US blocks capital flows to Chinese companies - Mobile World Live

US blocks capital flows to Chinese companies

13 NOV 2020

Huawei, China Mobile and China Telecom were among 31 companies named by the US as no-go areas for domestic investors, as the nation escalated an ongoing campaign against Chinese businesses, South China Morning Post reported.

President Donald Trump signed an executive order yesterday (12 November) blocking US investment in companies the Department of Defence claims are owned or controlled by the Chinese military, the newspaper wrote.

The order prohibits investors from trading shares in the companies starting 11 January 2021, and requires those holding shares to sell them by 11 November 2021.

Huawei already faces a number of US trade restrictions on software and components.

The move is the latest escalation in an ongoing trade conflict between the two countries. It aims to block the flow of US capital to Chinese companies, which Trump claims helps support the country’s military ambitions.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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