Here is an outline of moves so far, the fallout in financial markets and China’s response:
* Trump signed the Holding Foreign Companies Accountable Act into law on Dec. 18. It allows U.S. authorities to remove foreign firms from stock exchanges if they fail to comply with U.S. audit rules for three years.
* Investors have been shifting their holdings in such firms out of the United States, if other listings are available.
* On Nov. 12, Trump signed an executive order barring U.S. investors from buying exposure to firms deemed linked to the Chinese military after November 2021.
* The list of “Communist Chinese Military Companies” was mandated by a 1999 law requiring the Pentagon to compile a catalogue of companies “owned or controlled” by the People’s Liberation Army, but it was only drawn up in 2020.
* Companies such as SMIC, China’s biggest chipmaker, oil company CNOOC and surveillance firm Hikvision are among the 35 on the list, but have denied military links. (See this FACTBOX for others:)
* On Jan. 6, sources told Reuters and the Wall Street Journal that the Trump administration was considering adding tech giants Alibaba and Tencent.
* On Jan. 5, Trump signed an executive order banning transactions with eight Chinese software applications, including Ant Group’s popular Alipay.
* In August, Trump had sought to ban some transactions with WeChat and the Chinese-owned video app TikTok, although U.S. courts have so far blocked these plans.
* On Dec. 18 the United States added dozens of Chinese firms to an “entity list” that restricts their ability to trade with U.S. companies.
* SMIC and drone maker SZ DJI Technology were among the additions to a list that since 2019 included Hikvision and Huawei Technologies.
* Money managers say selling of banned shares by U.S. investors could weigh on prices in the short term, but do not see big consequences yet and say that fine print could allow them to get around some of the trade restrictions.
* Index makers FTSE Russell, S&P Dow Jones Indices and MSCI have removed some of the listed firms from index products, weighing on their share prices as passive investors sell. (See this FACTBOX for details:)
* Tencent and Alibaba shares also fell after it was reported that the U.S. may extend investment bans to them.
* Investors have shifted holdings of Chinese firms out of U.S. listings, saying there is a risk that more Chinese companies could be affected.
* Elsewhere widely-held securities such as SMIC’s Hong Kong shares have seen modest price pressure, while others such as Hikvision have gained in recent weeks. CHINA’S RESPONSE
* China has described the U.S. moves as wanton oppression of its companies, said they lack evidence and asked the United States to cease abusing the concept of national security.
* In response to reports of sanctions extending to Tencent or Alibaba, China said it would take necessary measures to safeguard companies’ rights and interests.
* Hikvision has called its inclusion on the Defense Department list “groundless” and other firms have issued similar strongly-worded statements.
- Trump Administration Escalates Global Fight Over Taxing Tech
- Trump Administration Plans to Revive ZTE, Prompting Backlash
- Trump Administration Plans To Add China’s Ant Group To Trade Blacklist, Report Says
- Lattice to Seek Trump’s Approval for Chinese-Backed Buyout
- China blasts Trump's "political repression" over U.S. visa restrictions
- Trump Middle East moves demonstrate merits of 'America First' agenda | Opinion
- Trump Slaps Steep Tariffs on Foreign Washing Machines and Solar Products
- Trump Effort to Keep U.S. Tech Out of China Alarms American Firms
- Trump Cripples W.T.O. as Trade War Rages
- U.S. Judge Temporarily Halts Trump’s WeChat Ban
- President Trump Announces Withdrawal from Paris Agreement
- President Trump Is Expected to Withdraw from the Paris Climate Agreement
- Meng’s release could eliminate a source of friction between China and the Biden administration.
- China preparing for Trump's "final madness" before Biden, state media says
- China Seeks Allies as Trump’s Trade War Mounts. It Won’t Be Easy.
- Trump Embraces Foreign Aid to Counter China’s Global Influence
- Trump Embarks on Bilateral Trade Talks to Pressure China
- Trump’s Trade War May Have Already Begun
- Chinese Apps Said to Face Subpoenas or Bans Under US President Joe Biden’s Order
- Trump Blocks China-Backed Bid to Buy U.S. Chip Maker
Trump administration measures against Chinese companies have 821 words, post on telecom.economictimes.indiatimes.com at January 8, 2021. This is cached page on Talk Vietnam. If you want remove this page, please contact us.