What’s new: The U.S. ban on American investment in 59 Chinese companies with alleged ties to military and surveillance sectors has just taken effect, dimming prospects for a swath of major Chinese companies traded overseas.
The ban prevents U.S. investors from buying or selling securities or related interests in the sanctioned companies starting from Aug. 2, according to an executive order signed by U.S. President Joe Biden in June. Huawei Technologies Co. Ltd. and China’s “Big Three” telecoms are among the 59 companies blacklisted.
The background: The ban, which expanded the scope of the former Trump administration’s initial order, signals Biden’s intention to maintain a hard stance toward Beijing.
It dealt another blow to Chinese companies traded overseas. The ban comes as China’s tougher regulations on big tech and the online tutoring industry have dampened investor confidence in highly valued sectors and triggered a sharp sell-off, wiping out hundreds of billions of dollars in market value for Chinese companies traded in the U.S.
Related: In Depth: Continuing Trump Policy, Biden Expands Chinese Military Blacklist
Contact reporter Tang Ziyi (ziyitang@caixin.com) and editor Lin Jinbing (jinbinglin@caixin.com)
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