Chinese Tech Companies:
United States Biden’s lead administration is banning investments in Chinese-owned Technology companies, on the back of security and human rights affairs.
This ban also includes Chinese Telecommunications companies, this action elaborates on former president Trump’s restrictions on certain firms.
An initial list of 59 telecoms, Tech, and space firms was listed in an executive order; which is expected to grow in the coming days. This could be in the form of government procurement, private investment, or other purposes.
Dating back to Trump’s Administration, Chinese tech companies like Huawei and ZTE were added to the list as far back as 2019; and others added concurrently.
President Biden wrote in the opening lines of this new order “I find that the use of Chinese surveillance technology outside the PRC and the development or use of Chinese surveillance technology to facilitate repression or serious human rights abuse, constitute unusual and extraordinary threats,”
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Direct investment in a prohibited company or even through an intermediary such as an Index fund is disallowed.
The White House reinstated that “Tackling these challenges head-on is consistent with the Biden administration’s commitment to protecting core U.S. national security interests and democratic values, and the administration will continue to update the list of PRC entities as appropriate,”
When these bans will be lifted, we are not sure of. But this dilemma has pushed some Tech companies to invest millions of dollars in research.
A classical example is the Huwaei company, they currently invest as much as fifteen percent of their yearly revenue into research and development.
That huge amount of investments has yielded new innovations in the form of their own Operating system(Harmony Os), application store, productivity devices, and made in-house Mobile/web Applications.
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