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

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replaced and superseded in their entirety to read as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.

    (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.”

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.