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Biden to Amend Trump s China Blacklist, Target Key Industries

President Joe Biden plans to amend a U.S. ban on investments in companies linked to China’s military this week, after the Trump-era policy was challenged in court and left investors confused about the extent of its reach to subsidiary firms, people familiar with the matter said.

Biden to Amend Trump s China Blacklist, Target Key In

Some stocks related to China’s defense industry dropped on Thursday, led by AVIC Jonhon Optronic Technology Co. and AECC Aviation Power Co., while already-blacklisted Advanced Micro-Fabrication Equipment Inc. fell as much as 2.9%. Xiaomi Corp., which was dropped from the list last month after challenging the Trump administration order in a lawsuit, advanced 2.2% in Hong Kong. After two Chinese companies successfully challenged the order, Biden’s team said a revision of the policy was necessary to ensure it was legally sound and sustainable in the long-term. By shifting responsibility to Treasury, the Biden team aims to solidify the legal standing for the penalties, one of the people said.

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