President Joe Biden signed an executive order that banned American companies from investing in many of Chinese companies. These private companies are alleged to have ties with the defense, surveillance, and other technology sectors. They make up five of the eight NYSE-listed, national, state-owned enterprises (SOE) for which China has resisted sharing auditing review data with the US Public Company Accounting Oversight Board (PCAOB).
The first proportion of delisted Chinese companies includes 47 firms along with Huawei Technologies. In the second tranche, 12 tech companies including Shenzhen-based consumer drone maker DJI Technology are added to a list of banned firms. Under an executive order signed by US President Joe Biden, US investors will be banned from buying or selling publicly traded securities from those companies.
The Defense Department in the US claimed that the systems produced by DJI are potential threats to national security. Last year, the US Federal Communications Commission had warned that the Chinese drone maker DJI of collecting vast sensitive data on Americans and the US critical infrastructure, potentially operating as Huawei on wings.
People’s Republic of China is now having military and industrial fusion which stores sensitive data and may retrieve it for military purposes against the US. The companies that are banned to trade in America totally and partially are those which produce devices used for security and surveillance, Chemical products used in healthcare, cultivation and all. Construction companies that take different projects on real estate, investment and infrastructure.
World’s Biggest drone maker company, Shenzhen-based DJI accounts for more than 50 percent of the US drone market. There are over 80 companies that are not allowed to trade in American exchange. The companies that are banned are ChemChina, BGI Genomics, CIECC, Zhejiang Dahua Technology, Beijing Knowsec. The other companies include aviation firms, aerospace, railway, marine engineering, shipbuilding corporations, satellite communication companies, nuclear power, electronic devices, security and surveillance companies, aircraft, heavy machinery and many more.
This will definitely affect China with a downfall in stock prices, degrading market conditions disturbing its entire economy with its private and government owned companies blacklisted to trade in US.
