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WASHINGTON: The Trump administration released an executive order on Thursday (Nov. 12) banning U.S. investments in Chinese companies that Washington says are owned or controlled by the Chinese military, increasing pressure on Beijing after the American elections.
The order, which was first reported by Reuters, could affect some of China’s largest companies, including telecommunications companies China Telecom Corp, China Mobile Ltd and surveillance equipment maker Hikvision.
The move is designed to dissuade US investment firms, pension funds and others from buying and selling shares of 31 Chinese companies that were designated by the Defense Department as backed by the Chinese military earlier this year. As of January 11, the order will prohibit any transaction by US investors in its securities.
In his executive order, President Donald Trump said he found that China was “increasingly exploiting US capital for resources and enabling the development and modernization of its military, intelligence and security apparatuses, which continues to enable that the People’s Republic of China threatens the United States directly. ” United States Homeland and United States Forces Abroad “.
The move indicates that Trump, who was defeated by Democratic challenger Joe Biden in the Nov. 3 election, is looking to take advantage of the final months of his administration to increase pressure on Beijing.
Thursday’s action is likely to weigh even more on already strained ties between the world’s two major economies, which are at odds over intensifying strategic rivalry, China’s handling of the coronavirus pandemic and its decision to impose a security legislation in Hong Kong.
