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CMIC Divestment Period Ends – What You Need to Know

CMIC Sanctions Foundations

Amid political and trade tensions between the United States and the People’s Republic of China (“China”), President Trump issued Executive Order (“EO”) 13959 on November 12, 2020, to address the national emergency posed by the exploitation of United States capital to resource and enable the development and modernization of China’s military, intelligence, and other security organizations. EO 13959 prohibited any transaction in publicly traded securities, derivatives, and other investment instruments1 of a “Communist Chinese military company,” only permitting divestment sales. EO 13974 of January 13, 2021, expanded EO 13959 to prohibit even the possession of securities of such companies. Read more…