TRUMP ORDERS BAN ON US INVESTMENTS IN CHINESE MILITARY FIRMS

The United States has officially warned American investors as well as US firms from plunking in their money in companies controlled, operated and directed by the Chinese military and managed by Communist Party of China (CPC) cadres.

In a statement released by National Security Advisor Robert C. O'Brien on November 12, 2020, O’Brien told the US-run Radio Free Asia (RFA) that outgoing US President Donald J. Trump signed an executive order that seeks “to protect American investors from funding Communist Chinese military companies, including those designated by the Department of Defense in June and August of 2020.”

O’Brien disclosed that many of these companies are publicly traded on stock exchanges around the world, and individual investors in the US can unknowingly provide funds to them through passive institutional investment vehicles such as mutual funds and retirement plans. For its part, China’s military had officially strengthened CPC groups operating within Chinese corporations, transforming those firms as adjuncts of the CPC and the People’s Liberation Army (PLA.)

“The President's action serves to protect American investors from unintentionally providing capital that goes to enhancing the capabilities of the PLA and People's Republic of China intelligence services, which routinely target American citizens and businesses through cyber operations, and directly threaten the critical infrastructure, economy, and military of America and its allies and partners around the world,” he concluded.