US Government Bans Huawei and many other Chinese companies in a recent turn of events. After Donald Trump imposed a specific ban on Huawei, President Joe Biden has now increased the ban and further added 58 new companies to the list.
According to the new sanctions, the US will not invest in any of these companies by China. There will be no further investments made in these Chinese brands that ae suspected to have connections with the Chinese Communist Party.
Chinese Companies Banned by USA
According to sanction passed, US Government Bans Huawei and other companies that are prominently into manufacturing smartphones and gadgets. While Huawei was already under a lot of scrutiny, other prominent names added to the list include:
- SMIC, chip making company
- China Mobile, telecom operator
- Hikivision, video surveillance company
The list also includes many companies from China’s defense sector. A senior official from the USA confirmed that this is not the end. More Chinese companies and brands are expected to be added to the list in near future. The statement made by Joe Biden also mentioned,
“I find that the use of Chinese surveillance technology outside the PRC (People’s Republic of China) and the development or use of Chinese surveillance technology to facilitate repression or serious human rights abuse constitute unusual and extraordinary threats, which have their source in whole or substantial part outside the United States, to the national security, foreign policy, and economy of the United States, and I hereby expand the scope of the national emergency declared in Executive Order 13959 to address those threats.”
With this new sanction in place, USA President Joe Biden is letting the world know his stance against all Chinese security research and intelligence firms. These new sanctions are further strengthening the restrictions that were first imposed by Donald Trump in his four year terms.
The government is allowing individuals and companies a period of 1 year to divest all of their funds from the Chinese companies. While US Government Bans Huawei, it is yet to be seen if another smartphone giant will be added to the list. The fate of WeChat and Tik-Tok is also hanging in the limbo.
The US Government Ban on Huawei and 58 companies will be effective from 2nd August.