2020 is ending and the US-China trade war continues. Observers expected the trade war to end after the two countries reached an agreement in January. However, the sanctions imposed on Chinese companies are still taking place.
The trade war broke out between the world’s two largest economies in March 2018.
US President Donald Trump signed a decree last November banning Americans from investing in Chinese groups. The US administration said that these are cooperating with Beijing’s military activities.
The ban will take effect on January 11th – a week before Trump leaves the White House.
Americans who have contributions or other financial interests in target groups will have time to act.
last June, Reuters said it seen a document indicating that the Trump administration concluded that major Chinese companies manufacture surveillance cameras controlled by the Chinese military. These companies include the giant telecommunications equipment company Huawei and Hikvision.
Washington believes a list of 20 companies are backed by the People’s Liberation Army, including China Mobile, China Telecommunications Corporation and China Aviation Industry Corporation.
Trump threatened last August to withdraw government contracts from companies operating in China. He pledged to create 10 million jobs within 10 months, saying, “We will end our dependence on China”.
This step is the latest attack on China, after other steps against technology companies, such as TikTok, WeChat, and Huawei. The announcement of the move came as tensions have been escalating rapidly between Washington and Beijing in recent months.
As Trump continues to threat of imposing taxes on Chinese goods, Beijing passed a new law restricting sensitive exports. The law allows the authorities to take similar measures against countries that misuse export controls and pose a threat to its national security.
The law, approved by China’s top legislature, the National People’s Congress, took effect on December 1.
China’s latest action gives the country more leeway to fight back in Trump’s war on Chinese tech companies.
The new law aiming at “protecting national security and interests” is one of China’s set of regulatory tools that includes banning technology exports and a list of unreliable entities.