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UK news agency Reuters commented, while he was busy with the election results, Trump was still keeping an eye on China – Photo: REUTERS
“Beijing is using US money to provide resources and facilitate the development and modernization of the military, intelligence and security apparatus,” reads a paragraph of the decree. .
This is considered the first notable executive order from President Donald Trump after the US media announced that Democratic candidate Joe Biden was president-elect on November 7 (US time).
According to Reuters, this ban will take effect from 11-1-2021. Chinese conglomerates such as China Telecom, China Mobile and surveillance equipment maker Hikvision are expected to be affected.
Previously, the US Department of Defense published a list of 31 companies identified by Washington as belonging to the Chinese military or with Chinese military participation. This investment ban also includes companies related to China’s state security agencies.
As of January 11, 2021, US mutual funds and individuals will be prohibited from investing money in the 31 Chinese companies mentioned above. US companies are also prohibited from transacting securities with a particular Chinese company for 60 days after Washington declared it “part of the Chinese military.”
Reuters commented that while concentrating resources to challenge the results of the US elections, the November 12 executive decree shows that Trump will use the last months of this term to “repress China.”
Beijing has been cautious about the results of the US presidential elections and has not complimented Biden like some Asian countries.
Although Biden does not present a detailed strategy on China, there are indications that he will continue the same tough strategy as Trump if he enters the White House, according to Reuters.
Currently, China has yet to speak before the latest US move. Beijing has repeatedly criticized US bans against Chinese companies and warned that there will be countermeasures.
