US State Department proposes adding China’s Ant Group to trade blacklist, insiders say
- Move comes as fintech arm of e-commerce giant Alibaba prepares to go public
- Placement on ‘Entity List’ has become tool of choice for the Trump administration to punish Chinese companies
The US State Department has submitted a proposal for the Trump administration to add China’s Ant Group to a trade blacklist, according to two people familiar with the matter, before the fintech arm of e-commerce giant Alibaba is slated to go public.
It was not immediately clear when the US government agencies that decide whether to add a company to the so-called Entity List would review the matter.
But the move comes as China hardliners in the Trump administration are seeking to send a message to deter US investors from taking part in the initial public offering for Ant Group. The dual listing in Shanghai and Hong Kong could be worth up to a record US$35 billion.
The Trump officials fear US investors who buy shares in the company could be defrauded or that Ant could give the Chinese government access to sensitive banking data belonging to US citizens.
The State Department did not immediately respond to a request for comment.
The entity list, which makes it more difficult for US firms to sell hi-tech items to blacklisted companies, has become the tool of choice for the Trump administration to punish Chinese companies, though its real-world impact is sometimes questionable.