Trump Bans Americans From Investing In Chinese PLA-Linked Firms With Executive Order

[Tomasz + 1,608]

Trump Bans Americans From Investing In Chinese PLA-Linked Firms With Executive Order 

https://www.zerohedge.com/markets/trump-bans-americans-investing-chinese-pla-linked-firms-executive-order

 

Quote

 

President Trump is pushing his war on Chinese tech and military-linked firms straight through to the end of his term, apparently, on Thursday signing an executive order which bans Americans from investing in 31 companies which are alleged to supply or support China's PLA military. 

The executive order states that China is "exploiting United States capital" to rapidly modernize its military and intelligence apparatus which constitutes a major threat to the US homeland and forces stationed overseas.Trump specifically charged the People's Republic of China with "increasingly exploiting United States capital to resource and to enable the development and modernization of its military, intelligence, and other security apparatuses, which continues to allow the PRC to directly threaten the United States homeland and United States forces overseas" in the executive order

Among the first to take a hit on the news breaking were NY Stock Exchange-traded firms China Mobile and China Telecom with market caps of nearly $106 billion and $29 billion respectively.

Many among the companies listed, which were designated as PLA-linked by the US Defense Department earlier this year, are publicly traded on Chinese stock exchanges, as well as Hong Kong's. US investment firms, including pension funds, will be barred from buying and selling shares of the designated companies effective January 11. 

In unveiling the initial list last June, the Pentagon had told lawmakers: "As the People’s Republic of China attempts to blur the lines between civil and military sectors, 'knowing your supplier' is critical."

"We envision this list will be a useful tool for the U.S. government, companies, investors, academic institutions, and like-minded partners to conduct due diligence with regard to partnerships with these entities, particularly as the list grows," a Pentagon spokesman stated at the time. The order further gives investors until November 2021 to divest all holdings from the Chinese securities on the list.

But given the size and multi-national nature of many of the companies, this will be easier said than done, as The Wall Street Journal underscores:

How many Americans own such securities or even how much money is at stake is unclear, said White House officials. Many mom-and-pop investors who invest through funds don’t look under the hood at what they are actually exposed to. One financial analyst likened an investor’s ability to know if he or she owned such securities to a guest in a restaurant wanting to know the ingredients of the dish they were being served; only a check with the chef, or in this case the portfolio fund manager, could determine for certain where these securities are.

The list also includes notable names like Huawei Technologies Co., China General Nuclear Power Corp., China Electronics Corporation, and surveillance equipment maker Hikvision.

Some of these were already blocked from operating in the US on national security grounds, but Thursday's executive order takes things a huge step further in proactively distancing American citizens from any financial relationship with them.

 

 

[frankfurter + 562]

can such executive order be enforced?  why 'murcans do not call a spade a spade?  an executive order is an act of dictatorship' ie a decree. Trump has now decreed what 'murcans can and cannot do. how is this different from fascist rule?

[Eyes Wide Open + 3,555]

39 minutes ago, frankfurter said:

can such executive order be enforced?  why 'murcans do not call a spade a spade?  an executive order is an act of dictatorship' ie a decree. Trump has now decreed what 'murcans can and cannot do. how is this different from fascist rule?

I spoke to this a day ago, once again you act like a teenage getting cut off his or hers trust account...also known as a gift. There is no known constitutional law that gives a foreign country the right to commerce in the US. For now it would seem some are not allowed in the US sandbox, only under strict adult supervision comes to mind. A old US policy in regards to teenyboppers and there juvenile tendencies..

[Dan Warnick + 6,100]

On 11/13/2020 at 6:37 AM, Tomasz said:

Trump Bans Americans From Investing In Chinese PLA-Linked Firms With Executive Order 

https://www.zerohedge.com/markets/trump-bans-americans-investing-chinese-pla-linked-firms-executive-order

 

 

Articles such as the one you refer to, and others such as this one that the article refers to (Huawei on List of 20 Chinese Companies That Pentagon Says Are Controlled by People’s Liberation Army), should thoroughly alarm the same people critiquing them.  Instead, they roast Trump's motives while incredibly stating that going after the enemy's Armed Forces could hurt U.S. investment firms where Grandma's investments and Teacher's Union's investments are held.  Those investments must be untangled with the same zeal and focus used to get out of Enron.  Their critique shows the core problem: if it affects the money, ignore it at all cost and do not imperil our money and profits.

