China urges U.S. to rethink investment ban

Beijing is urging the U.S. to drop an investment ban on dozens of Chinese companies.

Speaking Friday (June 4) foreign ministry spokesman Wang Wenbin pulled no punches:

"The U.S. government is stretching the concept of national security, abusing national power and using every possible means to unscrupulously suppress and restrict Chinese enterprises. We are firmly opposed to this. The relevant actions of the United States violated market laws, disrupted market rules and order, and damaged not only the legitimate rights and interests of Chinese companies, but also the interests of global investors, including American investors."

The angry response comes a day after U.S. President Joe Biden signed an executive order prohibiting investment in dozens of companies.

Among those now covered are Semiconductor Manufacturing International Corp, aerospace firm Aviation Industry Corp, and China National Offshore Oil Corp.

Phonemaker Huawei was already on the list.

In all, Biden's order covers about 59 firms, extending the scope of a Trump-era policy.

The president says it will stop U.S. money going to China's military-industrial complex.

He also cited concerns over Beijing's use of surveillance technology to facilitate repression.

The ban will come into force on August 2 for firms currently listed.

And U.S. officials say more firms are likely to be added in due course.

On Friday investors in China largely shrugged off the news, with shares in many of the affected firms posting gains.

But Washington officials have said it all marks the end of engagement with China... and the start of competition.

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