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US President Biden bans investments in Chinese companies like Huawei and 58 others

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Image: Joe Biden Facebook page

Chinese companies who are hopeful that the US investment ban will be reversed after then-US President Donald Trump leaves office are in for a disappointment.

Instead of reversing the decision, current US President Joe Biden has instead expanded the rule’s scope. Now, the latest executive order bans investments on 59 Chinese companies, which includes tech giant Huawei.

The decision, which will take effect on August 2, 2021, will prevent US investment in the said Chinese companies suspected of having ties with the Chinese Communist Party.

Huawei is joined by telecommunications brand China Mobile, chipmaker SMIC, and video surveillance company Hikvision. These are just some of the many companies on the list. You can read Biden’s announcement below:

I find that the use of Chinese surveillance technology outside the PRC (People’s Republic of China) and the development or use of Chinese surveillance technology to facilitate repression or serious human rights abuse constitute unusual and extraordinary threats, which have their source in whole or substantial part outside the United States, to the national security, foreign policy, and economy of the United States, and I hereby expand the scope of the national emergency declared in Executive Order 13959 to address those threats. 

US President Joe Biden

This move is Biden’s way of reinforcing the tough sentence that ex-president Trump’s put into fighting China’s intelligence and security research firms.

After the order takes effect, US-based investment companies and individuals have a year to divest the funds they have on the newly sanctioned companies.

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It looks like Huawei is only the big Chinese tech company on the list. No word yet if other brands in the tech industry, especially in the smartphone and social media fields, will be added soon.

Via: Reuters

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