In a fresh move in the Washington-Beijing stand-off, an executive order signed by President Donald Trump on 12 November bars Americans from investing money in Chinese firms which are thought to be helping the China’s People’s Liberation Army (PLA) to modernise.
Beijing has lashed out at a recent move by President Donald Trump to block American investments in a number of key Chinese companies, reports The Washington Post.
China’s government was swift to denounce the potentially detrimental measures taken on Thursday.
The executive move, announced by Trump on 12 November, came after a steep sell-off of shares in a number of targeted firms.
New US Blacklist
Thursday’s executive order prohibits US companies and individuals from investing in 31 companies that have been singled out by Washington as working towards aiding the modernisation of the China’s People’s Liberation Army as well as China’s intelligence and security services.
The ban is proposed to embrace stocks, bonds and derivatives, and set to affect a number of US-traded securities and funds run by major American institutions, writes the outlet.
There were concerns voiced that the new blacklist could prompt banks and asset managers to reassess their exposure, as Friday witnessed markets promptly responding to the move.
Listed subsidiaries of China’s three major phone and internet providers watched shares tumble in Hong Kong trading in the wake of…