Its been a long debate for USA officials to either ban or relieve the Asian Giants.
The USA Officials deliberately, but ultimately decided against banning American investment in Alibaba Group Holding Ltd. and Tencent Holdings Ltd. A person familiar with the discussions said, removing a cloud of uncertainty over Asia’s two biggest corporations.
The Treasury Department blocked a Pentagon effort to add the two internet firms on grounds they aided the military, the person said, asking not to be identified discussing private talks.
Officials also debated blocking search leader Baidu Inc. but dropped the plan, the person added. Alibaba’s Hong Kong stock climbed as much as 3.9% while Tencent rose almost 5% on news of the reprieve, which was first reported by the Wall Street Journal. Their dollar bond spreads tightened Thursday morning.
The decision removes uncertainty hanging over Chinese social media and gaming leader Tencent and Alibaba, the e-commerce titan founded by billionaire Jack Ma that’s now under intense regulatory scrutiny by Beijing regulators. President Donald Trump has signed an amended version of his executive order banning investment in Chinese military-linked companies, the White House said in a statement Wednesday that didn’t mention any company by name.
Also read: Controversy surrounds Kamala Harris
Leave a Reply