The Trump administration is considering adding Chinese tech giants Alibaba and Tencent to a blacklist of firms where US investment is prohibited. This was reported to Reuters by two informants familiar with the matter.
Note that Alibaba and Tencent are the two most expensive Asian companies. By hitting them, President Trump has been trying in his final days in office to cement a hard line on Beijing.
Defense officials who oversee the blacklist have yet to finalize the proposal and are discussing adding other Chinese firms to the list, whistleblowers said.
The companies themselves declined to comment on this information. However, shares of Alibaba, China’s largest e-commerce company, fell 3.9% on the Hong Kong Stock Exchange, while gaming and social media giant Tencent shed 4.7%.
However, some investors have expressed skepticism that Alibaba and Tencent will face long-term restrictions, given that their total value is $ 1.3 trillion, of which a significant portion is held by American investors. The presidential administration’s decision would deal an impressive reputational and financial blow to the US stock markets.
In turn, China has already warned that it will take the necessary measures to protect the legitimate rights and interests of Chinese companies.
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