US bans investements in Huawei and othet Chinese tech companies

The Biden administration has issued an government order to ban US entities from investing in Chinese corporations with alleged ties to Chinese army or surveillance sectors.

Reuters studies that the brand new record consists of 59 Chinese companies. The treasury division will implement this record and replace it on a “rolling basis.”

Major Chinese tech corporations on the brand new funding ban record embody Huawei, Chinese semiconductor foundry SMIC, and video surveillance firm Hikvision. Other companies on the record embody Chinese protection corporations.

“I find that the use of Chinese surveillance technology outside the PRC (People’s Republic of China) and the development or use of Chinese surveillance technology to facilitate repression or serious human rights abuse constitute unusual and extraordinary threats,” Biden stated in the order.

A senior official instructed Reuters that extra companies might be added to the funding embargo record in the approaching months.

The order says that the ban would take impact on August 2. US buyers will nonetheless have 365 days from the date of this or future listings to divest their holdings from the banned companies.

Previously, Xiaomi was additionally on this funding deny record. However, the smartphone maker obtained the ban reversed after profitable a lawsuit in opposition to the US authorities.

We’re not sure how a lot the brand new orders will affect Huawei’s already dwindling international smartphone enterprise. However, it’s actually not excellent news for the corporate which can be nonetheless on the notorious US Entity List.

Meanwhile, analysts imagine that semiconductor corporations like SMIC may not be impacted a lot as they’d get help from the Chinese authorities.

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