American capital should not be used to finance the development and construction of China’s military weapons that are literally aimed at killing Americans and driving the U.S. military out of Asia. President TrumpDonald John Trump46 percent of voters say Trump should concede immediately: poll Michigan county reverses course, votes unanimously to certify election results GOP senator: Trump shouldn’t fire top cybersecurity official MORE recently signed an executive order putting a stop to that Wall Street insanity.
For years, the ruling Chinese Communist Party (CCP) has forced all companies, foreign and domestic, operating on Chinese soil to support the state’s military and intelligence activities under the national strategy of “Military-Civil Fusion.” This strategy ensures that any scientific or technological enterprise — ranging from semiconductors, 5G communications, aerospace and nuclear technology, to artificial intelligence and quantum computing — will advance the military aims of the CCP.
Numerous Chinese companies that constitute the CCP’s military-industrial complex raise capital through the sale of equities and bonds traded on public exchanges in the United States and abroad. American dollars are thereby used to help build the missiles, turn the propellers and fly the jetfighters of the People’s Liberation Army’s ground, air, naval, missile, space and cyber forces.
As Wall Street funnels billions of dollars into the coffers of China, millions of Americans have had no say in their own hard-earned savings ending up in this dangerous place. Numerous state pension funds, including those for Alaska, Ohio, New Jersey, California and Texas, have helped to finance China’s rapid military mobilization. This must stop.
Under the National Defense Authorization Act of 1999, the Department of Defense was required to compile a list of companies operating in the U.S. with ties to the Chinese military. At the time, Congress was wisely concerned that China’s entry into the World Trade Organization would enable the CCP to access defense technologies that bolstered China’s military and threatened the United States and its allies. More than 20 years later, no such list had been created and Congress’s fears had become a frightening reality.
Under President Trump’s leadership, in June 2020, the Department of Defense at last published a list of Chinese military companies operating directly or indirectly in the United States. The list was augmented in August. The 31 companies on the list span nearly every industry of China’s military adventurism.
Consider the Aviation Industry Corporation of China (AVIC). It builds a fifth-generation fighter, the Chengdu J-20, which is based on designs stolen from the Pentagon for the F-22 and F-35. Huawei is the tip of the spear for battlefield artificial intelligence. Hikvision is the Orwellian eye of China’s digital surveillance and often-very-real concentration camps.
Consider, too, China Shipbuilding Industry Corporation. It is churning out all of the naval hardware designed to sink our aircraft carriers and to drive America out of the Pacific. It’s theater-of-the-absurd for an American pensioner or investor to support such activity.
President Trump’s new executive order halts American investment in these predatory corporations — as well as any other enterprise determined to be a Chinese military company in the future — exploited by the CCP to take American lives and savings.
In the years to come, not only will these Chinese companies lose flows of revenue that otherwise have fueled the growth of the CCP’s military, but American savings will no longer be funneled abroad by Wall Street profiteers.
Time and time again, President Trump has stood up courageously to the malicious manipulation of America’s economy and financial systems by China. He has emphasized two simple rules: Buy American, Hire American. This new executive order only adds to the list of dozens of other bold actions taken over the past four years by President Trump to protect Americans and secure our homeland.
Peter Navarro is Assistant to the President and Director of the White House Office of Trade and Manufacturing Policy. A professor emeritus of economics and public policy at the University of California, Irvine, he is the author of a dozen books, including “Crouching Tiger: What China’s Militarism Means for the World” (2015) and “Death by China: Confronting the Dragon — A Global Call to Action” (2011).