Biden orders to ban investment in 59 Chinese defence and tech firms

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Biden orders to ban investment in 59 Chinese defence and tech firms

On Thursday, the Biden Administration had issued a new executive order according to which American investors would be barred from buying or selling publicly traded stocks of 59 Chinese companies likes of Xiaomi Corp, Semiconductor Manufacturing International Corp, Huawei Technologies Co Ltd alongside others which could have potential tie-up with defence or surveillance sectors, expanding an investment ban on securities of Chinese companies while excerbating an acrimonius and protracted trade row with Beijing.

On top of that, a senior Biden Administration official was quoted saying that the Treasury Department would enforce a ban on new list of Chinese companies, while the Government policy would take effect on August 2. In point of fact, latest Biden Administration move to deter Chinese companies from raising funds in US money markets came forth as part of a string of hostile steps against China, largely in a bid to counter its progression, while the world’s second-largest economy had recently urged for a cooperative global view towards China, gross output of which is expected to surpass the United States by 2025.

US to ban investment on 59 Chinese companies

Aside from that, the new order had largely mirrored a similar Trump-era move, but the latest effort seemed more resilient and legally sound as a senior Biden Administration official was quoted saying, “The administration's intent to ensure that U.S.

persons are not financing the military industrial complex of the People's Republic of China”. Ratcheting up the worries over an already escalated trade war between the world’s first- and second-largest economy, the US President Joe Biden’s Indo-Pacific policy coordinator, Kurt Campbell, said last month nearly a 30-year-long tie-up with China had come to an end, suggesting that a more likely pattern in future bilateral ties would meet with fierce competition over expanding regional and economical influence.