A number of communist companies that directly support China’s military are to be boycotted under the regulation.
President Trump is putting up pressure on China, and this time he is targeting capital markets.
On Thursday, U.S. President Donald Trump signed an executive order banning American businessmen from investing in a group of Chinese companies that his government says are supplying and supporting China’s military.
In this way, Trump is trying to contain the Chinese economy while thwarting deals that could harm the US, Fox News reports on Business Insider.
The order prohibits American companies and individuals from directly or indirectly buying stocks that are among the 31 companies identified by the United States. These include Chinese state-owned aerospace, shipbuilding and construction companies, as well as technology companies.
Although the companies were not named in the regulation, it refers to the shares of technology and telecommunications companies with significant government control, including China Telecom, China Mobile and China Unicom .
Some of these companies are listed on the major US stock exchanges, including the New York Stock Exchange, which is owned by ICE and Nasdaq.
Commenting on Trump’s strategically smart move, congressman Jim Banks said:
“On the one hand, Congress is calling on taxpayers to help expand our military so that we can compete with China. On the other hand, large US mutual funds are throwing US dollars into China’s military-industrial base. We need to end our cognitive dissonance and stop funding the rise of our main global adversary. “