Following the restriction on investors to stop buying blacklisted securities of Chinese companies before the deadline, outgoing US President Donald Trump signed the latest executive order again, starting November 11 this year, US investors are no longer allowed to hold securities of Chinese companies owned or controlled by the Chinese Communist Party military, meaning that they have to clear their holdings before the deadline, further restricting Chinese access to the US investment market.
The White House said on the 13th that Trump had signed an executive order amending Executive Order 13959 issued last November. The executive order published last year stipulated that after November 11, 2021, U.S. investors were not allowed to purchase securities of companies blacklisted by the Department of Defense, including 35 Chinese companies such as SMIC, Hikvision and China National Offshore Oil Corporation.
The new executive order requires U.S. investors to divest themselves of all holdings in blacklisted Chinese companies by Nov. 11 this year, reinforcing the scope of the November executive order, which originally only stipulated that U.S. investors were not allowed to purchase securities of China’s PLA-related companies after the deadline, but now they have to divest themselves of them all by Nov. 11.
A senior U.S. government official told Reuters that the executive order issued today ensures that the United States retains a key tool to protect U.S. investors from funding the modernization of the Chinese Communist Party’s military.
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