US delays China investment ban as Biden team aims to clarify policy scope
- Treasury Department says US investors are allowed to trade securities in subsidiaries of Chinese companies that are on a blacklist until June 11
- A Biden administration review will look at whether the policies against Chinese companies should be reworked, or even revoked
In an announcement on Tuesday, the Treasury Department said US investors were allowed to trade securities in subsidiaries of Chinese companies that were on a blacklist until June 11.
The Biden administration review will look at whether the policies against Chinese companies should be reworked, or even revoked.
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A specific issue with this November executive order was that it was unclear whether any subsidiary or companies with names similar to the blacklisted firms were also included in the ban. Confusion quickly set in on Wall Street as the order did not clearly specify the scope of the companies covered.
The Treasury said all transactions with subsidiaries of four companies – China National Offshore Oil Corp (CNOOC), China Mobile, China Telecom and China Unicom (Hong Kong) – were not authorised.