China accuses US of 'suppressing' foreign companies as Biden expands sanction list

In a retaliatory attack, Beijing on June 4, accused the US of “suppressing” Chinese firms and threatened to take necessary steps against the country. The statement by the Chinese Ministry of Foreign Affairs came a day after American President Joe Biden extended the list of sanctioned Chinese firms from 31 to 59 stating their links to Beijing’s “military-industrial complex". It is imperative to note that the US’ pressure campaign against the Chinese Communist Party (CCP) has escalated manifold since former US President Donald Trump, in November, blacklisted the firms for allegedly supplying security apparatus to the Chinese military.

Violation of law

On Thursday, China's foreign ministry decried the move as a "violation of market law" and an attempt to "suppress" Chinese companies. Addressing a press conference, Chinese Foreign Ministry spokesperson Wang Wenbin asked the US to “remove the so-called lusts” that aim to “suppress" Chinese firms. In case that does not happen, he warned, then "China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies," he added.

On Thursday Biden’s team reviewed the blacklist, removing some names and ultimately expanding it. Many of the newly added names are those of subsidiaries of companies already included. The sanctions target companies involved in Chinese surveillance technology used to "facilitate repression or serious human rights abuses", which "undermine the security or democratic values of the United States and our allies", the White House said.

As per the statement, the nation's main telecommunications- China Mobile Communications Group Co, China Unicom Ltd, and China Telecommunications Corp, as well as top chipmaker Semiconductor Manufacturing International Corp and leading server maker Inspur, were already on the Trump administration's list.  Aviation Industry Corp of China, Ltd, one of the most well-known of China's military giants; China North Industries Group Corp; China Aerospace Science and Industry Corporation Ltd; and China Shipbuilding Industry Co. are among the defence corporations on Biden's list. Here is the full list of companies encompassed in the sanction list.

Biden's directive is mainly a continuation of a policy enacted by former President Donald Trump, which was challenged in court and left investors perplexed about the scope of its application to subsidiaries of prohibited businesses. Wall Street and Capitol Hill have been watching Biden's reaction to Trump's directive, as lawmakers from both parties have urged for a tough approach against China on topics ranging from trade to human rights.

Image: MFA_China/Twitter