US President Joe Biden is reportedly set to amend the blacklist of Chinese companies that US companies are not allowed to invest in this week.
Trump’s original ban targeted companies owned by or associated with the Chinese military. But it was not always clear to what extent the ban also applied to subsidiaries, for example. According to Bloomberg news agency, Biden would now like to move away from the old criteria and focus more on defence or surveillance technology companies.
According to Bloomberg, this does not mean that Biden is abandoning the tough stance on China of his predecessor Donald Trump. By changing the terms for the list, Biden would like to pressure certain telecom companies and companies in the aerospace and technology sector.
The US has long accused Chinese companies of passing on sensitive information to its own government. The Chinese Communist Party previously said it does not engage in industrial espionage. It was already known that a change to the policy was imminent. The Biden administration has recently been investigating a number of policy aspects for China, including the investment ban.
Dozens of Chinese companies are on the blacklist, including technology group Huawei and China’s largest chip manufacturer SMIC. Smartphone maker Xiaomi previously filed a lawsuit, after which the US government decided to remove the company from it.