Trump order bans US investments in firms linked to Chinese army

The Trump administration on Thursday unveiled an executive order prohibiting US investments in Chinese companies that Washington says are owned or controlled by the Chinese military, ramping up pressure on Beijing after the US election.

The order, which was first reported by Reuters, could impact some of China’s biggest companies, including China Telecom Corp Ltd, China Mobile Ltd and surveillance equipment maker Hikvision.

The move is designed to deter US investment firms, pension funds and others from buying shares of 31 Chinese companies that were designated by the defence departement as backed by the Chinese military earlier this year. Starting January 11, the order will prohibit purchases by US investors of the securities of those companies.

Transactions made to divest ownership in the companies will be permitted until November 11, 2021.

“China is increasingly exploiting United States capital to resource and to enable the development and modernisation of its military, intelligence, and other security apparatuses,” said the order released by the White House.

In a stock exchange filing, China Telecom said it estimated the executive order might impact the price of its shares and American depository shares, adding that it would “closely monitor” developments. Another telecom operator, China Unicom Hong Kong Ltd, said companies affected by the order would include its parent, China United Network Communications Group Co Ltd.

Canada asylum for Hong Kongers hit by China law

TORONTO: Canada will allow asylum applications from even those Hong Kongers who are charged under China’s new national security law, making it simpler for residents of the Chinese territory to emigrate.

This was part of a slew of measures announced after Canada criticised China’s decision to remove four pro-democracy lawmakers from the Hong Kong legislature.

“No one will be disqualified from making a legitimate asylum claim in Canada by sole virtue of having been charged under the new national security law,” Marco Mendicino, minister of immigration, refugees and citizenship, told reporters.