Daily Management Review

Trump administration rejects ban on investments in Alibaba, Tencent and Baidu


Trump administration has abandoned plans to blacklist technology giants Alibaba, Tencent and Baidu as companies working for or under the control of the Chinese military, four people familiar with the matter told Reuters.

One of them added that Washington plans to include nine more organizations on the list of banned for investment in the U.S. Chinese companies. Earlier, U.S. authorities included online retailer Alibaba, the search engine Baidu and video game producer Tencent, which owns the messenger WeChat, in the list companies that could get under the ban on investment. 

As the agency notes, a change of plans to ban investment in Chinese technology companies may be due to the position of Treasury Secretary Steven Mnuchin, who has a softer stance on China. According to the agency's interlocutors, Mnuchin preferred to distance himself as much as possible from the latest decisions and suspended plans for their implementation. 

The Wall Street Journal (WSJ) first reported on January 6 that President Donald Trump's administration was considering adding Alibaba and Tencent to a blacklist of Chinese companies that are allegedly owned or controlled by the Chinese military; the news was later confirmed by two sources familiar with the matter. 

The U.S. government announced its initial blacklist in November 2020. Tencent and Alibaba, the WSJ notes, are two of China's most valuable public companies with a combined market capitalization of more than $1.3 trillion and dozens of U.S. funds and other investors owning their shares. The blacklist of companies whose securities will be banned from trading on the U.S. stock market is one of the Trump administration's struggles with investing in Chinese companies suspected of collaborating with the military.

source: reuters.com, wsj.com