United States President Donald Trump who recently lost the Presidential election and is yet to concede defeat has issued an executive order prohibiting US investments in Chinese firms.
Trump has accused China for the spread of the COVID-19 virus which he calls the “China virus” and has blamed his loss on the communist regime. Due to the coronavirus pandemic, the US has suffered economically and its GDP has taken a massive hit.
Many small businesses have gone under and now not only the US but the entire world faces the prospect of a crippling economic recession.
The new order issued by Trump who will be in office with full executive powers until noon of January 20, 2021, has banned investments in firms that are owned or controlled by the Chinese military. However, this order could be reversed by President-elect Joseph Biden but it might prove to be very difficult due to the strong anti-China sentiment among the Americans.
The order could impact some of China’s biggest companies, including telecoms firms China Telecom Corp Ltd, China Mobile Ltd, and surveillance equipment maker Hikvision.
From January 11, until November 11, 2021, the new order issued by Trump will prohibit purchases by US investors of the securities of those companies. According to the information released by the White House, “China is increasingly exploiting United States capital to resource and to enable the development and modernization of its military, intelligence, and other security apparatuses,”.
This decision could hit China really badly as it is also going through economic and political turmoil amidst rising tension with practically all its neighbors. It is estimated half a trillion dollars in market capitalisation was represented by the Chinese companies and their subsidiaries.
The other problem for China is the lack of clarity and vision Biden has for China. Also, under Trump, the US has gotten a lot closer to India at strategic levels that saw its respective military conduct various military exercises like the just concluded Malabar naval exercise with India, Japan, and Austalia known as the Quad.
Below is a list of those companies based on Department of Defense data found —
Aviation Industry Corporation of China
China Aerospace Science and Technology Corp
China Aerospace Science and Industry Corp
China Electronics Technology Group Corp
China South Industries Group Corp
China State Shipbuilding Corp
China North Industries Group Corp (Norinco Group)
Hangzhou Hikvision Digital Technology
Huawei Technologies
Inspur Group
Aero Engine Corporation of China
China Railway Construction Corp
CRRC Corp
Panda Electronics Group
Dawning Information Industry Co
China Mobile Communications Group
China General Nuclear Power Group
China National Nuclear Corp
China Telecommunications Corp
China Communications Technology
China Communications Construction Company (CCCC)
China Academy of Launch Vehicle Technology (CALT)
China Spacesat
China United Network Communications Group
China Electronics Corporation
China National Chemical Engineering Group Co Ltd
China National Chemical Corporation (ChemChina)
SinoChem Group Co Ltd
China State Construction Group
China Three Gorges Corporation
China Nuclear Engineering & Construction Corporation