Trump’s order bans US investors from owning or trading any securities that originate or are exposed to those firms. This includes pension funds or owning shares in the companies that are banned. Investors will have until November 2021 to divest from the companies.
Hikvision said on Friday that the decision to pursue the company is “groundless.”
“As we have shown time and again, Hikvision is not a ‘Chinese military company’. Hikvision is independently operated and publicly traded,” the company said in a statement.
Hikvision added that it has never participated in any research and development work for military applications.
“These punitive actions against the company do not make America, or the world, any safer,” the company said.
China Telecom said in a stock market filing that it was “currently assessing the impact” of the executive order, which could cause its share price to fluctuate.
Huawei and China Mobile did not immediately respond to a request for comment.
A spokesperson for China’s Ministry of Foreign Affairs on Friday blasted the executive order, saying that the US government “maliciously slandered” legitimate collaboration between China’s military and civilian companies and “unreasonably suppressed Chinese companies.”
“This move will not only seriously damage the legitimate interests of Chinese companies, but will also damage the interests of investors in various countries, including the United States,” spokesperson Wang Wenbin told reporters.
Many Chinese tech companies have come under pressure during the Trump administration. Over the past few years, Washington has taken aim at China’s lofty tech ambitions, striking blows at the country’s developing artificial intelligence, semiconductor and telecommunications industries.
Beijing “will be on guard for the Trump administration to take some hard parting shots at China, particularly actions against major Chinese tech companies,” Triolo wrote in a note last week.
“But China will generally stay restrained in its retaliatory measures in order not to poison relations before [US president-elect Joe] Biden takes office on 20 January,” he added.
Correction: An earlier version of this story misspelled Hikvision.