US President Joe Biden expanded a prohibition on Americans investing in Chinese companies with alleged military ties, adding more companies to a blacklist that has enraged Beijing and alarmed investors. According to reports, the new investment prohibition will go into force on August 2 at 12:01 a.m. in New York. Investors will have one year to complete their divestment. An executive order issued by Biden on Thursday, June 2, takes the total number of Chinese enterprises barred from receiving American investment to 59.
Joe Biden bans Chinese companies
Biden’s directive is mainly a continuation of a policy enacted by former President Donald Trump, which was challenged in court and left investors perplexed about the scope of its application to subsidiaries of prohibited businesses. Wall Street and Capitol Hill have been watching Biden’s reaction to Trump’s directive, as lawmakers from both parties have urged for a tough approach against China on topics ranging from trade to human rights.
59 Chinese companies banned
As per the report, the nation’s main telecommunications- China Mobile Communications Group Co, China Unicom Ltd, and China Telecommunications Corp, as well as top chipmaker Semiconductor Manufacturing International Corp and leading server maker Inspur, were already on the Trump administration’s list. Aviation Industry Corp of China, Ltd, one of the most well-known of China’s military giants; China North Industries Group Corp; China Aerospace Science and Industry Corporation Ltd; and China Shipbuilding Industry Co. are among the defence corporations on Biden’s list.
List of blacklisted Chinese companies
Aero Engine Corporation of China Aerospace CH UAV Co., Ltd Aerospace Communications Holdings Group Company Limited Aerosun Corporation Anhui Greatwall Military Industry Company Limited Aviation Industry Corporation of China, Ltd AVIC Aviation High-Technology Company Limited AVIC Heavy Machinery Company Limited AVIC Jonhon Optronic Technology Co., Ltd AVIC Shenyang Aircraft Company Limited AVIC Xi’An Aircraft Industry Group Company Ltd Changsha Jingjia Microelectronics Company Limited China Academy of Launch Vehicle Technology China Aerospace Science and Industry Corporation Limited China Aerospace Science and Technology Corporation China Aerospace Times Electronics Co., Ltd China Avionics Systems Company Limited China Communications Construction Company Limited China Electronics Technology Group Corporation China General Nuclear Power Corporation China Marine Information Electronics Company Limited China Mobile Communications Group Co., Ltd. China National Nuclear Corporation China National Offshore Oil Corporation China North Industries Group Corporation Limited China Nuclear Engineering Corporation Limited China Railway Construction Corporation Limited China Satellite Communications Co., Ltd. China Shipbuilding Industry Company Limited China Shipbuilding Industry Group Power Company Limited China South Industries Group Corporation China Spacesat Co., Ltd. China State Shipbuilding Corporation Limited China Telecommunications Corporation China United Network Communications Group Co., Ltd. Costar Group Co., Ltd. CSSC Offshore & Marine Engineering (Group) Company Limited Fujian Torch Electron Technology Co., Ltd. Guizhou Space Appliance Co., Ltd. Hangzhou Hikvision Digital Technology Co., Ltd. Huawei Technologies Co., Ltd. Inner Mongolia First Machinery Group Co., Ltd. Inspur Group Co., Ltd. Jiangxi Hongdu Aviation Industry Co., Ltd. Nanjing Panda Electronics Company Limited North Navigation Control Technology Co., Ltd. Panda Electronics Group Co., Ltd. Semiconductor Manufacturing International Corporation Shaanxi Zhongtian Rocket Technology Company Limited Zhonghang Electronic Measuring Instruments Company Limited Hangzhou Hikvision Digital Technology Co., Ltd. Huawei Technologies Co., Ltd. China Communications Construction Group (Limited) China Electronics Corporation China Mobile Limited China Telecom Corporation Limited China Unicom (Hong Kong) Limited CNOOC Limited Huawei Investment & Holding Co., Ltd. Panda Electronics Group Co., Ltd.
While the new list added approximately ten publicly traded companies in total, it offered little surprises to investors looking to see if they needed to sell any more Chinese stocks and bonds. After two Chinese corporations successfully challenged Trump’s order in a US court, the decree was amended. According to Biden’s team, a change was required to ensure that it was legally sound and long-term viable.
Picture Credit: AP