2021-06-22

4You Dialy

Tech news for you daily

Joe Biden forbade Americans to invest in 59 Chinese companies

2 min read

On Thursday, US President Joe Bayden signed a decree on expanding the ban on investment for companies and US citizens to Chinese companies. The new document contains a list of 59 companies related, in the opinion of the American government, with the armed forces, exploration or the Government of China. Huawei and the three largest Chinese telecommunications companies hit this list.

Bloomberg

The prohibition will come into force on August 2. From that moment on, investors will have one year to get rid of the share in the marked Chinese companies. The order of Baiden, in fact, is an edited decree of the former President of Donald Trump, which some companies challenged in court, which was confusing investors.

Many of the companies that hit the Baiden list were previously entered into the sanctions list of the Trump Administration. Among them, telecommunication companies China Mobile Communications, China Unicom and China Telecommunications. The list also hit the defense and aerospace companies Aviation Industry Corp. Of China, China North Industries Group and others. Under the sanctions hit the well-known manufacturer of equipment for Hikvision video surveillance.

The US Department of Finance plans to release guidance on fines for violation of sanctions. According to the order of Byjden, investment prohibitions will be applied to subsidiaries made to the list of companies only if they are submitted to the appropriate list of controls for foreign assets. The sanction list will be agreed with the US State Department and the Ministry of Defense.

The amendments to the order of Trump were made after the two Chinese companies successfully challenged him in court. The Biden team stated that the list revision was needed to ensure its legal sustainability and reliability in the long run.

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyright © All rights reserved. | Newsphere by AF themes.