With only a few days remaining in office as the President of United States, Trump has enforced the ban on U.S investments on Chinese companies which are linked to China’s military in one way or another.
On January 13, President Trump signed an executive order prohibiting investments form the United States into Chinese military companies. This move will completely deny blacklisted Chinese companies access to U.S capital markets.
Under the executive order, by November 11, 2021, investors coming from the United States will be required to entirely divest their stakes in companies deemed by the Defense Department as owned or controlled by China’s military.
“Today’s executive order ensures that the United States retains a key tool to protect U.S. investors from funding Chinese military modernization,” said a senior government official in Trump’s administration.
So far, the DoD has blacklisted 35 Chinese companies among them is China based oil giant CNOOC and leading Chinese chip manufacturer Semiconductor Manufacturing International Corporation (SMIC).