Federal Register / Vol. 87, No. 32 / Wednesday, February 16, 2022 / Rules and Regulations 8735 

§ 544.508 Payments for legal services from 

funds originating outside the United States. 

(a) Professional fees and incurred 

expenses. (1) Receipt of payment of 

professional fees and reimbursement of 

incurred expenses for the provision of 

legal services authorized pursuant to 

§ 544.507(a) to or on behalf of any 

person whose property and interests in 

property are blocked pursuant to 

§ 544.201(a) is authorized from funds 

originating outside the United States, 

provided that the funds do not originate 

from: 

(i) A source within the United States; 

(ii) Any source, wherever located, 

within the possession or control of a 

U.S. person; or 

(iii) Any individual or entity, other 

than the person on whose behalf the 

legal services authorized pursuant to 

§ 544.507(a) are to be provided, whose 

property and interests in property are 

blocked pursuant to any part of this 

chapter or any Executive order or 

statute. 

(2) Nothing in paragraph (a) of this 

section authorizes payments for legal 

services using funds in which any other 

person whose property and interests in 

property are blocked pursuant to 

§ 544.201(a), any other part of this 

chapter, or any Executive order or 

statute has an interest. 

(b) Reports. (1) U.S. persons who 

receive payments pursuant to paragraph 

(a) of this section must submit annual 

reports no later than 30 days following 

the end of the calendar year during 

which the payments were received 

providing information on the funds 

received. Such reports shall specify: 

(i) The individual or entity from 

whom the funds originated and the 

amount of funds received; and 

(ii) If applicable: 

(A) The names of any individuals or 

entities providing related services to the 

U.S. person receiving payment in 

connection with authorized legal 

services, such as private investigators or 

expert witnesses; 

(B) A general description of the 

services provided; and 

(C) The amount of funds paid in 

connection with such services. 

(2) The reports, which must reference 

this section, are to be submitted to 

OFAC using one of the following 

methods: 

(i) Email (preferred method): 

OFACreport@treasury.gov; or 

(ii) U.S. mail: OFAC Regulations 

Reports, Office of Foreign Assets 

Control, U.S. Department of the 

Treasury, 1500 Pennsylvania Avenue 

NW, Freedman’s Bank Building, 

Washington, DC 20220. 

Dated: February 11, 2022 

Andrea M. Gacki 

Director, Office of Foreign Assets Control. 

[FR Doc. 2022–03361 Filed 2–15–22; 8:45 am] 

BILLING CODE 4810–AL–P 

DEPARTMENT OF THE TREASURY 

Office of Foreign Assets Control 

31 CFR Part 586 

Chinese Military-Industrial Complex 

Sanctions Regulations 

AGENCY: Office of Foreign Assets 

Control, Treasury. 

ACTION: Final rule. 

SUMMARY: The Department of the 

Treasury’s Office of Foreign Assets 

Control (OFAC) is adding regulations to 

implement a November 12, 2020 

Executive order related to securities 

investments that finance Communist 

Chinese military companies, as 

amended by a June 3, 2021 Executive 

order related to the Chinese militaryindustrial complex and Chinese 

surveillance technology. OFAC intends 

to supplement these regulations with a 

more comprehensive set of regulations, 

which may include additional 

interpretive guidance and definitions, 

general licenses, and other regulatory 

provisions. 

DATES: This rule is effective February 

16, 2022. 

FOR FURTHER INFORMATION CONTACT: 

OFAC: Assistant Director for Licensing, 

202–622–2480; Assistant Director for 

Regulatory Affairs, 202–622–4855; or 

Assistant Director for Sanctions 

Compliance & Evaluation, 202–622– 

2490. 

SUPPLEMENTARY INFORMATION: 

Electronic Availability 

This document and additional 

information concerning OFAC are 

available on OFAC’s website: 

www.treasury.gov/ofac. 

Background 

On November 12, 2020, the President, 

invoking the authority of, inter alia, the 

International Emergency Economic 

Powers Act (50 U.S.C. 1701–1706) 

(IEEPA), issued Executive Order (E.O.) 

13959, ‘‘Addressing the Threat From 

Securities Investments That Finance 

Communist Chinese Military 

Companies’’ (85 FR 73185, November 

17, 2020). 

In E.O. 13959, the President found, 

among other things, that the People’s 

Republic of China (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, including by developing 

and deploying weapons of mass 

destruction, advanced conventional 

weapons, and malicious cyber-enabled 

actions against the United States and its 

people, and that key to the development 

of the PRC’s military, intelligence, and 

other security apparatuses is the 

country’s large, ostensibly private 

economy. The President therefore found 

that the PRC’s military-industrial 

complex, by directly supporting the 

efforts of the PRC’s military, 

intelligence, and other security 

apparatuses, constitutes an unusual and 

extraordinary threat, which has its 

source in substantial part outside the 

United States, to the national security, 

foreign policy, and economy of the 

United States and declared a national 

emergency with respect to that threat. 

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 MilitaryCivil 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 MilitaryIndustrial Complex Sanctions 


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8736 Federal Register / Vol. 87, No. 32 / Wednesday, February 16, 2022 / Rules and Regulations 

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. Copies of E.O. 13959 and 

E.O. 14032 appear in appendix A and 

appendix B to this part, respectively. 

