President Joe Biden’s new order, which bans U.S. investment in companies that operate in China has been classified as broader than a similar company signed by Donald Trump, and it also has a lower bar that makes it more convenient to add companies later.<\/p>\n\n\n\n
According to Bill Reinsch of CSIS, Joe Biden’s order could impact more companies depending on “how aggressive the U.S. administration wants to be”.<\/p>\n\n\n\n
President Biden’s revised order thus eliminates the need for a direct link with the Chinese state, using the vague phrase that a company must “operate in” the defense or surveillance sectors.<\/p>\n\n\n\n
Adopting the new order, Hong Kong-based lawyer Wendy Wysong said Biden’s list, unlike Trump’s, appeared to be on a sounder footing, noting, “It may be harder to challenge the designation because the underlying rationale presumably won’t be so weak, and the designation criteria is not as narrowly worded.”<\/p>\n\n\n