U.S. President Biden signed an executive order last Thursday to increase the number of Chinese military-related companies that prohibit American investment to 59. Most of them involve industries such as defense, related materials, and surveillance technology. The transfer of the Ministry of Finance to the Ministry of Finance is the most extensive sanctions imposed on Chinese entities since Biden took power.
Companies that are engaged in surveillance outside China and use Chinese surveillance technology to suppress human rights and create threats are also included in the list of prohibited investments. This shows that Biden not only expanded the restrictive power of relevant policies during the Trump administration, but also continued to compete in technology. Put pressure on China.
Many companies that have been banned from investing are actually on the Trump administration’s list, including China Mobile, China Unicom, and China Telecom. Biden has blacklisted Chinese companies that are banned from investing from 48 companies in the Trump era. Expanded to 59 stores. This executive order will take effect on August 2, US time, and investors have a one-year buffer period to withdraw their capital.
The revision and expansion of the investment ban on Chinese companies is one step in a series of extensive actions by the Biden administration to not only strengthen competition with China in the field of science and technology, but also to restrain U.S. funds from flowing in and harming the safety of the United States and its allies. And values of Chinese companies.
Former U.S. President Trump signed an executive order on November 12 last year, prohibiting American investors and people from buying shares in Chinese military-related companies. However, after several Chinese companies, including Xiaomi, successfully challenged Trump’s order through litigation, the Biden team believes that it is necessary to revise relevant policies and establish a sustainable and legally reasonable framework to implement this order.
It is not surprising that Biden continued Trump’s policy. He decided to expand the investment ban on Chinese companies in order to maintain pressure on Beijing, just as he determined to thoroughly investigate the origin of the coronavirus; and the American people and members of Congress also called on The Biden administration must take tougher and bolder stances and actions against China.
However, if these administrative bans are to be effective, Biden must persuade the European Union, Japan, South Korea and other countries to join forces. The White House announced last Thursday that Biden will start his first foreign visit after taking office from June 10 to 16. He will meet with leaders of European Union countries, the United Kingdom, Belgium, Switzerland, Turkey, and Russia.
Biden will attend the G7 Summit, NATO Summit and the U.S.-Europe Summit, and is expected to seek cooperation from multilateral partners to revive transatlantic relations to meet global challenges and better consolidate U.S. interests. The focus of the talks cannot be avoided. How to deal with China’s competition and threats, draw Europe away from China, and strengthen the common position and cooperation on China policy.
Under the China-US Comprehensive Economic Dialogue mechanism, the two countries signed the first phase of the trade agreement in January 2020, but the trade war between the world’s two largest economies has not stopped, and so far there have been no punitive tariff measures against China. After the cancellation, the COVID-19 pandemic swept the world, and Sino-US relations took a sharp turn.
The Biden administration took office in January this year and stated that it will reassess the US policy toward China. Although it has not yet introduced any specific measures against China, Biden’s European trip and the overall strategy of uniting allies to counter China have become clearer.
High-level economic and trade officials from the United States and China opened the first contact since President Biden took office in the past week. Chinese Vice Premier Liu He spoke with US Trade Representative Dai Qi and Treasury Secretary Yellen twice through video conferences, but only on Sino-US trade and macroeconomic issues. The economic situation, multilateral and bilateral cooperation and exchange of views, Xinhua News Agency’s report did not mention the issues of concern to the United States involved in the talks.
And even though the Chinese side stated that normal communication between China and the US has begun in the economic and trade fields, just a few hours later, the new list of investment bans on Chinese military-related enterprises was announced. How much impact this new ban has on Chinese military-related companies and what measures China will take to safeguard the legitimate rights and interests of Chinese companies are the focus of international attention. In any case, after Biden’s China strategy has been clarified, China and the United States have officially entered a period of more intense competition.
Chinese President Xi Jinping once again put forward the request of “telling a good China story” at the study meeting of the Political Bureau of the Communist Party of China last Monday, instructing leaders at all levels of the Communist Party to “work hard to create a credible, lovely, and respectable image of China”, which was interpreted by some as In order to get rid of the “wolf of war” label, whether and how Beijing will adjust its diplomatic image and policies are also the next changes that deserve attention.