As a consequence, US buyers can be barred from shopping for or promoting shares of the businesses.
Brian Nelson, Under-Secretary of Terrorism and Financial Intelligence, mentioned: “Today’s action highlights how private companies in China’s defense and surveillance technology sectors are active in the government’s efforts to suppress members of ethnic and religious minority groups. cooperating actively.” “The Treasury is committed to ensuring that the US financial system and US investors are not supporting these activities.”
Dozens of Chinese firms and organizations had been added to that export blacklist by the US Commerce Department on Thursday to restrict China’s use of US applied sciences for navy functions and for alleged human rights violations.
Thursday’s twin bulletins got here every week after the Treasury slapped comparable financial sanctions towards two Chinese politicians and a Chinese synthetic intelligence agency, SenseTime.
The drone maker declined to remark forward of the US Treasury announcement on Wednesday. Instead, it referenced CNN Business in a earlier assertion it made in response to earlier sanctions final December, when it mentioned it “did nothing to justify being placed on the entity list.”
DJI added on the time that it was “evaluating options to ensure fair treatment to our customers, partners and suppliers,” with out elaborating additional. It declined to offer an replace or touch upon these plans this week.
Washington’s newest clampdown may spell financing complications for the upstart drone maker, which is privately primarily based and headquartered in Shenzhen.
But in keeping with an individual accustomed to the matter, Sequoia’s funding in DJI is managed by Sequoia Capital China, which operates as a separate authorized entity from the US agency.
This means it won’t be affected by any restrictions apart from US investments in DJI, the particular person mentioned.
Washington has been pressuring Chinese firms these days.
Similarly, the Treasury Department mentioned the choice to dam SenseTime was as a consequence of its expertise’s alleged position in enabling human rights abuses towards Uighurs and different Muslim minorities in Xinjiang.
The agency mentioned the delay was “to protect the interests of potential investors of the company” and allowed them to “consider the potential impact” of the US transfer on any investments.
Separately, US officers additionally mentioned on Thursday One of China’s prime chip makers has strict guidelines about whether or not to promote.
SMIC didn’t reply to a request for remark,
Separately, final yr the US Defense Department additionally added the agency to a listing of firms that the company claims are owned or managed by the Chinese navy. That determination implies that Americans are barred from investing in SMIC.
On Wednesday, China’s overseas ministry criticized the United States after Washington reported a deliberate motion.
At a briefing, spokesman Zhao Lijian referred to as on the Biden administration to cease “politicizing” technical and financial points by “generalizing the concept of national security.”
“Stop abusing state power to unreasonably oppress China’s specific sectors and enterprises,” Zhao mentioned, including that sanctions on firms akin to SMIC and DJI would threaten world industrial and provide chains, and improve worldwide commerce rules. will weaken it.
“China, as always, will firmly defend the legitimate rights and interests of Chinese companies,” he mentioned.
— CNN’s Beijing Bureau and Jill Disis contributed to this report.