On January 13, 2021, the Trump Administration issued a new Executive Order (EO) requiring divestment of securities of "Communist Chinese Military Companies." The new EO amends EO 13959, which banned transactions involving the securities of such companies, to now require that US persons also divest any such holdings. The new EO can be found here. Our Advisory about the original EO and subsequent OFAC guidance about the implementation of the original EO can be found here and here. OFAC previously clarified that US persons, including US funds and other market participants, were not required to divest their holdings of the securities of identified "Communist Chinese military companies." However, the January 13, 2021 EO now requires divestment by banning "possession of [securities of Communist Chinese military companies"] by a United States person" by "11:59 p.m. eastern standard time on November 11, 2021." In addition, US persons are required to divest their holdings in any newly designated "Communist Chinese military companies" within 365 days of designation.
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