World

Alibaba’s FinTech Division Ant Group Considers Blacklisting Trump Administration: Sources

Washington: Before the fintech division of e-commerce giant Alibaba was released, the US State Department submitted a proposal to the Trump administration to add China’s Ant Group to the trade blacklist, two people familiar with the matter said.

It was not immediately clear when the US government agency, which decides whether to add a company to the so-called entity list, would consider the issue.

Ant Group Co. Logo and Alibaba Group Holding Ltd. logo are displayed behind the reception desk of the headquarters in Hangzhou, China.credit:Bloomberg

But the move is because Chinese hardliners in the Trump administration are trying to send a message to discourage US investors from taking part in the initial public offering. That’s a record $ 35 billion ($ 48 billion). They fear that buying shares in the company could expose them to fraud, or Ant could give the Chinese government access to confidential banking data belonging to US citizens.

The State Department did not immediately respond to the request for comment.

The entity list, which makes it more difficult for U.S. companies to sell tech products to blacklisted companies, has become a tool of choice for the Trump administration to punish Chinese companies, although the actual impact may be questionable. I will.

Restricting access to U.S. technology will hurt companies like China’s telecommunications giant Huawei Technologies, which was added in May 2019, but more impact on fintech giants like AntGroup. It can be symbolic.

Reuters

Alibaba’s FinTech Division Ant Group Considers Blacklisting Trump Administration: Sources

Source link Alibaba’s FinTech Division Ant Group Considers Blacklisting Trump Administration: Sources

Back to top button