Biden Confirms Ban on Investments in Chinese Military-Linked Companies... Scope Expanded

Trump Regulation Rollback Reversed and Expanded... Increased from 48 to 59 Locations
US Investment Becomes Impossible... Existing Investments Must Also Be Divested

[Image source=Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The Biden administration in the United States has expanded and finalized investment ban measures on Chinese companies known to be related to the Chinese military.

The White House announced that President Biden signed an executive order on the 3rd (local time) defining 59 Chinese companies on the "blacklist" that prohibits investments by U.S. individuals and institutional investors.

The companies subject to the investment ban include telecommunications equipment maker Huawei, China's largest semiconductor company SMIC, and the three major Chinese telecom operators.

According to the White House announcement, President Biden explained, "China is committing serious human rights violations by using surveillance technology from companies related to the People's Liberation Army, making additional measures necessary."

This investment ban will take effect on August 2. Once the executive order is in effect, U.S. investors will be prohibited from investing in corporate bonds, stocks, derivatives, and other financial instruments of the designated companies. Investments in funds that include these companies are also prohibited.

However, investors are allowed to conduct transactions to divest their holdings over the next 12 months. After this period, divestment will no longer be permitted.

This measure not only continues but also expands the tough China policy pursued by former President Donald Trump. The number of companies on the blacklist in the executive order signed by former President Trump in November last year was a total of 48.

As a result of this measure, the stocks of China Telecom, China Unicom, and China Mobile, the three major Chinese telecom operators, have already been delisted from the New York Stock Exchange.

A major foreign media outlet predicted that the Biden administration's clear stance on Chinese blacklist companies will resolve confusion among investors.

This content was produced with the assistance of AI translation services.