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Trade war endless between United States and China.
Triumph He struck another blow against Beijing in this remnant of power before allegedly leaving the White House in Biden.
The Republican president signed an executive order that prohibits Americans from investing in some Chinese companies guilty of supporting the Asian military, which threatens the security of the United States.
The new prohibition has slowed down Asian markets, marking the stock market crash: what to expect from Trump’s order against China?
Trump vs. China: Major Businesses Affected
The executive order against Chinese companies is a clear message for Beijing: trade war it never ends, and America’s main enemy remains the Asian nation.
Triumph he wanted to leave one more mark on this last part of his administration, pending Biden’s official settlement (net of legal battles and vote counting).
The White House Act is nothing more than a prohibition for US investors to own shares, directly or through investment funds, in companies that, according to the administration, help and support the People’s Liberation Army of China (in anti-American code).
31 companies are the object of the measure, among which are important groups in the construction and aerospace sectors managed by the State, as well as technology and communications companies such as Inspur Group, Huawei e China Telecommunications Corp.
The order will go into effect on January 11, 2021 and until November 11, 2021 transactions for the purpose of transferring ownership of prohibited companies will be allowed.
These are the words of Trump when presenting his latest move against China:
“The People’s Republic of China is increasingly exploiting American capital as a resource and to enable the development and modernization of its military apparatus, intelligence and other security devices “.
Stopping investments in some companies, therefore, is considered essential to safeguard United States Security and US forces abroad, as Chinese companies could support weapons of mass destruction projects and similar plans for military destabilization.
In response to the novelty, the Asian exchanges have shown declines, with the Shanghai Composite to tow losses.
Will Biden confirm Trump’s anti-China move?
Trump’s decision does not surprise analysts and commentators, given that it is consistent with the fierce trade and financial war that has never stopped against Beijing.
The question that most interests investors, actually, is another: BidenOnce you take office in the White House, will you keep the executive order?
All doubts revolve around the democratic agenda in Beijing comparisons: Will it be marked by a break or continuation with the Republican? They will likely change their tune and attitude, but several bet on essentially maintaining the dragon’s hostile approach.
Biden has not defined a detailed strategy on the ChinaBut everything indicates that a tough approach will continue.
