14 C
Jaipur
Friday, November 27, 2020

Ant Group: Trump administration to consider adding China’s Ant Group to trade blacklist: Sources – Latest News

Must read

Nokia: German court refers dispute Nokia-Daimler licensing dispute to European Court – Latest News

DUESSELDORF: A German court referred a dispute over patent licence fees between Nokia , the Finnish telecoms equipment maker, and German carmaker Daimler to...

Google is planning to make adding chapters easier in YouTube videos

Google added chapters feature to YouTube to make things easier for content creators as well as viewers. However, currently creators are...

This country will help people buy smartphones that can be repaired easily

The European Commission is on track to introduce a new law that will make it mandatory for gadget makers to disclose how...

Laptop Stand: Portronics launches portable laptop stand ‘My Buddy Hexa 22’ at Rs 1,299

Portronics has launched My Buddy Hexa 22, a portable laptop stand, in India. My Buddy Hexa 22 laptop stand...

WASHINGTON: The U.S. 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.

It was not immediately clear when the U.S. government agencies that decide whether to add a company to the so-called Entity List would review the matter.

The move comes as China hardliners in the Trump administration are seeking to send a message to deter U.S. investors from taking part in the initial public offering for Ant Group. The dual listing in Shanghai and Hong Kong could be worth up to a record $35 billion (27 billion pounds).

The latest swipe at China also comes in the run-up to the Nov. 3 election, in which U.S. 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.

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 belonging to future U.S. users.

A 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.

The State Department did not respond to a request for comment. 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 entity list, which makes it more difficult for U.S. 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.

While curbing access to U.S. 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 U.S. investors from taking stakes in the firm.

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.

Ant is China’s dominant mobile payments company, offering loans, payments, insurance and asset management services via mobile apps. Based in the eastern Chinese city of Hangzhou, Ant is 33% owned by Alibaba Group Holding Ltd and controlled by Alibaba founder Jack Ma.

Ant’s Alipay payment platform, like Tencent’s WeChat platform, is used primarily by Chinese citizens with accounts in renminbi. Most of its U.S. interactions are with merchants accepting payment from Chinese travelers and businesses in the country.

Senator Marco Rubio, who has successfully urged the Trump administration to pursue investigations of Chinese companies, called last week for the U.S. government to consider options to delay Ant Group’s initial public offering.

The End User Review Committee, which decides which companies to add to the list, includes the departments of State, Defense, Energy and Commerce. Defense and Commerce declined to comment while Energy did not respond to a request for comment.

The Hong Kong leg of the IPO is being sponsored by China International Capital Corp, Citigroup, JPMorgan and Morgan Stanley. Credit Suisse is working as a joint global coordinator. Goldman Sachs is also involved.

However, approval for the IPO has been delayed.

On Tuesday, Reuters reported that China’s securities regulator is probing a potential conflict of interest in Ant Group’s planned stock listing.

Source link

- Advertisement -

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

Nokia: German court refers dispute Nokia-Daimler licensing dispute to European Court – Latest News

DUESSELDORF: A German court referred a dispute over patent licence fees between Nokia , the Finnish telecoms equipment maker, and German carmaker Daimler to...

Google is planning to make adding chapters easier in YouTube videos

Google added chapters feature to YouTube to make things easier for content creators as well as viewers. However, currently creators are...

This country will help people buy smartphones that can be repaired easily

The European Commission is on track to introduce a new law that will make it mandatory for gadget makers to disclose how...

Laptop Stand: Portronics launches portable laptop stand ‘My Buddy Hexa 22’ at Rs 1,299

Portronics has launched My Buddy Hexa 22, a portable laptop stand, in India. My Buddy Hexa 22 laptop stand...

Watch: Korea gets its first ‘drone taxi’ flying over 3 cities

South Korea is all set to deploy drone taxis to tackle the traffic congestion. The Korean government had announced Korean...