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Previously, there were differences in the degree of implementation of this order among US agencies.
This executive order was issued on November 12. The order restricts US investment in Chinese military industrial companies and responds to growing concerns about pensions and pension investment in Chinese military industrial companies.
The executive order stipulates that as of January 11, 2021, the United States will be prohibited from investing in companies owned or controlled by the Chinese military; and the corresponding investment will be withdrawn before November 11, 2021. Subsequently, the Pentagon has designated 35 companies as “owned or controlled” by the Chinese military.
Following the announcement of the executive order, it was reported that there were differences of opinion within Washington on how to implement the order.
According to a Reuters report, the Finance Ministry tried to exclude the subsidiaries of the Chinese Communist Party’s military industrial companies from the scope of the order. As a result, there were disputes with the Council of State and the Pentagon.
On Monday, the Ministry of Finance published the “Frequently Asked Questions and Related List” (Frequently Asked Questions and Related List) of the CPC’s military industrial enterprises on its website, further clarifying the administrative order issued in November.
The Finance Ministry stated that the order applies to “any subsidiary of a CCP military industrial enterprise,” and plans to list entities in which the CCP military industrial enterprises control more than 50% of the shares in the future.
The Treasury Department said the order applies to transactions in securities and financial derivative products in “any currency,” such as futures, options, funds, index funds, mutual funds and warrants. Furthermore, it will also prohibit Americans from investing in the CCP. US or foreign funds for military industry securities.
Roger Robinson, a former White House official who supports US-China trade, said: “The frequently asked questions announced by the Treasury Department represent the first clear victory for the US defense and security community in its efforts to resolutely safeguard capital market sanctions. “
Roger Robinson once helped former United States President Reagan formulate an economic and financial strategy to disintegrate the CPSU. He currently serves as President and CEO of RWR Advisory Group, a consulting firm. He served as Senior Director of International Economic Affairs at the National Security Council (NSC); He served in the White House from 1982 to 1985. From 2001 to 2006, he served as Chairman and Vice Chairman of the Congress-authorized United States and China Economic and Security Review Commission (USCC).
Reuters noted that an executive order signed by Trump in November sought to enforce a 1999 law that required the US Department of Defense to compile a list of Chinese military industrial companies.
After the decree was enacted, the Pentagon only complied with the requirements this year and has now designated 35 companies, including China National Offshore Oil Corporation (CNOOC Ltd, CNOOC for short) and China’s largest chipmaker, SMIC.
Since the announcement of the November order, many index providers have begun removing some Pentagon-designated companies.
Editor in charge: Ye Ziwei #
