Beautiful Virgin Islands

Tuesday, Jul 15, 2025

Trump administration cracks down on US investments in Chinese firms

Trump administration cracks down on US investments in Chinese firms

Executive order affects some of China’s biggest companies, including China Telecom, China Mobile and Hikvision.
The Trump administration announced on Thursday an executive order prohibiting Americans from investing in Chinese firms that are deemed controlled by the Chinese military.

The move ramps up the pressure on Beijing after the US election to cut off US capital from 31 Chinese companies - including telecoms firms Huawei, China Telecom, China Mobile, surveillance equipment maker Hikvision and Sinochem - that Washington believes crucial to the modernization of the China’s People’s Liberation Army (PLA).

More than 210 Chinese firms with a combined market capitalization of about US$2.2 trillion are listed on major US stock exchanges as of October, according to a congressional report by the US-China Economic and Security Review Commission.

“The People’s Republic of China (PRC) is increasingly exploiting United States capital to resource and to enable the development and modernization of its military, intelligence, and other security apparatuses,” said US President Donald Trump.

The order would ban US investors from trading securities of Chinese companies designated by the US Defence Department as backed by the Chinese military starting January 11, 2011, and gives investors currently holding them until November 11, 2021 to sell them.

Gabriel Wildau at Teneo Risk Advisory in New York said Trump’s move underscores the heightened risk investors face with regard to China in the final months of the president’s administration. Democrat Joe Biden was called as the winner of the presidential election on November 7, and Trump has yet to concede.

“This action should be a warning to companies and financial markets that the lame duck period will bring elevated risks,” Wildau said. Trump “may be less cautious about taking disruptive actions, since the next administration will be the one to deal with the consequences”.

The president “may be tempted to flip over the chess board and leave Biden to pick up the pieces,” Wildau added. “The outgoing administration may also be seeking to place Biden in a bind by imposing actions that create chaos but that would be politically difficult for a Biden administration to reverse, since doing so would expose them to criticism that they are soft on China”.

Trump’s national security advisor Robert O’Brien said in a Thursday statement that the action “serves to protect American investors from unintentionally providing capital that goes to enhancing the capabilities” of the PLA intelligence services.

US Defence Department, in a two announcements in June and August, designated 31 Chinese companies as military companies, in a bid to counter China’s military-civil fusion development strategy, which the US believes would propel the goals to modernize the PLA by gaining access to advanced technologies from Chinese private firms, universities and research.

In a bipartisan effort, the US lawmakers have pressured the Pentagon to release a list of Chinese firms that are crucial for the development of Chinese army.

Last September, top US Senate Democrat Chuck Schumer and Republican Senator Tom Cotton penned a letter to then-defence secretary Mark Esper raising concerns about Beijing’s enlisting of Chinese corporations to harness emerging civilian technologies for military purposes.

Many of the companies listed are already in the crosshairs of US regulators. Both Huawei and Hikvision were added to a Commerce Department blacklist last year, which forces their US suppliers to seek licences before selling to them.

In April, the US Justice Department and other federal agencies called on the Federal Communications Commission to revoke China Telecom (Americas) Corp’s authorisation to provide international telecommunications services to and from the United States.

The telecoms regulator rejected a similar request by China Mobile last year that had been pending for years.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
×