US President Donald Trump signed an order Thursday that will ban Americans from investing in Chinese firms that could help Beijing’s military and security apparatus.
President Donald Trump of the United States has escalated the dispute with China over technology and security by forbidding Americans from investing in businesses that US officials claim are owned or run by the Chinese military.
China’s government issued a warning on Friday, claiming that Washington was abusing national security as a pretext to suppress competition and harming American and international businesses alike with Trump’s decision.
The order issued on Thursday may increase pressure on businesses that are already subject to export restrictions and other sanctions from the United States, such as the massive telecom equipment manufacturer Huawei and the video surveillance company Hikvision.
This marks Trump’s first significant move toward China since rival Joe Biden defeated him in the reelection race. Politicians and economists had predicted that, even in the event of a Trump loss, he would probably take further measures against Beijing before he leaves office on January 20.
Political observers anticipate few policy changes under Biden because of the country’s reputation for violating human rights and trade laws, as well as charges of espionage and technology theft.
China’s foreign ministry charged on Friday that Washington was breaking market principles and “wantonly suppressing Chinese companies under the pretext of national security.”
A spokeswoman for the foreign ministry, Wang Wenbin, claimed that “the U.S. government abused national power to unreasonably suppress Chinese companies and maliciously slandered China’s military-civilian integration development policy out of political motives.”
“This action will seriously harm Chinese companies’ legitimate rights and interests, as well as the interests of investors worldwide, including the United States,” Wang stated.
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