US President Joe Biden expanded a list of Chinese companies domestic investors are prohibited from investing in due to claimed links with the military, strengthening the framework of action initiated by his predecessor Donald Trump.

The number of companies listed is increased from 31 to 59, with key players including Huawei, Chinese operators and Semiconductor Manufacturing International Corp remaining.

An executive order by Biden is due to take effect on 2 August, with enforcement duties passed from the Department of Defence (DoD) to the Department of the Treasury.

Investors will have 356 days to divest their holdings in the listed companies.

In a fact sheet, the US named Huawei and Hangzhou Hikvision Digital Technology as suppliers of surveillance technology, which is a key focus of Biden’s move.

The President stated the use or development of “Chinese surveillance technology” outside the nation “constitute unusual and extraordinary threats” to human rights.

He said additional steps are necessary to address the threat posed by China’s military-industrial complex.

Chinese officials threatened to retaliate: during a regular press briefing, foreign ministry representative Wang Wenbi said the nation will take necessary measures to support its companies in defending their rights and interests according to law.

“The US should respect rule of law and the market, correct its mistakes and stop actions that undermine the global financial market order.”

Last week, smartphone maker Xiaomi succeeded in a bid to be removed from the DoD list.