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Executive Order 13959

From Wikipedia, the free encyclopedia
Executive Order 13959
Executive Order on Addressing the Threat from Securities Investments that Finance Communist Chinese Military Companies
Seal of the President of the United States
TypeExecutive order
Executive Order number13959
Signed byDonald Trump on November 12, 2020 (2020-11-12)
Federal Register details
Federal Register document number2020-25459
Publication dateNovember 17, 2020 (2020-11-17)
Document citation85 FR 73185

Executive Order 13959 is a U.S. Presidential Executive Order signed on November 12, 2020, by President Donald Trump. Its title, and stated goal, is "Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies."

A related Executive Order 14032 ("Addressing the Threat From Securities Investments That Finance Certain Companies of the People's Republic of China") was signed by President Joe Biden on June 3, 2021. The national emergency declared by E.O. 13959 remains in effect and has been expanded by E.O. 14032.

Prohibiting investment in "Communist Chinese military companies"

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Further information: Military-civil fusion

The executive order prohibits all U.S. investors (institutional and retail investors alike) from purchasing or investing in securities of companies identified by the U.S. government as "Communist Chinese military companies".[1][2] A "Communist Chinese military company" is any company that the U.S. Department of Defense has identified pursuant to Section 1237 of the National Defense Authorization Act for Fiscal Year 1999. The prohibition came into effect on January 11, 2021.[3] On December 28, 2020, guidance on the executive order was published clarifying that the order included subsidiaries of the relevant companies.[4][5] On January 13, 2021, President Trump strengthened the executive order's requirements by issuing Executive Order 13974 ("Amending Executive Order 13959—Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies"), which mandated divestment by November 11, 2021.[6]

List of affected companies

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Initially, 31 companies were identified, including two companies whose shares were traded on U.S. exchanges. These include companies in aerospace, shipbuilding, construction, technology and communication industries.

On December 3, 2020, the Department of Defense designated four additional companies as owned or controlled by the Chinese military, taking the total number of affected companies to 35.[7]

On January 14, 2021, the Department of Defense designated nine additional companies as owned or controlled by the Chinese military, taking the total number of affected companies to 44.[8]

Delistings

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As a consequence of the executive order, the New York Stock Exchange in January ended trading of shares in China Mobile, China Telecom and China Unicom,[9] and announced in late February that trading in CNOOC would also cease on March 9, 2021.[10]

See also

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References

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  1. ^ Pamuk, Humeyra , Alexandra Alper, Idrees; Alper, Alexandra; Ali, Idrees (2020-11-13). "Trump bans U.S. investments in companies linked to Chinese military". Reuters. Archived from the original on 2020-12-11. Retrieved 2020-12-15.{{cite news}}: CS1 maint: multiple names: authors list (link)
  2. ^ "Executive Order on Addressing the Threat from Securities Investments that Finance Communist Chinese Military Companies". Whitehouse.gov. Archived from the original on 2021-01-20. Retrieved 2020-12-15 – via National Archives.
  3. ^ "Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies". Federal Register. 17 November 2020. Archived from the original on December 13, 2020. Retrieved December 14, 2020.
  4. ^ "Trump administration bolsters order barring U.S. investment in Chinese firms". Reuters. 2020-12-28. Archived from the original on 2020-12-29. Retrieved 2020-12-29.
  5. ^ "Publication of Communist Chinese Military Companies Frequently Asked Questions and Related List". U.S. Department of the Treasury. December 28, 2020. Archived from the original on 2020-12-29. Retrieved 2020-12-29.
  6. ^ "Trump bolsters ban on U.S. investments in China". Reuters. 2021-01-14. Archived from the original on 2021-04-29. Retrieved 2021-01-14.
  7. ^ Alper, Alexandra; Pamuk, Humeyra (December 3, 2020). "United States adds China's SMIC and CNOOC to Defense blacklist". Reuters. Archived from the original on December 9, 2020. Retrieved December 15, 2020.
  8. ^ "DOD Releases List of Additional Companies, In Accordance with Section 1237 of FY99 NDAA". January 14, 2021. Archived from the original on August 27, 2021. Retrieved January 15, 2021.
  9. ^ Davies, Megan; Alper, Alexandra; John, Alun (December 31, 2020). Coghill, Kim (ed.). "NYSE starts process of delisting three Chinese telco companies". Reuters. Archived from the original on August 27, 2021. Retrieved March 1, 2021.
  10. ^ He, Laura (March 1, 2021). "Wall Street is kicking out yet another big Chinese company". CNN. Archived from the original on 2021-03-02. Retrieved 2021-03-02.
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