Presidential DocumentExecutive Order 139592020-25459
Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies
Primary source
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Published
November 17, 2020
Signed
November 12, 2020
Issuing agencies
Executive Office of the President
Full Text
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<title>Federal Register, Volume 85 Issue 222 (Tuesday, November 17, 2020)</title>
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[Federal Register Volume 85, Number 222 (Tuesday, November 17, 2020)]
[Presidential Documents]
[Pages 73185-73189]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2020-25459]
Presidential Documents
Federal Register / Vol. 85 , No. 222 / Tuesday, November 17, 2020 /
Presidential Documents
___________________________________________________________________
Title 3--
The President
[[Page 73185]]
Executive Order 13959 of November 12, 2020
Addressing the Threat From Securities Investments
That Finance Communist Chinese Military Companies
By the authority vested in me as President by the
Constitution and the laws of the United States of
America, including the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the
National Emergencies Act (50 U.S.C. 1601 et seq.), and
section 301 of title 3, United States Code,
I, DONALD J. TRUMP, President of the United States of
America, find that the People's Republic of China (PRC)
is increasingly exploiting United States capital to
resource and to enable the development and
modernization of its military, intelligence, and other
security apparatuses, which continues to allow the PRC
to directly threaten the United States homeland and
United States forces overseas, including by developing
and deploying weapons of mass destruction, advanced
conventional weapons, and malicious cyber-enabled
actions against the United States and its people.
Key to the development of the PRC's military,
intelligence, and other security apparatuses is the
country's large, ostensibly private economy. Through
the national strategy of Military-Civil Fusion, the PRC
increases the size of the country's military-industrial
complex by compelling civilian Chinese companies to
support its military and intelligence activities. Those
companies, though remaining ostensibly private and
civilian, directly support the PRC's military,
intelligence, and security apparatuses and aid in their
development and modernization.
At the same time, those companies raise capital by
selling securities to United States investors that
trade on public exchanges both here and abroad,
lobbying United States index providers and funds to
include these securities in market offerings, and
engaging in other acts to ensure access to United
States capital. In that way, the PRC exploits United
States investors to finance the development and
modernization of its military.
I therefore further find that the PRC's military-
industrial complex, by directly supporting the efforts
of the PRC's military, intelligence, and other security
apparatuses, constitutes an unusual and extraordinary
threat, which has its source in substantial part
outside the United States, to the national security,
foreign policy, and economy of the United States. To
protect the United States homeland and the American
people, I hereby declare a national emergency with
respect to this threat.
Accordingly, I hereby order:
Section 1. (a) The following actions are prohibited:
(i) beginning 9:30 a.m. eastern standard time on January 11, 2021, any
transaction in publicly traded securities, or any securities that are
derivative of, or are designed to provide investment exposure to such
securities, of any Communist Chinese military company as defined in section
4(a)(i) of this order, by any United States person; and
(ii) beginning 9:30 a.m. eastern standard time on the date that is 60 days
after a person is determined to be a Communist Chinese military company
pursuant to section (4)(a)(ii) or (iii) of this order, any transaction in
publicly traded securities, or any securities that are derivative of, or
are designed to provide investment exposure to such securities, of that
person, by any United States person.
[[Page 73186]]
(b) Notwithstanding subsection (a)(i) of this
section, purchases for value or sales made on or before
11:59 p.m. eastern standard time on November 11, 2021,
solely to divest, in whole or in part, from securities
that any United States person held as of 9:30 a.m.
eastern standard time on January 11, 2021, in a
Communist Chinese military company as defined in
section 4(a)(i) of this order, are permitted.
(c) Notwithstanding subsection (a)(ii) of this
section, for a person determined to be a Communist
Chinese military company pursuant to section 4(a)(ii)
or (iii) of this order, purchases for value or sales
made on or before 365 days from the date of such
determination, solely to divest, in whole or in part,
from securities that any United States person held in
such person, as of the date 60 days from the date of
such determination, are permitted.
(d) The prohibitions in subsection (a) of this
section apply except to the extent provided by
statutes, or in regulations, orders, directives, or
licenses that may be issued pursuant to this order, and
notwithstanding any contract entered into or any
license or permit granted before the date of this
order.
Sec. 2. (a) Any transaction by a United States person
or within the United States that evades or avoids, has
the purpose of evading or avoiding, causes a violation
of, or attempts to violate the prohibitions set forth
in this order is prohibited.
