Zhongguancun Software Park, Sugon Building 36, 8, Dongbeiwang West Road, Haidian District, Beijing, 100193, China
Reg. ID
91120000783342508F, Unified Social Credit Code (USCC)
Official reason
Dawning Information Industry Co., Ltd (Dawning) operates or has operated in the defense and related materiel sector of the economy of the PRC and owns or controls, directly or indirectly, Xinjiang Sugon Cloud Computing Co., Ltd. (Sugon), an entity that operates or has operated in the surveillance technology sector of the economy of the PRC. Dawning provides big data systems for national defense and security uses, including for the People’s Liberation Army (PLA) development of nuclear and hypersonic weapons-testing and its joint combat command system. Moreover, Dawning’s fully owned subsidiary, Sugon, built the Urumqi Cloud Computing Center, which is used to monitor individuals in Xinjiang and engage in predictive policing efforts.
Executive Order 13959 Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies (as amended by Executive Order 14032 Addressing the Threat From Securities Investments That Finance Certain Companies of the People’s Republic of China)
On November 12, 2020, the President, invoking the authority of, inter alia, the International Emergency Economic Powers Act (50 U.S.C. 1701–1706) (IEEPA), issued Executive Order (E.O.) 13959, “Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies” (85 FR 73185, November 17, 2020).
In E.O. 13959, the President found, among other things, that the People's Republic of China (PRC) is increasingly exploiting United States capital to resource and to enable the development and modernization of its military, intelligence, and other security apparatuses, which continues to allow the PRC to directly threaten the United States homeland and United States forces overseas, including by developing and deploying weapons of mass destruction, advanced conventional weapons, and malicious cyber-enabled actions against the United States and its people, and that key to the development of the PRC's military, intelligence, and other security apparatuses is the country's large, ostensibly private economy. The President therefore found that the PRC's military-industrial complex, by directly supporting the efforts of the PRC's military, intelligence, and other security apparatuses, constitutes an unusual and extraordinary threat, which has its source in substantial part outside the United States, to the national security, foreign policy, and economy of the United States and declared a national emergency with respect to that threat.
On January 13, 2021, the President issued E.O. 13974, “Amending Executive Order 13959—Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies” (86 FR 4875, January 19, 2021), which amended E.O. 13959. Further, on June 3, 2021, the President issued E.O. 14032, “Addressing the Threat From Securities Investments That Finance Certain Companies of the People's Republic of China” (86 FR 30145, June 7, 2021), which amended E.O. 13959 and revoked E.O. 13974 in its entirety.
In E.O. 14032, the President found that additional steps are necessary to address the national emergency declared in E.O. 13959, including the threat posed by the military-industrial complex of the PRC and its involvement in military, intelligence, and security research and development programs, and weapons and related equipment production under the PRC's Military-Civil Fusion strategy. In addition, he found that the use of Chinese surveillance technology outside the PRC and the development or use of Chinese surveillance technology to facilitate repression or serious human rights abuse constitute unusual and extraordinary threats, which have their source in whole or substantial part outside the United States, to the national security, foreign policy, and economy of the United States and expanded the scope of the national emergency declared in E.O. 13959 to address those threats.
OFAC is issuing the Chinese Military-Industrial Complex Sanctions Regulations, 31 CFR part 586 (the “Regulations”), to implement E.O. 13959, as amended by E.O. 14032, pursuant to authorities delegated to the Secretary of the Treasury in E.O. 13959, as amended. Copies of E.O. 13959 and E.O. 14032 appear in appendix A and appendix B to this part, respectively. Because E.O. 13974 has been revoked in its entirety, it does not appear in an appendix to this part.
