Trump Speeds Process On Chinese Stock Bans

(ConservativePeak)- In his final weeks in the White House, President Donald Trump has taken unprecedented action to protect the United States from China. Knowing that the Biden administration is unlikely to take on China—based on Obama/Biden-era policy—the president and the Department of State have taken action to ban investments into Chinese companies connected to the communist state’s military.

In several executive actions of State Department decision, the Trump administration has now banned investments in 44 different companies that have been identified as “Communist Chinese military companies.”

It means that American investors will be required to remove their investments from the companies, and all subsidiaries of those companies, before November.

After the executive order that banned investments in these firms, which was signed shortly after the election in November, the Trump administration then introduced more sweeping bans to include subsidiaries of the Chinese firms and added a further 13 military firms.

These included Xiaomi, the maker of cheap smartphones, semiconductor maker Advanced Micro-Fabrication Equipment, and oil company China National Offshore Oil Corp.

The State Department released a fact sheet showing how the companies had over 1,100 subsidiary firms, all of which would be impacted by the trading bans.

Reuters then reported on January 13 that the Trump administration considered including a number of other major Chinese firms, including trading giants Alibaba and Baidu, but this plan was abandoned at the insistence of Treasury Secretary Steven Mnuchin.

The question now is whether the Biden administration will keep the bans in place. President Donald Trump has long warned against America having deep ties to Chinese military companies, but Joe Biden has long claimed that fear of China’s growth is unfounded.

Biden has already appointed Jake Sullivan as his White House National Security Advisor – a peculiar pick given that he previously suggested that the United States should support China’s economic rise.

Sullivan, who served in the Obama administration (there’s a surprise) said during a speech in 2017 to the Lowy Institute that the United States shouldn’t view China as an enemy or a friend.

“Owen Harries was right when he warned against containment of China. That is a self-defeating policy. But so is acquiescence. We need to strike a middle course, one that encourages China’s rise in a manner consistent with an open, fair, rules-based regional order,” Sullivan said.

President Donald Trump and the State Department have taken unprecedented action on China, and it’s only a matter of time until Joe Biden’s administration begins to reverse it.

But can irreparable damage be done before a new administration is sworn in in 2025?