US President Donald Trump has strengthened an executive order banning US companies and individuals from investing in companies suspected of being controlled by the Chinese military, an order that also applies to subsidiaries of blacklisted companies. The Treasury’s guidelines make clear that the November order will also cover index stock funds, index funds and subsidiaries owned or controlled by the Chinese military, specifically as the Trump administration seeks to extend the ban on Chinese companies beyond the White House directive.
CNBC noted that the guidelines are under intense debate within the Trump administration, with the State Department and the Defense Department rejecting a previous Treasury request to narrow the scope of the executive order. The ban bans new purchases of securities from 35 Chinese companies accused by Washington starting in November 2021. The latest guidelines make it clear that the ban applies to subsidiaries of companies controlled or owned by the Chinese military, adding that the guidelines will publicly list publicly listed entities in which China owns or controls more than 50 per cent of the shares. Cnooc and SMIC are among those blacklisted under a 1999 law.
Mike Pompeo, US secretary of State, said earlier this week: “This statement is designed to ensure that the US does not contribute anything to the development of China’s military, intelligence and security services. “This will allay concerns that U.S. investors may support Chinese military-controlled companies through direct, indirect or other passive investments without their knowledge.” Roger Robinson, a former White House official, points to the Treasury’s FREQUENTLY asked questions as evidence of the us’s tireless efforts to safeguard national security and prevent capital market sanctions, and stresses that this is a clear victory.
The Commerce Department has said that unmanned aerial vehicle (uav) will put the world’s largest companies or xinjiang list with Germany and China science and technology, China national scientific instruments material co., LTD., and light and the group has also been included in the list, they are charged with “by collecting and analyzing the abuse of gene or high-tech surveillance, indulge in a massive human rights violations in China”.
Wilbur Ross, the COMMERCE secretary, declared that the Commerce Department would not allow advanced US technology to help build the armed forces of increasingly belligerent adversaries. Mr Ross said the government was likely to assume a denial of permission to prevent SMIC from acquiring the technology to produce advanced semiconductors of 10 nanometres or less. Speaking at the Asia Society, Wang Yi, China’s state councilor and foreign minister, noted that the US sanctions list was expanding and called on Washington to stop its arbitrary crackdown on Chinese companies. The U.S. Commerce Department released a list of 77 so-called entities and their affiliates, including 60 Chinese companies. Reuters earlier reported that the Commerce ministry added about 80 companies, most of them Chinese.
Wang Wenbin, a spokesman for China’s foreign ministry, said it would be ‘another strong evidence’ that the U.S. is using state power to crack down on Chinese companies, which China firmly opposes. Wang Wenbin said: “the politicizing economic and trade issues, contrary to his usual brand of market economy and the principle of fair competition, violate international trade rules, not only damage the legitimate rights and interests of Chinese enterprises, also does not conform to the interests of U.S. companies, will seriously interfere with the normal between the two countries, and even the whole world of science and technology exchange and trade, damage to global industrial chain, supply chain and value chain. We urge the US side to stop its wrongful act of unjustifiably suppressing foreign companies, and the Chinese side will continue to take necessary measures to safeguard the legitimate rights and interests of Chinese companies.”
With SMIC on the blacklist, Nikkei Japan said semiconductor products believed to be made by TSMC in the US for military use would be protected and safeguarded. Thanks to an American invitation, THE Arizona plant will be TSMC’s most sophisticated overseas facility. In the United States, TSMC, the world’s leading manufacturer of semiconductor wafers, will not only protect semiconductor manufacturing processes from Interference by China, but will also be able to produce semiconductor products for military use in the United States to protect national security.
In addition to imposing a ban on Chinese military-controlled companies, Mr Trump has faced setbacks in banning Tik Tok. On December 7, a judge in Washington, DC, issued an order preventing the Us Department of Commerce from imposing restrictions on Tik Tok in the country. The US Department of Justice appealed a federal judge’s decision yesterday (28 December) not to grant a ban on Douyin in the face of court delays. As The Verge reports, In October, Pennsylvania judge Wendy Beetlestone issued an injunction blocking douyin’s U.S. operations, which had been set to take effect On November 12. Washington District Judge Carl Nichols later issued a similar order to block Trump’s injunction. The White House is unlikely to resolve the lawsuit with Tik Tok before Trump leaves office on January 20, Reuters quoted sources as saying, adding that the two sides could reach an agreement in January.