On Thursday, U.S. President Joe Biden signed an executive order, expanding restrictions of American investment in Chinese corporations with alleged ties to military and surveillance purposes.
The order, coming into effect on August 2nd, is composed of 59 Chinese companies including communication giant Huawei (SHZ: 002502). Biden thereby continues the tough stance toward China that was instigated by former President Trump, who has banned 48 firms from American investment during his presidential term.
The White House justified this course in a press release, as “this E.O. allows the United States to prohibit – in a targeted and scoped manner – U.S. investments in Chinese companies that undermine the security or democratic values of the United States and our allies”.
Chinese Ministry of Foreign Affairs spokesman Wang Wenbin suggested China would retaliate against these measures by claiming that “China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises”.
This measure has so far been the most assertive of the Biden administration in America's effort to compete with its rival and thereby intensifies the ideological and commercial conflict between the dominant global powers.