Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies

Executive Order 2020-25459
Signed on November 13, 2020
China45th Presidency

What it means

This order prohibits U.S. individuals and companies from investing in Chinese companies with military ties. It creates a framework to identify such companies and gives investors time to divest from these securities, with specific deadlines beginning January 11, 2021.

Expected impact

  • Reduced American investment in Chinese companies linked to China's military, potentially limiting their access to U.S. capital
  • Financial pressure on Chinese military-industrial complex as part of broader U.S.-China economic tensions
  • Compliance challenges for U.S. investors and financial institutions as they identify prohibited securities
  • Potential market volatility for affected securities as investors divest within the specified timeframes
  • Possible retaliatory measures from China against U.S. companies or investors

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