Chinese PLA-linked companies banned by US still operating in India
3 January, 2021 | Rakshanda Afrin
The United States in a major blow to China has added new companies on the list of those which it considers as “Communist Chinese companies”. Majority of the blacklisted companies including the much...
Amid rising tensions between the two superpowers, the United States in a major blow to China has added new companies on the list of those which it considers as “Communist Chinese companies”. These firms have evidence that shows them to be either owned or linked to the Chinese People’s Liberation Army (PLA). China had earlier slammed the United States move to delist three Chinese telecom companies and vowed to take necessary measures to protect Chinese “enterprises’ legitimate rights”.
But it has to be noted that almost all the enlisted companies are either operating in India or are working to make an entry. India and China have reached the height of sour ties amid the border conflict. As per media sources, the Chinese Ministry called it a US practice of abusing national security and using state power to crack down on Chinese enterprises. In a shocking revelation majority of the blacklisted companies including the much influenced Huawei, have a sizable presence in Inda which is alarming.
Earlier, US President Donald Trump’s administration had signed an executive order that prohibits Americans from investing in 31 firms. The order prohibited US investors from buying and selling shares in a list of Chinese companies designated as having military ties, Last year Chinese military-owned companies and Chinese Communist Party-owned companies were banned from investing in Taiwan.
Following increasing Sino-US tensions, S&P Dow Jones Indices became the second major index provider to remove some Chinese firms from its index products. It happened after following the outgoing Trump administration executive order. S&P DJI said it would remove mainland-listed A-shares, Hong Kong-listed H-shares, and American Depositary Receipts (ADRs) of 10 companies including Hangzhou Hikvision Digital Technology Co Ltd and Semiconductor Manufacturing International Corp (SMIC) from all equity indexes prior to the market open on Dec. 21.