China accused the U.S. of suppressing Chinese companies

Beijing announced today that the United States is “suppressing” Chinese firms. It also issued veiled threats of retaliation. On Thursday, President Joe Biden expanded a blacklist of companies U.S. citizens are barred from investing in, causing China’s response. Biden widened the former list to 59 Chinese companies that are off-limits to American investors. According to President, these companies have links to Beijing’s military-industrial complex.

In November, ex-president Donald Trump issued a list of 31 Chinese companies, deeming them to be suppliers or supporters of China’s military and security apparatus. However, legal challenges put some of the sanctions in doubt. So, Biden’s team reviewed the blacklist and removed some names. However, the government is ultimately expanding it. Many are subsidiaries of companies already included.

According to a White House statement, the sanctions target firms involved in Chinese surveillance technology used to facilitate serious human rights abuses, undermining the democratic or security values of the United States and its allies.

On the other hand, China’s foreign ministry stated that this move was a violation of market law, and the U.S. was attempting to suppress Chinese companies.

Wang Wenbin, the spokesman for China’s Ministry of Foreign Affairs, asked the journalists to remove these so-called lists that suppress Chinese companies and urged the United States to be fair, just, and non-discriminatory towards Chinese firms.

He also said that China would take necessary measures to safeguard Chinese businesses’ legitimate rights and interests.

Which companies ended on the list?

The initial list published under Trump included major technology, telecoms, and construction firms such as China Telecom, China Mobile, China Railway Construction Corp., and video surveillance firm Hikvision.

In January, the Biden administration added China National Offshore Oil Corporation (CNOOC) to the list. The ban takes effect on August 2. So, current shareholders have a year to divest.

Wang Wenbin also stated that the ban severely undermines normal market rules and damages the interests of global investors and traders.