Biden Prohibits Investment in Chinese Companies Tied to Military, Surveillance (Chip Somodevilla/Getty Images)
By Solange Reyner | Thursday, 03 June 2021 05:09 PM
The Biden administration has expanded the list of Chinese companies banned from receiving investment money from Americans.
Biden’s executive order brings to 59 the total number and is aimed at companies linked to China’s military and its surveillance activities. It prevents Americans from investing in those companies, with a 60-day grace period, until Aug. 2.
''This E.O. allows the United States to prohibit — in a targeted and scoped manner — U.S. investments in Chinese companies that undermine the security or democratic values of the United States and our allies,'' said a White House fact sheet accompanying the order.
The goal of the executive order is to "ensure that U.S. investments are not supporting Chinese companies that undermine the security or values of the United States and our allies," per the release.
One senior administration official told reporters the action is a broader sweep of steps ''we are taking to strengthen our approach to competing with China and to countering its actions that are against our interests and our values.''
A China foreign ministry spokesman said the Trump administration’s order was done with a ''total regard of facts'' and that it ''severely disrupted normal market rules and order.''
''The U.S. should respect the rule of law and the market, correct its mistakes, and stop actions that undermine the global financial market order and investors’ lawful rights and interests,'' Wang Wenbin told reporters in Beijing.
He also said Beijing will take measures to uphold the rights and interests of Chinese businesses.
Biden’s order is an expansion of one issued by former President Donald Trump in November 2020 prohibiting American companies and individuals from owning shares in any of the 31 Chinese companies previously listed as enabling the People’s Liberation Army.