OFAC publishes CMIC implementation rules
The US Treasury’s Office of Foreign Assets Control (‘OFAC’) has published the Chinese Military Industrial Complex Sanctions Rules and Regulations to implement Executive Order (E.O.) 13959, ‘Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies’’ (85 FR 73185, November 17, 2020).’
The Chinese Military-Industrial Complex Sanctions Regulations explain that ‘On January 13, 2021, the President issued E.O. 13974, ‘‘Amending Executive Order 13959 – Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies’’ (86 FR 4875, January 19, 2021), which amended E.O. 13959. Further, on June 3, 2021, the President issued E.O. 14032, ‘‘Addressing the Threat From Securities Investments That Finance Certain Companies of the People’s Republic of China’’ (86 FR 30145, June 7, 2021), which amended E.O. 13959 and revoked E.O. 13974 in its entirety.
‘In E.O. 14032, the President found that additional steps are necessary to address the national emergency declared in E.O. 13959, including the threat posed by the military-industrial complex of the PRC and its involvement in military, intelligence, and security research and development programs, and weapons and related equipment production under the PRC’s Military Civil Fusion strategy. In addition, he found that the use of Chinese surveillance technology outside the PRC and the development or use of Chinese surveillance technology to facilitate repression or serious human rights abuse constitute unusual and extraordinary threats, which have their source in whole or substantial part outside the United States, to the national security, foreign policy, and economy of the United States and expanded the scope of the national emergency declared in E.O. 13959 to address those threats.
‘OFAC is issuing the Chinese Military Industrial Complex Sanctions Rules and Regulations, 31 CFR part 586 (the ‘‘Regulations’’), to implement E.O. 13959, as amended by E.O. 14032, pursuant to authorities delegated to the Secretary of the Treasury in E.O. 13959, as amended.’
See: https://home.treasury.gov/system/files/126/fr87_8735.pdf
NOTA BENE:
On 17 February, Frank Pan and Kerry Contini, speaking at the WorldECR Forum, outlined and took questions on the increasingly complex regulations – both US and from the PRC – including restrictions on trade with CMICs, Xinjiang-related issues, China’s increasing armoury of regulations (including the anti-foreign sanctions law, and Unreliable Entities list). See:
