The US government is expected to allow Americans to continue investing in Chinese technology giants Alibaba Group Holding Ltd., Tencent Holdings Ltd.
Alibaba and Baidu, listed in New York, and Tencent, listed in Hong Kong, were among a dozen companies considered for inclusion in the Defense Ministry’s list of companies believed to support China’s military, intelligence and security services, according to familiar. US investors have until November to sell their shares to any of the companies on the list.
The United States no longer plans to add to the list the three companies, which have a total market capitalization of about $ 1.4 trillion. Nine more Chinese companies will be added, as well as more than 100 subsidiaries of companies already on the list, people said.
The ruling marks the end of a two-week battle that pitted Treasury officials, who fear widespread sales and economic repercussions, against State Department and Pentagon officials seeking a tougher line against Beijing. In the end, Finance Minister Stephen Mnuchin prevailed.
The additions to the list will be submitted to Congress and made public immediately on Wednesday, said two people familiar with the matter.