Last Updated:

Trump Bans US Investments In Chinese Companies That Aid People’s Liberation Army

President Donald Trump on November 12 signed an executive order prohibiting American companies and individuals from investing in Chinese companies.


President Donald Trump on Thursday, November 12 signed an executive order prohibiting American investors from investing in Chinese companies that the White House believes support China's military. The order further prohibits American companies and individuals from owning shares 'completely or through investment funds' in companies that the administration claims to be helping in the advancement of the People’s Liberation Army. The order goes into effect from January 11, US official said.

National Security Advisor Robert C O'Brien in an official statement said that the order is to protect American investors from unintentionally providing capital to enhance the intelligence services of the Chinese government and People's Liberation Army (PLA).

"Today, President Donald J. Trump signed an Executive Order 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 said.

President's action serves to protect American investors

Justifying the ban O'Brien further said that the President's action serves to protect American investors from unintentionally providing capital that goes to enhancing the capabilities of the People's Liberation Army and People's Republic of China intelligence services, which routinely target American citizens and businesses through cyber operations. They directly threaten the critical infrastructure, economy, and military of America and its allies and partners around the world, O'Brien added.

READ | Trump, stewing over election loss, silent as virus surges

Furthermore, NSA opined that since many of these companies are publicly traded on stock exchanges around the world, and individual investors in the United States can unknowingly provide funds to them through passive institutional investment vehicles such as mutual funds and retirement plans. President Trump has no higher priority than the security of the American people, O'Brien said.

READ | Few legal wins so far as Trump team hunts for proof of election fraud

US warns China of more sanctions over Hong Kong issue

Meanwhile, on November 11, the US has also warned China over more sanctions against their moves that “flagrantly violated” the autonomy of Hong Kong after it ousted at least four-pro-democracy lawmakers. In a statement, the United States national security adviser Robert O’Brien said that the recent actions taken by China of “disqualifying pro-democracy legislators from Hong Kong's Legislative Council leave no doubt that the Chinese Communist Party (CCP) has flagrantly violated its international commitments.”

He also added that the United States would continue to “ identify and sanction those responsible for extinguishing Hong Kong's freedom.” O’Brien’s remarks came after the US imposed sanctions on four more Chinese officials who were accused of curbing the freedoms of the former British colony while pledging for China’s accountability over the clampdown going on in Hong Kong. 

Robert O’Brien said, “One Country, Two Systems” is now merely a fig leaf covering for the CCP’s expanding one party dictatorship in Hong Kong.”

READ | Trump backs McDaniel for another RNC chair term

READ |Trump, Biden attend separate Veterans Day event as President refuses to concede

(With ANI inputs)

First Published: