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US President Joe Biden delays Trump’s ban on investments in companies with similar names to blacklisted Chinese firms
- Deadline extended until May 27 for companies with similar names to companies deemed to have ties to China’s military
- Biden administration is conducting ‘complex reviews’ of Trump policies on China
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The Biden administration delayed a ban imposed by Donald Trump on American investors, pension funds and financial firms investing in companies that have similar names to a group of blacklisted Chinese firms with purported ties to China’s military.
On Thursday, the Office of Foreign Assets Control (OFAC), an arm of the US Treasury Department, issued a so-called general licence that extended the deadline for US persons to stop engaging in securities transactions in companies “whose name closely matches, but [do] not exactly match” those identified as Chinese military companies. The deadline for companies with similar names had originally been set for January 28 and is now extended to May 27.
In November last year, former US President Donald Trump issued an executive order that barred American investors from owning companies with military ties beginning this month.
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The licence does not allow American investors to engage in securities transactions of subsidiaries of a group of companies already identified by the US as being owned or controlled by the Chinese military, OFAC said.
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Investors have until November 11 to fully exit their holdings of designated companies.
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