The Trump administration reinforced an executive order signed in November, which bans U.S. investment in Chinese military companies. The expanded order was issued by the State Department on Monday night, Dec. 28 in a last-minute notice.

The State Department issued a notice Monday signed by Secretary Michael Pompeo, expanding the power of executive order 13959 signed by President Trump in November. 

The new notice says the Trump administration will ban publicly traded and indexed funds to finance the military enterprises of the Chinese Communist Party and any subsidiaries owned or controlled by the Chinese military.

“The ban ensures that U.S. capital does not contribute to the development and modernization of the military, intelligence, and security services of the People’s Republic of China (PRC),” Secretary of State Mike Pompeo said in the statement.

In addition, the statement gives the secretary of Defense the power to determine that an entity, including a subsidiary, is a Chinese military company that operates directly or indirectly in the United States or in any of its territories or possessions, and therefore to mark it as such for as long as necessary.

In parallel, the Treasury Department posted on Monday on its Twitter account an update of the entities identified in or pursuant to the executive order as Chinese communist military companies, along with additional identifying information.

The list of companies begins with a note from Pompeo stating, “Under Xi Jinping, the CCP has prioritized something called ‘military-civil fusion.’ … Chinese companies and researchers must… under penalty of law—share technology with the Chinese military. The goal is to ensure that the People’s Liberation Army has military dominance.  And the PLA’s core mission is to sustain the Chinese Communist Party’s grip on power.”

So far 35 companies, including the oil company CNOOC Ltd. and China’s leading chip manufacturer, Semiconductor Manufacturing International Corp, have been designated as Chinese military companies operating directly or indirectly in the United States, including those owned or controlled by the PLA.

Many of the listed companies are listed on stock exchanges around the world and millions of U.S. investors, through their pension funds, unknowingly transfer wealth from the United States to these entities.

President Trump was very decisive in his executive order, “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.”

The Trump administration has been working and taking concrete action to break down mechanisms that the CCP has used for many years to grow its military power at the expense of U.S. funding. 

For years, the key to the development of the CCP’s military, intelligence, and other security apparatus was linked to its large, only apparently private, economy. Using a nationwide strategy of military-civilian fusion, the CCP is increasing the size of the country’s military-industrial complex by forcing Chinese civilian companies to support its military and intelligence activities.

President Trump’s initiatives are aimed at identifying these firms and not allowing local private capital to unwittingly support the CCP’s military, intelligence, and security apparatuses by assisting in their development and modernization.


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