Trump bans Americans from investing in Chinese firms he claims have ties to the military

By Jazmin Goodwin and Sherisse Pham, CNN Business

Updated 1355 GMT (2155 HKT) November 13, 2020

What a Biden presidency means for US-China relations

Screenshot of Selina Wang

CNN reporter: Trump contracting Covid-19 could be 'game changer' for markets

Investor: The stock market feels like 1999 again

The Stock Market stands in lower Manhattan on September 02, 2020 in New York City. The Dow gained
454.84 points, or 1.59 percent, to close at 29,100.50. Closing less than 2 percent from an all-time high,
the Dow posted its best rally since mid-July and closed. (Photo by Spencer Platt/Getty Images)

Julia Chatterley: This is what uncertainty overload looks like

Nikola founder steps down as executive chairman

WASHINGTON, DC - AUGUST 07: In this photo illustration, the download page for the Tiki Tok app is
displayed on an Apple iPhone on August 7, 2020 in Washington, DC. On Thursday evening, President
Donald Trump signed an executive order that bans any transactions between the parent company of
TikTok, ByteDance, and U.S. citizens due to national security reasons. The president signed a separate
executive order banning transactions with China-based tech company Tencent, which owns the app
WeChat. Both orders are set to take effect in 45 days. (Photo Illustration by Drew Angerer/Getty Images)

Trump approves Oracle, Walmart deal for TikTok

Unity Software goes public with ticker symbol U

Jerome Powell holds a press conference on September 16, 2020.

Fed signals low rates through 2023

Millions of Americans are out of work. Why is the stock market soaring?

Screengrab Biden/Xi split

What a Biden presidency means for US-China relations

Party City CEO: Consumers still want to celebrate together

In this photo provided by the New York Stock Exchange, James Dresch, right, works with fellow traders
on the floor, Monday Nov. 9, 2020. Stocks around the world are surging Monday, sending Wall Street
back to record heights, on a burst of hope following encouraging data for a potential COVID-19 vaccine
from Pfizer. (Courtney Crow/New York Stock Exchange/AP)

Markets soar after Pfizer vaccine news and Biden win

Why tech stocks are soaring after Election Day

Has the pandemic ruined Halloween? Not according to Spirit Halloween

See which state's economy is faring best during the pandemic

Without additional stimulus, inequality could get worse

TOPSHOT - US President Donald Trump gives a thumbs up as he walks from Marine One after arriving on
the South Lawn of the White House in Washington, DC, October 1, 2020, following campaign events in
New Jersey. (Photo by SAUL LOEB / AFP) (Photo by SAUL LOEB/AFP via Getty Images)

Stocks drop after Trump tweets stimulus talks are over

Screenshot of Selina Wang

CNN reporter: Trump contracting Covid-19 could be 'game changer' for markets

Investor: The stock market feels like 1999 again

The Stock Market stands in lower Manhattan on September 02, 2020 in New York City. The Dow gained
454.84 points, or 1.59 percent, to close at 29,100.50. Closing less than 2 percent from an all-time high,
the Dow posted its best rally since mid-July and closed. (Photo by Spencer Platt/Getty Images)

Julia Chatterley: This is what uncertainty overload looks like

Nikola founder steps down as executive chairman

WASHINGTON, DC - AUGUST 07: In this photo illustration, the download page for the Tiki Tok app is
displayed on an Apple iPhone on August 7, 2020 in Washington, DC. On Thursday evening, President
Donald Trump signed an executive order that bans any transactions between the parent company of
TikTok, ByteDance, and U.S. citizens due to national security reasons. The president signed a separate
executive order banning transactions with China-based tech company Tencent, which owns the app
WeChat. Both orders are set to take effect in 45 days. (Photo Illustration by Drew Angerer/Getty Images)

Trump approves Oracle, Walmart deal for TikTok

Unity Software goes public with ticker symbol U

Jerome Powell holds a press conference on September 16, 2020.

Fed signals low rates through 2023

Millions of Americans are out of work. Why is the stock market soaring?

Screengrab Biden/Xi split

What a Biden presidency means for US-China relations

Party City CEO: Consumers still want to celebrate together

In this photo provided by the New York Stock Exchange, James Dresch, right, works with fellow traders
on the floor, Monday Nov. 9, 2020. Stocks around the world are surging Monday, sending Wall Street
back to record heights, on a burst of hope following encouraging data for a potential COVID-19 vaccine
from Pfizer. (Courtney Crow/New York Stock Exchange/AP)

Markets soar after Pfizer vaccine news and Biden win

Why tech stocks are soaring after Election Day

Has the pandemic ruined Halloween? Not according to Spirit Halloween

See which state's economy is faring best during the pandemic

Without additional stimulus, inequality could get worse

TOPSHOT - US President Donald Trump gives a thumbs up as he walks from Marine One after arriving on
the South Lawn of the White House in Washington, DC, October 1, 2020, following campaign events in
New Jersey. (Photo by SAUL LOEB / AFP) (Photo by SAUL LOEB/AFP via Getty Images)

Stocks drop after Trump tweets stimulus talks are over

New York/Hong Kong (CNN Business)President Donald Trump has signed an executive order banning
Americans from investing in Chinese firms that the administration says are owned or controlled by the
Chinese military.

The order applies to 31 Chinese companies which it says "enable the development and modernization"
of China's military and "directly threaten" US security.

Smartphone maker Huawei and Hikvision, one of the world's largest manufacturers and suppliers of
video surveillance equipment, are among the blacklisted companies. Some of the other companies
listed, including China Telecom and China Mobile, trade on the New York Stock Exchange.

