The US government is expected to allow Americans to continue investing in Chinese technology giants Alibaba Group Holding Ltd. , Tencent Holdings Ltd, and Baidu Inc. After weighing the companies’ alleged ties with the Chinese military against the potential economic impact of banning them.
Alibaba and Baidu listed in New York, and Tencent listed in Hong Kong were among the dozens of companies examined. Included in the Defense Department’s list of companies It is seen as supporting the military, intelligence and security services in China, according to people familiar with the matter. US investors have until November to relinquish their holdings from any listed company.
The United States no longer plans to add the three companies to the list. People said nine more Chinese companies would be added, in addition to more than 100 subsidiaries of companies already on the list.
The decision ends a weeks-long battle That pit Treasury officials, who fear Massive sale And the economic fallout against State Department and Pentagon officials who seek to take a tougher stance against Beijing. As of Wednesday morning, many in the State Department and the Pentagon believed they had a compelling case to list companies once the administrative imbalances were resolved, the people familiar with the matter said.
In the end, Treasury Secretary Stephen Mnuchin won.