The United States on Wednesday amended its restrictions on investments in certain Chinese military companies, saying they also to apply subsidiaries, while allowing purchases through May of companies with names similar to those that have been banned.
In a statement posted on the U.S. Treasury Department website, the Biden administration said most investments in companies “whose name closely matches, but does not exactly match, the name of a Communist Chinese military company” would be allowed until May 27.
The order does not authorize securities transactions with subsidiaries of banned Chinese military companies, it added.
In November, former U.S. President Donald Trump’s administration moved to prohibit U.S. investments in Chinese companies that Washington said were owned or controlled by the Chinese military in an effort to ramp up pressure on Beijing following the Nov. 3, 2020 U.S. presidential election.
The order prohibited U.S. investors from buying securities in such companies and was thought to impact some of China’s biggest companies, although some have denied military links.
Beijing has said the United States lacks evidence and described the ban as wanton oppression of its companies.