Rule2023-19133

Publication of Chinese Military-Industrial Complex Sanctions Regulations Web General Licenses 1, 1A, 1B, and 2

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
September 6, 2023

Issuing agencies

Treasury DepartmentForeign Assets Control Office

Abstract

The Department of the Treasury's Office of Foreign Assets Control (OFAC) is publishing four general licenses (GLs) issued in the Chinese Military Industrial Complex program: GLs 1, 1A, 1B, and 2, each of which was previously made available on OFAC's website.

Full Text

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<title>Federal Register, Volume 88 Issue 171 (Wednesday, September 6, 2023)</title>
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[Federal Register Volume 88, Number 171 (Wednesday, September 6, 2023)]
[Rules and Regulations]
[Pages 60889-60890]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-19133]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 586


Publication of Chinese Military-Industrial Complex Sanctions 
Regulations Web General Licenses 1, 1A, 1B, and 2

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Publication of web general licenses.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (OFAC) is publishing four general licenses (GLs) issued in the 
Chinese Military Industrial Complex program: GLs 1, 1A, 1B, and 2, each 
of which was previously made available on OFAC's website.

DATES: GL 1 was issued on January 8, 2021. See SUPPLEMENTARY 
INFORMATION for additional relevant dates.

FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for 
Licensing, 202-622-2480; Assistant Director for Regulatory Affairs, 
202-622-4855; or Assistant Director for Compliance, 202-622-2490.

SUPPLEMENTARY INFORMATION: 

Electronic Availability

    This document and additional information concerning OFAC are 
available on OFAC's website: <a href="https://ofac.treasury.gov">https://ofac.treasury.gov</a>.

Background

    On January 8, 2021, OFAC issued GL 1 to authorize certain 
transactions otherwise prohibited by Executive Order (E.O.) 13959 of 
November 12, 2020, ``Addressing the Threat From Securities Investments 
That Finance Communist Chinese Military Companies'' (85 FR 73185, 
November 17, 2020). Subsequently, OFAC issued two further iterations of 
GL 1, each of which authorized activities otherwise prohibited pursuant 
to E.O. 13959 as amended by E.O. 13974 of January 13, 2021, ``Amending 
Executive Order 13959--Addressing the Threat From Securities 
Investments That Finance Communist Chinese Military Companies'' (86 FR 
4875, January 19, 2021): on January 26, 2021, OFAC issued GL 1A, which 
superseded GL 1; and on May 18, 2021, OFAC issued GL 1B, which 
superseded GL 1A. Each of these GLs is now expired. On January 14, 
2021, OFAC issued GL 2 to authorize certain transactions otherwise 
prohibited by E.O. 13959, as amended. Each GL was made available on 
OFAC's website (<a href="https://ofac.treasury.gov">https://ofac.treasury.gov</a>) when it was issued. The text 
of these GLs is provided below.

OFFICE OF FOREIGN ASSETS CONTROL

Executive Order 13959 of November 12, 2020

Addressing the Threat From Securities Investments That Finance 
Communist Chinese Military Companies

GENERAL LICENSE NO. 1

Authorizing Transactions Involving Securities of Certain Communist 
Chinese Military Companies

    (a) Except as provided in paragraph (b) of this general license, 
all transactions and activities prohibited by section 1(a)(i) of 
Executive Order (E.O.) 13959 involving publicly traded securities, 
or any securities that are derivative of, or are designed to provide 
investment exposure to such securities, of an entity whose name 
closely matches the name of a Communist Chinese military company 
identified in the Annex to E.O. 13959 but that has not been listed 
on the Office of Foreign Assets Control's Non-SDN Communist Chinese 
Military Companies List, are authorized through 9:30 a.m. eastern 
standard time, January 28, 2021.
    (b) This general license does not authorize any transactions or 
activities otherwise prohibited by E.O. 13959, any other E.O. or 
statute, or any part of 31 CFR chapter V.

Andrea Gacki,

Director, Office of Foreign Assets Control.

    Dated: January 8, 2021.

[[Page 60890]]

OFFICE OF FOREIGN ASSETS CONTROL

Executive Order 13959 of November 12, 2020

Addressing the Threat From Securities Investments That Finance 
Communist Chinese Military Companies, as Amended

GENERAL LICENSE NO. 1A

Authorizing Transactions Involving Securities of Certain Communist 
Chinese Military Companies

    (a) Except as provided in paragraph (b) of this general license, 
all transactions and activities prohibited by section 1(a) of 
Executive Order (E.O.) 13959, as amended by E.O. 13974 of January 
13, 2021, involving publicly traded securities, or any securities 
that are derivative of, or are designed to provide investment 
exposure to such securities, of an entity whose name closely 
matches, but does not exactly match, the name of a Communist Chinese 
military company as defined by section 4(a) of E.O. 13959, as 
amended, are authorized through 9:30 a.m. eastern daylight time, May 
27, 2021.
    (b) This general license does not authorize:
    (1) Any transactions or activities involving publicly traded 
securities, or any securities that are derivative of, or are 
designed to provide investment exposure to such securities, of 
entities identified in the Office of Foreign Assets Control's Non-
SDN Communist Chinese Military Companies List (NS-CCMC List) 
pursuant to section 4(a)(iii) of E.O. 13959, as amended, as a 
subsidiary of a person determined to be a Communist Chinese military 
company, including entities added to the NS-CCMC List on January 8, 
2021 (CNOOC Limited, China Mobile Limited, China Telecom Corporation 
Limited, China Unicom (Hong Kong) Limited).

