Beijing accuses US of “suppressing” Chinese companies with new list
BEIJING (Reuters) – China accused the United States of “suppressing” Chinese companies and issued veiled threats of retaliation on Friday after President Joe Biden expanded a blacklist of companies in which Americans are banned to invest.
Biden on Thursday expanded a list to 59 Chinese companies banned from US investors because of their ties to Beijing’s “military-industrial complex”, as he maintains a campaign of pressure on the Asian superpower.
His predecessor Donald Trump released a list of 31 Chinese companies known to supply or support China’s military and security apparatus in November, adding more companies earlier this year.
But after legal challenges cast doubt on the sanctions, Biden’s team looked at the blacklist, removing some names and ultimately expanding it. Many are subsidiaries of already included companies.
The sanctions target companies involved in Chinese surveillance technology used to “facilitate repression or serious human rights violations,” which “undermine the security or democratic values of the United States and our allies,” according to a statement. the White House.
Foreign Ministry spokesman urges Washington to be “fair, just and non-discriminatory” towards Chinese companies
The Chinese Foreign Ministry called the move a “violation of market law” and an attempt to “suppress” Chinese companies.
“Remove these so-called lists that suppress Chinese companies,” Wang Wenbin, spokesman for the Chinese Foreign Ministry, told reporters urging the United States to be “fair, just and non-discriminatory” towards Chinese companies. .
“China will take the necessary measures to resolutely protect the legitimate rights and interests of Chinese enterprises,” he added.
The initial list released under Trump included major telecommunications, construction and tech companies such as China Mobile, China Telecom, CCTV company Hikvision, and China Railway Construction Corp.
The China National Offshore Oil Corporation (CNOOC) was added in January – forcing S&P to remove it from its stock index – and remains on Biden’s list. The investment ban takes effect on August 2 and current shareholders have one year to divest.
The move was part of a series of White House measures targeting Beijing that have significantly strained ties between the two sides.
Previously, sanctions and target selection were tied to a Congress-mandated Defense Department report, but would be managed by the Treasury Department.
While the Biden administration pledged to take a more diplomatic approach with China after Trump left, he said he would stand firm on several issues, including defense and technology.
Biden lamented that the United States is falling behind, saying China is “eating our lunch.”
However, its list was swept away by investors, with shares of companies listed in Hong Kong and mainland China significantly higher.
Among the stars, Changsha Jingjia Microelectronics added 5.20% and Zhonghang Electronic Measuring Instruments Co. jumped more than 4pc.
In Hong Kong, China Mobile climbed more than 1pc and China Unicom jumped almost 1pc while CNOOC was only slightly lower.
A hard line on China enjoys rare multi-party support in Congress, with lawmakers determined to harness its growing global influence.
Republican Senators Tom Cotton and Marco Rubio, alongside Democrats Gary Peters and Mark Kelly, released a bipartisan letter earlier this week urging the administration to release a new list.
“The US government must continue to act boldly to block the Chinese Communist Party’s economic predation against our industrial base,” they said.
Posted in Dawn, le 5 June 2021