Outgoing US President Donald Trump will ban US investments into Chinese firms his administration believes are owned or controlled by the Chinese military, the White House announced late yesterday.
Current US president Trump has issued an executive order prohibiting investments into such companies, claiming China "exploits United States investors to finance the development and modernisation of its military."
The order, which will come into effect on 11 January, is understood to include 31 of the largest listed Chinese companies like telecoms firms China Telecom and China Mobile as well as surveillance equipment-maker Hikvision.
From 11 January, investors will no longer be able to purchase stock, with transactions made to divest existing ownership in them will be allowed until 11 November 2021.
In the order, Trump said China was "increasingly exploiting United States capital to resource and to enable the development and modernization of its military, intelligence, and other security apparatuses."
He continued: "[This] continues to allow the PRC to directly threaten the United States homeland and United States forces overseas, including by developing and deploying weapons of mass destruction, advanced conventional weapons, and malicious cyber-enabled actions against the United States and its people."