Because E.O. 13974 has been revoked in 

its entirety, it does not appear in an 

appendix to this part. 

The Regulations are being published 

in abbreviated form at this time for the 

purpose of providing immediate 

guidance to the public. OFAC intends to 

supplement this part 586 with a more 

comprehensive set of regulations, which 

may include additional interpretive 

guidance and definitions, general 

licenses, and other regulatory 

provisions. The appendices to the 

Regulations will be removed when 

OFAC supplements this part with a 

more comprehensive set of regulations. 

Public Participation 

Because the Regulations involve a 

foreign affairs function, the provisions 

of E.O. 12866 of September 30, 1993, 

‘‘Regulatory Planning and Review’’ (58 

FR 51735, October 4, 1993), and the 

Administrative Procedure Act (5 U.S.C. 

553) requiring notice of proposed 

rulemaking, opportunity for public 

participation, and delay in effective date 

are inapplicable. Because no notice of 

proposed rulemaking is required for this 

rule, the Regulatory Flexibility Act (5 

U.S.C. 601–612) does not apply. 

Paperwork Reduction Act 

The collections of information related 

to the Regulations are contained in 31 

CFR part 501 (the ‘‘Reporting, 

Procedures and Penalties Regulations’’). 

Pursuant to the Paperwork Reduction 

Act of 1995 (44 U.S.C. 3507), those 

collections of information have been 

approved by the Office of Management 

and Budget under control number 1505– 

0164. An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless the collection of information 

displays a valid control number. 

List of Subjects in 31 CFR Part 586 

Administrative practice and 

procedure, Banks, banking, Penalties, 

People’s Republic of China, Reporting 

and recordkeeping requirements, 

Sanctions, Securities. 

■ For the reasons set forth in the 

preamble, OFAC adds part 586 to 31 

CFR chapter V to read as follows: 

PART 586—CHINESE MILITARYINDUSTRIAL COMPLEX SANCTIONS 

REGULATIONS 

Subpart A—Relation of This Part to 

Other Laws and Regulations 

Sec. 

586.101 Relation of this part to other laws 

and regulations. 

Subpart B—Prohibitions 

586.201 Prohibited transactions. 

Subpart C—General Definitions 

586.300 Applicability of definitions. 

586.301 Entity. 

586.302 Licenses; general and specific. 

586.303 OFAC. 

586.304 Person. 

586.305 Publicly traded securities. 

586.306 United States. 

586.307 United States person; U.S. person. 

586.308 U.S. financial institution. 

Subpart D—Interpretations 

586.401 [Reserved] 

586.402 Effect of amendment. 

586.403 Transactions ordinarily incident to 

a licensed transaction. 

586.404 Subsidiary entities. 

Subpart E—Licenses, Authorizations, and 

Statements of Licensing Policy 

586.501 General and specific licensing 

procedures. 

586.502 [Reserved] 

586.503 Exclusion from licenses. 

Subpart F—Reports 

586.601 Records and reports. 

Subpart G—Penalties and Findings of 

Violation 

586.701 Penalties and Findings of 

Violation. 

Subpart H—Procedures 

586.801 Procedures. 

586.802 Delegation of certain authorities of 

the Secretary of the Treasury. 

Subpart I—Paperwork Reduction Act 

586.901 Paperwork Reduction Act notice. 

Appendix A to Part 586—Executive Order 

13959 of November 12, 2020 

Appendix B to Part 586—Executive Order 

14032 of June 3, 2021 

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 

50 U.S.C. 1601–1651, 1701–1706; Pub. L. 

101–410, 104 Stat. 890, as amended (28 

U.S.C. 2461 note); E.O. 13959, 85 FR 73185, 

3 CFR, 2020 Comp., p. 475; E.O. 14032, 86 

FR 30145. 

Subpart A—Relation of This Part to 

Other Laws and Regulations 

§ 586.101 Relation of this part to other 

laws and regulations. 

This part is separate from, and 

independent of, the other parts of this 

chapter, with the exception of part 501 

of this chapter, the recordkeeping and 

reporting requirements and license 

application and other procedures of 

which apply to this part. Actions taken 

pursuant to part 501 of this chapter with 

respect to the prohibitions contained in 

this part are considered actions taken 

pursuant to this part. Differing foreign 

policy and national security 

circumstances may result in differing 

interpretations of similar language 

among the parts of this chapter. No 

license or authorization contained in or 

issued pursuant to those other parts 

authorizes any transaction prohibited by 

this part. No license or authorization 

contained in or issued pursuant to any 

other provision of law or regulation 

authorizes any transaction prohibited by 

this part. No license or authorization 

contained in or issued pursuant to this 

part relieves the involved parties from 

complying with any other applicable 

laws or regulations. 

Note 1 to § 586.101. This part has been 

published in abbreviated form for the 

purpose of providing immediate guidance to 

the public. OFAC intends to supplement this 

part with a more comprehensive set of 

regulations, which may include additional 

interpretive and definitional guidance, 

general licenses, and other regulatory 

provisions. 

Subpart B—Prohibitions 

§ 586.201 Prohibited transactions. 

(a) All transactions prohibited 

pursuant to Executive order (E.O.) 

13959 of November 12, 2020, as 

amended by E.O. 14032 of June 3, 2021 

(‘‘E.O. 13959, as amended’’), are 

prohibited pursuant to this part. 

