Wednesday, August 27, 2025
Street Wise Politics

‘Foolish and Naive’: US Lawmakers Decry Biden Admin’s Greenlight of China Military Investment

U.S. lawmakers are calling out the Biden administration for its move not to enforce a divestment obligation for federal government entities on blacklisted Chinese military firms, a decision that according to one of them is “foolish and naive.”
Under an executive order President Joe Biden issued last June, 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 would not face punishment for holding on to such securities after the divestment period.
According to London-based law firm Herbert Smith Freehills LLP, this means that the 365-day divestment window is not mandatory but rather an authorization to purchase or sell these securities “solely for the purpose of divestment.”…

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