Amending Executive Order 13959Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies
Headline: Orders Public Listing and Divestment Rules for China-Linked Companies
What it does: The Secretary of Defense and the Secretary of the Treasury must list China-linked military companies and enforce deadlines for U.S. persons to divest related securities.
- Requires U.S. investors to sell designated China-linked securities by set deadlines.
- Creates public lists identifying companies and subsidiaries tied to China's military.
- Makes possession of listed securities illegal for American holders after deadlines.
Summary
This order updates an earlier order to block American ownership of securities in companies tied to China's military-industrial complex. It allows U.S. investors a limited time to divest certain holdings and sets firm deadlines when ownership will become illegal.
It requires the Secretary of Defense (with the Treasury) and the Secretary of the Treasury to publicly list companies and subsidiaries that meet the order's criteria and to remove names when no longer applicable.
This matters because it forces sales of designated securities, affects investors and financial markets, and aims to limit funding to those companies.
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