I read on finance.yahoo.com (mirror):

The move stems from an executive order President Donald Trump issued on Nov. 12 barring investment in publicly traded companies that the U.S. government says are owned or controlled by the Chinese military.

I'm confused by the executive order:

  1. Does this only concern US citizens, or also US legal permanent residents?
  2. I understand that such Chinese companies will be delisted from NYSE. Does it allow such Chinese companies to be still traded via OTC Bulletin Board?
  3. Does it allow US citizens/residence to own shares in such Chinese companies via non-US brokerage account?

1 Answer 1


The order itself is here. It applies to "any United States person", which includes citizens, LPRs, entities with a US basis, and any other person in the US including tourists. It applies to transactions, and not static possession. There is no exception to the effect that "you can trade as long as it's not on the NYSE", and it says

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

The order is not just directed at brokers, or the NYSE, it applies to everybody / everything everywhere, if you are a US person. Apparently there was some unclarity on the OTC question, which was clarified by the Office of Foreign Assets Control, to the effect that it includes OTC trading.

  • 4
    Amazing that the order also applies to tourists. Jan 4, 2021 at 6:38
  • @FranckDernoncourt The USA don't need no stinking tourists!!
    – alephzero
    Jan 4, 2021 at 14:38
  • 4
    @FranckDernoncourt pretty much all laws and restrictions about commerce apply to visiting tourists for the commerce they do while visiting. Obviously, if they're doing investments (the order applies to transactions not possession) or some other business during their tourism trip, then local laws apply to these activities. But in general that would not matter as tourists are expected not to do any business while in the host country and it may even be prohibited by tourist visa conditions, if you want to also do business activities while visiting that generally requires a different type of visa.
    – Peteris
    Jan 4, 2021 at 16:41

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