Amending EO 13959 on Investments in Chinese Military Companies

Jan 19, 2021

Summary

Updates a previous order to clarify rules and deadlines for Americans to sell investments in certain Chinese military companies.

What problem does this solve?

The original order banning investments in certain Chinese companies needed clearer rules for how and when Americans should sell their existing holdings. This order sets specific deadlines and clarifies definitions to ensure people can follow the law correctly.

What does this order do?

Sets new deadline for selling investments

Allows U.S. persons to sell securities in designated Chinese military companies until November 11, 2021. After that date, owning these securities is forbidden.

Creates a timeline for newly listed companies

Gives U.S. persons 365 days to sell securities in any company that is newly added to the restricted list.

Expands authority to list companies

Allows the Secretary of the Treasury to publicly list companies or their subsidiaries that are determined to be Communist Chinese military companies.

Defines 'transaction'

Clarifies that a 'transaction' means the purchase or sale of any publicly traded security.

Who does this affect?

U.S. investors
Financial institutions
Designated Chinese companies

What is the real world impact?

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Provides clarity for investors

Offers clear deadlines and rules for American investors and financial institutions to sell their holdings in targeted Chinese companies, reducing confusion caused by the original order.

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Strengthens financial pressure on China

Refines the ban on investments to more effectively cut off U.S. capital from companies believed to support China's military, intelligence, and security operations.

When does this start?

This order sets several deadlines for selling investments in certain Chinese companies.

Deadline for selling initial securities

U.S. persons have until 11:59 p.m. EST on November 11, 2021, to sell securities in companies that were on the original list.

Deadline for selling securities in newly listed companies

For any company added to the list later, U.S. persons have 365 days from the date of that decision to sell their securities.