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The attitude of U.S. President Joe Biden around Trump’s mandate has been seen very well on Wall Street and Capitol Hill, where lawmakers on both sides have called for a strong stance against China on issues ranging from trade to human rights.
President Joe Biden on Thursday signed an order to change the U.S. investment ban on Chinese companies under his predecessor, naming 59 companies linked to the Chinese military or the surveillance industry, Huawei Technologies Co. and including the three largest telecommunications companies in the country.
The ban on new investments will take effect Aug. 2 at 12:01 a.m. in New York City, administration officials reported, citing anonymity to reporters. Investors will have a year to fully divest.
Biden’s order was largely challenged by former President Donald Trump in court and confused investors as he reached out to subsidiaries of the blocked companies. Biden’s stance on Trump’s mandate has been closely watched by Wall Street and Capitol Hill, where lawmakers from both parties have called for a strong stance against China on issues ranging from trade to human rights.
Many of Biden’s mandated companies were already on the Trump administration’s list, including the nation’s largest telecommunications company: China Mobile Communications Group Co., China Unicom Ltd. and China Telecommunications Corp.
Among the defense companies on the Biden list are Aviation Industry Corp. China, Ltd., one of China’s most famous military giants; China North Industries Group Corp .; China Aerospace Science and Industry Corporation Ltd; and China Shipbuilding Industry Co.
Biden’s list also includes Hangzhou Hikvision Digital Technology Co., a developer of surveillance cameras and face recognition technology, which has helped Chinese authorities spread Xinjiang’s “safe city” initiatives where ethnic Uighurs have been harassed.
Among the Biden list companies that were not covered in Trump’s initial ban are Zhonghang Electronic Measuring Instruments Co. and Jiangxi Hongdu Aviation Industry Co.
These include: Proven Honorary Capital Ltd; Proven Glory Capital Ltd; Shaanxi Zhongtian Rocket Technology Co .; Inner Mongolia First Machinery Group Co .; Changsha Jingjia Microelectronics Co .; China Avionics Systems Company Ltd; China Satellite Communications Co .; China-based Costar Group Co .; Fujian Torch Electron Technology Co .; and Guizhou Space Appliance Co.
The Treasury Department released instructions on the sanctions on Thursday. The Treasury will update the list, one official said.
Under Biden’s order, investment bans will apply to subsidiaries of companies only if they are listed in the Foreign Assets Control Office. The amended order clarifies that the measures will no longer apply to companies that comply with the listed entities, Biden administration officials said.
The OFAC list will be coordinated with the Departments of State and Defense. The Pentagon, which is asking Congress to keep a list of companies linked to the Chinese military, is expected to release additional company names on Thursday. Some companies will be listed by the Pentagon and OFAC, officials said.
The amendment to Trump’s order comes after two Chinese companies were successfully sued in U.S. court. According to the Biden team, the review is necessary to make it legally sound and sustainable in the long run.
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