The Pentagon has failed to provide Congress with a legitimate report on Chinese military-affiliated companies, while US President Joe Biden has approached the idea that Americans can invest in such groups.
Congress wants the Department of Defense in January to submit an April 15 report. But the Pentagon has told lawmakers to miss the deadline, according to two people familiar with the report.
The delay came as Biden’s management decided to reserve it monitoring written by Donald Trump, a former President, which barred Americans from investing in Chinese companies listed in the old Pentagon list.
US Treasury in January added the deadline for the ban to run until May 27. The move was designed to give observers time to brief observers as part of a review of China’s actions with Trump.
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Biden will separate the file some hawkish positions entering China beyond what many foreign experts expect.
A Pentagon spokesman did not say why he was delaying but said the defense department would submit a report before October.
The program of The Financial Times reports Last year the Pentagon responded to Trump’s pressure to write the first list, more than two decades after it was first ruled by Congress. The former president used the list as a basis for his law banning direct driving, or investing in companies.
In addition to urging the Pentagon to make an annual report, Congress expanded its reach to companies supporting the People’s Liberation Army through a “military coup”, a program that requires groups to share expertise with Chinese military. This has the potential to increasing its size any financial restrictions.
Some U.S. lawmakers have expressed concern over the delay. Tom Cotton, a well-known Republican filmmaker in Arkansas, said it was “important that the Department of Defense remains interested in documenting and advertising Chinese companies operating in the US”. He also said that the administration should “deal with the attempts of the Communist Party to use our courts”.
Cotton’s comments came after the Pentagon agreed to remove Xiaomi, a Chinese smartphone maker, from the list after a judge said the same thing was wrong.
The White House said it was “forced” to remove the company after Trump’s court found it leadership failed to form a basis for his laws. But Emily Horne, a spokeswoman for the National Security Council, said Biden was “” deeply concerned about what the US could bring to China-linked companies and is fully committed to cracking down on such companies “.
John Smith, co-founder of law firm Morrison & Foerster and a former US Treasurer, said the officers had been beheaded. “I hope the Biden party would like to laugh at it all,” he said, referring to the legal crisis that Trump left Biden. “They probably won’t because they don’t look like Chinese minorities, and they don’t want to be Chinese.”
Smith said Biden needed to exercise how to use the list in a way that would not cause further damage to the court.
Eric Sayers, an Asian analyst at the American Enterprise Institute’s tank, said that while lawmakers were unhappy with the delay, it should be noted that Biden was showing signs of perseverance.
“Government officials have shown that they do not want to lose the job, but change it by working together,” he said. “Whether Congress can be patient and how the Biden team will use this approach is crucial to watching this summer.”
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