Biden bans US investments into 59 Chinese firms

June 04, 2021 01:46 PM AEST | By Furquan Moharkan

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Biden bans US investments into 59 Chinese firms — Image source: Representative Image.

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Summary

Biden bars American from investing in 59 more companies.

The US president has signed an executive order to this effect.

Trump had already banned 48 companies.

US President Joe Biden on Thursday prohibited American entities from investing in 59 more Chinese companies with alleged ties to the country’s military and surveillance efforts.

According to an Executive Order signed by Biden, US investors are barred to invest in these companies that include Huawei Technology Co Ltd.

The other prominent companies on the list include – Aero Engine Corp. of China, Aerosun Corp. and Fujian Torch Electron Technology.

The move will take effect from 2 August 2021 and is seen as one of the strongest bans against the American rival. The Trump administration had earlier banned 48 Chinese companies, taking the total count past the 100-mark.

“I find that the use of Chinese surveillance technology outside the PRC and the development or use of Chinese surveillance technology to facilitate repression or serious human rights abuse, constitute unusual and extraordinary threats,” Mr Biden said in a statement.

A spokesperson for the Chinese Foreign Ministry challenged the move by the Biden administration, telling members of the press that the Trump administration’s original order was executed with “total disregard of facts.”

“The US should respect the rule of law and the market, correct its mistakes, and stop actions that undermine the global financial market order and investors’ lawful rights and interests,” spokesman Wang Wenbin told reporters.

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