America to add more Chinese companies to blacklist over human rights abuses

The Biden administration is making an effort to hold China to account says Reuters

The US has again moved against China as it looks set to add additional companies to its economic blacklist because it believes the Chinese government is implicated in human rights abuses.

Up to 10 business could be added to the list by the Biden administration with immediate effect, according to Reuters.

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Among the accusations are the use of forced labour camps by the Chinese government in Xinjiang.

The decision by America represents efforts by Biden and his staff to hold China to account, Reuters reported.

China continues to distance itself from such allegations, saying its policies are needed in order to eliminate religious extremism.

“The Chinese side will take all necessary measures to safeguard the legitimate rights and interests of Chinese companies and rejects U.S. attempts to interfere in China’s internal affairs,” said foreign ministry spokesman Wang Wenbin on Friday.

The names of the companies on the list have not been revealed, while additional firms from other countries could yet be added.

Earlier this week it was reported that major companies from China were coming under pressure as the country pledged to come down on Chinese companies on US exchanges.

Among the countries being scrutinised are Didi, Alibaba and Tencent.

“U.S. investors will have to weigh the risks of owning ADRs at a time when tensions between Beijing and Washington remain elevated while all global investors will have to balance the allure of China’s vast addressable market with the possibility that officials may reshape company prospects at the stroke of a pen via the imposition of regulatory strictures,” BCA Research chief global strategist Peter Berezin said in a note Wednesday.

Didi, the Chinese ride-hailing app, was removed from US app stores soon after it raised $4.4bn following its listing in America, one of the largest by a Chinese company since e-commerce giant Alibaba in 2014.

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