The Trump Administration issued an executive order on Thursday afternoon that effectively bans Americans from investing in Chinese companies that support China’s military, in a move that further escalates already high tensions between the world’s two largest economic superpowers.
The executive order explicitly prohibits anyone in the United States from making investments in Chinese firms deemed by the Trump Administration as owned or controlled by the Chinese military.
The order goes into effect on January 11 and specifically targets 31 Chinese firms that the Department of Defense identified as “Communist Chinese military companies” in June and August.
That list includes popular smartphone-maker Huawei, as well as China Telecom Corp and China Mobil, both of which trade on the New York Stock Exchange with market caps of nearly $29 billion and $106 billion, respectively.
Trump’s order also bars U.S. investors from owning or trading any securities that are derived from–or even exposed to–those firms, meaning investments in pension funds or exchange-traded funds holding shares of the off-limits companies are also banned.
A spokesperson for the White House did not immediately respond to Forbes‘ request for comment.
“One of the sources, a U.S. official speaking on the condition of anonymity, said an executive order and statement from the National Security Council (NSC) was expected as early as Thursday ‘on protecting investors from funding these companies,'” Reuters’ Humeyra Pamuk, Alexandra Alper and Idrees Ali reported on Thursday.