Trump Suppresses Chinese Companies Again! Ministry Of Commerce Responded

- Nov 16, 2020-

On the evening of November 12, US President Donald Trump signed an executive order which prohibited formal investments, via shares and securities, in 31 Chinese companies which are purportedly linked to the China's People's Liberation Army (PLA).

Coming into force in January, American investors will no longer be able to buy shares, invest in funds or portfolios which involve these firms, which include companies such as Huawei and Hikivision. 

Reuters said the move is the latest major policy move launched by US President Trump after the "election defeat", indicating that his government is seeking to use the remaining months of his term to attack China. This could also further exacerbate the already worrying relationship between the world's two largest economies.

Ministry of Commerce response

According to news from the Ministry of Commerce website on November 16, the spokesperson of the Ministry of Commerce answered reporters' questions about the US prohibition of US investors from investing in some Chinese companies.

A reporter asked: On November 12, the US government issued an executive order prohibiting US investors from investing in so-called enterprises owned or controlled by the Chinese military. How does the Ministry of Commerce respond to this?

A: China has repeatedly stated its solemn position on the US's unprovoked suppression of Chinese companies. Disregarding the facts, the United States has determined that the relevant Chinese enterprises are military-controlled enterprises, which is neither based nor in accordance with legal principles. China firmly opposes this. The US has repeatedly generalized the concept of national security, abused national power, and suppressed certain Chinese companies, which seriously violated the market competition principles and international economic and trade rules that the US has always advertised.

The essence of China-US economic cooperation is mutual benefit and win-win results. In the era of globalization, the interests of all countries are deeply mingled. There is me in you and you in me. In recent years, China's capital market has been increasingly favored by global investors, including the United States, which reflects the confidence of international investors in China's economic development and the recognition of China's capital market's deepening reform and opening up. Some people in the U.S. often use the so-called national security as an excuse to artificially impede U.S. investors' entry into the Chinese market, or even politicize them. This is not in line with economic laws and will only miss opportunities for companies to develop and harm the interests of investors. The actions of a few politicians cannot suppress market forces.

Chinese enterprises have always adhered to operating in accordance with laws and regulations, strictly abiding by relevant national laws and regulations in international operations, and always adhere to the principles of marketization and rule of law. Chinese enterprises will continue to carry out mutually beneficial cooperation with other countries on the basis of respect for market rules and relevant laws. China urges the US to stop its unreasonable suppression of Chinese companies and provide a fair, just and non-discriminatory environment for Chinese companies to operate in the United States.