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Trump Prohibits Investing in Firms that Support the Chinese Army

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President Trump’s war with China is not limited to the economic and commercial sector. A new decree also extends it to defense and security. One of the executive orders signed by the president prohibits Americans from investing in certain specific firms that in any way support the defense, security, and intelligence structures of the Chinese regime.

The President of the US has been a fierce rival of China’s totalitarianism, not only in order to reverse the industrial hegemony that the Asian country has consolidated in various sectors of the economy of the United States, but also with the aim of protecting national capital from serving the camouflaged corporatism of Beijing.

The executive order identifies thirty-one companies considered by the Department of Defense under the National Defense Authorization Act. The President states:

I, DONALD J. TRUMP, President of the United States of America, find that the People’s Republic of China (PRC) is increasingly exploiting United States capital to resource and to enable the development and modernization of its military, intelligence, and other security apparatuses.

His denounces continue to be directed at the Chinese corporate network that uses private and civilian structures to camouflage resources and support for the Chinese Communist Party (CCP) and its intelligence activities. At the same time, Trump continues, these companies are increasing their capital by selling securities to U.S. investors listed on public exchanges, both in the U.S. and abroad, putting pressure on U.S. index providers and funds to include these securities in market offerings.

President Trump labels these entities as “communist military companies” in two ways. The first is based on the discretion of the Department of Defense and Section 1237 of its National Defense Authorization Act, which includes 31 companies, including Huawei, Inspur Group, and Panda Electronics, along with several Chinese corporations from different sectors of aviation, science, technology, shipbuilding, and communications. The second is based on any entity that the Secretary of Treasury identifies as “controlled or owned by the People’s Liberation Army and which […] is engaged in services, manufacturing, production or export” in this regard.

According to a paper by the law firm Sullivan & Cromwell, Section 1237 of this Act, enacted in 1999, directs the Secretary of Defense to identify and appoint companies operating directly or indirectly in the United States or any of its territories that are linked to China’s military sector.

The Trump administration’s National Security Advisor, Robert O’Brien, asserts that “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.”

Sullivan & Cromwell’s paper considers that the decree may have far-reaching effects on non-U.S. holders of securities with ties to the United States. Foreign investors could be subject to liability for the purchase of securities if payments are channeled through the United States or a U.S. financial institution wherever it is located.

The Trump decree will protect the US from a Chinese puppetmaster government

While the president continues to encircle China and protect the United States from a Beijing takeover, members of Joe Biden’s campaign team attended a CCP event with CNN anchors and Washington Post columnists.

The conference was titled: “Great Reorganization, Great Trial, Great Cooperation: China’s New Journey to Modernization and Building a Community with a Shared Future for Humanity. According to The National Pulse, among the American attendees were Fareed Zakaria, host of Fareed Zakaria’s GPS, Lawrence H. Summers, former secretary of Bill Clinton’s Treasury Department, director of the White House National Economic Council under Obama and economic advisor to the Biden campaign, according to Reuters.

While the president continues encircling and protecting the US from a Beijing takeover, members of the Biden campaign assisted a CCP event (Photo: CGTN)

Among the national participants were Zhen Bijian, former director of the Research Institute for Marxism, Leninism and Mao Zedong Thought, and Ye Xiaowen, who served as vice president of the Central Institute of Socialism and was director of the United Front of the Department of Labor, identified by the U.S. government as an institution focused on “neutralizing sources of potential opposition to the policies and authorities of the Chinese Communist Party.”

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