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Iran Press TV

Trump administration unveils move to crack down on US investments in Chinese firms

Iran Press TV

Thursday, 12 November 2020 8:58 PM

The administration of President Donald Trump has unveiled an executive order banning US investments in Chinese firms that Washington says are owned or controlled by the Chinese military.

The order would affect some of China's biggest companies such as telecoms firms China Telecom Corp Ltd, China Mobile Ltd and surveillance equipment maker Hikvision.

The decision aims to deter US investment firms, pension funds and others from purchasing and selling shares of 31 Chinese companies designated by the Defense Department earlier this year as supported by the Chinese military.

The order, which starts Jan. 11, will prohibit any transaction by American investors in their securities.

Trump said in his executive order that he found China was "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."

The US has also been using national security concerns as an excuse to impose a ban on Chinese communication apps and technologies too.

It has already targeted Chinese tech companies, including telecom giant Huawei, over allegations of security threats.

The new decision comes following the disputed US presidential election held on November 3. Media reports said Democratic candidate Joe Biden had won the majority of votes. However, Trump has so far refused to concede the victory, saying that he lost the vote due to large-scale cheating in the voting process by the Democrats.

Now, the move indicates Trump wants to take advantage of the waning months of his administration to increase pressure on China.

It is likely to further weigh on already fraught ties between the world's top two economies. Tensions between the two countries remain at their highest level in decades, with sharp divisions over a host of political and economic issues, including trade, Hong Kong, Taiwan and the coronavirus pandemic.

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