Posted by Elias Aguiar.
Since the very announcement of President Trump’s running for office until now, his motto has been to ‘make America great again.’ One of the ways he planned on doing this was to be tougher on China, as he felt that the United States could no longer turn a blind eye to the true nature and conduct of the Chinese government. In the last four years of his presidency, President Trump has made it known that the United States would not be walked over any longer, and though his time is almost up he hasn’t shown signs of slowing down at all. On Thursday, president Trump signed an executive order that prevented Americans from investing in Chinese companies that also help in China’s military operations.
This is major news in the business world as markets as well as many Chinese companies will feel the effect of this order. Companies that support China’s military will ultimately suffer as a result. According to Peter Navarro, a White House trade Adviser, the Trump administration is “tackling Chinese companies that mean to do America harm.” This administration firmly believes that the Chinese Communist Party is out to get Americans and in order to drain their resources, this administration has incentivized Chinese companies to end military support.
Furthermore, the White House has already identified 31 Chinese companies as well as over 100 subsidiaries traded on U.S. exchanges that currently support China’s military. As stated by Navarro, reasoning for the order is due to the fact that “American capital should not be used to finance Chinese militarizatoin, partiularly weapons that are going to be used to kill Americans.” If China didn’t like President Trump before, they definitely dont like him now.
Elias is an accounting major at the Stillman School of Business, Seton Hall University.