Taiwan not part of China, says Mike Pompeo; Beijing fumes
Nov 17 2020
"China is cautiously handling its ties with the next administration, so we hope Trump can understand China's sincerity and not make any further trouble for China-U.S. ties", Li told the Global Times on Friday.
Almost a week after President-elect Joe Biden clinched the presidency over Donald Trump, China on Friday congratulated the former vice president on the win.
United States president Donald Trump has signed an executive order banning Americans from investing in Chinese firms the administration says are owned by or controlled by China's military. According to the issued order, the companies do that by selling securities in American and Foreign financial markets.
Tellingly perhaps, on the same day as Trump's executive order, Beijing congratulated President-Elect Joe Biden on his election victory.
United States media say Trump could ramp up pressure on China as the clock ticks down to his departure from the White House.
Investors will have one year to divest from any of the companies affected by the ban, but the ban will take effect starting 9:30 a.m. on January 11, 2021.
The executive order, first reported by Reuters, affects 31 Chinese companies that "enable the development and modernization" of the Chinese military or "directly threaten" the security of the U.S. Relations between China and the United States are at its worst in decades over disputes ranging from technology and trade to Hong Kong and the coronavirus. China Telecom dropped 4.8%. The concern is with Chinese military firms raising capital by selling securities to the United States, which are then used to finance the Chinese military.
Analysts also assume that Biden would also continue to take action against China. On Friday, Beijing lashed out at the USA for "abusing state power to arbitrarily oppress Chinese companies", saying the move "severely undermines" trade and investment cooperation between both countries.
Pompeo also irked Beijing by telling a radio interviewer on Thursday that "Taiwan has not been a part of China" in the view of American policymakers since the Reagan administration.
Trump also announced in the letter that the Executive Order also bans transactions that evade or avoid, or have the goal of evading or avoiding, its prohibitions. Biden's Beijing squeeze National Security Advisor Robert O'Brien said the order would prevent Americans from unknowingly providing passive capital to Chinese companies- listed on exchanges around the world-that support the improvement of Beijing's army and spy agencies.