Huawei and 58 Chinese companies are now deprived of US investment. Indeed, Joe Biden has decided to extend the blacklist established by the Trump administration. Unsurprisingly, China intends to take the necessary steps “to protect the legitimate rights and interests of Chinese businesses.”
Joe Biden has decided to follow in the footsteps of the Trump administration. In any case concerning his policy towards China. Indeed, the American president has just extended the blacklist put in place in January 2021 by the former tenant of the White House. At that time, Donald Trump added Xiaomi to this blacklist, effectively preventing the manufacturer from receiving funding from American investors.
Xiaomi has since made an official agreement with the new US government to break this deadlock. In this new blacklist, Joe Biden now includes Chinese companies involved in manufacturing and deploying surveillance technology. “This decree authorizes the United States to prohibit in a targeted and circumscribed manner American investments in Chinese companies which undermine the security or the democratic values of the United States and its allies ”, assured the White House in an official statement.
According to the U.S. government, the goal here is to prevent U.S. investments from support the Chinese military-industrial complex, in order to avoid possible repression and human rights violations. A direct reference to China’s alleged abuses against the Uyghurs.
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Huawei is not spared by these new sanctions
These sanctions, which will take effect on August 2, 2021, therefore concern 59 companies in total, for the moment. The US Treasury Department reserves the right to add other companies if necessary. Unsurprisingly, Huawei is still present, despite its pleas to see the sanctions against it finally lifted.
Then we find the oil giant CNOOC, China Railway Construction, China Mobile, China Telecom, the video surveillance company Hikvision or even one of the world’s leading semiconductor manufacturers, namely SMIC (for Semiconductor Manufacturing International Corp). A situation which could also worsen the current global shortage of semiconductors.
China does not intend to let it go
Without surprise, China immediately condemned these measures. “The United States should respect the rule of law and stop taking actions that are harmful to the global financial market. China will take the necessary measures to vigorously protect the rights and legitimate interests of Chinese enterprises ”, assured Wang Weibin, spokesperson for the Chinese Ministry of Foreign Affairs. As soon as these sanctions come into force on August 2, American investors will have a period of one year to the day to withdraw all of their assets in the Chinese companies concerned.
Source: Le Figaro