Late on Thursday, the US President Donald Trump who has less than ten weeks remaining of his Presidential term following last week's fiercely contested US election that voted in favour of the Democratic contestant Joe Biden, making him the President of world’s No.
1 economy until at least January 19, 2023, had issued a Presidential proclamation that in effect would bar US investments on particular Chinese entities which White House had claimed to have tie-ups with Chinese militaries, pointing towards a last-ditch attempt from the Trump Administration aimed at making a trade deal harder for the Biden Administration with China.
In point of fact, latest executive order from the departing US President Donald Trump came forth a couple of days after media headlines had revealed that the White House had been plotting a number of sanctions on Iran alongside his Gulf allies due to a much-softer stance of Biden on Tehran issue.
Aside from that, sources familiar with the subject-matter had also been quoted saying on condition of anonymity that the Trump Administration had been nourishing a number of trade disputes before quitting the Oval office, while the latest executive order to deter US investments on Chinese entities would impact some of the largest tech conglomerates of China such as China Telecom Corp Ltd., surveillance equipment maker Hikvision alongside China Mobile Ltd.
Trump issues executive order to prevent US investment on 31 Chinese firms
On top of that, according to the Presidential Proclamation revealed late on Thursday, the Trump Administration move was architected to prevent US equity funds, pension funds alongside American individuals from buying and selling shares of 31 Chinese companies, which the US Justice Department had branded as backed by the Chinese military earlier this year.
Besides, adding that the order would take effect from January 11, White House said in the executive order, “China is increasingly exploiting United States capital to resource and to enable the development and modernization of its military, intelligence, and other security apparatuses.
” Chinese entities have shelved at least half a trillion US Dollars in market cap from American investors to date, said the White House trade advisor Peter Navarro shortly after the announcement.