US President Joe Biden has banned more Chinese firms which supply or support China’s military and security apparatus.
Former US President Donald Trump prohibited Americans from buying stakes in 31 Chinese companies and now Biden’s move on Thursday has expanded the blacklist to 59.
According to a White House statement, the latest batch of sanctions target companies involved in Chinese surveillance technology used to “facilitate repression or serious human rights abuses,” which “undermine the security or democratic values of the United States and our allies”.
It has been reported that the initial list published under the administration of former US President Donald Trump included major telecoms, construction and technology firms such as China Mobile, China Telecom, video surveillance firm Hikvision, and China Railway Construction Corp.
The move has left the ties between the US and China severely strained.
Ahead of the release of the US blacklist on Thursday, Beijing repeated its outrage over the blacklist of Trump administration and vowed to protect the rights of Chinese companies.
Beijing claimed the blacklist was “politically motivated” and “ignores the facts and actual situation” of the firms involved.
Foreign ministry spokesman Wang Wenbin said at a routine briefing that the ban “severely undermines normal market rules and order” and “damages… the interests of global investors, including US investors”.
Previously, the sanctions and choice of targets were tied to a congressionally mandated Defense Department report.
According to reports, the ban on new investments will come into effect from August 2 at 12:01 am in New York.
Reports said among the defence companies on Joe Biden’s list are Aviation Industry Corp. of China, Ltd., which is one of the best known of the Chinese military giants; China North Industries Group Corp.; China Aerospace Science and Industry Corporation Ltd. and China Shipbuilding Industry Co.
The blacklist of Biden also includes Hangzhou Hikvision Digital Technology Co., the developer of surveillance cameras and facial-recognition technology that has helped Chinese authorities roll out “safe city” initiatives in Xinjiang where ethnic Uyghurs have faced persecution.