According to a document seen by Reuters on Monday, some of the Republican lawmakers plan to announce legislation this week, which aims to keep Americans from investing in foreign defense companies linked to China’s military.
Key takeaways
“Representatives Mike Gallagher, Jim Banks and Doug LaMalfa plan to introduce the bill, which would require Treasury Secretary Steve Mnuchin to submit a report to Congress listing foreign defense companies that have “substantial contracts with, ties to, or support from” the Chinese military.”
“Six months after the report is issued, American companies and citizens would be required to divest from those firms and would be banned from making new investments in them.”
This comes after President Donald Trump said on Friday that his administration will study ways to safeguard Americans from the risks of investing in Chinese companies.
Market reaction
The US dollar is nursing losses around 98.00 when compared to its six main rivals, as the sentiment remains undermined by a better market mood and escalating US riots.
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