The Donald Trump administration has announced a decree banning American investment in Chinese firms owned or controlled by the Chinese military.
The decree could affect some of China’s largest companies, including telecommunications companies China Telecom and China Mobile, as well as the manufacturer of video surveillance equipment Hikvision.
The decree bans U.S. investment firms, pension funds and other companies from buying and selling shares of 31 Chinese companies. Earlier this year, the Ministry of Defense ruled that these companies were affiliated with the Chinese military.
Since January 11, US investors are prohibited from conducting any transactions with the securities of these companies. The decree also prohibits Americans from buying and selling securities of Chinese companies more than 60 days after they were recognized by the military.