he order came in response to rising concerns over pension and retirement fund flows into foreign companies that support China’s totalitarian regime. It targets China’s military companies, including those designated by the Pentagon in June and August of 2020.
Beijing “is increasingly exploiting United States capital to resource and to enable the development and modernization of its military, intelligence, and other security apparatuses,” the order states.
The Chinese Communist Party, through its aggressive national strategy called “Military-Civil Fusion,” uses Chinese companies to strengthen the People’s Liberation Army (PLA).
“At the same time, those companies raise capital by selling securities to United States investors that trade on public exchanges both here and abroad,” the order reads.
The Department of Defense this year designated 31 Chinese firms as Chinese military companies operating directly or indirectly in the United States, including those owned or controlled by the PLA
“This is one of the wisest and most significant foreign policy decisions President Trump has made since he entered office,” he said in a statement.
“It’s ridiculous that the U.S. ever allowed the funding of our chief global adversaries’ rise, and it’s a mistake we can’t make again.”