U.S. investors continue to fund the Chinese military
The U.S. Foreign Assets Control (OFAC) issued an online FAQ allowing Americans to continue funding China’s People’s Liberation Army (PLA).
The PLA is on the verge of launching its third aircraft carrier as part of its $9 billion dollar carrier program. This hefty price tag represents a small fraction of money the Chinese Communist Party (CCP) has received from U.S. investors.
China “exploits United States investors to finance the development and modernization of its military” wrote then-U.S. President Donald Trump on Nov. 12, 2020, in an executive order banning investment in Chinese stocks linked to the PLA. In the order, Trump accurately said that the key to the CCP’s military and intelligence development is the funding it receives from the U.S. private economy.
According to the U.S.-China Economic and Security Review Commission, there were 261 Chinese companies listed on U.S. exchanges with a combined value of $1.4 trillion as of March 2022.