Addressing the Threat From Securities Investments That Finance Certain Companies of the People's Republic of China, 30145-30147 [X21-10607]

Agencies

• Executive Office of the President

[Federal Register Volume 86, Number 107 (Monday, June 7, 2021)]
[Presidential Documents]
[Pages 30145-30147]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: X21-10607]




                        Presidential Documents 



Federal Register / Vol. 86, No. 107 / Monday, June 7, 2021 / 
Presidential Documents

[[Page 30145]]


                Executive Order 14032 of June 3, 2021

                
Addressing the Threat From Securities Investments 
                That Finance Certain Companies of the People's Republic 
                of China

                By the authority vested in me as President by the 
                Constitution and the laws of the United States of 
                America, including the International Emergency Economic 
                Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the 
                National Emergencies Act (50 U.S.C. 1601 et seq.) 
                (NEA), and section 301 of title 3, United States Code,

                I, JOSEPH R. BIDEN JR., President of the United States 
                of America, find that additional steps are necessary to 
                address the national emergency declared in Executive 
                Order 13959 of November 12, 2020 (Addressing the Threat 
                From Securities Investments That Finance Communist 
                Chinese Military Companies), including the threat posed 
                by the military-industrial complex of the People's 
                Republic of China (PRC) and its involvement in 
                military, intelligence, and security research and 
                development programs, and weapons and related equipment 
                production under the PRC's Military-Civil Fusion 
                strategy. In addition, I find that the use of Chinese 
                surveillance technology outside the PRC and the 
                development or use of Chinese surveillance technology 
                to facilitate repression or serious human rights abuse 
                constitute unusual and extraordinary threats, which 
                have their source in whole or substantial part outside 
                the United States, to the national security, foreign 
                policy, and economy of the United States, and I hereby 
                expand the scope of the national emergency declared in 
                Executive Order 13959 to address those threats.

                Accordingly, I hereby order as follows:

                Section 1. Sections 1 through 5 of Executive Order 
                13959, as amended by Executive Order 13974 of January 
                13, 2021 (Amending Executive Order 13959--Addressing 
                the Threat From Securities Investments That Finance 
                Communist Chinese Military Companies), are hereby 
                replaced and superseded in their entirety to read as 
                follows:

                ``Section 1. (a) The following activities by a United 
                States person are prohibited: the purchase or sale of 
                any publicly traded securities, or any publicly traded 
                securities that are derivative of such securities or 
                are designed to provide investment exposure to such 
                securities, of any person listed in the Annex to this 
                order or of any person determined by the Secretary of 
                the Treasury, in consultation with the Secretary of 
                State, and, as the Secretary of the Treasury deems 
                appropriate, the Secretary of Defense:

(i) to operate or have operated in the defense and related materiel sector 
or the surveillance technology sector of the economy of the PRC; or

(ii) to own or control, or to be owned or controlled by, directly or 
indirectly, a person who operates or has operated in any sector described 
in subsection (a)(i) of this section, or a person who is listed in the 
Annex to this order or who has otherwise been determined to be subject to 
the prohibitions in subsection (a) of this section.

                    (b) The prohibitions in subsection (a) of this 
                section shall take effect:

(i) beginning at 12:01 a.m. eastern daylight time on August 2, 2021, with 
respect to any person listed in the Annex to this order; or

(ii) beginning at 12:01 a.m. eastern daylight time on the date that is 60 
days after the date of the determination in subsection (a) of this section 
with respect to any person not listed in the Annex to this order.

[[Page 30146]]

                    (c) The purchase or sale of publicly traded 
                securities described in subsection (a) of this section 
                made solely to effect the divestment, in whole or in 
                part, of such securities by a United States person is 
                permitted prior to:

(i) 12:01 a.m. eastern daylight time on June 3, 2022, with respect to any 
person listed in the Annex to this order; or

(ii) 12:01 a.m. eastern daylight time on the date that is 365 days after 
the date of the determination in subsection (a) of this section with 
respect to any person not listed in the Annex to this order.

