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Original Caption: Trump’s First Big Move After He Was Declared Defeated, Cracking Down on Chinese Businesses to Trip Biden
[文/观察者网 熊超然]The smoke in the US presidential election has yet to clear. Trump, who has just been “declared” defeated, is busy fighting electoral demands in several US states while taking further action against China.
On November 12 local time, the official White House website issued the latest executive order signed by US President Trump, prohibiting US investors from investing in companies related to the Chinese military.
According to Reuters analysis, this is Trump’s first major political move after his “electoral failure.” This latest move to increase pressure on China may worsen already poor relations between China and the United States. A tough question for Biden, who can succeed him, is whether he will continue to be tough on China.
Screenshot of the executive order from the official White House websiteTrump stigmatizes Chinese companies and military ties and takes another step
The executive order stated that China frequently uses US capital to provide resources for the development and modernization of its military, intelligence and security facilities.
Furthermore, the Trump administration continues to play the same old tune, stigmatizing Chinese companies and exaggerating that these companies are private and civil companies on the surface, but are actually related to the military. The order stated that China is using funds provided by US investors to develop its military industry by allowing some companies to sell securities and other means.
Trump signed an executive order for this reason to prohibit US investors from investing in Chinese companies “owned or controlled” by the Chinese military.
According to Reuters, the move is aimed at preventing US investment firms, pension funds and other institutions from buying and selling the shares of these Chinese companies. 31 Chinese companies, including China Telecom, China Mobile and Hikvision, will be affected by the ban. They will be affected this year. Previously, the US Department of Defense recognized him as backed by the Chinese military.
The executive order will take effect on January 11, 2021, and will allow investors to divest related investments before November 2021.
In addition to prohibiting US investors from trading securities of companies linked to the Chinese military, the order also stipulates that once a Chinese company is recognized as a “Chinese military company,” Americans too. The securities of these companies cannot be purchased or sell.
According to Reuters, White House trade adviser Peter Navarro stated in an interview with this executive order on the 12th: “This is a comprehensive order intended to stifle investment of US capital in the Chinese military. Navarro also estimated that the Market value of these Chinese companies and their subsidiaries is at least US $ 5 billion.
Reuters noted that this was Trump’s first major political move announced after the US presidential election on November 3 and mainstream US media predicted Biden’s victory. Although Trump is busy with electoral litigation, it also shows that he is still trying to use the remaining months of his term to continue to clamp down on China, which may further worsen the already troubling relationship between the world’s two largest economies. Relationship.
Besides Trump, Biden’s attitude is also worthy of speculation. If the new US government is led by Biden, he will formally assume the presidency nine days after this executive order takes effect. Will you continue to enforce the order or will you just revoke it? The campaign team has yet to respond to this.
Reuters commented that Trump escalated the fierce confrontation between the United States and China in the last year of his term. Indeed, Biden has not formulated a particularly detailed strategy for China, but all signs indicate that if he comes to power, he will continue to take a tough stance toward China.
Over 30 Chinese companies have long been “attacked” by the Pentagon
Reuters also revealed that, in fact, the content of this executive order originated from a bill introduced last month by the “anti-China vanguard”, Republican Senator Marco Rubio (Marco Rubio), which aims to prevent Las Chinese companies included in the US “blacklist” enter the US capital market, including “target” companies from the US Department of Defense.
As early as June 24 this year, the US Department of Defense decided to make a “list” that included the top 20 Chinese companies, including Huawei, Hikvision and AVIC, as “owned or controlled” by the Chinese military. On August 28, 11 Chinese startups were added to the declaration and “list” posted on the official website of the US Department of Defense.
The United States Department of Defense also stated in its statement at the time that the Pentagon was “determined to highlight and counter the ‘development strategy of military-civil integration'”, targeting Chinese companies, universities and research projects. , stating that these entities “through advanced technologies acquired and developed professional knowledge to support the modernization goal of the Chinese army.” The statement eventually threatened that the United States Department of Defense will continue to update the list under appropriate circumstances.
In response to this, Hua Chunying, a spokesman for the Chinese Foreign Ministry, responded at a regular press conference on September 1, saying that this once again demonstrated that American diplomacy has come down to sanctions diplomacy. In addition to lying and cheating, blaming and attacking and discrediting China, American diplomacy threatens or declares sanctions. In fact, this is very sad.
Hua Chunying emphasized that China has repeatedly declared its solemn position on the unprovoked US crackdown on Chinese companies. The United States’ identification of 11 Chinese companies as military-controlled companies does not take into account the facts, which is not in accordance with legal principle and is not substantiated. China has expressed strong opposition. The United States has repeatedly generalized the concept of national security, abused national power, and repressed certain Chinese companies, which seriously violated the principles of market competition and international economic and trade rules that the United States has always announced.
