The recent sanctions imposed by the Trump administration on technology companies linked to the Chinese Communist Party (CCP), are rocking the price of shares in the marketing giant Alibaba.  

President Donald Trump briefly alluded to Chinese technology companies and the increased pressure on them during his visit to Bedminster, New Jersey.

Asked if he would sanction other CCP companies as he did Huawei, such as Alibaba and Baidu, President Trump said yes, most of them, and that they were looking for other things, not to add details, according to an Aug. 16 White House report. 

“Obviously it will have some effect, we could see a decrease in Alibaba’s stock price,” said Luke Lloyd, wealth adviser and investment strategist at Strategic Wealth Partners.

Although the value of Alibaba’s shares had reached a record $268 on July 9, by Aug. 17 they were at $251 each. 

In addition, interest in so-called short transactions had fallen by 10.3% in the last period. The 37.89 million shares sold short constitute 11.6% of the total shares available. 

For short transactions an investor borrows shares and sells them, hoping to buy them later at a lower price, and returns them to the lender pocketing the difference.

“Trump has been building up pressure on Chinese-owned companies, for example, by promising to ban the application of TikTok short video from the United States,” Reuters reported.  

The State Department on Aug. 17, reiterated its statement against the Huawei technology that has caused so much suspicion in several countries. 

“The Trump administration sees Huawei for what it is—an arm of the Chinese Communist Party’s (CCP’s) surveillance state—and we have taken action accordingly,” according to its press release. 

One such measure is the banning of 38 Huawei subsidiaries from receiving certain sensitive technologies. Huawei used these subsidiaries to obtain the prohibited technologies, thus evading the sanctions imposed on it.

The State Department emphasized its continued vigilance and protection of the nation’s intellectual property.

It said, “We will not tolerate efforts by the PCC to undermine the privacy of our citizens, the intellectual property of our companies or the integrity of next-generation networks around the world.”

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