The Biden administration will challenge a brand new government order on Thursday that bans U.S. entities from shopping for or promoting publicly traded securities for 59 Chinese firms with alleged ties to protection or surveillance know-how sectors, senior administration officers stated.
The Treasury Department will implement and replace on a “rolling foundation” the new ban list, which replaces one from the Department of Defense, the officials said, noting the policy would take effect on Aug. 2.
The new order, which is an effort to make a similar Trump-era prohibition more legally sound, signals the administration’s intent to “ensure that U.S. persons are not financing the military industrial complex of the People’s Republic of China”, one of many senior officers informed reporters.
The inclusion of Chinese surveillance know-how companies expanded the scope of the earlier order, the officers stated.
“We absolutely anticipate that in the months forward … we’ll be including extra firms to the brand new government order’s restrictions,” an official stated.
President Joe Biden has been reviewing a number of aspects of U.S. policy towards China, and his administration had delayed the implementation of the previous order while it formulated its new policy framework.
The move is part of a broader series of steps to counter China, including reinforcing U.S. alliances and pursuing large domestic investments to bolster U.S. economic competitiveness, amid increasingly sour relations between the world’s two most powerful countries.
Biden’s Indo-Pacific policy coordinator Kurt Campbell said last month that a period of engagement with China had come to an end and that the dominant paradigm in bilateral ties going forward would be one of competition.
The Treasury Department is expected to issue the full list later on Thursday, and give guidance on what the scope of surveillance technology means, including whether companies are facilitating “repression or serious human rights abuses” in or exterior of China, one of many officers stated.
“We actually need to ensure that any future prohibitions are on legally strong floor. So, our first listings actually replicate that,” a second senior administration official said.
Investors would have time to “unwind” investments, a 3rd official stated.
In May, a decide signed an order eradicating the designation on Chinese cell phone maker Xiaomi, which was among the many extra high-profile Chinese know-how firms that the Trump administration focused for alleged ties to China’s army.
The decide later additionally suspended an ban imposed on Luokung Technology Corp, a Chinese mapping know-how firm.
The Department of Defense had additionally positioned related restrictions on China’s Semiconductor Manufacturing International Corporation 0981.HK, a agency key to China’s nationwide drive to enhance its home chip sector.
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