U.S. now won't blacklist top China techs - source
|01/14/2021 | 07:37am|
Alibaba and other top Chinese tech firms can breathe a little easier.
Reuters sources say the Trump administration has dropped plans to add them to an investment blacklist.
Also reprieved are search engine giant Baidu, and video game leader Tencent, which owns messaging app WeChat.
All were on a shortlist to be added to a catalog of companies with alleged links to China's military.
They would have been subject to a U.S. investment ban.
Even so, the outgoing administration is trying to lock President-elect Joe Biden into an aggressive posture.
On Wednesday (January 13) it strengthened its existing investment ban, requiring U.S. firms to completely divest their holdings of shares in designated companies.
One source says Washington will this week move ahead with a bid to add nine other Chinese companies to the blacklist.
Last month, the White House added top Chinese chipmaker SMIC.
Oil giant CNOOC also went on.
Thursday morning (January 14) saw shares in the reprieved firms jump though.
Alibaba and Tencent both rose over four percent in Hong Kong trade.