Memorandum on Protecting United States Investors From Significant Risks From Chinese Companies

This is a presidential memorandum issued by President Donald J. Trump in June 2020, titled "Memorandum on Protecting United States Investors From Significant Risks From Chinese Companies." It provides direction to specific executive branch agencies, including the Secretary of the Treasury, the Assistant to the President for Economic Policy, and the Assistant to the President for National Security Affairs. The memorandum's stated purpose is to ensure the integrity of United States financial markets by addressing significant risks from Chinese companies. It aims to end the practice where Chinese companies with significant operations do not comply with investor protections required for companies listing on U.S. stock exchanges, specifically noting issues with audit firms providing information to the Public Company Accounting Oversight Board (PCAOB).

This action affects United States investors, including pension funds, who invest in Chinese companies listed on U.S. stock exchanges, as well as the Chinese companies themselves. It matters because it seeks to enforce U.S. transparency laws and ensure that laws protecting investors in American financial markets are fully applied to all companies listed on U.S. exchanges. Presidential memoranda are a routine administrative tool, functioning similarly to executive orders but typically more narrow in scope. The President's authority to direct executive branch operations, as exercised through this memorandum, is grounded in Article II of the Constitution and is considered a standard exercise of presidential power used by every modern administration.

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