Thursday, 12 November 2020

 

Trump bans US investment in Chinese firms

Washington | The Trump administration on Thursday (Friday AEDT) unveiled an executive order prohibiting US investments in Chinese companies Washington says are owned or controlled by the Chinese military, ramping up pressure on Beijing after the US election.

The order could hit some of China's biggest companies, including telecoms firms China Telecom Corp Ltd, China Mobile Ltd and surveillance equipment maker Hikvision.

The move is designed to deter US investment firms, pension funds and others from buying and selling shares of 31 Chinese companies that were designated by the Defence Department as backed by the Chinese military earlier this year.

Starting on January 11, the order will prohibit any transaction by US investors in the securities of those companies. It also bans Americans from buying and selling securities in a Chinese company 60 days after it is designated as a Chinese military company.

"China is increasingly exploiting United States capital to resource and to enable the development and modernization of its military, intelligence, and other security apparatuses," said the order released by the White House.

The Chinese embassy in Washington did not immediately respond to a request for comment.

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