The Strategist

Biden prohibits investing in 59 Chinese companies

06/04/2021 - 03:50

US President Joe Biden has signed an executive order to blacklist 59 Chinese companies. Among them is one of the world's largest telecommunications companies, Huawei.

Gage Skidmore
Gage Skidmore
"The executive order allows the US to prohibit investments in Chinese companies that undermine the security or democratic values of the US and our allies. <...> The executive order prevents US investments from supporting the Chinese defence sector," the White House said in a statement. The document comes into force on 2 August.

The ban also applies to aircraft manufacturer Aviation Industry Corporation of China, telecommunications companies China Mobile Communications Group and China Telecommunications Corporation, China United Network Communications Group, and microelectronics company Semiconductor Manufacturing International Corporation.

Earlier, think tank CSIS reported that Huawei has struck 70 deals in dozens of countries in Africa, Asia and Latin America since 2006 to build cloud infrastructure and electronic government services systems. According to analysts, the data shows that despite US attempts to dissuade states from doing business with this Chinese company, Huawei is actively expanding in developing countries.

Huawei has accelerated development of its own operating system in 2019 due to earlier US sanctions. In June 2021, the company announced a line of mobile devices that would be the first to receive HarmonyOS 2.0.