Amending Executive Order 13959Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies

The order amends Executive Order 13959 on three points. First, it resets the divestment window for securities held in companies already designated as Communist Chinese military companies: US persons may sell those holdings until November 11, 2021, after which continued possession is prohibited. Second, it restructures the divestment timeline for newly designated companies, giving US persons 365 days from the designation date to divest, with possession prohibited after that period expires. Third, it adds the Secretary of the Treasury as an independent listing authority — alongside the Secretary of Defense — who can publicly designate qualifying companies or their subsidiaries, and it narrows the definition of "transaction" to cover only publicly traded securities.

The general-provisions section makes clear the order does not override existing agency authorities, does not create enforceable legal rights for private parties, and is subject to the availability of appropriations.

US investors — individuals, funds, and institutions — holding publicly traded securities in any company designated as a Communist Chinese military company. Companies that may be newly listed by the Secretary of the Treasury as qualifying firms or subsidiaries are also directly reached.

American investors holding shares in newly designated Chinese military-linked companies now have a rolling 365-day window to exit positions rather than a fixed universal deadline, giving them more notice. But after that window closes, holding those securities becomes a federal violation.

The ban operates in two tracks. For companies already listed before this order, US persons must divest by November 11, 2021. For companies listed after this order, the 365-day divestment clock starts on the designation date, and the prohibition on possession takes effect 365 days later. The Secretary of Defense (in consultation with Treasury) and the Secretary of the Treasury can each independently list new companies; Treasury can also list subsidiaries. Removal from a list ends the prohibition for that entity. No new agency reporting deadlines or OMB review requirements are created by this order itself.