The US Treasury has delayed the implementation of a ban on Americans investing in companies with suspected ties to the Chinese military, which had been imposed by Donald Trump after he lost the presidential election, reported the Financial Times.
Trump in November issued an executive order that prohibited Americans from investing in Chinese companies named on a Pentagon blacklist of groups that might threaten US security. The Trump administration set a January 28 deadline for the ban to take effect, but the Biden administration on Wednesday said it would extend the date to May 27.
The move comes as the Biden administration starts the process of reviewing actions that Trump last year took against China, including putting a number of Chinese companies on Pentagon and commerce department blacklists that either ban investments in those companies or make it harder to export technology to them, said the FT.
“It gives the new administration time to potentially clean up an action that created significant market confusion,” Daniel Tannebaum, a former Treasury official. “General licenses are a common method of tweaking sanctions programs after their implementation to manage against initial unanticipated consequences.”