[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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