Joe Biden prohibits US from investing in Chinese companies list

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Joe Biden: The President of the United States, Joe Biden, signed an executive order on Thursday (3) that prohibits US institutions and entities from investing financially in a list of companies of Chinese origin.

The 59 companies in the defense or surveillance technology sectors are considered suspect for alleged links with the Chinese government or with the espionage sectors.

Furthermore, according to Biden, the technology could be used to “facilitate repression or serious abuse of human rights, which constitutes unusual and extraordinary threats.”

Who is on the list?

According to Reuters, the new ban list includes a number of Chinese companies that were already banned from trading with US partners, in a measure initially signed by Donald Trump’s government.

The brands include aviation company Avic, China Mobile, chip maker SMIC and Huawei — which has even been banned from using Google’s Android services since 2019. The full list of brands now restricted to US investment may be found in full by this link.

As suggested in previous speculation, the Biden administration is unlikely to alleviate the situation for these companies, but it will amend previous decrees and even launch new measures to correct any legal loopholes.

“Power abuse”

A spokesman for China’s Foreign Ministry said the measure was a source of discontent and showed “abuse of national power” by the US to “suppress and restrict investment” in the country by expanding concepts of national security.

Xiaomi became part of one of the bans, but managed to reverse the situation and is free to operate in the United States and receive local investments.