The US Treasury department is attempting to water down an executive order from President Donald Trump that bars Americans from investing in Chinese companies with suspected ties to Beijing’s military.
The effort has been met with furious opposition from the Pentagon and state department, opening up a heated dispute over one of the last big anti-Beijing policies of the Trump era.
Mr Trump last month issued an order barring US investors from investing in Chinese companies that the Pentagon put on a list of groups suspected of helping the Chinese People’s Liberation Army.
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