By ELAINE KURTENBACH, AP Enterprise Author
President Joe Biden has practically doubled the checklist of Chinese language corporations whose shares are off-limits to U.S. buyers within the newest signal he’s not softening Washington’s stance towards Beijing.
An govt order issued late Thursday says it goals to “solidify and strengthen” an order signed final 12 months by his predecessor Donald Trump by strengthening controls on investments in Chinese language corporations that the U.S. says are linked to protection and surveillance.
The intension is to “be certain that U.S. investments should not supporting Chinese language corporations that undermine the safety or values of the US and our allies,” the order says.
The revised checklist contains corporations that Washington alleges contribute to surveillance of spiritual and ethnic minorities or to repression and “critical human rights abuses.”
Lots of the corporations on the expanded checklist already have been on a Protection Division blacklist that limits entry to American expertise and funding.
Telecoms gear maker Huawei Applied sciences, China’s large state-owned telecoms corporations and China Nationwide Offshore Oil Corp. all are on the brand new checklist of 59 corporations. The sooner checklist included 31.
There was no speedy remark from Beijing. However Chinese language officers have accused the U.S. of distorting the idea of nationwide safety and abusing state energy and warned Beijing will take unspecified essential measures to guard the rights and pursuits of Chinese language enterprises.
Semiconductor Manufacturing Worldwide Corp., or SMIC, was not on the unique checklist of banned securities investments. It performs a number one position within the ruling celebration’s effort to scale back reliance on U.S. and different overseas expertise by creating Chinese language suppliers of processor chips and different elements.
The prohibitions on investments within the corporations takes impact Aug. 2. The businesses are additionally included within the Treasury Division’s International Property Management checklist. The chief order signed by Trump final 12 months required U.S. buyers to divest their stakes within the listed corporations by November.
Individually, the Commerce Division has put China Nationwide Offshore Oil Corp., the nation’s third-largest nationwide oil firm, on an financial blacklist for what it described as “reckless and belligerent actions” within 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 different international locations together with Vietnam, the Philippines, Brunei and Malaysia, in addition to Taiwan.
The Commerce Division checklist forbids U.S. companies from exporting or transferring expertise with the businesses named except permission has been obtained from the U.S. authorities. About 60 Chinese language corporations have been added to the checklist in December, together with drone maker DJI and semiconductor agency SMIC.
Chinese language smartphone maker Xiaomi Corp., which overtook Apple Inc. because the world’s No. 3 smartphone maker by gross sales within the third quarter of 2020, was faraway from the sooner funding blacklist after it sued the U.S. authorities, demanding to be eliminated and denying it has any hyperlinks with China’s Individuals’s Liberation Military.
Xiaomi is a Beijing-based firm identified for its value-for-money smartphones and sensible units.
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