Biden administration continues Trump’s reckless crackdown on Chinese companies

Biden administration continues Trump’s reckless crackdown on Chinese companies
The White House Photo: VCG

The White House Photo: VCG

The White House on Tuesday announced a continuation policy of the so-called “national emergency” that was first declared in 2020 by the previous Trump administration and inherited by the current Biden administration, which prohibits US investors from investing in Chinese companies. that they have “military forces”. ties”.

It stated that the US executive order “addresses the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States posed by the threat of investments in securities that finance certain the People’s Republic of China,” read a White House statement.

The continuation was announced on Tuesday, the last voting day of the 2022 midterm elections held in the US. Chinese experts said extending the Trump-era “national emergency” could be a move to bamboozle Trump supporters. In the USA.

“But cracking down on Chinese companies could not help solve domestic problems in the US,” Dong Dengxin, director of the Institute of Finance and Securities at the Wuhan University of Science and Technology, told the Global Times on Wednesday. .

The ban on US investment in Chinese companies, citing “links to the Chinese military,” began in 2020. Since June 2020, the US Department of Defense has repeatedly blacklisted a number of Chinese companies and has The buying or selling of listed securities of blacklisted Chinese is prohibited. companies.

On November 12, 2020 and January 13, 2021, then-President Donald Trump signed executive orders, declaring a “national emergency” and prohibiting US investors from investing in publicly traded Chinese companies.

Biden inherited the repressive politics of the Trump era after taking office. On June 3, 2021, Biden signed another executive order, further expanding the scope of the “national emergency”, and the list of Chinese companies attached to the new order reached 59.

In response to the ill-intentioned and unwarranted crackdown by the US, listed Chinese smartphone maker Xiaomi filed a lawsuit in 2021 against the US government in US District Court. for the District of Columbia, and the court ultimately ruled. with Xiaomi. The ruling was a sharp rebuke to the US government’s act of corporate coercion.

“Biden’s recent action indicated that the United States will do everything in its power to contain China by slowing China’s economic growth. The move shows that Washington is becoming increasingly reckless,” Dong said.

Dong pointed out that the free and open market practice of the US was once a model for the world. At present, in order to suppress the Chinese economy, the US has renounced the basic spirit of the free market, which is a sign of regression.

On the one hand, the politicization of US financial activities will damage its own reputation in the world among global investors. On the other hand, the Hong Kong stock exchange, with 40 percent of its trading volume coming from foreign investors, has overtaken the US in terms of degrees of openness and liberalization, and offers a much safer option with much lower costs, Dong said.

A total of 26 US-listed Chinese companies have gone public in Hong Kong, mainly through secondary listings in recent years, media reported in July.

In response to the latest US move, Zhao Lijian, a spokesman for China’s Foreign Ministry, said in a press release on Wednesday that “the US is repeating its mistake.”

“This is a move driven by their political agenda and wanton denial of the facts,” Zhao said, adding that the move seriously undermined the normal rules and order of the market and harmed the legal rights and interests of Chinese companies and companies. from China. global investors, including US investors.

“We urge the US to respect the rule of law and the market, make amends and stop taking actions that harm the functioning of global financial markets and the legal rights and interests of investors,” Zhao said.

The Chinese side will take necessary measures to firmly uphold the legitimate rights and interests of Chinese companies and support Chinese companies in protecting their interests in accordance with law, he added.

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