President Joe Biden's order last week banning U.S. investment in certain Chinese companies is broader than a similar one signed by his predecessor Donald Trump and has a lower bar, making it easier to add more companies later.
The new order prohibits investments in companies that"operate in or have operated in" China's defence or related materials sector, or in surveillance technology, or are owned or controlled by someone who does. Its aim is to limit the flow of money to companies that undermine U.S. security or"democratic values," which allows listings for human rights abuses.
"Courts are usually reluctant to overrule the president when he makes a national security determination," said Bill Reinsch, a senior advisor at the Center for Strategic and International Studies ."The fact that they did so suggests really poor drafting on the part of the Trump people and a poor defence of the decisions made.
The judge also noted errors in the government's decision memo, including incorrectly quoting the statute at issue, and said the government did not meet the definition of"affiliated with," namely,"effectively controlled by another or associated with others under common ownership or control."Luokung Technology Corp, a mapping technology company, won a similar initial ruling.
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