Defense and Commerce declined to comment while Energy did not respond to a request for comment. The End User Review Committee, which decides which companies to add to the list, includes the departments of State, Defense, Energy and Commerce.
Senator Marco Rubio, who has successfully urged the Trump administration to pursue investigations of Chinese companies, called last week for the US government to consider options to delay Ant Group’s initial public offering. Most of its US interactions are with merchants accepting payment from Chinese travellers and businesses in the country.
Based in the eastern Chinese city of Hangzhou, Ant is 33% owned by Alibaba Group Holding and controlled by Alibaba founder Jack Ma.Īnt’s Alipay payment platform, like Tencent’s WeChat platform, is used primarily by Chinese citizens with accounts in renminbi. The administration has been largely loathe to use tougher tools against China, such as freezing assets in the United States, which many attribute to Treasury Secretary Steve Mnuchin’s dovish stance on Beijing.Īnt is China’s dominant mobile payments company, offering loans, payments, insurance and asset management services via mobile apps. While curbing access to US technology deals a blow to companies like Chinese telecoms giant Huawei Technologies, which was added in May 2019, its impact on a fintech giant like Ant Group is likely to be more symbolic and does not prevent US investors from taking stakes in the firm. The Entity List, which makes it more difficult for US firms to sell high-tech items to blacklisted companies, has become the tool of choice for the Trump administration to punish Chinese companies, though its real-world impact is sometimes questionable. Ant, an affiliate of e-commerce giant Alibaba Group Holding Ltd, declined to comment but in a recent statement to Reuters emphasized that only 5% of the company’s business is outside China. The State Department did not respond to a request for comment. While the Alipay payment app is currently unavailable for American users in the United States, according to a spokesperson for Ant, Trump administration officials fear the Chinese government could access sensitive banking data of future US users.Ī powerful security panel known as the Committee on Foreign Investment in the United States (CFIUS) stopped its $1.2 billion bid to buy the money transfer company Moneygram in 2018 over national security risks. 3 election, in which US President Donald Trump, trailing in the polls against his Democratic rival Joe Biden, has made a tough approach to China an important foreign policy platform. The latest swipe at China also comes in the run-up to the Nov. The dual listing in Shanghai and Hong Kong could be worth up to a record $35 billion. The move comes as China hardliners in the Trump administration are seeking to send a message to deter US investors from taking part in the initial public offering for Ant Group. It was not immediately clear when the US government agencies that decide whether to add a company to the so-called Entity List would review the matter.
The US State Department has submitted a proposal for the Trump administration to add China’s Ant Group to a trade blacklist, according to two people familiar with the matter, before the financial technology firm is slated to go public.
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