On Thursday, June 3, 2021, President Joe Biden has signed an executive order entailing the ban of Chinese companies to invest with the alleged connections to the military and Surveillance Technology sector. This move explores and further expanded the legally flawed Trump Era.
BIDEN also further stated that this order would stop America to support the Chinese Military, Industrial, and security departments too. However, previously Ex-president Trump halted Americans Buying stakes in 31 Chinese companies.
What made Biden order the Ban of Chinese Investments
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The major reasons behind the order are understood easily by the above statements that, firstly, the companies are suspected to have ties with the Chinese Military and Technology departments, and secondly, the order expands the previous Flawed Trump era.
Biden has stated that this campaign is actually the predecessor’s ideology of halting the Chinese tech and other respective businesses. Previously 31 companies were on Trump’s list and now Biden has added a couple of companies, altogether 51 companies were stopped to invest in the U.S.
According to the White House, President Biden also cleared that this campaign is to expand the scope of the order is due to the ” Unusual and extraordinary threats” posed by Chinese Surveillance technology. As per the ASP report the recent sanctions target involved the Chinese Surveillance technology that used to ” facilitate repression or serious human rights abuses”.
Biden has been reviewing the various aspects of U.S policy towards China. Also, Congress has shown a cross-party unity against China as a plan to stop China from the global clout. KURT CAMPBELL, Biden’s Indo-Pacific Policy adviser and coordinator has spoken last month related to this issue saying a period of engagement with china had come to an end and the dominant paradigm in bilateral ties going forward would be one of competition.
what are the companies that are blacklisted?
Major ban of the Chinese Companies is included as follows Huawei Technologies LTD, Hangzhou HIKVISION Digital Technology Co Ltd, Previous defense department Aviation Industry Corp Of China (AICC), China Mobile Communications Group, China National Off-Shore Oil Corp, Semiconductor Manufacturing International Corp. The ban on these companies would come into effect from August 2.
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