(b) All transactions prohibited 

pursuant to any further Executive orders 

issued pursuant to the national 

emergency declared in E.O. 13959, as 

amended, are prohibited pursuant to 

this part. 

Note 1 to § 586.201. The names of persons 

identified in or pursuant to E.O. 13959, as 

amended, are published in the Federal 

Register and incorporated into OFAC’s NonSDN Chinese Military-Industrial Complex 

Companies List (NS–CMIC List) using the 

following identifier formulation: ‘‘[CMIC– 

EO13959].’’ The NS–CMIC List is accessible 

through the following page on OFAC’s 

website: www.treasury.gov/ofac. 

Note 2 to § 586.201. Section 501.807 of this 

chapter describes the procedures to be 

followed by persons seeking administrative 

reconsideration of their status as persons 

subject to the prohibitions of this section. 

Subpart C—General Definitions 

§ 586.300 Applicability of definitions. 

The definitions in this subpart apply 

throughout the entire part. 


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§ 586.301 Entity. 

The term entity means a partnership, 

association, trust, joint venture, 

corporation, group, subgroup, or other 

organization. 

§ 586.302 Licenses; general and specific. 

(a) Except as otherwise provided in 

this part, the term license means any 

license or authorization contained in or 

issued pursuant to this part. 

(b) The term general license means 

any license or authorization the terms of 

which are set forth in subpart E of this 

part or made available on OFAC’s 

website: www.treasury.gov/ofac. 

(c) The term specific license means 

any license or authorization issued 

pursuant to this part but not set forth in 

subpart E of this part or made available 

on OFAC’s website: www.treasury.gov/ 

ofac. 

Note 1 to § 586.302. See § 501.801 of this 

chapter on licensing procedures. 

§ 586.303 OFAC. 

The term OFAC means the 

Department of the Treasury’s Office of 

Foreign Assets Control. 

§ 586.304 Person. 

The term person means an individual 

or entity. 

§ 586.305 Publicly traded securities. 

The term publicly traded securities 

includes any security, as defined in 

section 3(a)(10) of the Securities 

Exchange Act of 1934, Public Law 73– 

291 (as codified as amended at 15 U.S.C. 

78c(a)(10)), denominated in any 

currency that trades on a securities 

exchange or through the method of 

trading that is commonly referred to as 

over-the-counter, in any jurisdiction. 

§ 586.306 United States. 

The term United States means the 

United States, its territories and 

possessions, and all areas under the 

jurisdiction or authority thereof. 

§ 586.307 United States person; U.S. 

person. 

The term United States person or U.S. 

person means any United States citizen, 

lawful permanent resident alien, entity 

organized under the laws of the United 

States or any jurisdiction within the 

United States (including foreign 

branches), or any person in the United 

States. 

§ 586.308 U.S. financial institution. 

The term U.S. financial institution 

means any U.S. entity (including its 

foreign branches) that is engaged in the 

business of accepting deposits, making, 

granting, transferring, holding, or 

brokering loans or credits, or purchasing 

or selling foreign exchange, securities, 

futures or options, or procuring 

purchasers and sellers thereof, as 

principal or agent. It includes 

depository institutions, banks, savings 

banks, money services businesses, trust 

companies, insurance companies, 

securities brokers and dealers, futures 

and options brokers and dealers, 

forward contract and foreign exchange 

merchants, securities and commodities 

exchanges, clearing corporations, 

investment companies, employee 

benefit plans, dealers in precious 

metals, stones, or jewels, and U.S. 

holding companies, U.S. affiliates, or 

U.S. subsidiaries of any of the foregoing. 

This term includes those branches, 

offices, and agencies of foreign financial 

institutions that are located in the 

United States, but not such institutions’ 

foreign branches, offices, or agencies. 

Subpart D—Interpretations 

§ 586.401 [Reserved] 

§ 586.402 Effect of amendment. 

Unless otherwise specifically 

provided, any amendment, 

modification, or revocation of any 

provision in or appendix to this part or 

chapter or of any order, regulation, 

ruling, instruction, or license issued by 

OFAC does not affect any act done or 

omitted, or any civil or criminal 

proceeding commenced or pending, 

prior to such amendment, modification, 

or revocation. All penalties, forfeitures, 

and liabilities under any such order, 

regulation, ruling, instruction, or license 

continue and may be enforced as if such 

amendment, modification, or revocation 

had not been made. 

§ 586.403 Transactions ordinarily incident 

to a licensed transaction. 

Any transaction ordinarily incident to 

a licensed transaction and necessary to 

give effect thereto is also authorized. 

§ 586.404 Subsidiary entities. 

The prohibitions in § 586.201(a) apply 

to a subsidiary of an entity identified in 

or pursuant to Executive Order (E.O.) 

13959 of November 12, 2020, as 

amended by E.O. 14032 of June 3, 2021 

(‘‘E.O. 13959, as amended’’), only if the 

subsidiary itself is identified in or 

pursuant to E.O. 13959, as amended. 

Subpart E—Licenses, Authorizations, 

and Statements of Licensing Policy 

§ 586.501 General and specific licensing 

procedures. 

