Biden to amend China blacklist

US President Joe Biden plans to amend a US ban on investments in companies linked to China’s military this week as Beijing announced yesterday that issues will be resolved through normal discussion.

The development came after the Trump-era policy was challenged in court and left investors confused about the extent of its reach to subsidiary firms.

Under Biden’s amended order, the Treasury Department will create a list of companies that could face financial penalties for their connection to China’s defense and surveillance technology sectors, Bloomberg reported.

The Biden administration is set to keep a large number of previously listed entities and Treasury’s Office of Foreign Assets Control will add new entities as part of the order.

Treasury would consult the State and Defense departments in the listing process.

China’s commerce ministry said yesterday that normal discussions between China and the United States on trade and economic fronts have resumed and both sides will work together to solve some specific issues for producers and consumers in the next step.

Gao Feng, the spokesperson of the Ministry of Commerce, said that the both sides exchanged views on China-US economic and trade relations, the macro situation, and domestic policies in an attitude of equality and mutual respect. Both sides believe that the communication is professional, frank and constructive, and the Sino-US economic and trade fields have begun to communicate normally.

He continued that seeking common ground while reserving differences is a consensus. Both sides believe that Sino-US economic and trade relations are vital, and there are many specific areas for cooperation, and both have raised their respective concerns.

Meanwhile, Foreign Ministry spokesperson Wang Wenbin said the United States should respect the rule of law and correct its mistakes.

“We will take measures to firmly uphold the interests of Chinese companies,” he said.

Some stocks related to China’s defense industry dropped yesterday, led by AVIC Jonhon Optronic Technology and AECC Aviation Power, while already-blacklisted Advanced Micro-Fabrication Equipment fell 3.9 percent.

Xiaomi (1810), which was dropped from the list last month after challenging the Trump administration order in a lawsuit, advanced 2.39 percent.

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