Joe Biden tightens ban on U.S. investments in China

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Joe Biden tightens ban on U.S. investments in China

On Thursday, U.S. President Joe Biden signed an executive order expanding a Trump-era list of Chinese firms blacklisted for their alleged ties to the country’s military.

An executive order Biden signed brings to 59 the total number of Chinese companies banned from receiving American investment. Meanwhile, it shows how his administration continues some of the hard-line China policies left by Donald Trump.

Trump’s list from November 2020 targeted 31 Chinese firms in the telecom, technology, and construction industries.

According to the White House, this E.O. allows the United States to prohibit U.S. investments in Chinese firms that undermine the security or democratic values of the America and its allies.

Some of the newly targeted firms are subsidiaries and affiliates of major firms and other businesses named on the earlier blacklist. Notaby, they include firms tied to the aerospace giant Aviation Industry Corporation of China and Huawei Technologies Co.

The new order prevents Americans from investing in those firms until August 2

The new order prevents Americans from investing in those firms, with a 60-day grace period, until August 2, before sanctions begin and a one-year period for Americans already invested in the firms to divest themselves.

Remarkably, the move is one of the most forceful to date versus the major U.S. rival and another sign that the Biden administration may adopt or improve many of the tactics used by the Trump administration in its effort to stay competitive with China.

U.S. President Biden promised to bring multilateralism back to U.S. foreign policy, a pivot from the America First doctrine under Trump, particularly outspoken against China.

However, Thursday’s announcement is the latest round of sanctions against China the Biden administration has announced since January. In March, the United States., the European Union, and the United Kingdom imposed sanctions on several Chinese officials for human rights abuses against the Muslim Uyghur minority in China’s Xinjiang province.

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