For provisions relating to licensing 

procedures, see part 501, subpart E, of 

this chapter. Licensing actions taken 

pursuant to part 501 of this chapter with 

respect to the prohibitions contained in 

this part are considered actions taken 

pursuant to this part. General licenses 

and statements of licensing policy 

relating to this part also may be 

available through the Chinese MilitaryIndustrial Complex sanctions page on 

OFAC’s website: www.treasury.gov/ofac. 

§ 586.502 [Reserved] 

§ 586.503 Exclusion from licenses. 

OFAC reserves the right to exclude 

any person, property, transaction, or 

class thereof from the operation of any 

license or from the privileges conferred 

by any license. OFAC also reserves the 

right to restrict the applicability of any 

license to particular persons, property, 

transactions, or classes thereof. Such 

actions are binding upon actual or 

constructive notice of the exclusions or 

restrictions. 

Subpart F—Reports 

§ 586.601 Records and reports. 

For provisions relating to required 

records and reports, see part 501, 

subpart C, of this chapter. 

Recordkeeping and reporting 

requirements imposed by part 501 of 

this chapter with respect to the 

prohibitions contained in this part are 

considered requirements arising 

pursuant to this part. 

Subpart G—Penalties and Findings of 

Violation 

§ 586.701 Penalties and Findings of 

Violation. 

(a) The penalties available under 

section 206 of the International 

Emergency Economic Powers Act (50 

U.S.C. 1701–1706) (IEEPA), as adjusted 

annually pursuant to the Federal Civil 

Penalties Inflation Adjustment Act of 

1990 (Pub. L. 101–410, as amended, 28 

U.S.C. 2461 note) or, in the case of 

criminal violations, as adjusted 

pursuant to 18 U.S.C. 3571, are 

applicable to violations of the 

provisions of this part. 

(b) OFAC has the authority, pursuant 

to IEEPA, to issue Pre-Penalty Notices, 

Penalty Notices, and Findings of 

Violation; impose monetary penalties; 

engage in settlement discussions and 

enter into settlements; refer matters to 

the United States Department of Justice 

for administrative collection; and, in 

appropriate circumstances, refer matters 

to appropriate law enforcement agencies 

for criminal investigation and/or 

prosecution. For more information, see 

appendix A to part 501 of this chapter, 

which provides a general framework for 

the enforcement of all economic 


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8738 Federal Register / Vol. 87, No. 32 / Wednesday, February 16, 2022 / Rules and Regulations 

sanctions programs administered by 

OFAC, including enforcement-related 

definitions, types of responses to 

apparent violations, general factors 

affecting administrative actions, civil 

penalties for failure to comply with a 

requirement to furnish information or 

keep records, and other general civil 

penalties information. 

Subpart H—Procedures 

§ 586.801 Procedures. 

For license application procedures 

and procedures relating to amendments, 

modifications, or revocations of 

licenses; administrative decisions; 

rulemaking; and requests for documents 

pursuant to the Freedom of Information 

and Privacy Acts (5 U.S.C. 552 and 

552a), see part 501, subpart E, of this 

chapter. 

§ 586.802 Delegation of certain authorities 

of the Secretary of the Treasury. 

Any action that the Secretary of the 

Treasury is authorized to take pursuant 

to Executive Order (E.O.) 13959 of 

November 12, 2020, as amended by E.O. 

14032 of June 3, 2021, and any further 

Executive orders issued pursuant to the 

national emergency declared therein, 

may be taken by the Director of OFAC 

or by any other person to whom the 

Secretary of the Treasury has delegated 

authority so to act. 

Subpart I—Paperwork Reduction Act 

§ 586.901 Paperwork Reduction Act notice. 

For approval by the Office of 

Management and Budget (OMB) under 

the Paperwork Reduction Act of 1995 

(44 U.S.C. 3507) of information 

collections relating to recordkeeping 

and reporting requirements, licensing 

procedures, and other procedures, see 

§ 501.901 of this chapter. An agency 

may not conduct or sponsor, and a 

person is not required to respond to, a 

collection of information unless it 

displays a valid control number 

assigned by OMB. 

Appendix A to Part 586—Executive 

Order 13959 of November 12, 2020 

Addressing the Threat From Securities 

Investments That Finance Communist 

Chinese Military Companies 

By the authority vested in me as President 

by the Constitution and the laws of the 

United States of America, including the 

International Emergency Economic Powers 

Act (50 U.S.C. 1701 et seq.) (IEEPA), the 

National Emergencies Act (50 U.S.C. 1601 et 

seq.), and section 301 of title 3, United States 

Code, 

I, DONALD J. TRUMP, President of the 

United States of America, find that the 

People’s Republic of China (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, including by 

developing and deploying weapons of mass 

destruction, advanced conventional 

weapons, and malicious cyber-enabled 

actions against the United States and its 

people. 

Key to the development of the PRC’s 

military, intelligence, and other security 

apparatuses is the country’s large, ostensibly 

private economy. Through the national 

strategy of Military-Civil Fusion, the PRC 

increases the size of the country’s militaryindustrial complex by compelling civilian 

Chinese companies to support its military 

and intelligence activities. Those companies, 

though remaining ostensibly private and 

civilian, directly support the PRC’s military, 

intelligence, and security apparatuses and 

aid in their development and modernization. 

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. In that way, the PRC exploits United 

States investors to finance the development 

and modernization of its military. 

