Trump is probably making one of his final moves before the end of his presidency. His administration is close to banning tech exports to 89 Chinese firms.
Wait...this looks familiar? Last Monday we just mentioned that Trump banned US investments to 31 Chinese companies linked to the Chinese military, effective from January 11th. Shares of China Telecom, China Unicom and China Mobile fell after the news.
What’s new this time?
- 89 Chinese companies (mostly in aerospace) will be restricted from buying American goods and technology in their production.
- Some names are especially at risk.. like AVIC and Comac who source parts for jets and planes from American companies such as General Electric and CFM International.
Even more difficult for Biden to reverse U.S. policies toward China.. including tariffs. The president-elect Biden is unlikely to unwind the tariff quickly imposed by the Trump administration, said Democrat, Delaware Senator Chris Coons.
- Despite promising to review Trump’s trade actions asap, Biden will likely receive push-back if he removes China tariffs, which have a support base from both parties in Congress.