[frankfurter + 562]

1 hour ago, Eyes Wide Open said:

I spoke to this a day ago, once again you act like a teenage getting cut off his or hers trust account...also known as a gift. There is no known constitutional law that gives a foreign country the right to commerce in the US. For now it would seem some are not allowed in the US sandbox, only under strict adult supervision comes to mind. A old US policy in regards to teenyboppers and there juvenile tendencies..

again, you cannot respond to anyone without denegrating them?   as I see your comment, re nothing to give a right, there is also no constitutional law to prevent a foreign company from establishing in the USA, and indeed your SEC, exchanges, etc actively seek foreign companies.  thus, when your el presidente gives an order to ban investment, that order is a decree.  so the laws of your republic are now by decree?  if so, your republic is shifted to fascism.

[Eyes Wide Open + 3,555]

30 minutes ago, frankfurter said:

again, you cannot respond to anyone without denegrating them?   as I see your comment, re nothing to give a right, there is also no constitutional law to prevent a foreign company from establishing in the USA, and indeed your SEC, exchanges, etc actively seek foreign companies.  thus, when your el presidente gives an order to ban investment, that order is a decree.  so the laws of your republic are now by decree?  if so, your republic is shifted to fascism.

Again a teenage reply notice a " constitutional law that gives" and to your point there is indeed a constitutional law that forbids foriegn states.......

Now be so kind as to point to this constitutional law you know so well.

Once again A hormonal response that teenager's are afflicted with. Ahh as to insults...teenager/teenybopper's is actually a term of endearment. Meaning well but still a few cards short of a full deck...Gotta love them for trying...but sometimes it takes a cane to show them the light.Odd speaking of canes 

[Tomasz + 1,608]

 

Quote

 

Trump’s ban on investing in Chinese firms shows he’ll keep heat on Beijing until he leaves White House

By Tom Fowdy, a British writer and analyst of politics and international relations with a primary focus on East Asia.

President Trump’s latest executive order prohibits Americans from investing in 31 Chinese companies and is a clear attempt to disrupt Belt and Road. It illustrates there will be no easing off on China over the next two months.

On Thursday evening, Donald Trump’s administration revealed a new executive order targeting 31 companies linked with China’s military. The order, commencing in January, bans Americans from buying shares and investing in the firms through associated funds, although it does not prohibit dollar transactions. 

While well-known companies such as Huawei and Hikvision are included, close investigation of the list of firms affected finds many are associated with infrastructure and construction, such as China Railway Construction Corp, China State Construction Group, and China Three Gorges Corporation. The designations show the administration has no intention of easing up on China in the wake of its pending departure.

In the US alone, the impact of the designations will be negligible. US investors hold $43 billion in Chinese stocks and securities, and only a small portion of this vast sum can be attributed to the affected firms, which are largely state associated. But that isn’t really the point. 

The move has a very subtle strategic purpose, made clear by the nature of the companies involved. It is not so much about the military as it is a comprehensive effort to decouple the US from China’s trillion-dollar Belt and Road Initiative (BRI), which has sought to invest in infrastructure around the world.

Trump’s latest maneuver is to ensure American funds play no part in it, and to also pursue broader containment against other ‘national champions’, such as Huawei.

The BRI is a vast program of Chinese infrastructure investment which spans 138 countries across five continents. It has the potential to re-write the global economic order and reshape investment and supply chains in their entirety, especially on the Eurasian landmass. 

Companies such as China Railway Construction Corp, for example, have pioneered new high-speed lines in multiple countries, as well as creating new freight routes which span continents, such as lines all the way from China to Germany

It is no surprise that the program has attracted the hostility of the US, which sees it as an imminent threat to its hegemony and has sought to smear it by claiming it constitutes nothing more than ‘debt trap diplomacy’, whereby China deliberately engulfs countries in debt commitments to strategically control them.

