Update

Joe Biden broadens the investment ban on Chinese tech firms

The Biden presidency has reinforced and broadened Trump-era prohibitions on financing in Chinese companies that are thought to support China’s spy and military infrastructure. The first 59 industries covered by the presidential order include big technology, space, and telecoms industries. There will be more to join as per the government order.

Throughout the order’s emergence, President Biden says, “I discover that the advancement and use of Chinese electronic surveillance outside the People’s republic of china to promote violence or significant human rights violations involve unexpected and unprecedented vulnerabilities.”

Joe Biden broadens the investment ban on Chinese tech firms 2

Image Courtesy: Tech Crunch. 

In 2019, major tech companies like ZTE and Huawei, and many other Chinese tech companies were immediately listed on the blacklist of the Trump administration and prohibited from getting financial assistance from the US investors and were considered as a serious threat to the security of the country. However, the Biden administration broadened this list and added 28 more Chinese tech companies to the blacklist. 

The Biden decision emphasizes and expands the existing order, modifying some and adding on others, notably in terms of defining risky activities or coordination with the Chinese government. Furthermore, the firms engaged in internal monitoring of Uygur Muslims in China and political opponents in Hong Kong and abroad are also covered in the list.

On the other hand, in the response to the order, Beijing alleged that the decision is politically driven.

Khushi

Khushi is an avid reader and loves analyzing companies in the digital space. Her interest is in online marketing, business, startups, and politics. She does everything perfectly by taking extra time.
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