Almost a dozen of Chinese-based companies and their subsidiaries were blacklisted in the United States as President Joe Biden furthered an order banning Americans from investing in the Chinese-owned firms.
This, as the president accused the Chinese companies to be connected with its country’s defense force or bring surveillance technology in the market that are used to confront minorities and protesters.
The additional blacklisted companies, which included the plastic pipe maker Aerosun Corp and China General Nuclear Power Corp, pushed the total of US-blacklisted firms to 59.
Biden’s order prohibits investors from purchasing new securities in the identified Chinese companies beginning August 2, while those who already invested were given a year to withdraw.
The recent announcement of Biden marks another indication that he is applying a different approach to the Asian country than what the former president Donald Trump did.
On Thursday, the White House said that the expansion is meant to “further address the ongoing national emergency” that bears the signature of Trump in November.
This is with respect to “the threat posed by the military-industrial complex of the People’s Republic of China (PRC)”.
Moreover, the order furthered the coverage of banned investments to count in surveillance technology firms. It mentioned that the usage of Chinese-made technology “facilitate repression or serious human rights abuse constitute unusual and extraordinary threats”.
“The move severely disrupted normal market rules and order,” remarked Chinese foreign ministry spokesman Wang Wenbin when asked regarding the effect of the expansion.
He demanded the US to “correct its mistakes, and stop actions that undermine the global financial market order”, saying that “China will take necessary measures to firmly safeguard Chinese enterprises‘ legitimate and lawful rights and interests”.
