President Biden signed an executive order on Thursday expanding the scope of a previous policy that prohibits U.S. companies and individuals from investing in Chinese companies with ties to China’s military.
The Biden administration named 59 Chinese companies subject to the executive order’s prohibitions and the U.S. government will begin implementing the ban on U.S. investments in the listed entities starting Aug. 2nd, the White House said Thursday.
The directive also considers the development and use of Chinese surveillance systems to repress religious and ethnic minorities and facilitate human rights abuses within and outside of China as “unusual and extraordinary threats.”
The order allows the U.S. 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 president directs the secretary of the Department of the Treasury to submit reports to Congress and promulgate rules and regulations to implement the order’s provisions.
In November, the previous administration introduced an executive order banning such investments in 31 Chinese companies.