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Wednesday, September 22, 2021

Trump Administration Bans US Investments in Firms Linked to Chinese Military

The Trump administration unveiled on Thursday afternoon an executive order that prohibits US investments in Chinese companies that the White House says are controlled by the Chinese military, ramping up pressure on the Chinese Communist Party after the American presidential election.

The Trump administration unveiled on Thursday afternoon an executive order that prohibits US investments in Chinese companies that the White House says are controlled by the Chinese military, ramping up pressure on the Chinese Communist Party after the American presidential election.

Starting on January 11th, the order will prohibit purchases by American investors of the securities of those companies. 

Transactions made to divest ownership in the companies will be permitted until November 11th, 2021.

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

White House trade adviser Peter Navarro told the media he estimated that at least half a trillion dollars in market capitalization was represented by the Chinese companies and their subsidiaries. 

“This is a sweeping order designed to choke off American capital to China’s militarization,” Navarro pointed out.

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