Trump bans securities transactions linked to China’s military

Washington, Nov 13: US President Donald Trump issued an executive order on Thursday prohibiting purchases or sales of securities tied to China’s military beginning January 11.
“The Executive Order prohibits certain purchases involving publicly traded securities, or any securities that are derivative of, or are designed to provide investment exposure to such securities, of any Communist Chinese military company,” Trump said in a letter on Thursday.
Trump also announced in the letter that the Executive Order also bans transactions that evade or avoid, or have the purpose of evading or avoiding, its prohibitions.
“I have delegated to the Secretary of the Treasury the authority to, in consultation with the Secretary of State, the Secretary of Defense, the Director of National Intelligence, and the heads of other executive departments and agencies as appropriate, take such actions, including promulgating appropriate rules and regulations, and employing all other powers granted to the President by IEEPA, as may be necessary to implement the Executive Order,” Trump added. “All agencies of the United States Government are directed to take all appropriate measures within their authority to carry out the provisions of the Executive Order.”
Tensions between the two countries have also soared over China’s activity in the South China Sea. China has accused the US of trying to increase its presence in the South China Sea by sending navy ships to conduct freedom of navigation operations in the area.
The US is also undermining peace and stability across the Taiwan Strait after a US warship crossed the waterway, China said. But despite Beijing’s accusations, the US insists the strait is part of international waters and its “freedom of navigation” operations are in line with international law.

The latest ban is in continuation of the US action of blacklisting 24 Chinese companies, saying that they are helping the ruling Chinese Communist Party construct artificial islands in the South China Sea, which the US sees as a military provocation. (AGENCIES)