The US government is expected to let the Americans continue to invest in Chinese technology giants Alibaba Group Holding Ltd., Tencent Holdings Ltd. and Baidu Inc., after weighing the companies’ alleged ties to China’s military against the potential economic impact of banning them.
New York-listed Alibaba and Baidu and Hong Kong-listed Tencent were among a dozen companies surveyed for inclusion in a Department of Defense list of companies believed to support China’s military, intelligence and security services, according to people familiar with the matter. with the case. U.S. investors have until November to divest their holdings in any company on the list.
The United States no longer plans to add the three companies to the list. Nine other Chinese companies will be added, as well as more than 1
The decision ends a week-long battle that puts Treasury Department officials who feared widespread sales and economic downturn against State Department officials and the Pentagon seeking a tougher line against Beijing. Until Wednesday morning, many in the State Department and the Pentagon thought they had a compelling case that companies should be included when administrative kinks were ironed out, said the people who knew the case.
In the end, Finance Minister Steven Mnuchin won.