Biden extends Trump list of sanctioned Chinese firms from US investment

The new executive order will come into effect on August 2, hitting firms such as communications giant Huawei, China Mobile and China Unicom amongst others.

PRETORIA, June 4 (ANA) – United States President Joe Biden has signed an executive order banning Americans from investing in 59 Chinese tech and defence firms believed to be linked to the Asian giant’s military, CNN reported on Thursday.

The US broadcaster said the original order, signed by former president Donald Trump last November, applied to 31 Chinese companies in the telecommunications, construction and technology industries.

The new executive order will come into effect on August 2 and largely continues the campaign which Biden’s predecessor had started against Chinese tech and other businesses, hitting firms such as communications giant Huawei, China Mobile and China Unicom amongst others.

According to the Voice of America, Biden’s updated list includes companies involved in surveillance technology, which the government said is used to facilitate repression or serious human rights abuses that undermine the security or democratic values of the US.

Senator Marco Rubio of the Republican Party described the sanction as an important update to the Trump administration policy.

Hong Kong stocks fell by the most in three weeks as the Biden news filtered in, the South China Morning Post reported.

The Hong Kong-based English-language newspaper said the Hang Seng Index dropped 1.1 percent on Thursday, while China’s Shanghai Composite Index ended trading with a 0.4 percent decline.

CNOOC, one of the sanctioned firms, slumped 2.6 per cent while Tencent Holdings lost 2.1 per cent. CK Infrastructure and Geely Automobile were also among big index losers, falling at least 2 percent.

Chinese Foreign Affairs ministry spokesman Wang Wenbin said China would retaliate against the latest measures, CNN reported.

“China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises and resolutely support Chinese enterprises in safeguarding their rights and interests in accordance with the law,” it quoted him as saying.

– African News Agency (ANA), Editing by Stella Mapenzauswa