I therefore further find that the PRC’s 

military-industrial complex, by directly 

supporting the efforts of the PRC’s military, 

intelligence, and other security apparatuses, 

constitutes an unusual and extraordinary 

threat, which has its source in substantial 

part outside the United States, to the national 

security, foreign policy, and economy of the 

United States. To protect the United States 

homeland and the American people, I hereby 

declare a national emergency with respect to 

this threat. 

Accordingly, I hereby order: 

Section 1. (a) The following actions are 

prohibited: 

(i) Beginning 9:30 a.m. eastern standard 

time on January 11, 2021, any transaction in 

publicly traded securities, or any securities 

that are derivative of, or are designed to 

provide investment exposure to such 

securities, of any Communist Chinese 

military company as defined in section 4(a)(i) 

of this order, by any United States person; 

and 

(ii) beginning 9:30 a.m. eastern standard 

time on the date that is 60 days after a person 

is determined to be a Communist Chinese 

military company pursuant to section 

(4)(a)(ii) or (iii) of this order, any transaction 

in publicly traded securities, or any 

securities that are derivative of, or are 

designed to provide investment exposure to 

such securities, of that person, by any United 

States person. 

(b) Notwithstanding subsection (a)(i) of this 

section, purchases for value or sales made on 

or before 11:59 p.m. eastern standard time on 

November 11, 2021, solely to divest, in whole 

or in part, from securities that any United 

States person held as of 9:30 a.m. eastern 

standard time on January 11, 2021, in a 

Communist Chinese military company as 

defined in section 4(a)(i) of this order, are 

permitted. 

(c) Notwithstanding subsection (a)(ii) of 

this section, for a person determined to be a 

Communist Chinese military company 

pursuant to section 4(a)(ii) or (iii) of this 

order, purchases for value or sales made on 

or before 365 days from the date of such 

determination, solely to divest, in whole or 

in part, from securities that any United States 

person held in such person, as of the date 60 

days from the date of such determination, are 

permitted. 

(d) The prohibitions in subsection (a) of 

this section apply except to the extent 

provided by statutes, or in regulations, 

orders, directives, or licenses that may be 

issued pursuant to this order, and 

notwithstanding any contract entered into or 

any license or permit granted before the date 

of this order. 

Sec. 2. (a) Any transaction by a United 

States person or within the United States that 

evades or avoids, has the purpose of evading 

or avoiding, causes a violation of, or attempts 

to violate the prohibitions set forth in this 

order is prohibited. 

(b) Any conspiracy formed to violate any 

of the prohibitions set forth in this order is 

prohibited. 

Sec. 3. (a) The Secretary of the Treasury, 

after consultation with the Secretary of State, 

the Secretary of Defense, the Director of 

National Intelligence, and the heads of other 

executive departments and agencies 

(agencies) as deemed appropriate by the 

Secretary of the Treasury, is hereby 

authorized to take such actions, including the 

promulgation of rules and regulations, and to 

employ all powers granted to the President 

by IEEPA, to carry out the purposes of this 

order. The Secretary of the Treasury may, 

consistent with applicable law, redelegate 

any of these functions within the Department 

of the Treasury. All agencies shall take all 

appropriate measures within their authority 

to carry out the provisions of this order. 

(b) Rules and regulations issued pursuant 

to this order may, among other things, 

establish procedures to license transactions 

otherwise prohibited pursuant to this order. 

But prior to issuing any license under this 

order, the Secretary of the Treasury shall 

consult with the Secretary of State, the 

Secretary of Defense, and the Director of 

National Intelligence. 

Sec. 4. Definitions. For purposes of this 

order: 

(a) The term ‘‘Communist Chinese military 

company’’ means 

(i) any person that the Secretary of Defense 

has listed as a Communist Chinese military 

company operating directly or indirectly in 

the United States or in any of its territories 

or possessions pursuant to section 1237 of 

Public Law 105–261, as amended by section 

1233 of Public Law 106–398 and section 

1222 of Public Law 108–375, as of the date 

of this order, and as set forth in the Annex 

to this order, until such time as the Secretary 

of Defense removes such person from such 

list; 

(ii) any person that the Secretary of 

Defense, in consultation with the Secretary of 

the Treasury, determines is a Communist 


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Chinese military company operating directly 

or indirectly in the United States or in any 

of its territories or possessions and therefore 

lists as such pursuant to section 1237 of 

Public Law 105–261, as amended by section 

1233 of Public Law 106–398 and section 

1222 of Public Law 108–375, until such time 

as the Secretary of Defense removes such 

person from such list; or 

(iii) any person that the Secretary of the 

Treasury publicly lists as meeting the criteria 

in section 1237(b)(4)(B) of Public Law 105– 

261, or publicly lists as a subsidiary of a 

person already determined to be a 

Communist Chinese military company, until 

the Secretary of the Treasury determines that 

such person no longer meets that criteria and 

removes such person from such list. 

