U.S. considering adding Alibaba, Tencent to China stock ban -sources

SourceZawya
SectorEconomy
CountryMiddle east

WASHINGTON - The Trump administration is considering adding tech giants Alibaba and Tencent to a blacklist of firms allegedly owned or controlled by the Chinese military, two people familiar with the matter said - a move that could inflame tensions with Beijing days before U.S. President-elect Joe Biden takes office.Defense Department officials, who oversee the designations, have not yet finalized plans to add the companies and are also discussing adding other Chinese firms, the sources said, speaking on condition of anonymity because the deliberations are private.If added, Alibaba and Tencent would be subject to an executive order signed by U.S. President Donald Trump in November, which bans U.S. investors from buying shares of the blacklisted firms starting in November, 2021.Tencent declined to comment and Alibaba did not immediately respond to requests for comment.

The discussions were first reported by the Wall Street Journal.Shares in Alibaba Group Holding Ltd were down 5% in morning trade on the Hong Kong Stock Exchange. Tencent Holdings Ltd shares were down 3%. Alibaba's U.S.-listed shares closed down just over 5% on the news on Wednesday.Trump has unleashed a raft of tough measures against Chinese firms in his waning days in the White House as he ...read more...