Restrictions on PRC-Linked Securities Extended
U.S. investors holding publicly traded PRC companies must keep the restrictions in view through at least November 2026.
Updated on Nov. 5, 2026 in Economic Policy
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The President has continued the national emergency concerning securities investments that finance certain People's Republic of China (PRC) companies for one year. The continuation keeps restrictions on U.S. investment in those firms in effect beyond November 12, 2026.
Why it matters
The emergency was first declared in November 2020 and later expanded in June 2021, reflecting U.S. concern that PRC companies are drawing on American capital to support military and security development. For businesses and investors with exposure to publicly traded PRC issuers, continuation means the restrictions remain a standing compliance consideration rather than a lapsing one.
The continuation extends the national emergency for one year beyond its November 12, 2026 expiration. The underlying framework was established by Executive Order 13959 in November 2020 and expanded by Executive Order 14032 in June 2021.
The players
People's Republic of China (PRC)
The Chinese state whose companies are the targeted threat, and whose Military-Civil Fusion strategy is cited as the basis for the restrictions.
The details
PRC companies raise capital by selling securities to U.S. investors trading on public exchanges, and some lobby U.S. index providers and funds to include their securities in market offerings. The government's stated concern is the national strategy of Military-Civil Fusion, under which the PRC uses such capital to expand its military-industrial complex. Continuing the emergency keeps the executive framework under the International Emergency Economic Powers Act in force, so the restrictions on covered securities investments remain operative.
Timeline
November 12, 2020: Executive Order 13959 declared the national emergency.
January 13, 2021: Executive Order 13974 amended Executive Order 13959.
June 3, 2021: Executive Order 14032 expanded the scope of the emergency.
November 5, 2026: Notice of continuation published in the Federal Register.
November 12, 2026: The emergency would have expired without continuation.
Market Landscape
The continuation extends an executive framework first set out in Executive Order 13959 in November 2020 and expanded by Executive Order 14032 in June 2021. It reflects a sustained U.S. policy position on the capital links between American investors and PRC issuers.
Investment firms and fund managers with holdings in publicly traded PRC companies should review whether those positions fall within the scope of the continued restrictions. Compliance questions should be routed to qualified counsel.
The takeaway
Treat the November 12, 2026 expiration as now extended, and keep the restricted-securities list under periodic review. Consult qualified counsel before changing any position in covered PRC issuers.
Further reading
For related background, see our coverage of Economic Policy.
Source note: This article includes information reported by Federal Register.
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