|Executive Order on Addressing the Threat from Securities Investments that Finance Communist Chinese Military Companies|
|Executive Order number||13959|
|Signed by||Donald Trump on November 12, 2020|
|Federal Register details|
|Federal Register document number||2020-25459|
|Publication date||November 17, 2020|
|Document citation||85 FR 73185|
Executive Order 13959 is a U.S. Presidential Executive Order signed on November 12, 2020, by President Donald Trump. Its stated goal is "Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies".
The executive order prohibits all U.S. investors (institutional 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 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, the executive order was strengthened with an amended directive that mandated divestment by November 11, 2021.
Initially, 31 companies were identified, including two companies whose shares were traded on U.S. exchanges. These include companies in aerospace, shipbuilding, construction, technology and communication industries.
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.
As a consequence of the executive order, the New York Stock Exchange 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.