By Fan Yu
From The Epoch Times
November 23, 2020
Photo credit: Andrea Verdelli/Getty Images
President Donald Trump’s latest executive order bars U.S. investors from holding ownership stakes in a list of 31 Chinese companies designated to have ties with various Chinese Communist Party (CCP) military apparatuses.
This order, while somewhat limited in scope, ensnares several well-known Chinese companies, including non-public companies such as Huawei and publicly traded companies such as China Mobile and Hangzhou Hikvision. The 31 companies were previously designated by the Pentagon as being “owned or controlled” by the People’s Liberation Army (PLA), the official name of the Chinese military. (The list of companies can be found here and here.)
The action could be a sign of things to come for Chinese companies with close ties to the CCP; U.S. capital could prove increasingly hard to come by. In addition, examining the foreign ownership base of these companies reveals that a number of them are partially owned by prominent U.S. investment firms, insurance companies, and pension funds.