March 9, 2020 / 2:00 AM / 21 days ago

Beijing Shiji says will heed Trump order and exit StayNTouch

SHANGHAI, March 9 (Reuters) - Beijing Shiji Information Technology said on Sunday it will comply with an order from U.S. President Donald Trump that requires it to divest completely from Maryland-based mobile hotel property firm StayNTouch.

The company said it would do so even though it did not agree with the national security risks described in Trump’s order, which said Shiji’s ownership of StayNTouch’s software system could allow it to take actions that “threaten to impair the national security of the United States.”

StayNTouch, founded in 2013, calls itself a “Shiji Group Brand,” and on its website says it was acquired by Shiji Group in 2018.

Shiji in a statement to the Shenzhen stock exchange said its divestment would not have any adverse impact on its future business or financial situation, but added that the selling price of its StayNTouch stake could be affected by the limit of the transaction period. (Reporting by Brenda Goh; Editing by Aditya Soni)

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