U.S. President Joe Biden on Thursday signed a decree banning U.S. companies from investing in a number of Chinese companies with alleged links to sectors of military surveillance.
The Treasury Department will continuously enforce and update the new list of 59 companies prohibiting the purchase or sale of listed securities in target companies, replacing an earlier list from the Department of Defense.
The order effectively prohibits U.S. investments from supporting China’s military-industrial complex, which includes intelligence and security research and development programs.
The Biden administration has reviewed a number of aspects of U.S. policy toward China, and his administration had extended a deadline for implementation set by former President Donald Trump’s executive order while drafting a new policy framework.
This step is part of Biden’s moves to counter China, including strengthening U.S. alliances and large domestic investments to boost America’s economic competitiveness.
Chinese investors ignored the list, with most of the stocks posting gains through Friday morning.
The ban comes into effect on August 2 for companies already listed on the stock exchange.
U.S. investors have 365 days from this or future listings to part with these transactions, after which a sale would already be prohibited without approval.
For more information, read the original story in Reuters.