On Wednesday, President Trump issued an executive order to take further steps to address the threat posed by the Chinese Communist Party’s use of U.S. capital to obtain resources to develop its military.
In a letter from President Trump to the Speakers of the House and Senate released by the White House, President Trump said
Dear Madam Speaker, (Dear Mr. President).
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 of the United States Code, I hereby report that I have issued an Executive Order to take further steps to address China’s (Chinese Communist Party) The threat posed by the increasing use of U.S. capital to resource, develop, and modernize its military, intelligence, and other security agencies, which continue to enable China (the CCP) to directly threaten U.S. homeland and U.S. forces overseas, including the development and deployment of weapons of mass destruction, advanced conventional weapons, and malicious cyber operations against the United States and its people.
Through its national strategy of “civil-military integration,” China (CCP) has expanded the size of the national military-industrial complex by forcing Chinese civilian companies to support its military and intelligence activities. While these companies remain ostensibly private and civilian, they directly support, develop, and modernize China’s (CCP) military, intelligence, and security apparatus. At the same time, they raise funds by selling securities to U.S. investors traded on domestic and foreign public exchanges, lobbying U.S. index providers and funds to include these securities in market offerings, and engaging in other acts to secure access to U.S. capital. In this way, China (CCP) uses U.S. investors to fund its military development and modernization.
In response to this threat, I signed Executive Order 13959 on November 12, 2020. Executive Order 13959 prohibits the purchase of securities involving publicly traded securities, or derivative securities of any CCP military company, or securities designed to provide investment risk in such securities. These are companies that the Department of Defense has listed or will list under Section 1237 of Public Law 105-261, as amended, or companies that have been identified by the Secretary of the Treasury using similar criteria as a CCP military company or its subsidiaries.
Today, I signed an Executive Order amending Executive Order 13959. These amendments prohibit the sale and purchase of publicly traded securities, or derivative securities of any CCP military company, or securities that are designed to provide investment risk. They also prohibit U.S. persons from owning such securities one year after a company is determined to be a CCP military company. Finally, they allow the Secretary of Defense to publicly list whether a company is a CCPMC 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 of Defense is required to report that determination under section 1237(b)(2).
A copy of the Executive Order I issued is attached.
DONALD J. TRUMP
Recent Comments