Biden prohibits U.S. investment in 59 Chinese companies

Biden prohibits U.S. investment in 59 Chinese companies

U.S. President Joe Biden on Thursday expanded restrictions on American investments in certain Chinese companies with alleged ties to the country’s military and surveillance efforts, adding more firms to a growing blacklist.

In an executive order, Biden barred U.S. investors from financial interests in 59 Chinese companies over fears of their links to the Chinese government’s geopolitical ambitions, continuing some portions of the tough tact former President Donald Trump took in discussions with Beijing.

"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," the White House said in a press release.

The measure bars U.S. dollars from supporting the "Chinese defense sector, while also expanding the U.S. Government’s ability to address the threat of Chinese surveillance technology firms that contribute — both inside and outside China — to the surveillance of religious or ethnic minorities or otherwise facilitate repression and serious human rights abuses," the administration added.

Among the 59 companies barred are Aero Engine Corp. of China, Aerosun Corp., Fujian Torch Electron Technology and Huawei Technologies. The prohibitions take effect at 12:01 a.m. ET on Aug. 2, CNBC reported.