President Biden to sign executive order to ban investment in 59 Chinese defense and tech firms

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U.S President Joe Biden will concern a brand new executive order on Thursday that can successfully ban American corporations from shopping for or promoting publicly traded securities for 59 Chinese corporations with alleged ties to defense or surveillance expertise sectors, Reuters reported.

The transfer is a part of a broader measure to counter China, together with reinforcing U.S. alliances and pursuing massive home investments to bolster the U.S. financial competitiveness, amid more and more bitter relations between Beijing and Washington.

U.S Treasury Department will implement and replace on a “rolling basis” the brand new ban record, which replaces one from the Department of Defense, in accordance to the report. The coverage would take impact on Aug. 2.

The new order, which is an effort to make an analogous Trump-era prohibition extra legally sound, alerts President Biden administration’s intent to “ensure that U.S. persons are not financing the military industrial complex of the People’s Republic of China”, one of many senior officers informed reporters.

The inclusion of Chinese surveillance expertise firms expanded the scope of the earlier order, the officers mentioned.

“We fully expect that in the months ahead … we’ll be adding additional companies to the new executive order’s restrictions,” an official mentioned.

In December final 12 months, US lawmakers proposed $1.9 billion aimed to fund a program to take away telecom community tools manufactured in China, which the U.S. authorities underneath Trump administration mentioned poses nationwide safety dangers.

The proposal follows years of rumor that Huawei Technologies tools and ZTE Corp units characteristic a backdoor that gathers info and transmit them to China. Read the article here