US President Donald Trump has signed an executive order banning Americans from investing in 31 Chinese firms that the administration says are owned or controlled by the Chinese military.
The Executive Order, which was signed by Trump on Thursday, prohibits certain purchases involving publicly traded securities or any securities that are derivative of or are designed to provide investment exposure to such securities of any Communist Chinese military company.
China is increasingly exploiting US capital to resource and to enable the development and modernisation of its military, intelligence, and other security apparatuses, which continues to allow China to directly threaten the US homeland and US forces overseas, including by developing and deploying weapons of mass destruction, advanced conventional weapons, and malicious cyber-enabled actions against the US and its people, Trump said in his executive order.
The order applies to 31 Chinese companies which it says “enable the development and modernisation” of China’s People’s Liberation Army (PLA) and “directly threaten” US security.
Smartphone maker Huawei and Hikvision, one of the world’s largest manufacturers and suppliers of video surveillance equipment, are among the blacklisted companies, CNN reported. Some of the other companies listed, including China Telecom and China Mobile, trade on the New York Stock Exchange, it said.