    Note to paragraph (b)(1):  Pursuant to section 1(a)(ii) of E.O. 
13959, as amended, prohibitions relevant to entities identified in 
the NS-CCMC List pursuant to section 4(a)(iii) of E.O. 13959, as 
amended, including entities added to the NS-CCMC List on January 8, 
2021 (CNOOC Limited, China Mobile Limited, China Telecom Corporation 
Limited, China Unicom (Hong Kong) Limited), take effect beginning 
9:30 a.m. eastern time on the date that is 60 days after such 
listing.

    (2) Any transactions or activities otherwise prohibited by E.O. 
13959, as amended, any other E.O. or statute, or any part of 31 CFR 
chapter V.
    (c) Effective January 27, 2021, General License No. 1, dated 
January 8, 2021, is replaced and superseded in its entirety by this 
General License No. 1A.

Bradley T. Smith,

Acting Director, Office of Foreign Assets Control.

    Dated: January 26, 2021.

OFFICE OF FOREIGN ASSETS CONTROL

Executive Order 13959 of November 12, 2020

Addressing the Threat From Securities Investments That Finance 
Communist Chinese Military Companies, as Amended

GENERAL LICENSE NO. 1B

Authorizing Transactions Involving Securities of Certain Communist 
Chinese Military Companies

    (a) Except as provided in paragraph (b) of this general license, 
all transactions and activities prohibited by section 1(a) of 
Executive Order (E.O.) 13959, as amended by E.O. 13974 of January 
13, 2021, involving publicly traded securities, or any securities 
that are derivative of, or are designed to provide investment 
exposure to such securities, of an entity whose name closely 
matches, but does not exactly match, the name of a Communist Chinese 
military company as defined by section 4(a) of E.O. 13959, as 
amended, are authorized through 9:30 a.m. eastern daylight time, 
June 11, 2021.
    (b) This general license does not authorize:
    (1) Any transactions or activities involving publicly traded 
securities, or any securities that are derivative of, or are 
designed to provide investment exposure to such securities, of 
entities identified in the Office of Foreign Assets Control's Non-
SDN Communist Chinese Military Companies List (NS-CCMC List) 
pursuant to section 4(a)(iii) of E.O. 13959, as amended, as a 
subsidiary of a person determined to be a Communist Chinese military 
company, including entities added to the NS-CCMC List on January 8, 
2021 (CNOOC Limited, China Mobile Limited, China Telecom Corporation 
Limited, China Unicom (Hong Kong) Limited).

    Note to paragraph (b)(1):  Pursuant to section 1(a)(ii) of E.O. 
13959, as amended, prohibitions relevant to entities identified in 
the NS-CCMC List pursuant to section 4(a)(iii) of E.O. 13959, as 
amended, including entities added to the NS-CCMC List on January 8, 
2021 (CNOOC Limited, China Mobile Limited, China Telecom Corporation 
Limited, China Unicom (Hong Kong) Limited), take effect beginning 
9:30 a.m. eastern time on the date that is 60 days after such 
listing.

    (2) Any transactions or activities otherwise prohibited by E.O. 
13959, as amended, any other E.O. or statute, or any part of 31 CFR 
chapter V.
    (c) Effective May 18, 2021, General License No. 1A, dated 
January 26, 2021, is replaced and superseded in its entirety by this 
General License No. 1B.

Bradley T. Smith,

Acting Director, Office of Foreign Assets Control.

    Dated: May 18, 2021.

OFFICE OF FOREIGN ASSETS CONTROL

Executive Order 13959 of November 12, 2020

Addressing the Threat From Securities Investments That Finance 
Communist Chinese Military Companies, as Amended

GENERAL LICENSE NO. 2

Authorizing Securities Exchanges Operated by U.S. Persons To Engage in 
Transactions involving Securities of Communist Chinese Military 
Companies

    (a) Except as provided in paragraph (b) of this general license, 
all transactions and activities by securities exchanges operated by 
U.S. persons prohibited by section 1(a)(ii) of Executive Order 
(E.O.) 13959, as amended by the E.O. of January 13, 2021, involving 
publicly traded securities, or any securities that are derivative 
of, or are designed to provide investment exposure to such 
securities, of any entity that is listed on the Office of Foreign 
Assets Control's Non-SDN Communist Chinese Military Companies List 
(NS-CCMC List) after 12:01 a.m. eastern standard time, January 14, 
2021, are authorized through 12:01 a.m. eastern time on the date 
that is 365 days after the date the entity is listed on the NS-CCMC 
List.
    (b) This general license does not authorize any transactions or 
activities otherwise prohibited by E.O. 13959, as amended, any other 
E.O. or statute, or any part of 31 CFR chapter V.

Andrea Gacki,

Director, Office of Foreign Assets Control.

    Dated: January 14, 2021.

Andrea M. Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2023-19133 Filed 9-5-23; 8:45 am]
BILLING CODE 4810-AL-P


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Indexed from Federal Register on September 6, 2023.

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