The move by S&P DJI Indices has no direct
impact on the companies but investment funds
that are designed to track market movements
will have to sell their stocks and bonds, which
might at least temporarily depress prices.
“We firmly oppose the relevant practices of the
U.S. side,” said a foreign ministry spokeswoman,
Hua Chunying. “I believe that the U.S. practice
of fabricating lies and rumors and hunting
and containing Chinese enterprises without a
bottom line will eventually be proven not in the
interests of the U.S. itself.”
U.S. officials complain China’s ruling Communist
Party takes advantage of access to American
technology and investment to expand its
military, already one of the world’s biggest and
most heavily armed.
Washington also has imposed export bans and
other sanctions on Hikvision and other Chinese
companies including telecom equipment maker
Huawei Technologies Ltd.
HikVision and Huawei say they have no connection
to the military and never have conducted military-
related research and development.
The Pentagon has cited 31 companies since
June as being military-linked.
The securities order was Trump’s first major
action toward China since he lost his reelection
bid to challenger Joe Biden. Economists and
political analysts say Trump is likely to take more
actions before leaving office on Jan. 20.
Political analysts expect little change in policy
under Biden due to widespread frustration with
China’s trade and human rights records and
accusations of spying and technology theft.