Trump bans investing in Chinese military-related companies

Donald Trump bans US investments in companies that Washington deems owned or controlled by the People's Liberation Army.

Reuters / Aly Song

Text by: RFI Follow

2 min

“Underhand slander”, it is in these terms that Beijing protests after a new American presidential decree.

Donald Trump bans US investments in companies that Washington deems owned or controlled by the People's Liberation Army.

Decree that will come into force on January 11, less than 10 days before the inauguration of Joe Biden.

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About thirty companies are targeted, public and private companies active in sectors as varied as aeronautics, maritime transport, construction, communications and new technologies.

And, they are listed on Chinese financial centers, the Hong Kong Stock Exchange and even on Wall Street through subsidiaries or financial instruments.

If the decree is maintained after the departure of Donald Trump, who did not recognize his defeat, the Americans will therefore have until November 2021 to sell their possible holdings or other financial interests.

Americans who may not even know they own a stock or part of a stock in one of these companies.

Individuals invest in it through mutual funds offered by a portfolio manager.

Questions about the scope of the decree remain for investors because the sanctions imposed in the event of violation of the decree have not been specified.

In any case, the impact on the stock market was quick.

China Telecom ended down 7.8% in Hong Kong on Friday.

The title of China Unicom Hong Kong fell 6.7%.  

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  • United States

  • Donald trump

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