After weeks of deliberation, the U.S. government ultimately decided against imposing an investment ban on Alibaba Group Holding Ltd. and Tencent Holdings Ltd. This move was initially triggered by a government decision to deter American citizens from investing in companies with ties to the Chinese military.
While initially backed by the Pentagon, the Treasury Department struck down the proposed ban on Asia’s two largest corporations. Baidu Inc was another company that was ultimately not subjected to an investment ban. Following this update, Alibaba’s Hong Kong stock rose by 3.9% while Tencent enjoyed a 5% climb.
While an executive order was signed back in November which required investors to pull out of Chinese companies linked to their nation’s military, an amendment to this order was signed on Wednesday, the White House confirmed.
In response to the U.S. government’s monumental decision to impose this ban, Chinese Foreign Ministry spokesman Zhao Lijian made the following statement during a regular briefing: “China opposes politicizing economic and trade issues and abusing state power and the concept of national security to suppress foreign companies.”
