The Biden administration postponed the ban on investment in Chinese military enterprises

The Biden administration postponed the ban on investment in Chinese military enterprises

The US Treasury Department recently revised the investment restrictions on certain military-related companies and subsidiaries of the Chinese Communist Party (CCP). Accordingly, the effective date of the ban will be moved from January 11 to the end of May.

(Photo: Damien VERRIER / Shutterstock)

On Wednesday (Jan. 27), the US Treasury Department website released a statement by the Office of Foreign Assets Control (OFAC), in which the Biden administration said, before May 27. , most US investment projects in companies with similar but not matching names of Chinese military companies on the blacklist will be approved.

The ban includes disallowing US investors from conducting securities trading with Chinese military companies and sanctioned subsidiaries.

On November 12, 2020, former President Trump issued an executive order, announcing that starting Jan. 11 this year, U.S. investments in Chinese companies were either approved by the Ministry of Finance or the Ministry of Finance. The Department of Defense recognizes that it is owned or controlled by the Chinese military will be prohibited.

The decree states that the aforementioned companies have connections to the CCP’s military and intelligence agencies. These companies went on the US stock exchange to gather American investment to finance the development and modernization of the CCP’s military, posing a threat to US security.

The executive order also prohibits US investors from buying securities of these Chinese companies. Some giant Chinese national companies such as CNOOC, China Mobile, China Telecom and China Unicom … have also been affected.

Before former President Trump left office, he issued another executive order on December 28, asking US companies and individuals not to invest in companies run by the Chinese military. National control. This order also applies to subsidiaries of blacklisted companies.

On January 13, former President Trump continued to issue another executive order requiring that from November 11, US investors need to divest from Chinese companies deemed owned or controlled. control of the Chinese army. This is the latest intensification move to limit the CCP’s entry into the US capital market that he made before leaving office.

On January 20, when the new President Biden took office, three major state-owned telecommunications companies, including China Mobile, banned by the Trump administration from listing on the New York Stock Exchange, requested a reconsideration. decision on. In this regard, Mr. Biden’s spokesman said that China and the United States are still in “Strategic competition” fiercely, the Biden administration is seeking a policy of tolerance and alliance coordination with China.

On Monday (Jan. 25), during a regular press conference, White House spokesman Jen Psaki said the Biden administration’s review and assessment of a wide range of regulatory actions and issues China’s investment implications are very complex and have just begun.

“As I mentioned, they will need to conduct an inter-department review. The State Council, the Ministry of Finance and a number of other departments will evaluate how we act. ” She said, “When it comes to our relationship with China, we are beginning to be patient. We need to consult our allies. We will consult with Democrats and Republicans. We will allow cross-departmental review to complete the review process and evaluate how we should advance our relationship. ”

At present, it is not clear whether the Biden administration will delay asking investors to divest Chinese corporate securities owned or controlled by the Chinese military.

According to Lam Yen, Epoch Times

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