A new executive order by President Biden expands on a Trump-era ban on U.S. investment in Chinese companies that support China’s military.
The ban affecting 59 entities also now includes Chinese companies that sell surveillance technology on the grounds they “facilitate repression or serious human rights abuse.”
The order takes effect on August 2, prohibiting a U.S. citizen from purchasing or selling any publicly traded securities connected with the Chinese companies named by the Biden administration.
Enforcement authority is granted to the Secretary of the Treasury in consultation with the Secretary of State; enforcement was through the Department of Defense under Trump.
The White House explained that extending the ban to surveillance companies on the grounds they facilitate repression or human right abuses “is consistent with the Biden Administration’s commitment to protecting core U.S. national security interests and democratic values.”
In the entire list of 59 companies, two are listed under the ban for surveillance technology: Huawei Technologies Co., Ltd. and Hangzhou Hikvision Digital Technology Co., Ltd. Both are counted along with dozens of others for providing defense and related materials.
Huawei has particularly lobbied to be removed from the ban over the past two years. The executive order does not indicate how the surveillance technology has been used. However, the U.S. has objected to facial recognition and other surveillance tech that the U.S. says China has employed against pro-democracy protesters in Hong Kong and the Uyghur minority population.
In addition to the executive order, Biden has maintained import tariffs that Trump imposed on many Chinese goods. In March, Biden implemented a separate Trump executive order and send subpoenas to several Chinese companies seeking information on the possibility of national security problems.
A Huawei spokesman said the company does not support the Chinese military and does not permit its technology or equipment to be used for oppression or discrimination, similar to comments the company has made earlier. The company is still analyzing the executive order’s impact.
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