Under the Trump administration, Washington has sought to pursue confrontation with China as a strategic competitor and target Chinese companies that are successful globally, such as Huawei. 

Each time, it has used ‘national security’ as justification, irrespective of the actual facts. In doing so, it has sought to strategically limit China, firstly by depriving companies of vital US parts and components in supply chains and secondly, if applicable, by forcing them out of markets in allied countries. Some companies went on the Commerce Department’s ‘entity list’, which prevents US tech firms from exporting to them.

Now, the Trump administration is upping the ante with a move which will stop US capital from reaching these companies, thus ensuring Americans are not willingly funding firms deemed as challenging the strategic interests of the US. The continued appetite of investors for China’s markets is a headache for China hawks, and the timing of the executive order for January is designed to coincide with Joe Biden commencing his tenure as president, thus forcing him to accept that legacy. 

There is zero probability the new president will reverse this, especially given he would have to face a hostile Republican Senate, with Marco Rubio praising the latest move. It would be politically untenable to do so. Thus, while it does not actually impact US-China investment ties in any meaningful way – something that Wall Street remains enthusiastic about – it nevertheless matters strategically. 

Ultimately, the administration has no qualms about attacking Chinese firms that pose an explicit challenge to US hegemony in areas that matter. And according to the executive order, these 31 companies represent the backbone of not only “China’s military modernization,” but also play a pivotal role in the country’s overseas infrastructure investments and projects. They represent a global vision the US wants to stop at all costs.

However, the Belt and Road Initiative is of course going to continue, and as Beijing tomorrow signs a landmark Pacific trade agreement with 14 other countries, there’s no stopping other countries from seeking deeper economic ties with it. In light of this, the least Washington can do is ensure that America itself is not contributing to the BRI and herein lies the logic of its latest anti-China maneuver. The truth is, though, that it’s unlikely to make a serious difference in the end.

 

[0R0 + 6,251]

This plays into the question of whether BRI actually makes any sense at all.

The high speed rail through to Europe is a high cost solution to securing a trade path not under US control. But it passes through areas that are easily susceptible to disruption due to ethnic politics. It is useful for intermediate supply speed goods, but it is not that great for general merchandise and awful for commodities  where only sea shipping provides sufficiently low costs and flexible transport to any port. Air transport is much more costly than high speed rail, but is quicker.

The port facilities built in low GDP/capita countries presumes that ports were what was missing, rather than something that the country can actually export economically. Some key minerals like cobalt and copper are probably going to make it, but never justify the scale of the ports constructed.

[frankfurter + 562]

5 hours ago, 0R0 said:

This plays into the question of whether BRI actually makes any sense at all.

The high speed rail through to Europe is a high cost solution to securing a trade path not under US control. But it passes through areas that are easily susceptible to disruption due to ethnic politics. It is useful for intermediate supply speed goods, but it is not that great for general merchandise and awful for commodities  where only sea shipping provides sufficiently low costs and flexible transport to any port. Air transport is much more costly than high speed rail, but is quicker.

The port facilities built in low GDP/capita countries presumes that ports were what was missing, rather than something that the country can actually export economically. Some key minerals like cobalt and copper are probably going to make it, but never justify the scale of the ports constructed.

correct. beyond US piracy.

 

[RichieRich216 + 454]

The Chinese are like termites and over time with out notice have infected the World. 

[Ward Smith + 6,615]

8 hours ago, 0R0 said:

This plays into the question of whether BRI actually makes any sense at all.

The high speed rail through to Europe is a high cost solution to securing a trade path not under US control. But it passes through areas that are easily susceptible to disruption due to ethnic politics. It is useful for intermediate supply speed goods, but it is not that great for general merchandise and awful for commodities  where only sea shipping provides sufficiently low costs and flexible transport to any port. Air transport is much more costly than high speed rail, but is quicker.

The port facilities built in low GDP/capita countries presumes that ports were what was missing, rather than something that the country can actually export economically. Some key minerals like cobalt and copper are probably going to make it, but never justify the scale of the ports constructed.

