Jakarta, COTEKNO.COM – The United States (US) government is now continuing a long episode of its tough stance on a number of technology companies from China.
President Joe Biden has now enacted a new executive order banning investments in 59 Chinese companies including Huawei that will take effect from August 2. The new decision prevents the tap of US investment in the Chinese company from flowing.
The executive order also marks an extension of the Trump-era ban on Americans investing in Chinese companies with alleged ties to the Chinese military.
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And interestingly, the number of bans has increased, where previously there were 48 companies listed in the US trade black book, now increasing to a total of 59 businesses from China.
In addition to Huawei, chipmaker SMIC, telecom operator China Mobile, video surveillance company Hikvision, and a large number of Chinese defense sector companies have received the ban.
A senior US official even confirmed that more Chinese companies are likely to be added to the list in the coming months.
This can happen because the US government views the use of Chinese surveillance technology outside the PRC (People’s Republic of China) and the development or use of China’s surveillance technology to facilitate suppression or serious human rights violations, as a threat.
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“Beyond the United States, to the national security, foreign policy, and economy of the United States, and I hereby extend the scope of the national emergency declared in Executive Order 13959 to address these threats,” said President Joe Biden.
With the new sanctions in place, President Biden is reinforcing a tough stance on Chinese security and intelligence research firms, which culminated during former President Donald Trump’s four-year term.
Prior to the deadline, US companies and individuals who invest in these 59 companies are allowed to withdraw funds in these Chinese companies, within 1 year of the entry into force of this rule.