Biden Widens Record of Chinese Companies Off-Limitations for Expense | Organization News

By ELAINE KURTENBACH, AP Organization Author

President Joe Biden has almost doubled the listing of Chinese firms whose shares are off-boundaries to U.S. buyers in the latest indicator he is not softening Washington’s stance towards Beijing.

An government buy issued late Thursday states it aims to “solidify and strengthen” an order signed last year by his predecessor Donald Trump by strengthening controls on investments in Chinese companies that the U.S. claims are linked to protection and surveillance.

The intension is to “ensure that U.S. investments are not supporting Chinese businesses that undermine the protection or values of the United States and our allies,” the buy says.

The revised record incorporates firms that Washington alleges lead to surveillance of religious and ethnic minorities or to repression and “serious human legal rights abuses.”

Several of the businesses on the expanded listing now were on a Defense Division blacklist that boundaries entry to American technology and financial investment.

Telecoms gear maker Huawei Systems, China’s huge point out-owned telecoms businesses and China Nationwide Offshore Oil Corp. all are on the new list of 59 corporations. The earlier checklist incorporated 31.

There was no speedy comment from Beijing. But Chinese officers have accused the U.S. of distorting the principle of national safety and abusing condition power and warned Beijing will acquire unspecified needed steps to protect the rights and passions of Chinese enterprises.

Semiconductor Producing Global Corp., or SMIC, was not on the authentic checklist of banned securities investments. It performs a top purpose in the ruling party’s exertion to decrease reliance on U.S. and other foreign technologies by generating Chinese suppliers of processor chips and other elements.

The prohibitions on investments in the firms requires result Aug. 2. The firms are also incorporated in the Treasury Department’s Overseas Belongings Regulate record. The govt get signed by Trump previous calendar year demanded U.S. buyers to divest their stakes in the listed providers by November.

Independently, the Commerce Section has place China Nationwide Offshore Oil Corp., the country’s 3rd-major nationwide oil firm, on an economic blacklist for what it explained as “reckless and belligerent actions” in the disputed waters of the South China Sea.

That is a reference to CNOOC’s involvement in offshore drilling in disputed waters of the South China Sea, the place Beijing has overlapping territorial claims with other nations around the world such as Vietnam, the Philippines, Brunei and Malaysia, as properly as Taiwan.

The Commerce Division record forbids U.S. corporations from exporting or transferring engineering with the businesses named unless of course authorization has been acquired from the U.S. federal government. About 60 Chinese companies ended up included to the checklist in December, which include drone maker DJI and semiconductor company SMIC.

Chinese smartphone maker Xiaomi Corp., which overtook Apple Inc. as the world’s No. 3 smartphone maker by gross sales in the 3rd quarter of 2020, was eliminated from the previously financial investment blacklist soon after it sued the U.S. govt, demanding to be eradicated and denying it has any inbound links with China’s People’s Liberation Army.

Xiaomi is a Beijing-based business acknowledged for its benefit-for-money smartphones and smart equipment.

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