The US President bars Americans to invest in Chinese firms. The US investment ban comes following potential ties of Chinese companies with the military. President Biden is all set to ban investments in Chinese Tech and Defense firms. The Executive order shall come into place on the 2nd of August. Among other Chinese Tech firms, Huawei is also prominent in the list. There are more than 50 companies that will hit with the decision. The order is expanding following former President Donald Trump’s stance. However, before the release of the orders, China suggested retaliating.
American Investors shall not be able to invest in publicly traded securities. The list of companies will be out on a rolling basis. Investors can’t trade with companies including China General Nuclear Corporation, Costar Group, and China Mobile Ltd. The previous list had 31 companies before the new order. However, the current order adds more Chinese firms including surveillance companies. The purpose of barring investors is to protect the national interest, say officials.
Huawei says, that the sanctions from the US had a bad impact on their Mobile Phone business. The decision came after the US alleges security risk. Also, UK will exclude the Smartphone leader from building 5G tech. Reportedly, the US will add more companies to the list barring investors. The bilateral ties between both countries are significantly imperative. However, President Biden will keep the existing tariffs in place. China will continue to take measures to protect the interest of Chinese enterprises. The US investment ban will have a significant impact on firms operating in China.
