Trump administration: Ban on investment in Chinese military-related companies
-“Use US capital for military development”-
[Washington, November 12, Reuters]
Trump administration
On November 12, an executive order was announced that “prohibits investment in Chinese companies that are deemed to be owned or controlled by the Chinese military.”
China’s state-owned telecommunications giant:
China Telecom and
China Mobile (China Mobile,
Hangzhou Haiyasu Wei visual numerical technology (Hikvision) etc.
May be affected.
Reuters
https://jp.reuters.com/article/usa-china-securities-idJPKBN27S38F
Executive Order on Addressing the Threat from Securities Investments that Finance Communist Chinese Military Companies
Issued on: November 12, 2020 By the authority vested in me as President by the Constitution and the laws of the United States of America,
including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), and section 301 of title 3, United States Code, I,
DONALD J. TRUMP, President of the United States of America, find that
the People’s Republic of China (PRC)
is increasingly exploiting United States capital to resource and to enable the development and modernization of its military, intelligence, and other security apparatuses, which continues to allow the PRC to directly threaten the United States homeland and United States forces overseas,
including by developing and deploying weapons of mass destruction, advanced conventional weapons, and malicious cyber-enabled actions against the United States and its people.
Key to the development of the PRC’s military, intelligence, and other security apparatuses is the country’s large, ostensibly private economy.
Through the national strategy of Military-Civil Fusion, the PRC increases the size of the country’s military- industrial complex by compelling civilian Chinese companies to support its military and intelligence activities.
Those companies, though remaining ostensibly private and civilian, directly support the PRC’s military, intelligence, and security apparatuses and aid in their development and modernization.
At the same time, those companies raise capital by selling securities to United States investors that trade on public exchanges both here and abroad, lobbying United States index providers and funds to include these securities in market offerings, and engaging in other acts to ensure access to United States capital.
https://home.treasury.gov/system/files/126/eo_chinese_mil_cos.pdf