Benzinga | Jul 19, 2021 05:12PM EDT

Why Some Chinese Companies May Be Trading Down

The Biden administration has been critical of the People's Republic of China -- a trend that appears to be continuing.

Monday, the U.S. joined with allies, including the European Union, NATO and the United Kingdom, to criticize China for what it said is "malicious" cyber activity and "irresponsible state behavior," according to a press release by the White House.

The group plans to adopt a cyber defense policy for the first time in seven years, laying clear guidelines for what is fair internet practice and to prevent cyber hacks.

Earlier this year, the Biden administration banned American investment in Chinese silicon companies linked to cultural genocide against Uighur residents.

Many Chinese companies are traded on the New York Stock Exchange, and the recent ruling could have encouraged the selling in some of the major ones, including Alibaba (NYSE:BABA), Pinduoduo (NYSE:PDD) and JD.com (NYSE:JD).

There are about 250 Chinese companies with a total market capitalization at $2.1 trillion as of May, according to the U.S.-China Economic and Security Review Commission.