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US-China tensions

China's military companies tap new investors after U.S. sanctions

Scramble for state-backed shareholders aims to offset curbs on foreign capital

Chinese soldiers at Shek Kong Barracks, Hong Kong, in 2017. China’s military build-up has alarmed the U.S., which has acted to restrict American investment in companies deemed to have connections to the People’ Liberation Army. (Photo by Kenji Kawase)

HONG KONG -- For an indication of how China's military-industrial complex is dealing with U.S. sanctions, consider the case of China Satellite Communications.

China Satcom, which Washington placed off-limits to U.S. investors, is preparing a private placement of up to 400 million new shares and has opened a bank account for the expected funds. "The process with regard to the private placement is moving along in an orderly way," Li Zhongbao, the company's chairman, told investors during an online conference on Sept 16.

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