torch Electronic Technology Co., Ltd.; and Guizhou Aerospace Electric Co., Ltd.
Later on Thursday, the Ministry of Finance issued guidance on penalties. One of the officials said that the Ministry of Finance will update the list on a rolling basis.
According to Biden’s order, the investment ban only applies to subsidiaries of companies listed by the Office of Foreign Assets Control. Biden administration officials said the revised order clarified that these measures will no longer apply to companies whose names closely match those of listed entities.
OFAC’s list will be coordinated with the state and the Ministry of Defense. The U.S. Congress requires the Pentagon to keep a list of companies related to the Chinese military and is expected to announce more company names on Thursday. Officials said that some companies will be listed by the Pentagon and OFAC.
The amendment to Trump’s order was made after two Chinese companies successfully challenged them in a US court. Biden’s team stated that revisions are necessary to ensure that it is legally reasonable and sustainable in the long term.