President Donald Trump is targeting China again with another executive order, which sent Chinese telecommunications giants crashing.
The order issued by Trump aims to limit American investments in companies that supply and support the Chinese military.
The order blocks trade in securities of 31 Chinese companies that were deemed by the Defense Department as backers of the nation’s military earlier in 2020, according to a separate report from Reuters today.
“The People’s Republic of China (PRC) is 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,” Trumps said in his order.
The order does not single out any companies, but stocks in big Chinese telecom companies with military control were sent lower today on the news. Intraday, China Telecom, (NYSE: CHA), China Mobile Ltd. (NYSE: CHL), and China Unicom (NYSE: CHU) watched their shares fall 7%, 4,% and 6% respectively.
But this is far from the first time that Trump has taken executive action on Chinese firms. In May 2019, Trump placed Chinese smartphone giant Huawei on a blacklist that forbids American companies to provide it with technology on the ground of national security. Earlier this year, the Trump administration extended that ban for another year.
Trump also threatened to ban Chinese social media apps TikTok and WeChat for alleged national security concerns. However, the courts have blocked those attempts for now.
In addition, Washington has threatened to delist Chinese U.S-listed firms that refuse to comply with auditing standards to protect the American investor.
The new executive order is set to go into effect on Jan. 11 of 2021.