As we speak, President Biden signed an Govt Order (E.O.) to additional handle the continued nationwide emergency declared in E.O. 13959 of November 12, 2020 with respect to the risk posed by the military-industrial advanced of the Individuals’s Republic of China (PRC). President Biden additionally expanded the scope of this nationwide emergency by discovering that using Chinese language surveillance know-how outdoors the PRC, in addition to the event or use of Chinese language surveillance know-how to facilitate repression or severe human rights abuses, represent uncommon and extraordinary threats. This E.O. permits the US to ban – in a focused and scoped method – U.S. investments in Chinese language firms that undermine the safety or democratic values of the US and our allies.
Particularly, the E.O. the President is signing at this time will:
Solidify and strengthen a earlier E.O to ban U.S. investments within the military-industrial advanced of the Individuals’s Republic of China: This E.O. will amend E.O. 13959 by making a sustainable and strengthened framework for imposing prohibitions on investments in Chinese language protection and surveillance know-how corporations. The E.O. prohibits United States individuals from participating within the buy or sale of any publicly traded securities of any particular person listed within the Annex to the E.O. or decided by the Secretary of the Treasury, in session with the Secretary of State, and, because the Secretary of the Treasury deems acceptable, the Secretary of Protection:
- To function or have operated within the protection and associated materiel sector or the surveillance know-how sector of the economic system of the PRC; or
- To personal or management, or to be owned or managed by, straight or not directly, an individual who operates or has operated in any sector described above, or an individual who’s listed within the Annex to this E.O. or who has in any other case been decided to be topic to the prohibitions on this E.O.
Make sure that U.S. investments aren’t supporting Chinese language firms that undermine the safety or values of the US and our allies: This E.O. prevents U.S. funding from supporting the Chinese language protection sector, whereas additionally increasing the U.S. Authorities’s skill to deal with the specter of Chinese language surveillance know-how corporations that contribute — each inside and outdoors China — to the surveillance of spiritual or ethnic minorities or in any other case facilitate repression and severe human rights abuses. It indicators that the Administration won’t hesitate to forestall U.S. capital from flowing into the PRC’s protection and associated materiel sector, together with firms that assist the PRC’s army, intelligence, and different safety analysis and improvement packages; or into Chinese language firms that develop or use Chinese language surveillance know-how to facilitate repression or severe human rights abuse. Tackling these challenges head-on is per the Biden Administration’s dedication to defending core U.S. nationwide safety pursuits and democratic values, and the Administration will proceed to replace the record of PRC entities as acceptable. On the similar time, the E.O.’s prohibitions are deliberately focused and scoped.
The President listed the next 59 entities as topic to the E.O.’s prohibitions. The prohibitions towards the entities listed within the Annex to this E.O. shall take impact starting at 12:01 a.m. jap daylight time on August 2, 2021. The U.S. Division of the Treasury’s Workplace of Overseas Belongings Management (OFAC) may also record these 59 entities on its new Non-SDN Chinese language Army-Industrial Complicated Corporations Record (NS-CMIC Record).
Protection and Associated Materiel Sector of the Financial system of the PRC:
Aero Engine Company of China; Aerospace CH UAV Co., Ltd; Aerospace Communications Holdings Group Firm Restricted; Aerosun Company; Anhui Greatwall Army Trade Firm Restricted; Aviation Trade Company of China, Ltd.; AVIC Aviation Excessive-Expertise Firm Restricted; AVIC Heavy Equipment Firm Restricted; AVIC Jonhon Optronic Expertise Co., Ltd.; AVIC Shenyang Plane Firm Restricted; AVIC Xi’An Plane Trade Group Firm Ltd.; Changsha Jingjia Microelectronics Firm Restricted China Academy of Launch Car Expertise; China Aerospace Science and Trade Company Restricted; China Aerospace Science and Expertise Company; China Aerospace Occasions Electronics Co., Ltd; China Avionics Methods Firm Restricted; China Communications Development Firm Restricted; China Electronics Expertise Group Company; China Basic Nuclear Energy Company; China Marine Data Electronics Firm Restricted; China Cell Communications Group Co., Ltd.; China Nationwide Nuclear Company; China Nationwide Offshore Oil Company; China North Industries Group Company Restricted; China Nuclear Engineering Company Restricted; China Railway Development Company Restricted; China Satellite tv for pc Communications Co., Ltd.; China Shipbuilding Trade Firm Restricted; China Shipbuilding Trade Group Energy Firm Restricted; China South Industries Group Company; China Spacesat Co., Ltd.; China State Shipbuilding Company Restricted; China Telecommunications Company; China United Community Communications Group Co., Ltd.; Costar Group Co., Ltd.; CSSC Offshore & Marine Engineering (Group) Firm Restricted; Fujian Torch Electron Expertise Co., Ltd.; Guizhou House Equipment Co., Ltd; Hangzhou Hikvision Digital Expertise Co., Ltd.; Huawei Applied sciences Co., Ltd.; Internal Mongolia First Equipment Group Co., Ltd.; Inspur Group Co., Ltd.; Jiangxi Hongdu Aviation Trade Co., Ltd.; Nanjing Panda Electronics Firm Restricted; North Navigation Management Expertise Co., Ltd.; Panda Electronics Group Co., Ltd.; Semiconductor Manufacturing Worldwide Company; Shaanxi Zhongtian Rocket Expertise Firm Restricted; and Zhonghang Digital Measuring Devices Firm Restricted.
Surveillance Expertise Sector of the Financial system of the PRC:
Hangzhou Hikvision Digital Expertise Co., Ltd. and Huawei Applied sciences Co., Ltd.
Personal or Management, or Owned or Managed by, Straight or Not directly, a Particular person Who Operates or Has Operated in at Least One in every of These Two Sectors of the PRC Financial system, or a Particular person Who Is Listed within the Annex to the E.O.:
China Communications Development Group (Restricted); China Electronics Company; China Cell Restricted; China Telecom Company Restricted; China Unicom (Hong Kong) Restricted; CNOOC Restricted; Huawei Funding & Holding Co., Ltd.; Panda Electronics Group Co., Ltd.; Confirmed Glory Capital Restricted; and Confirmed Honour Capital Restricted.
For data in regards to the course of for looking for elimination from any OFAC record, together with the NS-CMIC Record, please check with OFAC’s Continuously Requested Query 897 at https://home.treasury.gov/policy-issues/financial-sanctions/faqs/897. Further data concerning sanctions packages administered by OFAC may be discovered at https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country-information.