The U.S. Treasury Department has issued new guidance regarding the Chinese Military-Industrial Complex (CMIC) sanctions in response to frequently asked questions, just two days before the deadline for U.S. investors to fully divest their holdings of securities of designated Chinese military companies.
The new guidance, published on June 1, states that “U.S. persons are not required to divest their holdings of CMIC securities during the relevant 365-day divestment period and may continue to hold such securities after the divestment period.”
“E.O. 13959, as amended, permits purchases or sales made solely to effect the divestment of CMIC securities, but only during the 365-day divestment period. Accordingly, any such purchase or sale is prohibited after the 365-day divestment period, absent OFAC authorization,” it stated….