Home Business Trump administration cabinets deliberate funding ban on Alibaba, Tencent, Baidu: sources By...

Trump administration cabinets deliberate funding ban on Alibaba, Tencent, Baidu: sources By Reuters

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© Reuters. FILE PHOTO: The emblem of Alibaba Group is seen at its workplace in Beijing

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By Alexandra Alper and Humeyra Pamuk

WASHINGTON (Reuters) – The Trump administration has scrapped plans to blacklist Chinese language tech giants Alibaba (NYSE:), Tencent and Baidu (NASDAQ:), 4 folks aware of the matter stated, offering a quick reprieve to Beijing’s high corporates amid a broader crackdown by Washington.

Washington nonetheless plans to maneuver ahead this week with a bid so as to add as many as 9 different Chinese language firms to the listing, one of many folks stated.

The choice to shelve plans so as to add the Chinese language tech giants is a blow to China hawks within the administration, who’ve been looking for to cement outgoing President Donald Trump’s tough-on-China legacy earlier than his presidency ends on Jan. 20.

E-commerce large Alibaba, search engine large Baidu and online game chief Tencent, which owns messaging app WeChat, had been on the brief listing to be added to a listing of alleged Chinese language navy firms, which might have subjected them to a brand new U.S. funding ban.

However Treasury Secretary Steven Mnuchin, broadly seen as taking a extra dovish stance on China, pushed again, freezing the plans, the folks stated. The businesses in addition to the Treasury, State and Protection departments didn’t instantly reply to requests for remark.

The abrupt choice throws into stark aid the deep divisions throughout the Trump administration on China coverage, at the same time as Trump seeks to lock President-elect Joe Biden into aggressive postures towards the world’s second-largest economic system.

Final month, the White Home added China’s high chipmaker, SMIC, and oil large CNOOC (NYSE:) to the blacklist. Trump additionally unveiled an govt order in January banning U.S. transactions with eight Chinese language apps together with Ant Group’s Alipay. Each measures had been first reported by Reuters.

Whereas Trump touted a commerce deal between the rival nations, relations between Washington and Beijing soured final yr over China’s dealing with of the lethal coronavirus and its crackdown on freedoms in Hong Kong.

Tencent’s American Depositary Receipts jumped 2.9% on Wednesday, whereas Alibaba’s U.S.-listed shares jumped 4.3%. In Hong Kong on Thursday morning, Alibaba shares rose 4.5% and Tencent shares added 4.4%.

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