"No Investment in Companies Related to the People's Liberation Army"... Trump Hits China Until the End (Comprehensive)

[Asia Economy New York=Correspondent Baek Jong-min] Donald Trump, the US president who failed to secure re-election, is refraining from public appearances while focusing on criticizing China. This is interpreted as an intention to maximize US-China conflicts before leaving office.

[Image source=AP Yonhap News]

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On the 12th (local time), President Trump signed an executive order banning US investments in Chinese companies that the US Department of Defense has determined to be owned or controlled by the Chinese People's Liberation Army.

This executive order applies to 31 Chinese companies designated by the US Department of Defense in June as receiving support from the People's Liberation Army, including China Telecom, China Mobile, Hikvision, and Huawei. As a result, US investors, especially pension funds, will likely be unable to trade not only the stocks of these companies but also related derivatives.

The day also marked President Trump's first official return to White House duties after Joe Biden's victory as the Democratic candidate was confirmed. The fact that his first action upon returning to work was to pressure China is interpreted as a signal that he intends to maintain a tough stance on China until the end of his term.

US Secretary of State Mike Pompeo also criticized China in a statement released after briefing President Trump, saying, "China's distorted patriotism is an excuse to suppress demands for freedom and democracy," and "The US will continue to cooperate with allies and partners worldwide and hold those responsible accountable."

There is also a view that this executive order targets President-elect Biden. The effective date is January 11 next year, just ten days before Biden's inauguration. This implies that Biden will bear the responsibility for managing the confusion caused by the executive order.

Bloomberg News expressed concern that this move will infuriate China and accelerate the deterioration of bilateral relations on various issues.

However, the enforcement of the executive order banning the Chinese video-sharing application TikTok, scheduled for that day, was postponed. The Wall Street Journal (WSJ) reported that the US Department of Commerce delayed the enforcement of the TikTok ban executive order scheduled for that day. If the order takes effect, US mobile operators such as Apple will not be able to add TikTok to their mobile app stores, and companies like Amazon and Alphabet will be unable to support TikTok's operations.

Both China and the US were closely watching the Trump administration's decision.

This action came after the Eastern District Court of Pennsylvania halted the TikTok ban on the 30th of last month. Judge Wendy Beetlestone recently ruled in a lawsuit filed by US creators based on TikTok, stating that "banning a platform used by 700 million people worldwide for expressive activities within the US would have that effect," and ordered a suspension of the executive order's enforcement.

The Department of Commerce stated in a release that it postponed the enforcement of the TikTok ban executive order in accordance with the court's preliminary injunction and will not implement the measure "until there are further legal developments."

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