US President Joe Biden on Friday released a list of companies that US investors are no longer allowed to invest in.

He wants to "ensure that American money is not used to support Chinese companies that undermine the security and values ​​of America and its allies".

The list was originally compiled by Biden's predecessor Donald Trump in November last year.

He then blacklisted 31 Chinese companies for security reasons.

That led to a lot of outrage among Chinese companies and rulers and the question was long what Biden would do with the list.

Many had expected that he would reduce the list to improve relations between the US and China, but he is not doing that.

He adds no fewer than 28 companies, including mainly aviation companies and the chip manufacturer SMIC.

Furthermore, telecom giants such as Huawei had been on the list for a long time.

Most of those companies are also already on another blacklist that prohibits them from using American technology.

The smartphone manufacturer Xiaomi was then removed from the list after the company sued the US government.

It denied any ties to the Chinese government and demanded to be removed from the list.

Distrust of Chinese companies

There has long been distrust from the US and the rest of the world towards Chinese companies.

Many of them would have too close ties with the government, which would allow them to spy on other countries through those companies.

The new rules on investing in Chinese companies will come into effect on August 2.

Until then, Americans still have time to reduce their investments in the aforementioned companies.

The Chinese government is not pleased with the new list and says it will "take the necessary measures to protect the rights of Chinese companies".