Communist Chinese Military Companies Listed Under E.O. 13959 Have More Than 1,100 Subsidiaries

Executive Order 13959 — Addressing the Threat from Securities Investments that Finance Communist Chinese Military Companies—released on November 12, 2020 and as amended on January 13, 2021, prohibits investment by U.S. persons in “ostensibly private and civilian” companies that “directly support the PRC’s [People’s Republic of China] military, intelligence, and security apparatuses.”  This Executive Order prohibits purchases by U.S. persons in publicly traded securities, or any securities that are derivative thereof, of companies listed by the Departments of Defense or Treasury, regardless of the percentage ownership.  Treasury’s guidance states that divestment must be completed “365 days after the date of such determination” by Defense or Treasury.  For the initial tranches, that date is November 11, 2021.

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