The Wall Street Journal reported on Wednesday (13) that the U.S. government will not ban Americans from investing in the three Chinese Internet giants “Alibaba, Tencent and Baidu.
Trump signed an executive ban in November last year, targeting other Chinese Communist Party military-backed companies and prohibiting Americans from investing in them. The U.S. New York Stock Exchange on the 6th of this month, in accordance with the guidelines issued by the U.S. Department of the Treasury, from 11 onwards, China Mobile, China Telecom and China Unicom will be listed.
On the 6th of this month, it was rumored that the U.S. government was considering expanding the blacklist to include Alibaba, Tencent and Baidu in the scope of the investment ban, triggering a setback in the ADR of these Chinese stocks.
Sources told the Wall Street Journal on Wednesday that the U.S. Department of Defense is reviewing more than a dozen Chinese companies, including Alibaba, Baidu and Tencent, to confirm whether they support the Communist Party’s military, intelligence and national security services.
After weighing these Chinese companies’ ties to the Communist Party’s military and the potential economic impact of the investment ban, two sources mentioned that the U.S. no longer plans to blacklist the three companies.
In addition, the sources said that nine new blacklisted companies have been added to the investment ban, and more than 100 subsidiaries of originally blacklisted companies have been expanded. U.S. investors must remove any holdings in blacklisted companies by November of this year.
The new blacklist will be submitted to Congress and will be released to the public as early as Wednesday, the sources said.
Representatives from the U.S. Departments of Defense and Treasury and representatives from Alibaba, Tencent and Baidu were not immediately available to comment on the news by press time.
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