Policy Alert: United States Prohibits Investment in Chinese Companies with Military Ties


Source: jdsupra.com jdsupra.com

Key Topics in this News Article:

News Snapshot:

On November 12, 2020, President Trump issued an Executive Order on Addressing the Threat from Securities Investments that Finance Communist Chinese Military Companies (the “Investment EO” or the “EO”). 1 The Investment EO may have significant repercussions for companies involved in securities trading as well as the investment sector. The EO prohibits U.S. persons from “purchas[ing] for value” publicly traded securities in designated Chinese companies that the administration believes are directly linked to Beijing’s Military-Civil Fusion efforts. The Investment EO outlines how such companies are and will be formally identified, defines the prohibitions it imposes on U.S. persons with regard...