Foreign media reports indicate that the Biden administration is considering revising regulations implemented under the Trump administration that “prohibit stock transactions with Chinese companies with military backgrounds.
According to the report, the conversation was mentioned by Joseph Borson, an attorney with the U.S. Department of Justice, in a federal court in Washington, D.C., which is hearing a case last year in which the U.S. Department of Defense banned securities investment transactions with Chinese companies with alleged “ties to the Chinese government and military.
In the past, two blacklisted Chinese companies have filed lawsuits in U.S. courts, including Xiaomi (01810), which has been granted an exemption. Borson said another Chinese company may have a chance to get immunity in the coming days, while such lawsuits have become a hot-button issue for the U.S. Justice Department. He said the Biden administration is reconsidering whether to revise the criteria for labeling Chinese companies as “military-affiliated companies.
Currently, more than 30 Chinese companies have been blacklisted by the U.S. Department of Defense, including Chinese chip maker SMIC (09891) and CNOOC (00883), the controlling shareholder of CNOOC, among others.
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