US strengthens ban on investment in Chinese ‘military' firms
29 December 2020
by Jon Grevatt
The US government has firmed up a directive issued in November that bars US investors from acquiring stocks and securities issued by Chinese firms deemed to be linked to the Chinese military.
The US Treasury said in guidance published on 28 December that the ‘executive order 13959’ applies to the subsidiaries of identified Chinese firms and that investments in such companies covers a range of financial instruments including index and mutual funds.
The guidance also provides a new and consolidated list of “Communist Chinese Military Companies” in which US investment is banned.