The Pentagon postponed reports on Chinese companies with military ties to China

The Pentagon failed to provide the legally required reports on Chinese companies with military ties to Congress because US President Joe Biden was close to deciding whether Americans could invest in such organizations.

Two people familiar with the matter said that Congress requires the Department of Defense to submit a report by April 15th by January. But the Pentagon told members of Congress that it missed the deadline.

The Biden government decides whether to maintain Executive order Signed by former President Donald Trump, prohibiting Americans from investing in Chinese companies named in the previous Pentagon’s blacklist.

U.S. Treasury Department in January extend the deadline The ban will take effect on May 27. The move is designed to allow the government time to evaluate the executive order as part of Trump’s extensive review of actions related to China.

Biden took A more hawkish stance It is better for China than many foreign policy experts expected.

A Pentagon spokesperson did not explain the reason for the delay, but said the Department of Defense will submit a report by October.

This British “Financial Times” report Last year, in response to Trump’s pressure, the Pentagon compiled an initial blacklist. More than two decades have passed since Congress first authorized it. The former president used the list as a basis and banned direct investment or investment through funds.

Congress not only requires the Pentagon to update this report every year, but also expands the scope of the standard to target companies that help the People’s Liberation Army through “military-civilian integration,” a plan that requires groups to share technology with the Chinese Armed Forces.That is possible Greatly expanded the scope Any investment ban.

Some US lawmakers expressed concern about this delay. Influential Republican Arkansas Senator Tom Cotton (Tom Cotton) said, “The Department of Defense must continue to focus on documenting and advocating Chinese military companies operating in the United States.” He added that the government needs to “defeat the Communist Party’s attempts to use our judicial system against us.”

Before Cotton’s comment, the Pentagon agreed to remove Chinese smartphone manufacturer Xiaomi from the blacklist after a judge said the reasons were incorrect.

The White House stated that after the court found Trump, it was “forced” to remove the company. Management failure Provide sufficient legal basis for the decision. But National Security Council spokesperson Emily Horne (Emily Horne) said that Biden “is deeply concerned about the potential US investment in companies with links to the Chinese military and is fully committed to maintaining pressure on such companies.”

John Smith, a partner at Morrison Law Firm and a former U.S. Treasury official, said the Obama administration is in trouble. He said: “I am sure that the Biden team is happy to throw things away,” he said, referring to the complicated legal situation in which Trump left Biden. “They may not, because they can’t be seen as weak to China, and they don’t want to be weak to China.”

Smith says Biden needs exercise How to execute the checklist In a way that will not cause more losses in court.

Eric Sayers, an Asia expert at the American Enterprise Institute think tank, said that although lawmakers expressed dissatisfaction with the delay in the implementation of the order, they should recognize that Biden said he would maintain a strong stance.

He said: “The government has stated that it does not want to give up its efforts, but to improve it through a more rigorous coordination process.” “Whether Congress can wait patiently this summer and whether the Biden team can effectively reconstruct this approach, it will The key to watch this summer.”

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