White House Weighs Blocking Chinese Companies From U.S. Exchanges
The Trump administration is discussing whether to block Chinese companies from listing shares on American stock exchanges, the latest push to try to sever economic ties between the United States and China, according to people familiar with the deliberations. The internal discussions are in their early stages and no decision is imminent, these people cautioned.
Last week, the Treasury Department unveiled new regulations detailing how a 2018 law, the Foreign Investment Risk Review Modernization Act, will work to prevent foreign firms from using investments like minority stakes to capture sensitive American information. And the United States has already blacklisted some Chinese companies, including Huawei, effectively barring them from doing business with American companies.
Stocks dropped on Friday after a report on the deliberations was published by Bloomberg News. The market continued to slide through most of the day. Losses were particularly steep in the technology sector, and among semiconductor stocks, two parts of the market that have been sensitive to the latest updates on the economic tensions between China and the United States.