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Scope of U.S. Ban on Transactions in Securities of 'Communist Chinese Military Companies' | Faegre Drinker Biddle & Reath LLP

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On January 13, 2021, President Trump amended the November 12, 2020, Executive Order (EO) 13959 providing greater clarity to the scope of the EO’s ban on trading and investing in certain designated publicly traded securities of “Communist Chinese military companies” (CCMCs). The ban became effective January 11, 2021, but the amended EO, guidance and general licenses issued by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) add greater clarity on the ban and provide important carve-outs or caveats to its scope. Investors and holders of covered securities should take careful note of these latest developments and anticipate that we will see further guidance, clarifications and possible licenses related to the EO in the coming days and weeks. ....

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Companies Named "Military End Users", US Goods Access Limited

Wednesday, December 30, 2020
On December 23, 2020, the US Department of Commerce, Bureau of Industry and Security (BIS) published in the
Federal Register a Final Rule that identified 57 Chinese companies and 45 Russian companies as “military end users,” limiting their ability to purchase certain US goods and technology (MEU List).
Prior Amendment to MEU Rule
In April 2020, the Commerce Department amended the Export Administration Regulations (EAR), 15 CFR parts 730-774, by expanding the licensing requirements for exports, reexports and transfers (in-country) of items subject to the EAR in three respects:
The list of items subject to the end use/end user rule was significantly expanded (i.e., the list of items that normally would not require a license for China, Russia or Venezuela); ....

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U.S. Department of Commerce Publishes Military End User List for Restricting Exports to China and Russia | Miller Canfield

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On December 23, 2020, the U.S. Department of Commerce Bureau of Industry and Security (BIS) issued the anticipated list of designated military end users (MEU List) under Section §744.21 (MEU Rule) of the Export Administration Regulations (EAR) Restrictions (
see Federal Register notice). This MEU List provides a first tranche of over 100 designated military end users from China and Russia. Per Commerce Secretary Wilbur Ross, this action establishes a new process to designate military end users on the MEU List to assist exporters in screening their customers for military end users ( ....

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Military End User List for Restricting Exports to China and Russia

Monday, December 28, 2020
On December 23, 2020, the U.S. Department of Commerce Bureau of Industry and Security (BIS) issued the anticipated list of designated military end users (MEU List) under Section §744.21 (MEU Rule) of the Export Administration Regulations (EAR) Restrictions (
see Federal Register notice). This MEU List provides a first tranche of over 100 designated military end users from China and Russia. Per Commerce Secretary Wilbur Ross, this action establishes a new process to designate military end users on the MEU List to assist exporters in screening their customers for military end users (
see link).
Most of the Chinese entities on the MEU List are in the aerospace industry, including seven subordinate institutions of Aviation Industry Corporation of China (AVIC) and eight subordinate institutions of Aero-Engine Company of China. Despite initial press reports, the MEU List does not include Commercial Aircraft Corporation of China ....

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Commerce Releases List of Restricted Military End Users in China and Russia, Changes Hong Kong's Status Under U.S. Export Administration Regulations | Faegre Drinker Biddle & Reath LLP

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On December 21, 2020, the Department of Commerce’s Bureau of Industry and Security (BIS) added 102 Chinese and Russian companies to a new restricted “Military End User” (MEU) list in the U.S. Export Administration Regulations (EAR). Separately, BIS removed the Hong Kong Special Administrative Region (SAR) from the list of destinations in the EAR to reflect that it will now be treated in the same manner for export control purposes as mainland China, completing a series of changes first reported in July 2020. These rules, according to the pre-publication versions (MEU list, Hong Kong SAR removal), are to take effect when published in the Federal Register on December 23, 2020. ....

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