                    (d) The prohibitions in subsection (a) of this 
                section apply except to the extent provided by 
                statutes, or in regulations, orders, directives, or 
                licenses that may be issued pursuant to this order, and 
                notwithstanding any contract entered into or any 
                license or permit granted before the date of this 
                order.

                Sec. 2. (a) Any transaction that evades or avoids, has 
                the purpose of evading or avoiding, causes a violation 
                of, or attempts to violate any of the prohibitions set 
                forth in this order is prohibited.

                    (b) Any conspiracy formed to violate any of the 
                prohibitions set forth in this order is prohibited.

                Sec. 3. For the purposes of this order:

                    (a) the term ``entity'' means a partnership, 
                association, trust, joint venture, corporation, group, 
                subgroup, or other organization;
                    (b) the term ``person'' means an individual or 
                entity;
                    (c) the term ``publicly traded securities'' 
                includes any ``security,'' as defined in section 
                3(a)(10) of the Securities Exchange Act of 1934, Public 
                Law 73-291 (as codified as amended at 15 U.S.C. 
                78c(a)(10)), denominated in any currency that trades on 
                a securities exchange or through the method of trading 
                that is commonly referred to as ``over-the-counter,'' 
                in any jurisdiction; and
                    (d) the term ``United States person'' means any 
                United States citizen, lawful permanent resident, 
                entity organized under the laws of the United States or 
                any jurisdiction within the United States (including 
                foreign branches), or any person in the United States.

                Sec. 4. The Secretary of the Treasury, in consultation 
                with the Secretary of State, is hereby authorized to 
                take such actions, including the promulgation of rules 
                and regulations, and to employ all powers granted to 
                the President by IEEPA, as may be necessary to carry 
                out the purposes of this order. The Secretary of the 
                Treasury may, consistent with applicable law, 
                redelegate any of these functions within the Department 
                of the Treasury. All executive departments and agencies 
                (agencies) of the United States shall take all 
                appropriate measures within their authority to carry 
                out the provisions of this order.

                Sec. 5. The Secretary of the Treasury, in consultation 
                with the Secretary of State, is hereby authorized to 
                submit recurring and final reports to the Congress on 
                the national emergency declared in this order, 
                consistent with section 401(c) of the NEA (50 U.S.C. 
                1641(c)) and section 204(c) of IEEPA (50 U.S.C. 
                1703(c)).

                Sec. 6. The Secretary of the Treasury, in consultation 
                with the Secretary of State, and, as the Secretary of 
                the Treasury deems appropriate, the Secretary of 
                Defense, is hereby authorized to determine that 
                circumstances no longer warrant the application of the 
                prohibitions in section 1(a) of this order with respect 
                to a person listed in the Annex to this order, and to 
                take necessary action to give effect to that 
                determination.''

                Sec. 2. The Annex to Executive Order 13959 is replaced 
                and superseded in its entirety by the Annex to this 
                order.

                Sec. 3. Section 6 of Executive Order 13959 is amended 
                to replace ``Sec. 6.'' with ``Sec. 7.''

[[Page 30147]]

                Sec. 4. Executive Order 13974 is hereby revoked in its 
                entirety. The Secretary of the Treasury and the heads 
                of agencies shall take all necessary steps to rescind 
                any orders or prohibitions issued prior to the date of 
                this order implementing or enforcing Executive Order 
                13974 or the versions of sections 1 through 5 of 
                Executive Order 13959 replaced and superseded by 
                section 1 of this order.

                Sec. 5. (a) Nothing in this order shall be construed to 
                impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or 
the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget 
relating to budgetary, administrative, or legislative proposals.

                    (b) This order shall be implemented consistent with 
                applicable law and subject to the availability of 
                appropriations.
                    (c) This order is not intended to, and does not, 
                create any right or benefit, substantive or procedural, 
                enforceable at law or in equity by any party against 
                the United States, its departments, agencies, or 
                entities, its officers, employees, or agents, or any 
                other person.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    June 3, 2021.

Billing code 3295-F1-P