The Epoch Times reports that President Joe Biden is extending a Trump-era national emergency order that prohibits U.S. citizens or companies from investing in companies linked to China’s military.
Citing threats to national security, former President Donald Trump issued Executive Order 13959 in November 2020. The order focused on halting American investments that benefit China’s military.
In June 2021, Biden expanded on the order with Executive Order 14032, which prohibited U.S. investments in companies affiliated with China’s surveillance industries.
Wednesday’s order extends the prohibition regarding investment in China’s military and surveillance companies by one year. The previous order was set to expire on Nov. 12.
In a Tuesday statement on the issue, Biden said:
“The PRC is increasingly exploiting United States capital to resource and to enable the development and modernization of its military, intelligence, and other security apparatuses, which continues to allow the PRC to directly threaten the United States homeland and United States forces overseas.”
Biden continued: “The PRC military-industrial complex … continues to constitute an unusual and extraordinary threat, which has its source in whole or substantial part outside the United States, to the national security, foreign policy, and economy of the United States.”
In explaining the need to extend the order, Biden faulted the Chinese Communist Party’s practice of “military-civil fusion,” which requires civilian companies in China to contribute to the regime’s military and intelligence activities.
Biden added that companies contributing to China’s military initiatives “must be treated as though they were part of China’s military and intelligence apparatus.” Accordingly, Biden argued, their ability to interact with U.S. markets must be limited.
“Those companies, though remaining ostensibly private and civilian, directly support the PRC’s military, intelligence, and security apparatuses,” Biden said.
The president concluded: “At the same time, those companies raise capital by selling securities to United States investors that trade on public exchanges both here and abroad, lobbying United States index providers and funds to include these securities in market offerings, and engaging in other acts to ensure access to United States capital.”