Trump Bans Americans From Investing In Companies That Support China’s Military

Topline

President Donald Trump has signed an executive order effectively banning Americans from making investments in Chinese companies that support China’s military, Reuters was first to report on Thursday, in a move that heightens tensions between the world’s two largest economic superpowers.

Key Facts

With the executive order, the Trump Administration plans to prohibit Americans from making investments in Chinese firms it deems are owned or controlled by the Chinese military, Reuters reported Thursday afternoon, citing three unnamed sources familiar with the matter. 

The order reportedly goes into effect on January 11 and specifically lists 31 Chinese firms that the Defense Department identified as “Communist Chinese military companies” in August.

Reuters says the move could impact firms like China Telecom Corp and China Mobil, both of which trade on the New York Stock Exchange with market caps of nearly $29 billion and $106 billion, respectively.

The yet-to-be unveiled executive order has reportedly already been signed by President Trump and could be released to the public as soon as Thursday.

A spokesperson for the White House did not immediately respond to Forbes‘ request for comment.

Crucial Quote

One of the sources, a U.S. official speaking on the condition of anonymity, said an executive order and statement from the National Security Council (NSC) was expected as early as Thursday ‘on protecting investors from funding these companies,'” Reuters’ Humeyra Pamuk, Alexandra Alper and Idrees Ali reported on Thursday.

Further Reading

Exclusive: Trump administration readies crackdown on U.S. investments in Chinese firms – sources (Reuters)

Trump Bars Americans From Investing in Firms That Help China’s Military (WSJ)

Source: https://www.forbes.com/sites/jonathanponciano/2020/11/12/trump-bans-americans-from-investing-in-companies-that-support-chinas-military/