The Executive Order 13974, issued by President Donald J. Trump, amends previous regulations concerning securities investments in companies linked to the Chinese military. Under this order, U.S. persons must divest from any such securities by specified dates in 2021 and 365 days from future determinations. The order also clarifies the roles of the Secretaries of Defense and Treasury in identifying and listing these companies. Additionally, it sets definitions for terms like "transaction" and outlines the order's implementation rules.
Simple Explanation
Imagine there are companies linked to a big, strong country, and people in another country are told they can't invest in those companies anymore. This order helps decide which companies are affected and tells people when they need to stop investing, but some parts might be hard to understand and could use better explanations.