US President Joe Biden has signed an executive order that prohibits US investments in Chinese companies that “undermine the security or democratic values of the United States and [its] allies.”
This order is intended to “address the ongoing national emergency …with respect to the threat posed by the military-industrial complex of the People’s Republic of China.”
It specifies 59 entities that are subject to prohibitions, effective August 2. Among the companies named in the order are several shipbuilders and parts suppliers – China Marine Information Electronics Company Limited, China Shipbuilding Industry Company Limited, China Shipbuilding Industry Group Power Company Limited, China State Shipbuilding Corporation Limited, and CSSC Offshore & Marine Engineering (Group) Company Limited – and energy companies, including China General Nuclear Power Corporation, China National Nuclear Corporation, China National Offshore Oil Corporation and China Nuclear Engineering Corporation Limited.
The White House considers these companies to be either part of the PRC’s defence and related materiel sector or developers or users of Chinese surveillance technology that facilitates repression or serious human rights abuse.
The executive order prohibits US citizens from buying or selling the publicly traded securities of any these companies.
It does not prevent US companies from doing business with the named Chinese companies, and it has no effect on non-US citizens and companies.