US bars investments in ‘Chinese military companies’
This week, US President Donald Trump issued an executive order banning American companies from investing in Chinese firms with the government of military ties. The ban will go into effect in January and is likely to anger some Chinese companies such as telecom technology firm Hikvision. This will also further untangle the United State’s economic ties with China after years of close economic partnerships. Over the past four years, sanctions have been placed on Chinese tech companies and billions of dollars worth of Chinese goods have been heavily impacted by elevated border taxes.
Social tensions have also been on the rise, as issues in Hong Kong and the treatment of China’s Uighur Muslim population have sparked discontent in the US. US authorities claim that the new order has been under review for months, and applies to shares owned directly or indirectly in 31 firms identified as backed by the Chinese military. US investors will have a year to pull their investments out of the companies.