(b) Any conspiracy formed to violate any of the
prohibitions set forth in this order is prohibited.
Sec. 3. (a) The Secretary of the Treasury, after
consultation with the Secretary of State, the Secretary
of Defense, the Director of National Intelligence, and
the heads of other executive departments and agencies
(agencies) as deemed appropriate by the Secretary of
the Treasury, is hereby authorized to take such
actions, including the promulgation of rules and
regulations, and to employ all powers granted to the
President by IEEPA, to carry out the purposes of this
order. The Secretary of the Treasury may, consistent
with applicable law, redelegate any of these functions
within the Department of the Treasury. All agencies
shall take all appropriate measures within their
authority to carry out the provisions of this order.
(b) Rules and regulations issued pursuant to this
order may, among other things, establish procedures to
license transactions otherwise prohibited pursuant to
this order. But prior to issuing any license under this
order, the Secretary of the Treasury shall consult with
the Secretary of State, the Secretary of Defense, and
the Director of National Intelligence.
Sec. 4. Definitions. For purposes of this order:
(a) the term ``Communist Chinese military company''
means
(i) any person that the Secretary of Defense has listed as a Communist
Chinese military company operating directly or indirectly in the United
States or in any of its territories or possessions pursuant to section 1237
of Public Law 105-261, as amended by section 1233 of Public Law 106-398 and
section 1222 of Public Law 108-375, as of the date of this order, and as
set forth in the Annex to this order, until such time as the Secretary of
Defense removes such person from such list;
(ii) any person that the Secretary of Defense, in consultation with the
Secretary of the Treasury, determines is a Communist Chinese military
company operating directly or indirectly in the United States or in any of
its territories or possessions and therefore lists as such pursuant to
section 1237 of Public Law 105-261, as amended by section 1233 of Public
Law 106-398 and section 1222 of Public Law 108-375, until such time as the
Secretary of Defense removes such person from such list; or
(iii) any person that the Secretary of the Treasury publicly lists as
meeting the criteria in section 1237(b)(4)(B) of Public Law 105-261, or
publicly lists as a subsidiary of a person already determined to be a
Communist
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Chinese military company, until the Secretary of the Treasury determines
that such person no longer meets that criteria and removes such person from
such list.
(b) the term ``entity'' means a government or
instrumentality of such government, partnership,
association, trust, joint venture, corporation, group,
subgroup, or other organization;
(c) the term ``person'' means an individual or
entity;
(d) the terms ``security'' and ``securities''
include the definition of ``security'' in section
3(a)(10) of the Securities Exchange Act of 1934, Public
Law 73-291, as codified as amended at 15 U.S.C.
78c(a)(10), except that currency or any note, draft,
bill of exchange, or banker's acceptance which has a
maturity at the time of issuance of not exceeding 9
months, exclusive of days of grace, or any renewal
thereof the maturity of which is likewise limited,
shall be a security for purposes of this order.
(e) the term ``transaction'' means the purchase for
value of any publicly traded security; and
(f) the term ``United States person'' means any
United States citizen, permanent resident alien, entity
organized under the laws of the United States or any
jurisdiction within the United States (including
foreign branches), or any person in the United States.
Sec. 5. The Secretary of the Treasury, in consultation
with the Secretary of State and, as appropriate, the
Secretary of Defense, is hereby authorized to submit
the recurring and final reports to the Congress on the
national emergency declared in this order, consistent
with section 401(c) of the NEA (50 U.S.C. 1641(c)) and
section 204(c) of IEEPA (50 U.S.C. 1703(c)).
Sec. 6. General Provisions. (a) Nothing in this order
shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or
the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget
relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with
applicable law and subject to the availability of
appropriations.
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(c) This order is not intended to, and does not,
create any right or benefit, substantive or procedural,
enforceable at law or in equity by any party against
the United States, its departments, agencies, or
entities, its officers, employees, or agents, or any
other person.
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>
(Presidential Sig.)
THE WHITE HOUSE,
November 12, 2020.
Billing code 3295-F1-P
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[GRAPHIC] [TIFF OMITTED] TD17NO20.000
[FR Doc. 2020-25459
Filed 11-16-20; 8:45 am]
Billing code 3295-F1-C
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</html>Indexed from Federal Register on November 17, 2020.
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