Protecting U S Investors from Financing Communist Chinese Military Companies - United States Department of State state.gov - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from state.gov Daily Mail and Mail on Sunday newspapers.
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.
US maximizes sanctions pressure on China with Entity Listing of 59 Chinese entities lexology.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from lexology.com Daily Mail and Mail on Sunday newspapers.
items that are located in the US, even temporarily; and
non-US-origin items that contain more than a de minimis level of controlled US-origin content (for non-embargoed countries, this is 25% US origin content by value).
The ban applies only to the named affiliates and does not extend automatically to subsidiaries of listed entities. At the same time, transfer of goods, software or technologies to affiliates of named entities risk violating the sanctions if there is reason to know that a named entity could receive or have access to the items.
Parties desiring to export prohibited items to entities on the Entity List may apply to BIS for a license.
[co-author: Stephanie Cheung]
INTRODUCTION
Following our recent Client Alert published in October 2020 on the release of the Section 5(a) Report under the Hong Kong Autonomy Act of 2020 (“
HKAA”), there have now been some further updates in relation to U.S. sanctions affecting parties in Hong Kong and China which we discuss below.
TRUMP ADMINISTRATION IDENTIFIES FOUR ADDITIONAL CHINESE ENTITIES AS MILITARY COMPANIES
CCMC”). This list is required to be compiled and reported to the U.S. Congress. In addition to the companies already on the list from designations in June and August of this year, the four companies added in December are (i) high-tech state-owned enterprise group, China Construction Technology Co. Ltd. (CCTC); (ii) an engineering consulting business, China International Engineering Consulting Corp. (CIECC); (iii) China’s top chipmaker, Semiconductor Manufacturing International Corp. (SMIC); and (iv) China’s largest offshore oil and gas producer, China Natio