In the News: Securities Ban Delay; US-China Financial Investment; and Carbon Trading Launch

February 01, 2021 | BY

Vincent Chow

Biden delays implementation of part of Trump's military investment ban; U.S.-China financial investment flows far greater than official figures according to new report; and China launches national carbon emissions trading market

Biden delays part of ban on investments in military-tied Chinese companies

The Biden administration has delayed part of the ban on U.S. investments in companies with alleged ties to the Chinese military enacted by its predecessor. On Jan. 27, the Treasury Department's Office of Foreign Assets Control (OFAC) issued "General License 1A" postponing the ban for investing in companies with similar names to the blacklisted Chinese companies from Jan. 28 to May 27.

In November, President Trump issued Executive Order 13959 barring U.S. persons from investing in the securities of companies identified as "Communist Chinese military companies" (CCMCs). Since June 2020, the Department of Defense (DoD) has identified 44 Chinese entities as CCMCs. On Jan. 13, President Trump issued Executive Order 13974, clarifying that U.S. persons will be barred from possessing such securities after Nov. 11.

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