Trump on Thursday signed an executive order paving the way for the U.S. to blacklist Chinese companies that the administration alleges are connected to Beijing’s military.
The order is expected to go into effect Jan. 11, ahead of the start of the new presidential administration in which Joe Biden is the projected next U.S. president.
A series of high-profile Chinese companies are named in the order including Huawei, a technology company that the Trump White House has sought to block sales from U.S. businesses to over national security concerns.
The Department of Defense over the summer released a list of dozens of Chinese companies it identified as having connections to the Chinese military, including telecommunications firms, aviation, aerospace, shipping and construction companies, to name a few.
Now, U.S. citizens are blocked from owning or trading securities linked to these companies.
Trump said he signed the executive order because the Chinese government seeks to compel “civilian Chinese companies to support its military and intelligence activities,” which he warned will pose an “unusual and extraordinary threat” to the U.S. including its national security, foreign policy and economy.