Biden Administration To Add 8 Chinese Firms To Investment Blacklist
In another move amid the escalating US-China tensions, the Biden administration is reportedly adding eight more Chinese companies to its investment blacklist tomorrow.
According to a Financial Times report, the US Treasury Department is set to add the firms to its “Chinese military-industrial complex companies” blacklist. This includes the drone manufacturer DJI and facial recognition firm Megvii.
The blacklist, currently consisting of 60 Chinese groups, includes companies in which US investors are prohibited to take financial stakes.
The move comes a week after the Pentagon added Chinese chipmaker Semiconductor Manufacturing International Corporation and NYSE-listed oil producer CNOOC to the blacklist.
Completing the list of eight companies are supercomputer manufacturer Dawning Information Industry, facial recognition company CloudWalk Technology, cybersecurity group Xiamen Meiya Pico, AI company Yitu Technology, cloud computing company Leon Technology, and surveillance systems firm NetPosa Technologies.
All eight companies are reportedly already included in the US Department of Commerce’s entity list–restricting US companies to export to these firms without a license.
The tension between the two superpowers has recently been escalating, particularly on the issue of China’s ethnic cleansing efforts towards Uyghurs, an ethnic minority in the Xinjiang region. A week ago, Washington also confirmed that it will stage a diplomatic boycott of the 2022 Winter Olympics in Beijing.
Information for this briefing was found via Financial Times and Nikkei Asia. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