Trump's order bans US investors from owning or trading any securities that originate or are exposed to
those firms. This includes pension funds or owning shares in the companies that are banned. Investors
will have until November 2021 to divest from the companies.

Shares in Hikvision dropped more than 4% in morning trade in Shenzhen on Friday, before paring back
some of those losses to fall 1.5%. Shares in China Telecom (CHA) plunged 7.8% and China Mobile (CHL)
was down 5% in Hong Kong. Huawei is a private firm.

Hikvision said on Friday that the decision to pursue the company is "groundless."

"As we have shown time and again, Hikvision is not a 'Chinese military company'. Hikvision is
independently operated and publicly traded," the company said in a statement.
Hikvision added that it has never participated in any research and development work for military
applications.

"These punitive actions against the company do not make America, or the world, any safer," the
company said.

China Telecom said in a stock market filing that it was "currently assessing the impact" of the executive
order, which could cause its share price to fluctuate.

Huawei and China Mobile did not immediately respond to a request for comment.

A spokesperson for China's Ministry of Foreign Affairs on Friday blasted the executive order, saying that
the US government "maliciously slandered" legitimate collaboration between China's military and
civilian companies and "unreasonably suppressed Chinese companies."

"This move will not only seriously damage the legitimate interests of Chinese companies, but will also
damage the interests of investors in various countries, including the United States," spokesperson Wang
Wenbin told reporters.

The executive order, set to take effect January 11, comes as trade and technology battles are heating up
between the world's two largest economies.

Many Chinese tech companies have come under pressure during the Trump administration. Over the
past few years, Washington has taken aim at China's lofty tech ambitions, striking blows at the country's
developing artificial intelligence, semiconductor and telecommunications industries.

Trump's latest move is in line with what industry watchers such as Paul Triolo, head of geotechnology at
consultancy Eurasia Group, expected from the lame-duck presidency.

Beijing "will be on guard for the Trump administration to take some hard parting shots at China,
particularly actions against major Chinese tech companies," Triolo wrote in a note last week.

"But China will generally stay restrained in its retaliatory measures in order not to poison relations
before [US president-elect Joe] Biden takes office on 20 January," he added.

The United States strikes a blow to China's AI ambitions

The United States strikes a blow to China's AI ambitions

Washington officials earlier this year escalated sanctions on national tech champion Huawei, citing
national security concerns. The US restrictions — which further cut off Huawei's access to vital American
technology and supplies — have pushed the smartphone and telecommunications equipment maker
into survival mode. Huawei has repeatedly said that its products do not pose a national security risk.

Hikvision was also added to a US trade list barring access to American supplies late last year. The
company had been condemned for working with authorities in Xinjiang who are accused of alleged
violations of human rights against Uyghurs and other members of Muslim minority groups.
Correction: An earlier version of this story misspelled Hikvision.

PAID CONTENT

Coronavirus cuts lifeline for Indonesian migrant families

Coronavirus cuts lifeline for Indonesian migrant families

Sponsored: CNA

The mood is darkening as "Trump is bleeding GOP support," source close to White House saysThe mood
is darkening as "Trump is bleeding GOP support," source close to White House says

Politics

The mood is darkening as "Trump is bleeding GOP support," source close to White House says

Doctor: If You Have Tinnitus (Ear Ringing) Do This Immediately!

Doctor: If You Have Tinnitus (Ear Ringing) Do This Immediately!

fitnessforhealth24.com

The cost of big data courses might surprise you

The cost of big data courses might surprise you

Big Data Courses | Sponsored Listings

Fmr. Trump National Security Adviser: Trump "trying to set up a fraud" by falsely & prematurely
declaring victoryFmr. Trump National Security Adviser: Trump "trying to set up a fraud" by falsely &
prematurely declaring victoryFmr. Trump National Security Adviser: Trump "trying to set up a fraud" by
falsely & prematurely declaring victory

CNN International - TV - Videos

Fmr. Trump National Security Adviser: Trump "trying to set up a fraud" by falsely & prematurely
declaring…

DJ Marshmello's $350,000 truck stolen and taken for a joyride around Los AngelesDJ Marshmello's
$350,000 truck stolen and taken for a joyride around Los Angeles

U.S.

DJ Marshmello's $350,000 truck stolen and taken for a joyride around Los Angeles

COVID-19 grounded thousands of planes. Here’s what happens to them

COVID-19 grounded thousands of planes. Here’s what happens to them

CNA Insider

Bosch continues to be at the forefront of inventing new technologies

Bosch continues to be at the forefront of inventing new technologies

Bosch Indonesia

Search CNN...

Search

World

US Politics

Business

Health

Entertainment

Tech

Style

Travel

Sports

Videos

Features

More

Weather

FOLLOW CNN BUSINESS

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA,
which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: Copyright 2018 Morningstar,
Inc. All Rights Reserved. Factset: FactSet Research Systems Inc.2018. All rights reserved. Chicago
Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its
licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are
calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have
been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks
of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones
Trademark Holdings LLC. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices
LLC 2018 and/or its affiliates.

Terms of Use

Privacy Policy

Accessibility & CC

AdChoices

About Us

Modern Slavery Act Statement

Advertise with us

CNN Store

Newsletters

Transcripts

License Footage

CNN Newsource

Sitemap

© 2020 Cable News Network.A Warner Media Company.All Rights Reserved.

CNN Sans ™ & © 2016 Cable News Network.