The Germans didn't use their railroads for trade they used them to deploy troops and weapons. Imagine those high speed rails delivering millions of soldiers. Sure, you could defeat them with a tactical nuke on your own territory or just submit. Will be interesting how this all plays out…

[ronwagn + 6,290]

On 11/12/2020 at 5:37 PM, Tomasz said:

Trump Bans Americans From Investing In Chinese PLA-Linked Firms With Executive Order 

https://www.zerohedge.com/markets/trump-bans-americans-investing-chinese-pla-linked-firms-executive-order

 

 

 

On 11/15/2020 at 11:09 AM, Ward Smith said:

The Germans didn't use their railroads for trade they used them to deploy troops and weapons. Imagine those high speed rails delivering millions of soldiers. Sure, you could defeat them with a tactical nuke on your own territory or just submit. Will be interesting how this all plays out…

Not many conventional troops would make it, the railroad tracks and cars would be quickly destroyed. Workers who were actually soldiers would get through much easier though. If the soldiers are welcomed to the country, that would be another story. That would be unlikely though. 

[Enthalpic + 1,496]

On 11/15/2020 at 10:09 AM, Ward Smith said:

The Germans didn't use their railroads for trade they used them to deploy troops and weapons.

And to transport Jews to their imprisonment / death.

[Ward Smith + 6,615]

3 hours ago, ronwagn said:

 

Not many conventional troops would make it, the railroad tracks and cars would be quickly destroyed. Workers who were actually soldiers would get through much easier though. If the soldiers are welcomed to the country, that would be another story. That would be unlikely though. 

Unfortunately, I can easily envision a scenario where they're invited in, to you know, keep the peace. 3 million civilians marched in Berlin in protest. What happens when it's 5 million, 10 million? At some point the communists who have taken over that country just like they want to take over this country are going to beg for help from their ideological brethren. 

Don't forget, the Germans were often "invited" in as well in the late 30's. Don't look at history from the American perspective, what we called invasions were different to the locals, at first they welcomed with open arms. Realize how many Romanians, Hungarians, Ukrainians and so on fought for the nazis. 

[ronwagn + 6,290]

On 11/18/2020 at 12:23 AM, Ward Smith said:

Unfortunately, I can easily envision a scenario where they're invited in, to you know, keep the peace. 3 million civilians marched in Berlin in protest. What happens when it's 5 million, 10 million? At some point the communists who have taken over that country just like they want to take over this country are going to beg for help from their ideological brethren. 

Don't forget, the Germans were often "invited" in as well in the late 30's. Don't look at history from the American perspective, what we called invasions were different to the locals, at first they welcomed with open arms. Realize how many Romanians, Hungarians, Ukrainians and so on fought for the nazis. 

We are being invaded by Mexicans and Central Americans and anyone else who can get to our southern border or get in by an airplane etc. Not so much under President Trump but if Biden becomes President he will open up enough to get additional voters. That was the plan since Demoncrats changed the immigration rules in the seventies or whenever it was. 

Our globalist corporations will profit greatly by the lower wages and send internet work to India, Mexico, etc. Americans will be serfs to the wealthy if they let this go ahead.

Our freedom of speech was limited enough in the last election to cut information to voters and our messaging is being severely limited in all important areas including the legal battles for election reform. 

I would find this funny if it wasn't so foreboding:

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Ron Wagner

We need to export!

Natural gas is the future of energy. It is replacing dirty, dangerous, expensive coal and nuclear plants. It is producing the electricity for electric cars. It will directly fuel cars, pickup trucks, vans, buses, long haul trucks, dump trucks, locomotives, aircraft, ships etc. It will help keep us out of more useless wars, where we shed our blood and money. It lowers CO2 emissions. Over 2,200 natural gas story links on my blog. An annotated bibliography. The big picture of natural gas. https://www.ronwagnersrants.blogspot.com

 

Welcome to 1984 for real. 

 

This quote is from an old site I haven't used for many years. 

ronwagner.org and allmyrants.org have been used for the last six years or more. Somehow their web crawler discovered it. 

 

Edited November 22, 2020 by ronwagn
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[Ward Smith + 6,615]

[Dan Warnick + 6,100]

1 hour ago, Ward Smith said:

Interesting little pamphlet.