[House Document 117-40]
[From the U.S. Government Publishing Office]
117th Congress, 1st Session--------------------HOUSE DOUCUMENT 117-40
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ADDRESSING THE THREAT FROM SECURITIES INVESTMENTS THAT FINANCE CERTAIN
COMPANIES OF THE PEOPLE'S REPUBLIC OF CHINA
__________
COMMUNICATION
from
THEPRESIDENTOFTHEUNITEDSTATES
transmitting
AN EXECUTIVE ORDER TAKING ADDITIONAL STEPS TO ADDRESS THE NATIONAL
EMERGENCY DECLARED IN EXECUTIVE ORDER 13959 OF NOVEMBER 12, 2020,
ADDRESSING THE THREAT FROM SECURITIES INVESTMENT THAT FINANCE COMMUNIST
CHINESE MILITARY COMPANIES, PURSUANT TO 50 U.S.C. 1703(b); PUBLIC LAW
95-223, SEC. 204(b); (91 STAT. 1627)
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
June 4, 2021.--Referred to the Committee on Foreign Affairs and ordered
to be printed
The White House,
Washington, June 3, 2021.
Hon. Nancy Pelosi,
Speaker of the House of Representatives,
Washington, DC.
Dear Madam Speaker: Pursuant to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.), I hereby report
that I have issued an Executive Order addressing the threat
from securities investments that finance certain companies of
the People's Republic of China (PRC).
I have determined that additional steps are necessary to
address the national emergency declared in Executive Order
13959 of November 12, 2020 (Addressing the Threat From
Securities Investments That Finance Communist Chinese Military
Companies), including the threat posed by the military-
industrial complex of the PRC and its involvement in military,
intelligence, and security research and development programs,
and weapons and related equipment production under the PRC's
Military-Civil Fusion strategy. In addition, I find that the
use of Chinese surveillance technology outside the PRC and the
development or use of Chinese surveillance technology to
facilitate repression or serious human rights abuse, constitute
unusual and extraordinary threats, which have their source in
whole or substantial part outside the United States, to the
national security, foreign policy, and economy of the United
States, and I hereby expand the scope of the national emergency
declared in Executive Order 13959 to address those threats.
I am enclosing a copy of the Executive Order I have issued.
Sincerely,
Joseph R. Biden, Jr.
Executive Order
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Addressing the Threat From Securities Investments That Finance Certain
Companies of the People's Republic of China
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.) (NEA), and section 301 of title 3, United
States Code,
I, JOSEPH R. BIDEN JR., President of the United States of
America, find that additional steps are necessary to address
the national emergency declared in Executive Order 13959 of
November 12, 2020 (Addressing the Threat From Securities
Investments That Finance Communist Chinese Military Companies),
including the threat posed by the military-industrial complex
of the People's Republic of China (PRC) and its involvement in
military, intelligence, and security research and development
programs, and weapons and related equipment production under
the PRC's Military-Civil Fusion strategy. In addition, I find
that the use of Chinese surveillance technology outside the PRC
and the development or use of Chinese surveillance technology
to facilitate repression or serious human rights abuse
constitute unusual and extraordinary threats, which have their
source in whole or substantial part outside the United States,
to the national security, foreign policy, and economy of the
United States, and I hereby expand the scope of the national
emergency declared in Executive Order 13959 to address those
threats.
Accordingly, I hereby order as follows:
Section 1. Sections 1 through 5 of Executive Order 13959,
as amended by Executive Order 13974 of January 13, 2021
(Amending Executive Order 13959--Addressing the Threat From
Securities Investments That Finance Communist Chinese Military
Companies), are hereby replaced and superseded in their
entirety to read as follows:
``Section 1. (a) The following activities by a United
States person are prohibited: the purchase or sale of any
publicly traded securities, or any publicly traded securities
that are derivative of such securities or are designed to
provide investment exposure to such securities, of any person
listed in the Annex to this order or of any person determined
by the Secretary of the Treasury, in consultation with the
Secretary of State, and, as the Secretary of the Treasury deems
appropriate, the Secretary of Defense:
(i) to operate or have operated in the defense and
related materiel sector or the surveillance technology
sector of the economy of the PRC; or
(ii) to own or control, or to be owned or controlled
by, directly or indirectly, a person who operates or
has operated in any sector described in subsection (a)
(i) of this section, or a person who is listed in the
Annex to this order or who has otherwise been
determined to be subject to the prohibitions in
subsection (a) of this section.
(b) The prohibitions in subsection (a) of this section
shall take effect:
(i) beginning at 12:01 a.m. eastern daylight time on
August 2, 2021, with respect to any person listed in
the Annex to this order; or
(ii) beginning at 12:01 a.m. eastern daylight time on
the date that is 60 days after the date of the
determination in subsection (a) of this section with
respect to any person not listed in the Annex to this
order.
(c) The purchase or sale of publicly traded securities
described in subsection (a) of this section made solely to
effect the divestment, in whole or in part, of such securities
by a United States person is permitted prior to:
(i) 12:01 a.m. eastern daylight time on June 3, 2022,
with respect to any person listed in the Annex to this
order; or
(ii) 12:01 a.m. eastern daylight time on the date
that is 365 days after the date of the determination in
subsection (a) of this section with respect to any
person not listed in the Annex to this order.
(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 that evades or avoids, has the
purpose of evading or avoiding, causes a violation of, or
attempts to violate any of 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. For the purposes of this order:
(a) the term ``entity'' means a partnership, association,
trust, joint venture, corporation, group, subgroup, or other
organization;
(b) the term ``person'' means an individual.or entity;
(c) the term ``publicly traded securities'' includes any
``security,'' as defined 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)), denominated in any currency that
trades on a securities exchange or through the method of
trading that is commonly referred to as ``over-the-counter,''
in any jurisdiction; and
(d) the term ``United States person'' means any United
States citizen, lawful permanent resident, 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. 4. The Secretary of the Treasury, in consultation with
the Secretary of State, 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, as
may be necessary 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 executive departments and agencies (agencies) of
the United States shall take all appropriate measures within
their authority to carry out the provisions of this order.