(b) The term ‘‘entity’’ means a government 

or instrumentality of such government, 

partnership, association, trust, joint venture, 

corporation, group, subgroup, or other 

organization; 

(c) the term ‘‘person’’ means an individual 

or entity; 

(d) the terms ‘‘security’’ and ‘‘securities’’ 

include the definition of ‘‘security’’ in 

section 3(a)(10) of the Securities Exchange 

Act of 1934, Public Law 73–291, as codified 

as amended at 15 U.S.C. 78c(a)(10), except 

that currency or any note, draft, bill of 

exchange, or banker’s acceptance which has 

a maturity at the time of issuance of not 

exceeding 9 months, exclusive of days of 

grace, or any renewal thereof the maturity of 

which is likewise limited, shall be a security 

for purposes of this order. 

(e) The term ‘‘transaction’’ means the 

purchase for value of any publicly traded 

security; and 

(f) the term ‘‘United States person’’ means 

any United States citizen, permanent resident 

alien, entity organized under the laws of the 

United States or any jurisdiction within the 

United States (including foreign branches), or 

any person in the United States. 

Sec. 5. The Secretary of the Treasury, in 

consultation with the Secretary of State and, 

as appropriate, the Secretary of Defense, is 

hereby authorized to submit the recurring 

and final reports to the Congress on the 

national emergency declared in this order, 

consistent with section 401(c) of the NEA (50 

U.S.C. 1641(c)) and section 204(c) of IEEPA 

(50 U.S.C. 1703(c)). 

Sec. 6. General Provisions. (a) Nothing in 

this order shall be construed to impair or 

otherwise affect: 

(i) The authority granted by law to an 

executive department or agency, or the head 

thereof; or 

(ii) the functions of the Director of the 

Office of Management and Budget relating to 

budgetary, administrative, or legislative 

proposals. 

(b) This order shall be implemented 

consistent with applicable law and subject to 

the availability of appropriations. 

(c) This order is not intended to, and does 

not, create any right or benefit, substantive or 

procedural, enforceable at law or in equity by 

any party against the United States, its 

departments, agencies, or entities, its officers, 

employees, or agents, or any other person. 

DONALD J. TRUMP 

THE WHITE HOUSE, 

November 12, 2020 

Annex 

Aero Engine Corp of China 

Aviation Industry Corporation of China, Ltd. 

(AVIC) 

China Academy of Launch Vehicle 

Technology (CALT) 

China Aerospace Science & Technology 

Corporation (CASC) 

China Aerospace Science & Industry 

Corporation (CASIC) 

China Communication Construction Group 

Company, Ltd. 

China Electronics Corporation (CEC) 

China Electronics Technology Group 

Corporation (CETC) 

China Mobile Communications 

China National Chemical Corporation 

(ChernChina) 

China National Chemical Engineering Group 

Co., Ltd. (CNCEC) 

China National Nuclear 

China Nuclear Engineering & Construction 

Corporation (CNECC) 

China General Nuclear Power 

China Railway Construction Corporation 

(CRCC) 

China Shipbuilding Industry Corporation 

(CSIC) 

China South Industries Group Corporation 

(CSGC) 

China Spacesat 

China State Construction Group Co., Ltd. 

China State Shipbuilding Corporation (CSSC) 

China Telecommunications 

China Three Gorges Corporation Limited 

China United Network Communications 

Group Co Lt d 

CRRC Corporation 

Dawning Information Industry Co. (Sugon) 

Hikvision 

Huawei 

Inspur Group 

Norinco 

Panda Electronics 

Sinochem Group Co Ltd 

Appendix B to Part 586—Executive 

Order 14032 of June 3, 2021 Addressing 

the Threat From Securities Investments 

That Finance Certain Companies of the 

People’s Republic of China 

By the authority vested in me as President 

by the Constitution and the laws of the 

United States of America, including the 

International Emergency Economic Powers 

Act (50 U.S.C. 1701 et seq.) (IEEPA), the 

National Emergencies Act (50 U.S.C. 1601 et 

seq.) (NEA), and section 301 of title 3, United 

States Code, 

I, JOSEPH R. BIDEN JR., President of the 

United States of America, find that additional 

steps are necessary to address the national 

emergency declared in Executive Order 

13959 of November 12, 2020 (Addressing the 

Threat From Securities Investments That 

Finance Communist Chinese Military 

Companies), including the threat posed by 

the military-industrial complex of the 

People’s Republic of China (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, I find 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 I hereby 

expand the scope of the national emergency 

declared in Executive Order 13959 to address 

those threats. 

Accordingly, I hereby order as follows: 

Section 1. Sections 1 through 5 of 

Executive Order 13959, as amended by 

Executive Order 13974 of January 13, 2021 

(Amending Executive Order 13959— 

Addressing the Threat From Securities 

Investments That Finance Communist 

Chinese Military Companies), are hereby 

replaced and superseded in their entirety to 

read as follows: 

‘‘Section 1. (a) The following activities by 

a United States person are prohibited: The 

purchase or sale of any publicly traded 

securities, or any publicly traded securities 

that are derivative of such securities or are 

designed to provide investment exposure to 

such securities, of any person listed in the 

Annex to this order or of any person 

determined by the Secretary of the Treasury, 

in consultation with the Secretary of State, 

and, as the Secretary of the Treasury deems 

appropriate, the Secretary of Defense: 

(i) To operate or have operated in the 

defense and related materiel sector or the 

surveillance technology sector of the 

economy of the PRC; or 

(ii) to own or control, or to be owned or 

controlled by, directly or indirectly, a person 

who operates or has operated in any sector 

described in subsection (a)(i) of this section, 

or a person who is listed in the Annex to this 

order or who has otherwise been determined 

to be subject to the prohibitions in subsection 

(a) of this section. 

