The Trump administration unleashed new sanctions on companies that contribute to China’s military-industrial base, the White House announced Thursday.
The executive order will prohibit Americans from owning shares of 31 companies that support the industrial, communications, and technological capabilities of China’s People’s Liberation Army. Pentagon officials designated the firms as “Communist Chinese military companies” in June and August memos, according to the Wall Street Journal.
The targeted companies have enjoyed the support of American investors—many of the sanctioned firms are traded on Chinese stock exchanges, and two of them are listed on the New York Stock Exchange. Even if the latest sanctions are reversed by a Biden administration next year, investment experts believe the White House’s order could deter further American investment in Chinese companies. (Read more from “Trump Announces New Sanctions on China’s Military Industry” HERE)