Executive Order 13959
|Executive Order on Addressing the Threat from Securities Investments that Finance Communist Chinese Military Companies|
|Executive Order number||13959|
|Signed by||Donald Trump on November 12, 2020|
|Federal Register details|
|Federal Register document number||2020-25459|
|Publication date||November 17, 2020|
|Document citation||85 FR 73185|
Executive Order 13959 is a U.S. Presidential Executive Order signed on November 12, 2020 by President Donald Trump. Its stated goal is "Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies".
Prohibiting investment in "Communist Chinese military companies"
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." 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. On December 28, 2020, guidance on the executive order was published clarifying that the order included subsidiaries of the relevant companies. On January 13, 2021, the executive order was strengthened with an amended directive that mandated divestment by November 11, 2021.
List of affected companies
Initially, 31 companies were identified, including two companies whose shares are traded on U.S. exchanges. These include companies in aerospace, shipbuilding, construction, technology and communication industries.
- Aero Engine Corporation of China
- Aviation Industry Corporation of China
- China Academy of Launch Vehicle Technology
- China Aerospace Science and Technology Corporation
- China Aerospace Science and Industry Corporation
- China Communications Construction Company
- China Electronics Corporation
- China Electronics Technology Group
- China Mobile
- China National Chemical Corporation (ChemChina)
- China National Chemical Engineering
- China National Nuclear Corporation
- China Nuclear Engineering & Construction Corporation (CNECC)
- China General Nuclear Power Group
- China Railway Construction Corporation
- China Shipbuilding Industry Corporation
- China South Industries Group
- China Spacesat
- China State Construction Engineering
- China State Shipbuilding Corporation
- China Telecommunications Corporation
- China Three Gorges Corporation
- China United Network Communications Group (China Unicom)
- CRRC Corporation
- Dawning Information Industry Co. (Sugon)
- China North Industries Group Corporation (Norinco)
- Panda Electronics
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.
- Semiconductor Manufacturing International Corporation (SMIC)
- China National Offshore Oil Corporation (CNOOC)
- China Construction Technology
- China International Engineering Consulting Corporation
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.
- Advanced Micro-Fabrication Equipment Inc. (AMEC)
- Luokong Technology Corporation (LKCO)
- Xiaomi Corporation
- Beijing Zhongguancun Development Investment Center
- GOWIN Semiconductor Corp
- Grand China Air Co. Ltd. (GCAC)
- Global Tone Communication Technology Co. Ltd. (GTCOM)
- China National Aviation Holding Co. Ltd. (CNAH)
- Commercial Aircraft Corporation of China, Ltd. (COMAC)
- 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.
- "Executive Order on Addressing the Threat from Securities Investments that Finance Communist Chinese Military Companies". The White House. Archived from the original on 2020-12-14. Retrieved 2020-12-15.
- "Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies". Federal Register. Archived from the original on December 13, 2020. Retrieved December 14, 2020.
- "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.
- "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.
- "Trump bolsters ban on U.S. investments in China". Reuters. 2021-01-14. Retrieved 2021-01-14.
- 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.
- "DOD Releases List of Additional Companies, In Accordance with Section 1237 of FY99 NDAA". January 14, 2021. Retrieved January 15, 2021.