China’s Government Criticizes US Moves To Expand Financial Sanctions

BEIJING — China’s government slammed fresh US efforts to restrict access to American financial markets on Friday, saying it will safeguard Chinese firms but offering no hint of retribution.

After President Joe Biden enlarged a blacklist of firms that are off-limits to American investors, the S&P Dow Jones Indices and FTSE Russell excluded additional Chinese companies from their indexes. These indexes serve as the foundation for billions of dollars in stock and bond investments.

Wang Wenbin, a spokesperson for China’s foreign ministry, accused the United States of “abusing national authority and generalizing the idea of national security to repress Chinese businesses for no cause.”

Wang stated that Beijing will “take all necessary measures” to defend its businesses and “defeat the US attempts to intervene in China’s domestic affairs.” He did not provide any further information.

The limits were put in place by Biden’s predecessor, Donald Trump, to prevent firms from accessing US finance if they are judged to be helping the governing Communist Party’s military arm modernize. Telecom, energy, aerospace, and other businesses are among them.

Biden’s directive on June 3 increased the number of Chinese firms on the list from 44 to 59, up from 44 under Trump.