White House Extends National Emergency Regarding Securities Investments from China
November 7, 2024
The White House has announced the continuation of the national emergency declared in November 2020 regarding securities investments that may contribute to the United States’ reliance on certain companies of the People’s Republic of China (PRC). The decision comes amid ongoing concerns about national security and foreign influence.
Background
The original national emergency was declared on November 12, 2020, by President Donald Trump. It was based on a determination that “certain companies of the PRC,” including those in the defense industry, intelligence sector, and cybersecurity space, “are owned or controlled by the government of the PRC and are utilizing their access to United States capital markets to fund their malign activities.”
The emergency declaration authorized the President to prohibit transactions involving the following:
- Securities issued by companies identified as “Communist Chinese military companies”
- Securities of companies that support the “development or modernization” of the PRC’s military, intelligence, or cybersecurity capabilities
Continuation of Emergency
In a notice published in the Federal Register on November 7, 2024, President Joe Biden determined that the national emergency declared in 2020 “continues to exist.” The notice states that the PRC continues to engage in “unfair competition and economic coercion” and that its access to U.S. capital markets “poses a significant threat to the national security and foreign policy of the United States.”
The continuation of the emergency means that the prohibition on transactions involving certain Chinese securities will remain in effect. The notice also empowers the President to impose additional sanctions or restrictions as necessary.
Implications
The extension of the national emergency has implications for investors, businesses, and the broader U.S.-China relationship.
- Investors: U.S. investors may face restrictions on investing in certain Chinese companies. They should consult with financial professionals before making any investment decisions.
- Businesses: Companies may be prohibited from engaging in transactions with Chinese companies that are designated as posing a national security risk.
- U.S.-China Relations: The continuation of the emergency could further strain relations between the United States and China.
Conclusion
The White House’s decision to extend the national emergency regarding Chinese securities investments demonstrates the ongoing concerns about the PRC’s influence in the U.S. financial system. Investors and businesses should be aware of the potential implications and consult with experts to ensure compliance. The situation will continue to be monitored, and additional updates will be provided as necessary.
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The White House a new article on 2024-11-07 21:00 titled “Notice on the Continuation of the National Emergency With Respect to the Threat From Securities Investments That Finance Certain Companies of the People’s Republic of China”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
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