US China Trade War gets Severe

United Sates growing Cynicism regarding China’s role in Afghanistan

There is no denying the fact that China has a fundamental role in Afghanistan and therefore it has been developing its ties with both the Afghan government and the Taliban.  China has been issuing visas to Taliban leaders to facilitate understanding between the Taliban and Kabul. However, China’s growing involvement in Afghanistan’s peace process and overall it’s stability has now raised US skepticism regarding China. According to recent media reports China has offered money to non- state actors in Afghanistan to attack the US troops.  Consequently Trump administration is planning to classify intelligence.  There have been allegations of Chinese money used by non-state actors to kidnap US soldiers.  According to Chinese foreign minister these claims are smear and slander against China. However, the US may not be willing to believe China owing to the 10 Chinese spies busted in Afghanistan. Moreover, according to US and British officials the Taliban use weapons that are either made in Iran or in China.  Not very long ago President Trump has barred American investment into Chinese companies linked with China’s military by an executive order.    Now New York stock exchange plans to delist 3 Chinese telecom companies to comply with Trump’s executive order.  The Trump administration has asked Americans to stop investing in companies that have ties with regime’s military. These 3 mobile companies despite having small listings in New York have a substantial listing in Hong Kong. Moreover these 3 mobile companies control all the mobile companies in China. President Trump issued an executive order in November barring investment into 30 companies linked with China’s military causing these companies stocks to crash. According to US officials these companies are supporting the Chinese regime working against America’s interest.  Moreover, US skepticism sees Chinese Communist party’s entities being disguised as private companies as there are no private companies in China.  By barring American investment Trump administration is restricting the capital these companies need to survive and extend their reach around the world. Global index providers like MSCI, S& P Dow Jones Indices FTSE and Nasdaq have removed various blacklisted companies following the executive order.  These indexes are followed by retirement savings fund for federal employees and members of the US military and US service men savings indirectly funding Chinese weapon makers.  American investments also support these Chinese companies through the Hong Kong Stock exchange. According to a recent report the American investment in the black listed companies make $10 billion. Trumps executive orders direct American investors to sell these shares before November this year.

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