U.S. President Joe Biden signed an executive order effectively banning American investment into 59 military -related Chinese companies.
The move signals that Biden will pursue some of the China -related policies previously implemented by the Trump administration.
The new executive order will take effect on Aug. 2, covering 59 companies including communications giant Huawei. The list of companies is reported to be updated continuously.
However, current investors in these companies are still allowed to trade with the intention of releasing their holdings within one year.
Under the new order, U.S. investors will be prohibited from buying or selling securities that are publicly traded for other companies including China General Nuclear Power Corporation, China Mobile Limited and Costar Group.
This further expands the previous list signed by former President Donald Trump of 31 firms, to ensure U.S. investments do not support Chinese companies that damage the security or interests of the U.S. and its allies.
In addition, the move was also made as part of the Biden administration’s commitment to pushing to facilitate human rights violations in China.
