More Chinese firms could fall under Biden’s broader investment ban
President Joe Biden’s order last week banning U.S. investment in certain Chinese companies is broader than a similar one signed by his predecessor Donald Trump and has a lower bar, making it easier to add more companies later.
Legal experts say it also may help the administration avoid embarrassing defeats in court after a ban imposed near the end of the Trump administration failed to hold up against legal challenges.
Biden’s order will prohibit U.S. investments in about 60 companies in China’s defense or surveillance technology sectors.
The new order prohibits investments in companies that "operate in or have operated in" China's defense or related materials sector, or in surveillance technology, or are owned or controlled by someone who does. Its aim is to limit the flow of money to companies that undermine U.S. security or "democratic values," which allows listings for human rights abuses.
Reference: Reuters
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