President Biden has issued an investment ban order against some Chinese companies, Reuters reports.
Sanctions against Chinese companies are not new, and Trump has done so many times. But this is the first time Biden has imposed sanctions on Chinese companies in the months since he was elected as president. The companies are said to have partnered with the Chinese government and military affiliates in defense and surveillance technology.
“The order prevents U.S. investment from supporting the Chinese military-industrial complex, as well as military, intelligence, and security research and development programs,” Reuters said.
Biden also said that China’s surveillance technologies could facilitate repression or human rights abuses both inside and outside the country. The Chinese government is currently facing serious charges, including violating the rights of Uyghurs and testing surveillance technologies on them.
The new sanctions take effect on August 2. According to the source, “U.S. investors would still have 365 days from the date of this or future listings to make transactions for the purpose of divesting, and while it was not required, divesting later than 365 days after listing would be prohibited without authorization.”
Huawei is still on the sanctions list under the two presidents
Biden investment ban cover 59 companies, and the Treasury Department will update the list if needed. The sanctions imposed by Trump on Chinese companies included 31 companies.
We can still find these names in the new list: Aviation Industry Corp of China (AVIC), China Mobile Communications Group, China National Offshore Oil Corp (CNOOC), Hangzhou Hikvision Digital Technology Co Ltd, Huawei Technologies Ltd (HWT.UL), and Semiconductor Manufacturing International Corp (SMIC). You can read the full lists of companies here.
As you can see, Huawei has been under sanctions under both Trump and Biden. Huawei, meanwhile, hoped the new U.S. president would take a new approach. Of course, it has been said before that Biden is not willing to lift Huawei’s sanctions.
Also, the Semiconductor Manufacturing International Corp (SMIC) is one of the most important companies in China for producing chips. The company’s embargo may expand the scope of chip shortage worldwide.
Xiaomi was able to remove its name from the sanctions list
Xiaomi was one of the companies said to be cooperating with Chinese defense agencies. The Trump administration also put Xiaomi on the sanctions list. However, the company could reach an agreement with the U.S. Department of Defense.
Moreover, In May, a judge ruled that the company’s restrictions should be lifted. Well, Huawei has not been as lucky as Xiaomi and should remain under sanctions.