Joe Biden Signs Order Banning Investment in Huawei and Other Chinese Companies

President Joe Biden

United States President, Joe Biden on Thursday signed an executive order consolidating the ban by the Trump administration that prevents U.S. entities from investing in Chinese companies with alleged ties to China’s military.

The Trump administration had a previous order banning 48 Chinese companies, that number has now been increased to 59 including Huawei by President Biden’s new order. This will prevent American investment from supporting the Chinese military-industrial complex, as well as military, intelligence, and security research and development programs, Reuters reports.

I find that the use of Chinese surveillance technology outside the PRC (People’s Republic of China) and the development or use of Chinese surveillance technology to facilitate repression or serious human rights abuse constitute unusual and extraordinary threats, which have their source in whole or substantial part outside the United States, to the national security, foreign policy, and economy of the United States, and I hereby expand the scope of the national emergency declared in Executive Order 13959 to address those threats.” – President Joe Biden.

Despite previous concerns and alleged ties to the Chinese military, companies such as DJI, WeChat, TikTok and parent company, ByteDance were not included in the ban. Among the 59 companies are Huawei, Xiaomi, China’s Semiconductor Manufacturing International Corp and Hangzhou Hikvision Digital Technology.

The ban order takes effect on August 2nd. Americans with investments in the 59 companies have a one-year period to move their holdings.

Image: Getty Images/Win McNamee

Posted by Biodun

Passionate about Technology and everything concerning it. Avid Gamer and Music Lover. Loves Chelsea FC. Overall, a nice guy. Find me on Instagram and Twitter.

Leave a Reply

Your email address will not be published. Required fields are marked *