Sponsors (5)
Introduced December 17, 2025 by John Cornyn · Last progress December 17, 2025
The bill strengthens national‑security protections by restricting U.S. investment and improving interagency coordination and oversight of PRC-linked entities, but it raises economic costs, compliance risks, legal complexity, and some programmatic and hiring uncertainties that will affect investors, businesses, taxpayers, and federal personnel.
Investors and financial institutions are shielded from direct investment in PRC firms tied to China’s defense and surveillance sectors by bans on significant equity or debt purchases, reducing exposure to adversary military supply chains.
Federal agencies will share information and publish criteria and regular reports (including unclassified reports and possible classified annexes), increasing transparency and congressional oversight of listings and covered entity designations.
Treasury and Commerce receive dedicated funding ($150 million per year for two years) and authority for rapid hiring of up to 15 experts to stand up the program, enabling faster implementation and technical capacity for enforcement and outreach.
U.S. investors and companies face reduced investment opportunities and possible devaluation of assets when covered foreign firms are restricted, potentially causing financial losses across portfolios and markets.
U.S. persons and financial institutions will incur higher compliance costs and face substantial enforcement risk — including heavy civil fines and criminal penalties for willful violations — increasing legal and operational burdens.
Expanded information-sharing, aggregated reporting, and potentially varying agency criteria raise the risk of inconsistent designations that can harm businesses and complicate legal compliance.
Based on analysis of 8 sections of legislative text.
Authorizes funds and hiring for Treasury/Commerce and lets the President use IEEPA to block U.S. investments in certain China‑linked defense and surveillance firms, with reporting and OFAC review requirements.
Creates a program that gives the President authority to block U.S. persons from investing in or buying large amounts of equity or debt in certain foreign firms tied to defense or surveillance technology in the People’s Republic of China (including Hong Kong and Macau). It provides funding and hiring authorities to Treasury and Commerce to run outreach and administration, requires repeated interagency reports and reviews of China‑linked entities for possible OFAC listing, imposes civil and criminal penalties for violations, and sunsets after seven years.