The Biden administration Tuesday said it is delaying for two weeks a ban on buying or selling securities in companies that have ties to the Chinese military.
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The Treasury Department said in a notice that investors will have until June 11 to complete their transactions, pushing back a May 27 deadline.
The decision comes as the White House mulls various aspects of its China policies, including which of the Trump administration’s it wants to hold over. Among other things the previous White House put forth was a ban on investing in companies that the Treasury Department deemed to have affiliations with China’s armed forces.
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At least eight Chinese companies have been designated to have ties to the country’s military.
Among the firms that have been designated are Xiaomi, a cellphone maker that has filed suit against the label, and the Semiconductor Manufacturing International Corporation.
A senior administration official told The Hill that the government remains “deeply concerned about potential U.S. investments in companies linked to the Chinese military” and that the two-week delay will “allow the Administration to complete steps toward a solution addressing the structural issues” with the Trump-era rule.
“We will have more on the permanent way forward soon, and we are determined to deal with this issue expeditiously,” the official said.
The Treasury Department’s notice comes as the Biden administration butts heads with China on a number of issues, including the autonomy of Hong Kong and Taiwan, human rights abuses against Uyghur Muslims, intellectual property theft, cyberattacks and more.
However, officials have left the door open to cooperation on other topics like climate change.
Updated at 5:21 p.m.