"Biden Likely to Maintain Investment Ban on Chinese Companies"

Photo by Bloomberg

[Asia Economy Reporter Yujin Cho] The Biden administration is expected to continue the investment ban measures related to Chinese companies signed by former President Donald Trump, Bloomberg reported on the 6th, citing sources.

The report stated that the Biden administration is currently discussing the investment ban on Chinese companies related to the Chinese military designated by former President Trump, but no conclusion has been reached yet.

Anonymous sources said, "The Biden administration is conducting preliminary consultations on the investment ban measures, and no decision has been made yet."

The U.S. government's investment regulations on Chinese companies were introduced during the Trump administration. In November last year, the Trump administration signed an executive order banning investments in 31 Chinese companies owned or effectively controlled by the Chinese military.

Later, even in the final phase of his term after failing re-election, additional companies such as the state-owned oil company China National Offshore Oil Corporation (CNOOC) and Xiaomi were added to the investment ban list, increasing the number of banned companies to 44.

The Biden administration has delayed the implementation timing of the investment ban on these companies, citing a review of its China policy.

The report noted that since the Biden administration is showing strong intentions to check China on issues such as trade, human rights, and the South China Sea, it is highly likely that the investment ban measures will continue.

Anonymous sources also suggested the possibility that the Biden administration may expand the investment ban to include companies involved in intellectual property rights violations, human rights abuses in manufacturing, or technology-related firms.

Deputy Treasury Secretary Wally Adeyemo said in February, "It will be necessary to hold China accountable for actions that violate international law and threaten U.S. national security by using strong financial sanctions and other tools."

U.S. investors must divest stocks of companies on the investment ban list within one year. Accordingly, until the 27th of this month, investors cannot purchase stocks of companies subject to the investment ban or invest in related funds, and stocks already held must be sold by November 11.