A Much Needed Executive Order

There are a lot of reasons why people strongly dislike President Trump. A lot of the dislike is the result of the lies told about him in the mainstream media. If you believe President Trump is a racist, you might want to look into his history and the awards he has received for not being racist. Among other things, President Trump literally fought city hall to allow African-Americans and Jews to join Mar-a-lago. I suspect you won’t find a report of that on the mainstream media. Aside from the horrific picture the mainstream media has painted of this man, there are a lot of status quo financial interests that his presidency threatens. Corruption and payoffs in Washington have been part of the game for a long time, and obviously President Trump is not playing. A recent Executive Order is one example of why the Washington insiders hate President Trump.

The Epoch Times posted an article today with the headline, “US Invested Billions Into Companies With Ties to Chinese Military.”

The article reports:

President Donald Trump’s latest executive order bars U.S. investors from holding ownership stakes in a list of 31 Chinese companies designated to have ties with various Chinese Communist Party (CCP) military apparatuses.

This order, while somewhat limited in scope, ensnares several well-known Chinese companies including non-public companies such as Huawei and publicly traded companies such as China Mobile and Hangzhou Hikvision. The 31 companies were previously designated by the Pentagon as being “owned or controlled” by the People’s Liberation Army (PLA), the official name of the Chinese military. (The list of companies can be found here and here.)

The action could be a sign of things to come for Chinese companies with close ties to the CCP; U.S. capital could prove increasingly hard to come by. In addition, examining the foreign ownership base of these companies reveals that a number of them are partially owned by prominent U.S. investment firms, insurance companies, and pension funds.

Four more years of President Trump will not be kind to these investments. A Joe Biden presidency will allow business as usual to continue despite the threat to national security.

The article reports:

An analysis by The Epoch Times of ownership of these 31 Chinese companies reveals that billions of U.S. capital have already flowed into shares of these companies, all of which allegedly have ties to the CCP military or intelligence agencies.

Of the 16 publicly-traded firms either on the list or are subsidiaries and related parties of companies on the list, U.S. entities currently hold shares worth approximately $14.9 billion, based on closing prices as of Nov. 20 and latest available public filings data compiled by Bloomberg.

The vast majority of the $15 billion is invested in two of China’s biggest telecommunications giants. The first is China Mobile Ltd. with $8.1 billion invested via both the New York-listed ADR shares as well as the Hong Kong-listed shares. The company with the second-largest amount of U.S. capital is New York-listed China Telecom Corp with $2.3 billion of investments. Both firms are believed to have links to the PLA, according to the U.S. defense department.

Third on the list is surveillance equipment manufacturer Hangzhou Hikvision Digital Technology Co. Ltd., with $1.7 billion of investments from U.S.-domiciled sources. Hikvision has been criticized in the West for producing equipment used to monitor Uighur Muslims in the northwestern region of Xinjiang.

Unsurprisingly, investment advisors and fund management firms are the biggest single group investing into these Chinese companies—with $13.5 billion invested—by way of their actively managed mutual funds or passively managed exchange-traded funds (ETFs). They are followed by government and pension funds with $466 million invested, and hedge funds with $406 million invested. Other investor classes with large stakes include insurance companies (for their own accounts) and banks and brokers (likely on behalf of client accounts).

Please follow the link above to read the entire article. It really makes you wonder about the loyalty to America of some of our financial people.