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By Humeyra Pamuk, Alexandra Alper and Idrees Ali
WASHINGTON (Reuters) – The Trump administration on Thursday unveiled an executive order banning U.S. investments in Chinese companies that Washington says are owned or controlled by the Chinese military, increasing pressure on Beijing after the U.S. election.
The order, which was first reported by Reuters, could impact some of China’s biggest companies, including telecommunications companies China Telecom Corp Ltd, China Mobile Ltd and surveillance equipment maker Hikvision.
The move is intended to deter U.S. investment firms, pension funds and others from buying and selling shares of 31 Chinese companies designated by the Defense Ministry as supported by the Chinese military earlier this year. As of January 11, the order will prohibit any transaction by American investors in their securities.
In his executive order, President Donald Trump declared that he found that China was increasingly exploiting US capital to recharge its batteries and to enable the development and modernization of its military, intelligence and security apparatuses, which continues to allow the PRC to threaten the United States directly. Home of the United States and American forces abroad. “
The move indicates that Trump, who was defeated by Democratic challenger Joe Biden in the Nov. 3 election, is looking to use the final months of his administration to step up pressure on Beijing.
Thursday’s action is likely to weigh further on the already strained ties between the world’s two largest economies, which are at odds over intensifying strategic rivalry, China’s handling of the coronavirus pandemic and its decision to ” impose security legislation in Hong Kong.
(Reporting by Humeyra Pamuk, Alexandra Alper and Idrees Ali; Editing by Chris Sanders, Edward Tobin and Rosalba O’Brien)
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