In a statement the White House said, U.S. President Donald Trump has signed an executive order which further strengthens the November ban on U.S. investments in companies which are allegedly controlled or owned by the Chinese military curbing their access to U.S. capital markets.
Under the amended directive, by Nov. 11, 2021, U.S. investors will be required to have completely divested their holdings of securities of companies designated by the Defense Department as owned or controlled by the Chinese military.
The update expands the scope of the initial November executive order, which initially had only restricted U.S. investors from buying those securities by that date.
“Today’s executive order ensures that the United States retains a key tool to protect U.S. investors from funding Chinese military modernization,” said a senior administration official.
The executive order is part of broader effort to add teeth to a 1999 law that tasked the Defense Department with drafting a list of Chinese companies it believes are owned or controlled by the Chinese military.
Among the 35 Chinese companies that the DoD has blacklisted so far are SMIC, China’s top chipmaker, and oil giant CNOOC.
The Administration has however scrapped plans to blacklist Chinese tech giants Alibaba, Baidu and Tencent.