U.S. lawmakers are calling out the Biden administration for its move to not enforce a divestment obligation for federal government entities on blacklisted Chinese military firms, a decision that’s “foolish and naive,” according to one of them.
Under an executive order President Joe Biden issued in June 2021, U.S. investors had 365 days to divest their shares in 59 entities linked to the Chinese military. Two days before the June 3 deadline, however, the Treasury Department quietly issued new guidance telling U.S. investors that they wouldn’t face punishment for holding on to such securities after the divestment period.
