[House Document 117-8]
[From the U.S. Government Publishing Office]


117th Congress, 1st Session--------------------HOUSE DOUCUMENT 117-8
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 AMENDING EXECUTIVE ORDER 13959--ADDRESSING THE THREAT FROM SECURITIES 
     INVESTMENTS THAT FINANCE COMMUNIST CHINESE MILITARY COMPANIES

                               __________

                             COMMUNICATION

                                  from

                     THEPRESIDENTOFTHEUNITEDSTATES

                              transmitting

  AN EXECUTIVE ORDER THAT TAKES ADDITIONAL STEPS WITH RESPECT TO THE 
 NATIONAL EMERGENCY DECLARED IN EXECUTIVE ORDER 13959 OF NOVEMBER 12, 
 2020, PURSUANT TO 50 U.S.C. 1703(b); PUBLIC LAW 95-223, SEC. 204(b); 
(91 STAT. 1627) AND 50 U.S.C. 1641(b); PUBLIC LAW 94-412, SEC. 401(b); 
                            (90 STAT. 1257)

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


   January 15, 2021.--Referred jointly to the Committees on Foreign 
       Affairs and Financial Services, and ordered to be printed
                                            The White House
                                      Washington, January 13, 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.) (IEEPA), the 
National Emergencies Act (50 U.S.C. 1601 et seq.), and section 
301 of title 3, United States Code, I hereby report that I have 
issued an Executive Order taking further steps to deal with the 
threat posed by the People's Republic of China's (PRC) 
increasing exploitation of United States capital to resource 
and to enable the development and modernization of its 
military, intelligence, and other security apparatuses which 
continue 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.
    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, they 
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.
    To deal with that threat, I signed Executive Order 13959 on 
November 12, 2020. Executive Order 13959 prohibits certain 
purchases involving 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. Those companies are ones the 
Department of Defense has listed, or will list, pursuant to 
section 1237 of Public Law 105-261, as amended, or are 
identified as Communist Chinese military companies or their 
subsidiaries by the Secretary of the Treasury using similar 
criteria.
    Today, I signed an Executive Order amending Executive Order 
13959. The amendments prohibit certain sales as well as 
purchases of 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. They also prohibit possession of such securities by 
United States persons 1 year after a company is determined to 
be a Communist Chinese military company. And, finally, they 
allow the Secretary of Defense publicly to list whether a 
company is a Communist Chinese military company using the 
criteria in section 1237(b)(4)(B) of Public Law 105-261, as 
amended by section 1233 of Public Law 106-398 and section 1222 
of Public Law 108-375, regardless of whether the Secretary must 
report that determination under section 1237(b)(2).
    I am enclosing a copy of the Executive Order I have issued.
            Sincerely,
                                                   Donald J. Trump.

                            EXECUTIVE ORDER

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 Amending Executive Order 13959--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.), 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, in order to take additional steps with respect to the 
national emergency declared in Executive Order 13959 of 
November 12, 2020 (Addressing the Threat from Securities 
Investments that Finance Communist Chinese Military Companies), 
to address the threat posed by the People's Republic of China's 
military-industrial complex, hereby order as follows:
    Section 1. Section 1(b) and (c) of Executive Order 13959 
are amended to read as follows:
    ``(b) Notwithstanding subsection (a)(i) of this section, 
any transaction entered into 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, is permitted. Effective at 11:59 p.m. 
eastern standard time on November 11, 2021, possession of any 
such securities by a United States person is prohibited.
    (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, any 
transaction entered into on or before 365 days from the date of 
such determination, solely to divest, in whole or in part, from 
2 securities that any United States person held in such person, 
as of the date 60 days from the date of such determination, is 
permitted. Effective at 11:59 p.m. eastern standard time on the 
date 365 days after the date of such determination, possession 
of any such securities by a United States person is 
prohibited.''
    Sec. 2. Subsections (a)(ii) and (iii) of section 4 of 
Executive Order 13959 are amended to read as follows:
    ``(ii) any person that the Secretary of Defense, in 
consultation with the Secretary of the Treasury, publicly lists 
as a Communist Chinese military company meeting the criteria in 
section 1237(b)(4)(B) of Public Law 105-261, as amended by 
section 1233 of Public Law 106-398 and section 1222 of Public 
Law 108-375, and that operates directly or indirectly in the 
United States or any of its possessions, until such time as the 
Secretary of Defense removes such person from such list. This 
definition shall apply regardless of whether the Secretary of 
Defense must provide the report described in section 1237(b)(2) 
of Public Law 105-261, as amended by section 1233 of Public Law 
106-398 and section 1222 of Public Law 108-375; or (iii) any 
person that the Secretary of the Treasury publicly lists as 
meeting the criteria described in section (a)(ii) of this 
section, or publicly lists as a subsidiary of a person already 
determined to be a Communist 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.''
    Sec. 3. Section 4(e) of Executive Order 13959 is amended to 
read as follows:
    ``(e) the term ``transaction'' means the purchase for 
value, or sale, of any publicly traded security; and''.
    Sec. 4. 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.
    (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.

                                                   Donald J. Trump.
    The White House, January 13, 2021.

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