Sec. 5. The Secretary of the Treasury, in consultation with
the Secretary of State, is hereby authorized to submit
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. The Secretary of the Treasury, in consultation with
the Secretary of State, and, as the Secretary of the Treasury
deems appropriate, the Secretary of Defense, is hereby
authorized to determine that circumstances no longer warrant
the application of the prohibitions in section 1(a) of this
order with respect to a person listed in the Annex to this
order, and to take necessary action to give effect to that
determination.''
Sec. 2. The Annex to Executive Order 13959 is replaced and
superseded in its entirety by the Annex to this order.
Sec. 3. Section 6 of Executive Order 13959 is amended to
replace ``Sec. 6.'' with ``Sec. 7.''
Sec. 4. Executive Order 13974 is hereby revoked in its
entirety. The Secretary of the Treasury and the heads of
agencies shall take all necessary steps to rescind any orders
or prohibitions issued prior to the date of this order
implementing or enforcing Executive Order 13974 or the versions
of sections 1 through 5 of Executive Order 13959 replaced and
superseded by section 1 of this order.
Sec. 5. (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.
(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.
Joseph R. Biden, Jr.
The White House, June 3, 2021.
Annex
AERO ENGINE CORPORATION OF CHINA
AEROSPACE CH UAV CO., LTD
AEROSPACE COMMUNICATIONS HOLDINGS GROUP COMPANY LIMITED
AEROSUN CORPORATION
ANHUI GREATWALL MILITARY INDUSTRY COMPANY LIMITED
AVIATION INDUSTRY CORPORATION OF CHINA, LTD.
AVIC AVIATION HIGH-TECHNOLOGY COMPANY LIMITED
AVIC HEAVY MACHINERY COMPANY LIMITED
AVIC JONHON OPTRONIC TECHNOLOGY CO., LTD.
AVIC SHENYANG AIRCRAFT COMPANY LIMITED
AVIC XI'AN AIRCRAFT INDUSTRY GROUP COMPANY LTD.
CHANGSHA JINGJIA MICROELECTRONICS COMPANY LIMITED
CHINA ACADEMY OF LAUNCH VEHICLE TECHNOLOGY
CHINA AEROSPACE SCIENCE AND INDUSTRY CORPORATION LIMITED
CHINA. AEROSPACE SCIENCE AND TECHNOLOGY CORPORATION
CHINA AEROSPACE TIMES ELECTRONICS CO., LTD
CHINA AVIONICS SYSTEMS COMPANY LIMITED
CHINA COMMUNICATIONS CONSTRUCTION COMPANY LIMITED
CHINA COMMUNICATIONS CONSTRUCTION GROUP (LIMITED)
CHINA ELECTRONICS CORPORATION
CHINA ELECTRONICS TECHNOLOGY GROUP CORPORATION
CHINA GENERAL NUCLEAR POWER CORPORATION
CHINA MARINE INFORMATION ELECTRONICS COMPANY LIMITED
CHINA MOBILE COMMUNICATIONS GROUP CO., LTD.
CHINA MOBILE LIMITED
CHINA NATIONAL NUCLEAR CORPORATION
CHINA NATIONAL OFFSHORE OIL CORPORATION
CHINA NORTH INDUSTRIES GROUP CORPORATION LIMITED
CHINA NUCLEAR ENGINEERING CORPORATION LIMITED
CHINA RAILWAY CONSTRUCTION CORPORATION LIMITED
CHINA SATELLITE COMMUNICATIONS CO., LTD.
CHINA SHIPBUILDING INDUSTRY COMPANY LIMITED
CHINA SHIPBUILDING INDUSTRY GROUP POWER COMPANY LIMITED
CHINA SOUTH INDUSTRIES GROUP CORPORATION
CHINA SPACESAT CO., LTD.
CHINA STATE SHIPBUILDING CORPORATION LIMITED
CHINA TELECOM CORPORATION LIMITED
CHINA TELECOMMUNICATIONS CORPORATION
CHINA UNICOM (HONG KONG) LIMITED
CHINA UNITED NETWORK COMMUNICATIONS GROUP CO., LTD.
CNOOC LIMITED
COSTAR GROUP CO., LTD.
CSSC OFFSHORE & MARINE ENGINEERING (GROUP) COMPANY LIMITED
FUJIAN TORCH ELECTRON TECHNOLOGY CO., LTD.
GUIZHOU SPACE APPLIANCE CO., LTD
HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.
HUAWEI INVESTMENT & HOLDING CO., LTD.
HUAWEI TECHNOLOGIES CO., LTD.
INNER MONGOLIA FIRST MACHINERY GROUP CO., LTD.
INSPUR GROUP CO., LTD.
JIANGXI HONGDU AVIATION INDUSTRY CO., LTD.
NANJING PANDA ELECTRONICS COMPANY LIMITED
NORTH NAVIGATION CONTROL TECHNOLOGY CO., LTD.
PANDA ELECTRONICS GROUP CO., LTD.
PROVEN GLORY CAPITAL LIMITED
PROVEN HONOUR CAPITAL LIMITED
SEMICONDUCTOR MANUFACTURING INTERNATIONAL CORPORATION
SHAANXI ZHONGTIAN ROCKET TECHNOLOGY COMPANY LIMITED
ZHONGHANG ELECTRONIC MEASURING INSTRUMENTS COMPANY LIMITED
[all]