Executive Order 13959
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Executive Order 13959 is a U.S. Presidential
Executive Order In the United States, an executive order is a presidential directive, directive by the president of the United States that manages operations of the Federal government of the United States, federal government. The legal or constitutional ba ...
signed on November 12, 2020, by President
Donald Trump Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021. Trump graduated from the Wharton School of the University of Pe ...
. Its title, and stated goal, is "Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies." It is essentially no longer in force since its first five paragraphs, the key substantive provisions, were superseded by Executive Order 14032 ("Addressing the Threat From Securities Investments That Finance Certain Companies of the People's Republic of China"), signed by
President Biden #REDIRECT Joe Biden Joseph Robinette Biden Jr. ( ; born November 20, 1942) is an American politician who is the 46th and current president of the United States. A member of the Democratic Party (United States), Democratic Party, he previousl ...
on June 3, 2021. The national emergency declared by E.O. 13959 remains in effect, however, and was expanded by E.O. 14032.


Prohibiting investment in "Communist Chinese military companies"

The executive order prohibits all U.S. investors (
institutional Institutions are humanly devised structures of rules and norms that shape and constrain individual behavior. All definitions of institutions generally entail that there is a level of persistence and continuity. Laws, rules, social conventions a ...
and retail investors alike) from purchasing or investing in securities of companies identified by the U.S. government as "Communist Chinese military companies". A "Communist Chinese military company" is any company that the U.S. Department of Defense has identified pursuant to Section 1237 of the
National Defense Authorization Act The National Defense Authorization Act (NDAA) is the name for each of a series of United States federal law The law of the United States comprises many levels of Codification (law), codified and uncodified forms of law, of which the most im ...
for Fiscal Year 1999. The prohibition came into effect on January 11, 2021. On December 28, 2020, guidance on the executive order was published clarifying that the order included subsidiaries of the relevant companies. On January 13, 2021, President Trump strengthened the executive order's requirements by issuing Executive Order 13974 ("Amending Executive Order 13959—Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies"), which mandated
divestment In finance Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of Production (economics), production, Distribution (economics), distribution, and Consumpt ...
by November 11, 2021.


List of affected companies

Initially, 31 companies were identified, including two companies whose
shares In finance, financial markets, a share is a unit of Equity (finance), equity ownership in the capital stock of a corporation, and can refer to units of mutual funds, limited partnerships, and real estate investment trusts. Share capital refers t ...
were traded on U.S. exchanges. These include companies in
aerospace Aerospace is a term used to collectively refer to the atmosphere and outer space. Aerospace activity is very diverse, with a multitude of commercial, industrial and military applications. Aerospace engineering consists of aeronautics and astrona ...
,
shipbuilding Shipbuilding is the construction of ships and other Watercraft, floating vessels. It normally takes place in a specialized facility known as a shipyard. Shipbuilders, also called shipwrights, follow a specialized occupation that traces its roo ...
,
construction Construction is a general term meaning the art and science to form Physical object, objects, systems, or organizations,"Construction" def. 1.a. 1.b. and 1.c. ''Oxford English Dictionary'' Second Edition on CD-ROM (v. 4.0) Oxford University Pr ...
,
technology Technology is the application of knowledge to reach practical goals in a specifiable and Reproducibility, reproducible way. The word ''technology'' may also mean the product of such an endeavor. The use of technology is widely prevalent in me ...
and
communication Communication (from la, communicare, meaning "to share" or "to be in relation with") is usually defined as the transmission of information. The term may also refer to the message communicated through such transmissions or the field of inquir ...
industries. On December 3, 2020, the
Department of Defense Department of Defence or Department of Defense may refer to: Current departments of defence * Department of Defence (Australia) * Department of National Defence (Canada) * Department of Defence (Ireland) * Department of National Defense (Philippin ...
designated four additional companies as owned or controlled by the Chinese military, taking the total number of affected companies to 35. On January 14, 2021, the Department of Defense designated nine additional companies as owned or controlled by the Chinese military, taking the total number of affected companies to 44.


Delistings

As a consequence of the executive order, the
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in January ended trading of shares in China Mobile, China Telecom and China Unicom, and announced in late February that trading in CNOOC would also cease on March 9, 2021.


See also

* Executive Order 14032


References

{{reflist Executive orders of Donald Trump China–United States relations United States sanctions Sanctions against China Geopolitical rivalry