Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies
Bans U.S. Investments in Certain Chinese Military-Linked Companies
What it does
Agencies must prohibit U.S. persons from transacting in securities of identified Chinese military-linked companies and issue rules and licenses to enforce the ban.
Real-world impact
- Bars U.S. investors from buying stocks or related securities of listed firms.
- Requires U.S. holders to divest holdings within specified divestment deadlines.
- Gives the Treasury power to issue rules, licenses, and enforcement actions.
Topics
Summary
This order bans U.S. investments in companies the government identifies as supporting China's military. It declares a national emergency because those companies use U.S. capital to help build China's military and intelligence capabilities.
It affects U.S. citizens, permanent residents, and U.S.-based companies by prohibiting purchases of publicly traded securities of listed firms starting January 11, 2021, and for newly listed firms after a 60-day notice, while allowing limited time periods to divest existing holdings.
Questions, answered
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