Business & Investment

Trump administration tightens orders banning US investment in Chinese companies

A Chinese J-15 fighter on the deck of the Liaoning aircraft carrier during a military exercise in the South China Sea.

STR | AFP | Getty Images

On Monday, the Trump administration will buy securities for companies allegedly under Chinese military control, following disagreements between U.S. agencies on how difficult it is to issue an executive order. Strengthened the presidential order banning.

The Treasury has released guidance to clarify the executive order announced in November. This applies to exchange-traded funds and index funds, as well as subsidiaries of Chinese companies designated to be owned or controlled by the Chinese military.

The release of the “Frequently Asked Questions” posted on the Treasury website on Monday came after Reuters and other media outlets reported intensifying debate within the Trump administration over guidance. Sources said the State Department and the Pentagon opposed the Treasury’s bid to break the executive order.

Specifically, some media outlets have financed from November 2021 within the scope of the White House Directive banning new purchases of securities from 35 Chinese companies claiming Washington is backed by Chinese troops. The province reported that it was trying to exclude a subsidiary of a Chinese company.

Guidance released on Monday specifies that the ban applies “after the subsidiary of the Chinese Communist Party military company is listed by the Ministry of Finance.” The agency added that it “intended to list” listed companies owned by or controlled by more than 50% of Chinese military companies.

The list of designated companies required by the 1999 law currently includes 35 companies, including oil companies. CNOOC Ltd And China’s top chip maker, Semiconductor Manufacturing International..

Trump administration tightens orders banning US investment in Chinese companies

https://www.cnbc.com/2020/12/28/trump-administration-bolsters-order-barring-us-investment-in-chinese-firms.html Trump administration tightens orders banning US investment in Chinese companies

Back to top button