President Trump signs executive order to block investment in businesses benefiting China's military
The order prohibits such investments beginning on Jan. 11
President Trump on Thursday signed an executive order to block investment in Chinese businesses that the administration says benefit China's military.
The order prohibits such investments beginning Jan. 11, 2021, but allows divestment from investments that include the Chinese securities through Nov. 11, 2021.
"Today, President Donald J. Trump signed an Executive Order to protect American investors from funding Communist Chinese military companies, including those designated by the Department of Defense in June and August of 2020," National Security Advisor Robert O'Brien said in a statement.
O'Brien also argued in the statement that many of targeted companies are publicly traded on stock exchanges around the world, and individual U.S. investors can unknowingly provide funds to them through passive institutional investment vehicles such as mutual funds and retirement plans.
"The president’s action serves to protect American investors from unintentionally providing capital that goes to enhancing the capabilities of the People’s Liberation Army and People’s Republic of China intelligence services, which routinely target American citizens and businesses through cyber operations, and directly threaten the critical infrastructure, economy, and military of America and its allies and partners around the world," he wrote.