The US Treasury Department, after having the first female minister on January 26, issued a remarkable announcement that this agency has just issued a joint license to allow US companies to trade securities with some public companies. Chinese army company. The joint license takes effect from May 27, 2021.
|The Biden administration allows securities trading with Chinese military-related companies.|
This is believed to be a move to reverse the ban of former President Donald Trump’s administration which was imposed not long ago. Trump’s effort is to minimize the interference and dependence of the US with Chinese technology equipment – which has been considered to carry a espionage risk, threaten US national security. .
The announcement, released on the same day as the US Senate’s approval of President Biden’s nomination as US Treasury Secretary to Janet Yellen, further reinforces his cooling stance on dealing with China. new government.
In mid-November 2020, former US President Donald Trump signed an executive order prohibiting American citizens and companies from buying securities of Chinese companies that Washington said may be related to the captured Chinese military. from January 11, 2021.
The US and China have had strained relationships since 2017, when Washington’s updated National Security Strategy portrayed China as a major threat to U.S. interests in secular politics. gender.
The bilateral relationship continued to tense in the summer of 2018, when Washington raised tariffs on $ 50 billion worth of Chinese imports to balance the trade deficit.
Since then, the two countries have exchanged rounds of reciprocal tariffs and launched a devastating economic confrontation with diplomatic and trade consequences.
However, a fact that Americans are forced to admit is that even in the field of defense, Americans depend on the “hands of the mind” of the Chinese.
The Pentagon has long been concerned that China would cut off supplies of vital materials to the US military, or install destructive or espionage equipment. Hundreds of cases in which US troops depend on foreign suppliers, especially China, for critical materials.
One of the serious problems is that the US has become too reliant on foreign suppliers for a wide range of items including small electronic components – tiny components like charged circuits and transistors.
These kinds of essential components are embedded in cutting-edge electronics used in everything from satellites and cruise missiles to drones and cell phones.
The Pentagon has long been concerned that “destructive switches” could be embedded in semiconductor components, possibly shutting down highly sensitive US systems in a conflict.
US intelligence officials also warned of the possibility that China could use Chinese-made cell phones and network equipment to spy in the US.
China, also a major supplier of rare earth minerals to the United States, and the Trump administration have attempted, albeit unfinished, on America’s manufacturing transformation by promoting mining projects and rare earth production.
|China supplies the US military with components and materials necessary for the manufacture of weapons and defense.|
Analysts said that the latest move of the Biden administration could reverse the United States four years ago, when Mr. Trump has not won the presidency, bringing real policies to the country’s manufacturing industry. and warnings about expansion from Beijing.
So far, Mr. Biden’s new administration has repeatedly shown toughness towards Beijing, but the reality of how to control China needs to wait for the next policy of the President of the Democratic Party.
Biden’s Commerce Department candidate Pick Raimondo pledged to take tough action against China if approved by the US Senate.
She said the US must take tough steps to combat China’s “unfair” trade practices, and focus on investing to improve America’s production capacity.
“Clearly, China has behaved in non-competitive ways – dumping cheap steel and aluminum into the US market. This harms American workers and affects the competitiveness of our companies, ”said Gina Raimondo.
She “pledged to take tough measures to help Americans compete against China’s unfair behavior”.
Meanwhile, Treasury Secretary Janet Yellen said the US is “prepared to use the full range of tools” to tackle actions such as product dumping, trade barriers and illegal subsidies to corporations.
China’s Ministry of Commerce on January 9 issued a new regulation to protect the company from foreign laws that it considers “unreasonable”, for example being imposed by foreign countries to prevent them from participating. “normal economic and commercial activities”.
If China determines the above measures as “unreasonable”, they can impose an enforcement ban on them. Government agencies can also assist Chinese people or businesses with great losses due to their failure to comply with foreign “unreasonable” regulations.
The Trump administration has enacted rules to punish companies deemed to have ties to the Chinese military or to be linked to charges of “forced labor” in Xinjiang. Including the request for the three largest carriers in China, China Mobile, China Telecom and China Unicom, to ban trading on the New York Stock Exchange (NYSE).
On the first day of Mr. Biden inaugurated, these three carriers simultaneously asked the New York Stock Exchange (NYSE) to reverse the delisting decision on the first day Mr. Joe Biden took office as US President.
The parent company of the three carriers is 100% owned by the China State Asset Management and Supervision Commission (SASAC).