US President Joe Biden. (Photo by Carolyn Brehman/CQ-Roll Call, Inc. via Getty Images)
- Joe Biden intends this week to overhaul a list of Chinese firms in which US investors are allowed to own shares.
- Donald Trump barred Americans from buying stakes in 31 Chinese companies.
- The list includes major telecommunications, construction and technology firms.
Joe Biden intends this week to overhaul a list of Chinese firms in which US investors are allowed to own shares, as the president re-evaluates post-Trump ties to world powers while keeping pressure on Beijing.
Donald Trump banned Americans from buying stakes in 31 Chinese companies that were deemed to supply or support China’s military and security equipment.
The list includes major telecommunications, construction and technology firms such as China Mobile, China Telecom, video surveillance firm Hikvision and China Railway Construction Corp.
It was one of a series of measures by the White House aimed at halting the rise of the Asian giant and that has seriously strained relations between the two.
Beijing on Thursday reiterated its outrage over the Trump-era blacklist and vowed to protect the rights of Chinese companies, claiming the blacklist was “politically motivated” and ignoring the “facts and real situation” of the firms involved. ” was.
“The sanctions seriously undermine normal market rules and order” and “harm … the interests of global investors, including US investors,” foreign ministry spokesman Wang Wenbin said at a regular briefing.
Bloomberg News reported, without citing sources, that Biden’s new order will see the Treasury Department prepare a list of firms that will be hit with financial penalties for their ties to China’s defense and surveillance technology sectors. It said the president is expected to sign the order this week.
Previously, the choice of sanctions and targets was tied to a Defense Department report mandated by Congress.
The review came after two Chinese companies successfully challenged the order in court, and Biden said it needed to ensure it was legally undisputed and sustainable.
While the Biden administration has promised to take a more diplomatic line with China after its predecessor’s turmoil, he has said he will keep a hard line on a range of issues, including defense and technology.
He is expected to keep the list largely intact, while the Treasury’s Office of Foreign Asset Control will add new firms after consulting with the Departments of Defense and State.
A tough line on China on Capitol Hill enjoys rare cross-party support, with lawmakers determined to keep a lid on its growing global clout.
Republican Senators Tom Cotton and Marco Rubio, along with Democrats Gary Peters and Mark Kelly, published a bipartisan letter earlier this week urging the administration to publish a new list.
“The US government must continue to act boldly in halting the Chinese Communist Party’s economic predicament against our industrial base,” he said.
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