Biden bans U.S. funding in 59 Chinese language corporations allegedly associated to the army and surveillance
United States President Joe Biden speaks during a commemoration ceremony marking the 100th anniversary of the Tulsa Race Massacre at the Greenwood Cultural Center in Tulsa, Oklahoma, on June 1, 2021.
Almond Ngan | AFP | Getty Images
President Joe Biden on Thursday expanded restrictions on American investments in certain Chinese companies with alleged links to the country's military and surveillance efforts, adding more companies to a growing blacklist.
In an executive order, Biden banned US investors from investing in 59 Chinese companies fearing their ties to the Chinese government's geopolitical ambitions and continued some parts of former President Donald Trump's tough stance in talks with Beijing.
"This E.O. enables the United States to ban targeted US investment in Chinese companies that undermine the security or democratic values of the United States and our allies, ”a White House press release said.
The move will prevent US dollars from supporting the "Chinese defense sector" while expanding the US government's ability to combat the threat posed by Chinese surveillance technology firms – both inside and outside of China – that monitor religious or ethnic minorities contribute to or otherwise facilitate repression and serious human rights violations, "added the government.
The 59 excluded companies include Aero Engine Corp. of China, Aerosun Corp., Fujian Torch Electron Technology and Huawei Technologies.
The bans go into effect on August 2 at 00:01 a.m. ET.
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The move is one of the strongest yet against its leading U.S. rival, and yet another sign that the Biden administration could adopt or advance many of the Trump administration's tactics to stay competitive with China.
Biden and his economic advisors also need to decide what to do with a range of tariffs and whether to increase sanctions against Chinese officials involved in the mass incarceration of mainly Muslim ethnic minorities in the Xinjiang region.
A representative from the Chinese State Department challenged the move by the Biden administration, telling press officials that the Trump administration's original order was carried out "in complete disregard for the facts."
"The US should respect the rule of law and the market, correct its mistakes and stop actions that undermine the global financial market order and the legitimate rights and interests of investors," said spokesman Wang Wenbin to reporters in Beijing.
The previous order from the Trump administration created a list of 48 companies.