The U.S. Treasury Department issued a notice Tuesday requiring investors to close securities transactions with Chinese military-linked companies by June 11. The previous deadline for the relevant regulations was May 27.
The White House is deeply concerned about this ban on investments in Chinese military-linked companies, and the new policy, once implemented, will “strengthen the ability to prohibit U.S. investments in the Chinese military, artificial intelligence and other security devices,” Reuters said that day, citing unnamed senior U.S. government officials. The two-week delay in implementation is intended to resolve the details of issuing this executive order during Trump’s presidency.
It is reported that at least eight Chinese companies have been blacklisted for investment in military-linked companies. The ability of telecommunications equipment giant Huawei to design its own chips and procure components from outside suppliers was severely impacted in 2019 when the company was blacklisted from U.S. exports and denied access to key technologies originating in the United States.
In addition, Semiconductor Manufacturing International, a key player in China’s chip industry, has been subject to similar technology restrictions by the U.S. Department of Defense.
So far, the Chinese embassy and consulates in the U.S. have not yet responded to this.
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