Trump signs decree banning investments in Chinese companies associated with the PRC military
It will enter into force on January 11, 2021.
WASHINGTON, November 12. / TASS /. US President Donald Trump has signed a decree banning US investment in a number of Chinese companies that Washington believes are linked to the Chinese Armed Forces. The corresponding document was distributed on Thursday by the press service of the White House.
According to the decree, from January 11, 2021, American individuals and legal entities will be prohibited from any transactions with the securities of such companies. The ban will go into effect at 9:30 a.m. US East Coast time.
As explained in the document, we are talking, in particular, about the firms that the Pentagon earlier this year included in the list of organizations associated with the Chinese military industry. The list was compiled in accordance with the requirement of the law passed in the United States in 1999. In total, it includes 31 enterprises, including Huawei. Being included in the list does not automatically entail the imposition of sanctions, however, according to the mentioned law, the American president can impose restrictions on the companies present in it.
"I, the President of the United States < ... >, believe that the PRC is increasingly using American capital to obtain resources and create opportunities for the development and modernization of its military, intelligence and other security-related vehicles, which still allows China to pose a threat to the United States (inside the US - TASS note), as well as to American forces abroad, including through the development and deployment of weapons of mass destruction, modern non-nuclear weapons, as well as [through] malicious actions against the United States and its residents in cyberspace ", - says the owner of the White House.
In his opinion, "within the framework of the strategy of merging the military and civilian sectors, the PRC is increasing the size of the country's military-industrial complex, forcing Chinese civilian companies to support their military and intelligence activities." “These companies, ostensibly remaining private and civil, directly support the PRC's military, intelligence and security-related systems and assist in their development and modernization. At the same time, these companies raise capital by selling securities to US investors. <. .. > Thus, the PRC is using American investors to finance the development and modernization of its aircrafts, "Trump said.