The Biden government is barring Americans from investing in a number of Chinese security companies and regulators in an attempt to prevent the US capital from being used by China to undermine international security.
President Joe Biden on Thursday signed a major anti-money laundering bill in 59 companies, including Chinese companies such as Huawei, mobile phone manufacturers, and Semiconductor Manufacturing International Corporation, China’s largest arms manufacturer, which US experts say is important to Chinese military. .
U.S. officials say the ban will take effect on August 2. But investors can do business in the next 12 months to withdraw their money. While Americans are not being forced to remove security, they will not be able to sell what has been available for the past one year.
The law prohibits the repayment of all loans and security debts, and prohibits Americans from generating available funds Security in China in their books.
“The new law stipulates that regulators want to establish and enforce restrictions on Chinese security companies to ensure that the U.S. people do not contribute to the People’s Republic of China’s military operations,” said a United States official. “The sanctions are being deliberately enforced and further aggravated while undermining global markets.”
The ban reflects recent efforts by Biden’s management to increase its volume hawkish stance in China on everything from the oppression of the Uyghurs to their brutal wars in the South and East China Seas. It comes as Biden prepares to travel to Europe for the G7 summit where China is expected to negotiate.
Former President Donald Trump at the end of last year released system Prohibition of funds in companies listed by the Pentagon on the list of groups that are suspected of joining the People’s Liberation Army. But the move brought chaos to the financial markets because it came with less lead in setting up. U.S. courts also later ruled that the government did not provide sufficient evidence at some point to establish a company on the list.
Officials said Biden’s law should ensure that the legal ban is strictly enforced. They added that it would increase Trump’s order to include law enforcement agencies, including Hikvision, who have been accused of helping Beijing torture more than 1m Muslim Uyghurs in prisons northwest of Xinjiang.
The affected companies also include Aviation Industry Corporation of China, China National Offshore Oil Corporation, China Railway Construction Corporation and China National Nuclear Corporation. The list also includes three major Chinese telecommunications companies: China Mobile, China Telecom and China Unicom.
Later Thursday the Pentagon is expected to release its new version a list of Chinese companies With the merger of the PLA, Congress will require the defense department to issue a new list every year. But the official said the Pentagon list would not affect the restrictions imposed above.
The official said the Pentagon list could give him “flexibility to connect with a wide range of people related to companies that are connected differently to different parts of the Chinese government”.
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