(b) The prohibitions in subsection (a) of 

this section shall take effect: 

(i) Beginning at 12:01 a.m. eastern daylight 

time on August 2, 2021, with respect to any 

person listed in the Annex to this order; or 

(ii) beginning at 12:01 a.m. eastern daylight 

time on the date that is 60 days after the date 

of the determination in subsection (a) of this 

section with respect to any person not listed 

in the Annex to this order. 

(c) The purchase or sale of publicly traded 

securities described in subsection (a) of this 

section made solely to effect the divestment, 

in whole or in part, of such securities by a 

United States person is permitted prior to: 

(i) 12:01 a.m. eastern daylight time on June 

3, 2022, with respect to any person listed in 

the Annex to this order; or 

(ii) 12:01 a.m. eastern daylight time on the 

date that is 365 days after the date of the 

determination in subsection (a) of this 

section with respect to any person not listed 

in the Annex to this order. 

(d) The prohibitions in subsection (a) of 

this section apply except to the extent 

provided by statutes, or in regulations, 

orders, directives, or licenses that may be 

issued pursuant to this order, and 

notwithstanding any contract entered into or 

any license or permit granted before the date 

of this order. 


jspears on DSK121TN23PROD with RULES1
8740 Federal Register / Vol. 87, No. 32 / Wednesday, February 16, 2022 / Rules and Regulations 

Sec. 2. (a) Any transaction that evades or 

avoids, has the purpose of evading or 

avoiding, causes a violation of, or attempts to 

violate any of the prohibitions set forth in 

this order is prohibited. 

(b) Any conspiracy formed to violate any 

of the prohibitions set forth in this order is 

prohibited. 

Sec. 3. For the purposes of this order: 

(a) The term ‘‘entity’’ means a partnership, 

association, trust, joint venture, corporation, 

group, subgroup, or other organization; 

(b) the term ‘‘person’’ means an individual 

or entity; 

(c) the term ‘‘publicly traded securities’’ 

includes any ‘‘security,’’ as defined in section 

3(a)(10) of the Securities Exchange Act of 

1934, Public Law 73–291 (as codified as 

amended at 15 U.S.C. 78c(a)(10)), 

denominated in any currency that trades on 

a securities exchange or through the method 

of trading that is commonly referred to as 

‘‘over-the-counter,’’ in any jurisdiction; and 

(d) the term ‘‘United States person’’ means 

any United States citizen, lawful permanent 

resident, entity organized under the laws of 

the United States or any jurisdiction within 

the United States (including foreign 

branches), or any person in the United States. 

Sec. 4. The Secretary of the Treasury, in 

consultation with the Secretary of State, is 

hereby authorized to take such actions, 

including the promulgation of rules and 

regulations, and to employ all powers 

granted to the President by IEEPA, as may be 

necessary to carry out the purposes of this 

order. The Secretary of the Treasury may, 

consistent with applicable law, redelegate 

any of these functions within the Department 

of the Treasury. All executive departments 

and agencies (agencies) of the United States 

shall take all appropriate measures within 

their authority to carry out the provisions of 

this order. 

Sec. 5. The Secretary of the Treasury, in 

consultation with the Secretary of State, is 

hereby authorized to submit recurring and 

final reports to the Congress on the national 

emergency declared in this order, consistent 

with section 401(c) of the NEA (50 U.S.C. 

1641(c)) and section 204(c) of IEEPA (50 

U.S.C. 1703(c)). 

Sec. 6. The Secretary of the Treasury, in 

consultation with the Secretary of State, and, 

as the Secretary of the Treasury deems 

appropriate, the Secretary of Defense, is 

hereby authorized to determine that 

circumstances no longer warrant the 

application of the prohibitions in section 1(a) 

of this order with respect to a person listed 

in the Annex to this order, and to take 

necessary action to give effect to that 

determination.’’ 

Sec. 2. The Annex to Executive Order 

13959 is replaced and superseded in its 

entirety by the Annex to this order. 

Sec. 3. Section 6 of Executive Order 13959 

is amended to replace ‘‘Sec. 6.’’ with ‘‘Sec. 

7.’’ 

Sec. 4. Executive Order 13974 is hereby 

revoked in its entirety. The Secretary of the 

Treasury and the heads of agencies shall take 

all necessary steps to rescind any orders or 

prohibitions issued prior to the date of this 

order implementing or enforcing Executive 

Order 13974 or the versions of sections 1 

through 5 of Executive Order 13959 replaced 

and superseded by section 1 of this order. 

Sec. 5. (a) Nothing in this order shall be 

construed to impair or otherwise affect: 

(i) The authority granted by law to an 

executive department or agency, or the head 

thereof; or 

(ii) the functions of the Director of the 

Office of Management and Budget relating to 

budgetary, administrative, or legislative 

proposals. 

(b) This order shall be implemented 

consistent with applicable law and subject to 

the availability of appropriations. 

(c) This order is not intended to, and does 

not, create any right or benefit, substantive or 

procedural, enforceable at law or in equity by 

any party against the United States, its 

departments, agencies, or entities, its officers, 

employees, or agents, or any other person. 

JOSEPH R. BIDEN JR. 

