The ban on securities investments that finance certain companies with alleged association with the Chinese military is to be extended, President Joe Biden announced Tuesday, Nov. 9.
He said in a statement that the policy would remain effective beyond Nov. 12, 2021.
The policies were first issued by Biden’s Republican predecessor, former President Donald Trump, through his November 2020 executive order. The ban came with a blacklist of Chinese companies for U.S. entities to stay away from purchasing or selling publicly traded securities.
Biden acknowledged that the Chinese government would accelerate its exploitation of U.S. capital for their “development and modernization of its military, intelligence, and other security apparatuses” through these companies.
He added that the Chinese military-linked security technologies pose threats to the U.S.’s “national security, foreign policy, and economy,” and their surveillance system will also be used to facilitate human rights abuses and repression beyond their territory.
The ban started with the Pentagon listing 31 Chinese companies, with Huawei Technologies Ltd. and Hikvision Digital Technology Co. among them, ABC News reported.
According to CNN, Biden revised the list in June, expanding it to cover 59 companies. The expectation was that the Democrat president would hold an opposite attitude with China to his predecessor.
Reuters noted some other top names were removed in the June adjustment.
Gowin Semiconductor Corp and Luokung Technology Corp took to the court to argue themselves free from the ban. Commercial Aircraft Corp of China (COMAC) was also cleared from the list, with the outlet adding it was pushing attempts to compete with Boeing Co. and Airbus.
Critics, although supportive of Biden continuing the ban, were disappointed he would not blacklist more names.
“While we should applaud the extension of the ‘national emergency’… it’s hard to understand why not one Chinese company has been added to this modest capital markets sanctions list since the issuance of the Order on June 3,” said Roger Robinson, former chairman of the congressional U.S.–China Economic and Security Review Commission, as quoted by the news agency.