Like his predecessor Trump, the new US President Biden is cracking down on Chinese companies that are said to be cooperating with China’s military and surveillance apparatus. China reacts angrily.
US President Joe Biden is tightening the crackdown on Chinese companies with alleged links to the military of the People’s Republic. Biden signed an order Thursday banning Americans from trading in the securities of an initial 59 Chinese companies from August 2. You can find the full list here. The Chinese government protested the plans even before the announcement. Foreign Office spokesman Wang Wenbin said the US is ignoring the facts, “should correct its mistakes and stop harming financial markets and the interests of investors.”
The US President’s move builds on an order made by Biden’s predecessor Donald Trump in November, as a result of which more than 40 companies with alleged military connections were blacklisted. Biden’s order now also affects companies accused by the US of using surveillance technology to contribute to human rights violations.
The White House said the order “allows the United States to selectively and to a certain extent prohibit US investments in Chinese companies that undermine the security or democratic values of the United States and our allies.” The measure is “in line with the commitment of the Biden government to protect the central national security interests of the United States and the democratic values”. The list will be updated as necessary. The Ministry of Finance is responsible, no longer – as was the case with Trump’s regulation – the Ministry of Defense.
Many of the companies now listed were already affected by the earlier order, including network equipment and smartphone provider Huawei and China’s third-largest state-owned oil company, CNOOC. Trump’s decision had turned out to be vulnerable: For example, the Chinese smartphone provider Xiaomi managed to be removed from the blacklist in a court in Washington. Xiaomi is also not on the new list.
China and the USA impose punitive tariffs on each other
The Republican Trump started a trade war with China three years ago, which escalated with mutual punitive tariffs and continues to this day. His government also took action against various Chinese companies. After taking office in January, Democrat Biden announced a review of China’s policy, but already let it be known that he, too, wanted to pursue a tough course.
Also on the blacklist are the Chinese telecom giants China Mobile and China Unicom, as well as aerospace companies such as Avic and China Aerospace Science and Technology Corporation (CASC). Hangzhou Hikvision, a manufacturer of video surveillance technology, is also on the list.