THE WHITE HOUSE, 

June 3, 2021 

Annex 

AERO ENGINE CORPORATION OF CHINA 

AEROSPACE CH UAV CO., LTD 

AEROSPACE COMMUNICATIONS 

HOLDINGS GROUP COMPANY LIMITED 

AEROSUN CORPORATION 

ANHUI GREATWALL MILITARY 

INDUSTRY COMPANY LIMITED 

AVIATION INDUSTRY CORPORATION OF 

CHINA, LTD. 

AVIC AVIATION HIGH–TECHNOLOGY 

COMPANY LIMITED 

AVIC HEAVY MACHINERY COMPANY 

LIMITED 

AVIC JONHON OPTRONIC TECHNOLOGY 

CO., LTD. 

AVIC SHENYANG AIRCRAFT COMPANY 

LIMITED 

AVIC XI’AN AIRCRAFT INDUSTRY GROUP 

COMPANY LTD. 

CHANGSHA JINGJIA MICROELECTRONICS 

COMPANY LIMITED 

CHINA ACADEMY OF LAUNCH VEHICLE 

TECHNOLOGY 

CHINA AEROSPACE SCIENCE AND 

INDUSTRY CORPORATION LIMITED 

CHINA AEROSPACE SCIENCE AND 

TECHNOLOGY CORPORATION 

CHINA AEROSPACE TIMES ELECTRONICS 

CO., LTD 

CHINA AVIONICS SYSTEMS COMPANY 

LIMITED 

CHINA COMMUNICATIONS 

CONSTRUCTION COMPANY LIMITED 

CHINA COMMUNICATIONS 

CONSTRUCTION GROUP (LIMITED) 

CHINA ELECTRONICS CORPORATION 

CHINA ELECTRONICS TECHNOLOGY 

GROUP CORPORATION 

CHINA GENERAL NUCLEAR POWER 

CORPORATION 

CHINA MARINE INFORMATION 

ELECTRONICS COMPANY LIMITED 

CHINA MOBILE COMMUNICATIONS 

GROUP CO., LTD. 

CHINA MOBILE LIMITED 

CHINA NATIONAL NUCLEAR 

CORPORATION 

CHINA NATIONAL OFFSHORE OIL 

CORPORATION 

CHINA NORTH INDUSTRIES GROUP 

CORPORATION LIMITED 

CHINA NUCLEAR ENGINEERING 

CORPORATION LIMITED 

CHINA RAILWAY CONSTRUCTION 

CORPORATION LIMITED 

CHINA SATELLITE COMMUNICATIONS 

CO., LTD. 

CHINA SHIPBUILDING INDUSTRY 

COMPANY LIMITED 

CHINA SHIPBUILDING INDUSTRY GROUP 

POWER COMPANY LIMITED 

CHINA SOUTH INDUSTRIES GROUP 

CORPORATION 

CHINA SPACESAT CO., LTD. 

CHINA STATE SHIPBUILDING 

CORPORATION LIMITED 

CHINA TELECOM CORPORATION LIMITED 

CHINA TELECOMMUNICATIONS 

CORPORATION 

CHINA UNICOM (HONG KONG) LIMITED 

CHINA UNITED NETWORK 

COMMUNICATIONS GROUP CO., LTD. 

CNOOC LIMITED 

COSTAR GROUP CO., LTD. 

CSSC OFFSHORE & MARINE ENGINEERING 

(GROUP) COMPANY LIMITED 

FUJIAN TORCH ELECTRON TECHNOLOGY 

CO., LTD. 

GUIZHOU SPACE APPLIANCE CO., LTD 

HANGZHOU HIKVISION DIGITAL 

TECHNOLOGY CO., LTD. 

HUAWEI INVESTMENT & HOLDING CO., 

LTD. 

HUAWEI TECHNOLOGIES CO., LTD. 

INNER MONGOLIA FIRST MACHINERY 

GROUP CO., LTD. 

INSPUR GROUP CO., LTD. 

JIANGXI HONGDU AVIATION INDUSTRY 

CO., LTD. 

NANJING PANDA ELECTRONICS 

COMPANY LIMITED 

NORTH NAVIGATION CONTROL 

TECHNOLOGY CO., LTD. 

PANDA ELECTRONICS GROUP CO., LTD. 

PROVEN GLORY CAPITAL LIMITED 

PROVEN HONOUR CAPITAL LIMITED 

SEMICONDUCTOR MANUFACTURING 

INTERNATIONAL CORPORATION 

SHAANXI ZHONGTIAN ROCKET 

TECHNOLOGY COMPANY LIMITED 

ZHONGHANG ELECTRONIC MEASURING 

INSTRUMENTS COMPANY LIMITED 

Dated: February 11, 2022. 

Andrea M. Gacki, 

Director, Office of Foreign Assets Control. 

[FR Doc. 2022–03378 Filed 2–15–22; 8:45 am] 

BILLING CODE 4810–AL–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Parts 3, 17, 18 and 21 

RIN 2900–AR04 

Vocational Rehabilitation and 

Employment (VR&E) Program: Name 

Change 

AGENCY: Department of Veterans Affairs. 

ACTION: Final rule. 

SUMMARY: The Department of Veterans 

Affairs (VA) is issuing this final rule to 


jspears on DSK121TN23PROD with RULES1