Trump bans US investment in Chinese military-linked firms

President Donald Trump has stepped up a conflict with China over security and techlogy by issuing an order barring Americans from investing in companies that U.S. officials say are owned or controlled by Chinese military.

impact of order Thursday wasn't immediately clear but it could d to pressure on companies including telecom equipment giant Huawei and video surveillance provider Hikvision that alrey face U.S. export bans and or sanctions.

It is Trump's first major action toward China since he lost his re-election bid to challenger Joe Biden. Ecomists and political analysts have said even if Trump was defeated he was likely to launch more actions Beijing before he leaving office on Jan. 20.

Political analysts expect little change in policy under Biden due to widespre frustration with China’s tre and human rights records and accusations of spying and techlogy ft.

U.S. officials complain China’s ruling Communist Party takes vant of access to American techlogy and investment to expand its military, alrey one of world’s biggest and most heavily armed.

Thursday’s order complains companies targeted “directly support” Chinese military, intelligence and security apparatus. It said Beijing “exploits United States investors” to finance military development by selling securities in American and foreign financial markets.

order bars American investors from conducting any transactions in publicly tred securities issued by any Chinese companies designated by secretary of defense as being linked to Communist Party’s military wing, People’s Liberation Army.

Pentagon earlier designated 31 companies as being owned or controlled by Chinese military. Many are military contractors or state-owned companies such as phone carrier China Telecom Ltd. But list also includes Huawei Techlogies Ltd. and Hikvision Digital Techlogy Co., which say y are private and deny y are controlled by military.

Most of those companies have shares tred in United States but many sell stocks, bonds and or securities in markets outside mainland China that are accessible to American investors.

Sales me to divest securities of those companies will be allowed until one year from w on v. 11, 2021.