On December 3, 2020, the Department of Defense announced its third list of “Communist Chinese military companies” operating in the United States, pursuant to Section 1237 of the National Defense Authorization Act for Fiscal Year 1999, as amended (“Section 1237”).  The practical impact of the announcement is that these four companies become subject to Executive Order 13959, which restricts US investment in these companies.  The first and second lists also issued pursuant to Section 1237 are found here and here.

The following companies are identified this time:

  1. China Construction Technology Co. Ltd.;
  2. China International Engineering Consulting Corp.;
  3. China National Offshore Oil Corp. (“CNOOC”); and
  4. Semiconductor Manufacturing International Corp. (“SMIC”)

Executive Order 13959 prohibits US persons from acquiring publicly traded securities of companies identified pursuant to Section 1237, effective 60 days following their designation, i.e., starting February 1, 2021.  Transactions made solely to divest from securities held in the above companies as of February 1, 2021 will be authorized until December 3, 2021. This third round of identifications bring the total to 35 entities identified under Section 1237.  Subsidiaries of identified companies are not subject to the securities restrictions unless they are also listed.  For more information on the Executive Order 13959 restrictions, please see our blog post here.  


Ms. Kim focuses on outbound trade compliance issues that arise under US economic sanctions, export control laws, investment restrictions, anti-boycott regulations, anti-money laundering laws and the Foreign Corrupt Practices Act. She represents and advises US and non-US companies in criminal and regulatory proceedings, internal investigations, and compliance audits relating to these areas of law. She also advises on the extraterritorial application of these laws in cross-border transactions, including mergers and acquisitions, joint venture arrangements, and other international commercial activities. Her practice includes the development and implementation of workable, risk-based internal compliance programs and procedures for companies in a wide range of industries.


Eunkyung advices clients on various regulatory compliance and trade issues, concentrating on the US export controls such as the Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR), economic and trade sanctions, US customs and import laws, the US Foreign Corrupt Practices Act (FCPA), and foreign anti-bribery laws.


Callie C. Lefevre is an associate in the Washington, DC office where she is a member of the International Practice Group. Her practice is focused on all aspects of International Trade law, particularly compliance with US export controls, trade and economic sanctions, and US foreign investment restrictions. *Admitted in New York only. Practice limited to matters and proceedings before US courts and federal agencies.