The White House has banned all US entities from investing in Hikvision and 30 other firms it considers "Chinese military companies" starting on January 11, 2021.
The impact on Hikvision is limited since the company is listed in China and primarily owned by the PRC government and private Chinese investors. Hikvision stock fell only slightly off recent all-time highs.
Whether a Biden administration will reverse or soften these policies remains to be seen.
I don't think China is going to get fully off the hook as people might think. Much of this has become a bipartisan issue. For the US side, a party that histrionically calls US illegal immigration detention centers "concentration camps" cannot be allowed to ignore the existence of actual and real concentration camps in China, or their hegemony efforts. This is becoming an issue similar to calling out and banning companies that did business with the old South African apartheid government.
As soon as people on the Left get over their initial knee jerk reaction of "Whatever Trump was for we have to be against, and whatever he was against we have to be for" (I hope, I truly hope), things on this front should probably continue.
1. I said the Left and many other people are ignoring of the existence of real concentration camps. I didn't say another about Trump.
2. "... former advisor says". Unfortunately it is popular for both side of the isle write books about that help their cause. Not saying they were right, not saying they were wrong. Regardless, has little to do with what I stated. It starts down the road of another discussion.
3. So? Still doesn't either challenge or add to what I said.
As a registered independent and someone who is not only capable of independent thinking, but also does not utilize any of the Mainstream media content in support of my own political leanings, I agree that, regardless of Trumps personal and professional shortcomings, he has done the one thing that previous administrations were always incapable of doing. De-coupling our economy from China was one of those things. I suspect that the Biden administration has not lost sight of the fact that China robbing, raping and pillaging our economy, our jobs, our intellectual property, and our collective security and future as a country is one of the things that they have to continue to address if they want to stay in office. And even though I loath the man and hate how he has devalued the dignity and respect of the office, when it comes to the topic of dealing with China, Trump was right and I give him props for not only doing what the American people wanted, but doing what actually needed to be done. It would be politically reckless for Biden to change course on it. Simply stated, the only bigger liar on the planet than Donald Trump is the Chinese Government. That made him best suited for that task.
I work with China most every day. When I was travelling there (pre-covid) the execs I met their all wanted Trump out. They felt like he was much more harsh on China than any other administration by a large margin. I am sure they are happy to see him go.
Trump is not going anywhere yet because it's not official! I think the elector college still has to certify every state's vote count and announce the president elect. No one else including the media can do this.
I believe that to be true. The Chinese Government must be kept in check in all matters even just for National Security reasons alone. And no, it cannot be trusted at all. I just hate to pigeon-hole the Chinese people overall within the same context. I have very close personal ties to China that also lean to the business side. My daughter was born in China, and I have had a Chinese exchange student stay at my home for an entire senior year in high school, a close relationship which continued on thru college and many years later. Their entire family has visited us many times and we have traveled in the US collectively together and we enjoy each others familial company very much. They are a genuinely decent and trustworthy family. Her father is a Chinese businessman who speaks several languages fluently and has traveled extensively throughout the world. He is a brilliant man and I feel incredibly fortunate to count him as my friend. (which is a pretty short list). Our families are still very close to this day. (Our family was making preparations to visit them when the Covid thing set in). He and I have executed so many hours of genuine detente over the years and the conversations so personally and politically animated, politically passionate, and intellectually fascinating that Im kicking around a book about it in my head. And although we dont agree on alot of things, he has always been very respectful of the opinion of others. Great sense of humor as well. My only take away on the whole thing as it may (or may not) apply here is that a distinct line should be drawn between the motives and desires of the Chinese government and the Chinese people. If you are having difficulty imagining that or believing that, then remove the words "Chinese" from that underlined sentence and insert the words "American".
This is another step in the right direction but I would have also loved to see a further tightening of regulations allowing China and Chinese nationals purchasing stock (especially ownership level) of US companies.
Not only US Companies but US Landmarks and other Nationally recognized assets of the United States, whether they are publicly owned OR privately owned. Chinese nationals (or russian nationals or middle eastern nationals etc etc) should not be legally allowed to own outright or even controlling interests in things like The Empire State Building, Time Square Real Estate, Shipping and Container handling facilities, Private contracts for toll roads and bridges, private prisons, or any company that does any business whatsoever (even for napkins) with the Department of Defense. How stupid do we have to be and what level of greed must we aspire to before we just sell it all outright completely? Its getting ridiculous and we can and must violate the right of free commerce when national identity and security is at stake.
So were do you draw the line on what companies are on the bad list. If I buy a camera from another country how do I know is components are not just "laundered" from a banned company. While human rights abuses may be a factor in these types of bans, I think they play a much smaller concern than they should.
S&P Dow Jones Indices said on Thursday it would remove 10 Chinese companies from its equity indices, including Hikvision and SMIC, following a Trump administration order prohibiting purchases by U.S. investors of certain Chinese securities.
Update: the Biden administration has once again extended the deadline to divest from covered companies by two weeks, to June 11, Reuters reports. The original deadline of January 28 was previously extended to May 27.
Update: the Biden administration plans to issue a new list of Chinese companies with ties to the defense and surveillance sectors, Bloomberg reports, after some companies on the initial list of 'Chinese military companies' (like Xiaomi) successfully challenged their listing in court. The Biden administration's new list will be issued by the Treasury Department (not the Department of Defense like the original) and is expected to be signed by Biden "later this week", Bloomberg wrote. The Biden admin "is set to keep a large number of previously listed entities and Treasury’s Office of Foreign Assets Control will add new entities as part of the order," Bloomberg reported, citing sources familiar with the matter.
Update: President Biden has signed the executive order detailing this new list, which includes Hikvision and Huawei (just like Trump's original list):
The ban on US persons investing into the listed companies goes into effect August 2, 2021. Current stockholders have a year to divest (until June 3, 2022).
The Biden announcement said this was done due to "the development or use of Chinese surveillance technology to facilitate repression or serious human rights abuses" which constitutes "unusual and extraordinary threats".
In response, a PRC Foreign Ministry spokesman called on the US to "correct its mistakes" and "stop actions that undermine the global financial market order and investors' lawful rights and interests."
In the order, Biden stated "ostensibly private and civilian" PRC companies "directly support the PRC's military, intelligence, and security apparatuses" and thus "directly threaten the United States":
The President found that the PRC is increasingly exploiting United States capital to resource and enable the development and modernization of its military, intelligence, and other security apparatuses, which continues to allow the PRC to directly threaten the United States homeland and United States forces overseas. Through the national strategy of Military‑Civil Fusion, the PRC increases the size of the country’s military-industrial complex by compelling civilian Chinese companies to support its military and intelligence activities. Those companies, though remaining ostensibly private and civilian, directly support the PRC’s military, intelligence, and security apparatuses and aid in their development and modernization.
The President further found that the PRC’s military-industrial complex, by directly supporting the efforts of the PRC’s military, intelligence, and other security apparatuses, constituted an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States. [emphasis added]
The executive order called out "Chinese surveillance technology" specifically, noting:
The threat from securities investments that finance certain companies of the PRC and certain uses and development of Chinese surveillance technology continue to pose an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States. [emphasis added]