U.S. Executive Order on Investment in Companies Linked to the Chinese Military

On November 12, President Trump issued a new Executive Order titled “Addressing the Threat from Securities Investments that Finance Communist Chinese Military Companies” (the “Executive Order”).  In issuing the Executive Order, President Trump relied on authority under the International Emergency Economic Powers Act and the National Emergencies Act to declare a U.S. national emergency with respect to the “PRC’s military-industrial complex.”

The Executive Order is designed to target the purported exploitation of U.S. investors “to finance the development and modernization” of the PRC military. This note sets out the key highlights of the Executive Order and the FAQs on this topic.