Biden to review ban on Chinese company listings

US president Joe Biden's administration plans to review its predecessor's directives that forced US stock exchanges to delist leading Chinese companies and that banned US persons from investing in those companies.

"There are a number of complex interagency reviews that we are going to undertake as it relates to a range of regulatory actions and a range of relationships with companies as it relates to Chinese investments," the White House said today.

Measures implemented by former president Donald Trump's administration required US investors by 11 November to divest equities or securities in any "Chinese military company" — a list that includes Chinese state-owned oil company CNOOC, state-controlled refiners Sinochem, ChemChina and Norinco and 31 other major Chinese engineering, telecommunications and technology companies. US stock exchanges and equity index providers earlier this month moved quickly to delist CNOOC and other Chinese companies on that list, following a strict enforcement guidance issued by the Treasury Department.

The measures fit with the former administration's strategy of decoupling the US and Chinese economies. The new administration is de-emphasizing the notion of decoupling, even though its early actions and statements suggest continuity with the old approach.

The State Department on 23 January criticized Beijing for "military, diplomatic, and economic pressure against Taiwan." Biden's administration already has said it has no plans to immediately lift punitive tariffs that cover most US imports from China and plans to review China's progress in implementing the so-called 'phase one' trade deal that committed Beijing to buying almost $70bn worth of US crude, LNG and other energy commodities in 2020-21. "The president is committed to stopping China's economic abuses on many fronts," the White House said.

But the new administration has also outlined plans for outreach to Beijing on climate issues as the US is returning to the Paris climate accord. "We are starting from an approach of patience as with China," the White House said.

Beijing, likewise, has combined escalatory steps and conciliatory rhetoric since Biden took office on 20 January.

The same day, the Chinese foreign ministry announced sanctions against former secretary of state Mike Pompeo and 27 other former US officials, accusing them of undermining its national interests. The White House condemned the sanctions against former US officials as an "unproductive and cynical move."

China's president Xi Jinping today called for global cooperation to contain the Covid-19 pandemic and revive growth and warned against "ideological prejudice" against China in a virtual speech before the Davos world economic forum. "History is moving forward, and the world will not go back to what it was in the past," Xi said.

Xi's remarks will not affect Biden's policy on China, the White House said in response.

By Haik Gugarats