Trump bans investing in Chinese military-linked companies
Donald Trump's executive order is part of his administration's offensive to counter the growing power of Beijing, determined to compete with Washington on the world stage in virtually everything from the economy to the military in through politics and technology.
Share November 13, 2020 8:23 a.m. Share Trump bans investing in Chinese companies linked to the military Agence France-Presse WASHINGTON – Donald Trump has decided to ban Americans from investing in Chinese companies accused by his government of supporting activities Beijing military, a measure condemned Friday by the communist regime.
In a decree, the tenant of the White House specified Thursday that this ban would be effective from January 11, nine days before his departure from the White House and the arrival of his successor Joe Biden.
Americans with stakes and other financial interests in a list of 31 affected companies have until November 2021 to sell them.
In response, China on Friday accused Washington of “abusing state authority to arbitrarily attack Chinese companies.”
“This measure not only harms the rights and legitimate interests of Chinese companies, but also the interests of international investors, including those of the United States,” Chinese diplomacy spokesman Wang Wenbin told reporters.
Donald Trump's executive order is part of his administration's offensive to counter the growing power of Beijing, determined to compete with Washington on the world stage in virtually everything from the economy to the military in through politics and technology.
Mr. Trump asserts in this decree that China “increasingly exploits United States capital to allow the development and modernization of its military activities, its intelligence services and other security systems, which allows it to threaten directly ”the United States and American troops stationed abroad.
The money of American individuals invested in these companies, says the Republican billionaire again, allows Beijing to develop weapons of mass destruction and to carry out cyber attacks “against the United States and its people”.
Clearly, China “exploits American investors to finance the development and modernization of its army,” concludes President Trump, who still refuses to concede defeat in the presidential election on November 3.
The targeted companies are public and private companies in aeronautics, maritime transport, construction, communications and new technologies in particular.
They are listed on Chinese financial centers, on the Hong Kong Stock Exchange and on Wall Street through financial instruments or subsidiaries.
Individuals invest in it through mutual funds, which bring together the savings of several investors, offered by a portfolio manager. Most often, small holders are unaware that they own a share, or even a portion of the title of a company.
China Mobile and China Telecom are among the list of companies targeted by Mr. Trump, along with video surveillance specialist Hikvision and railway construction group China Railway Construction Corp.
The latter's title plunged more than 4% on the Hong Kong Stock Exchange on Friday, while China Telecom lost nearly 8% and China Mobile 5%.
