[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

                              ----------                              


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]