Decoupling American markets from Chinese with a new ban

Decoupling American markets from Chinese with a new ban

Trump’s administration put a ban on investments in Chinese corporations China Telecom, China Mobile, and Huawei, amongst others, by American companies and funds. A total of 31 Chinese companies are now expelled from the American market of investments following the recent law.

Such a step is taken for those companies that the Defense Department (DD) believes have ties with the Chinese Army, which would be a threat to American stability and national security. The list embraces companies working in such areas as infrastructure, manufacturing, railway, aviation, and technology. The DD’s belief is that some part of investments and technologies received and created by these companies goes straight to the Chinese military, increasing their ambitions. And such actions make danger to US military apparatus working home and abroad, including intelligence, development, and security aspects of the US government and defense.

The ban includes the prohibition to purchase shares, receive and give investments, and to allow Chinese companies to lend on the American market.