Consolidated Comment on the Chinese Military Companies Sanctions Under EO 13959, as Amended by EO 14032 of June 3, 2021

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TURBOFAC Commentary (7637 words)

Consolidated Comment on the Chinese Military Companies Sanctions Under EO 13959, as Amended by EO 14032 of June 3, 2021

 

[Update - on 2-16-2022, OFAC issued the Chinese Military-Industrial Complex Sanctions Regulations (586.201 et seq.) The issuance of the regulations does not change any of the analysis below].

 

BACKGROUND

 

The “Chinese Military Companies” EO 13959, as amended by EO 14032 of June 3, 2021, prohibits U.S. persons from engaging in 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 persons that appear on the “Non-SDN Chinese Military-Industrial Complex Companies List (NS-CMIC List)” (program tag “[CMIC-EO]”).

                                                               

EO 13959 has a fairly complex history. It was first issued on November...