The duel between Trump and China dates back to the start of his presidency. One of the ways that the Trump administration is “Making America Great Again” is through continuous effort to curb the USA’s exposure to Chinese companies as well as business dealings in general.
Trump jabbed back with yet another right hook after announcing on Thursday that he has signed an executive order barring Americans from investing in a group of Chinese companies that the White House believes support Beijing’s military.
This new order will restrict American companies and individuals from owning shares in companies the administration says help the advancement of the People’s Liberation Army. This order doesn’t only include investment funds but American citizens with accounts of all sizes.
The large list of Chinese companies includes a bunch of big and state-run businesses in the field of aerospace and construction as well as technology and communications. The best-known player involved is Huawei, one of the main players in the race to the 5G data connection.
Is the American government going too far or is investing in these companies’ a true threat to national security and investor risk concerns?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.