Biden widens list of Chinese firms off-limits for investment

Washington, Jun 04 (AP):
President Joe Biden has nearly doubled the list of Chinese companies whose shares are off-limits to US investors in the latest sign he is not softening Washington’s stance toward Beijing.
An executive order issued says it aims to solidify and strengthen an order signed last year by his predecessor Donald Trump by strengthening controls on investments in Chinese companies that the US says are linked to defense and surveillance.
The intension is to ensure that US investments are not supporting Chinese companies that undermine the security or values of the United States and our allies,” the order says.
The revised list includes companies that Washington alleges contribute to surveillance of religious and ethnic minorities or to repression and serious human rights abuses.
Many of the companies on the expanded list already were on a Defense Department blacklist that limits access to American technology and investment.
Telecoms equipment maker Huawei Technologies, China’s big state-owned telecoms companies and China National Offshore Oil Corp. all are on the new list of 59 companies. The earlier list included 31.
There was no immediate comment from Beijing. But Chinese officials have accused the US of distorting the concept of national security and abusing state power and warned Beijing will take unspecified necessary measures to protect the rights and interests of Chinese enterprises.
Semiconductor Manufacturing International Corp., or SMIC, was not on the original list of banned securities investments. It plays a leading role in the ruling party’s effort to reduce reliance on US and other foreign technology by creating Chinese suppliers of processor chips and other components.
The prohibitions on investments in the companies takes effect Aug 2. The companies are also included in the Treasury Department’s Foreign Assets Control list.