Biden Administration May Proceed with Trump’s China Investment Ban

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The Biden administration is expected to continue maintaining pressure on China by keeping the U.S. investment ban on specific Chinese companies intact (the ban was imposed by the former Trump administration). Biden’s team is still in initial discussions about ex-president Trump’s investment ban on businesses that could possibly be linked to the Chinese military – this includes three of the biggest telecommunications firms in the U.S. People familiar with the matter mentioned that no concrete decision has been made yet. 

President Biden is, at present, trying to navigate a rather fraught relationship with Beijing, as tensions are high over various issues ranging from military postures in the South China Sea to human rights to trade. The investment blacklist, which was announced in November by Trump, sparked a new conflict, prompting Beijing to threaten possible legal action against international firms that adhere to the U.S. ban.

Bipartisan support

The Biden administration will likely find support in Congress for his tough stance against China. 

“It is common sense that U.S. dollars should not flow to entities close to the Chinese Communist Party’s military, which is building weapons and capabilities designed to kill American service members,” mentioned Senator Marco Rubio, a Florida Republican, in an e-mailed statement.

The investment ban has been a sore point not only in China but also on Wall Street. The financial sector, in particular, has urged President Joe Biden to roll back the blacklist, according to people in the know. Banks, in particular, want clear instructions from the Treasury’s OFAC on compliance with the investment ban. 

Currently, U.S. investors have a year to exit out of companies once they are mentioned on the blacklist. For the businesses that appeared on last year’s original list, investors have until November 11 to divest completely. 

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