Four more Chinese companies designated as backed by the Chinese military, sources said, is to be added in curbing their access to U.S. investors. The decision was made as the Trump administration seeks to halt the Chinese legacy in its waning days. The Department of Defense might release on Friday the list of companies, said one U.S. official and one person familiar with the matter who declined to reveal the identity.
Neither the White House nor the Chinese embassy in Washington did not immediately respond to requests for comment about the issue. With this 4 companies, the total number will be 35 including Hikvision, China Telecom Corp and China Mobile. A law formed on 1999 mandates the Pentagon to compile a catalogue of companies "owned or controlled" by the People's Liberation Army, but the defense department only complied this year.
The moves by pentagon "helps ensure no American is unwittingly subsidizing the (Chinese Communist Party)'s campaign to dominate the technologies of the future," said Republican Congressman Mike Gallagher, who has introduced legislation to ban blacklisted Chinese companies from U.S. capital markets. There is no detail or even a hint from new President elect Biden towards China but all indications are pointing that he will continue a tough approach toward Beijing. The growing list will increase the tensions between US and China. To be remembered, in the month of August, U.S. Securities and Exchange Commission and Treasury officials urged Trump to delist Chinese companies that fail to meet its auditing requirements by January 2022 which trade on U.S. exchanges.