The U.S. blacklisting of Chinese companies tied to its military represents a “purge of red assets” that is a “simple principle” amid a “confrontational relationship,” according to experts.
“The national strategy that the United States has set up is to engage in full-fledged competition,” Washington-based China analyst Li Hengqing told The Epoch Times. “It’s a competition on every front, rather than just a single aspect.
“The two countries are now in a confrontational relationship. Why would I invest money in my rival to make it more powerful, so that it can turn around to counter me? It’s such a simple principle.”
The remarks come after President Joe Biden’s executive order this week expanded the Trump administration’s blacklisting 44 Chinese defense and surveillance technology firms to a total of 59, seeking to mitigate “the threat posed by the military-industrial complex of the People’s Republic of China,” according to the report.
“It’s a cleanup of the U.S. capital and assets — to purge the red assets,” director of Taiwan’s Institute for National Defense and Security Research’s Su Tzu-yun told The Epoch Times.
Under the new order taking effect Aug. 2, U.S. investors have one year to divest from those 59 blacklisted companies.