Sponsors (5)
The bill strengthens U.S. national security by limiting certain outbound investments and improving interagency targeting and oversight, but it does so at the cost of higher compliance burdens, increased business and legal uncertainty, potential economic retaliation, and modest federal implementation spending.
U.S. investors, financial institutions, and national-security stakeholders: the bill restricts outbound investment into dual‑use and China military‑oriented entities (including bans on certain equity/debt purchases), directly reducing the risk that U.S. capital supports foreign military‑industrial or surveillance sectors.
Federal policymakers and the public: the bill requires standardized annual reporting, interagency information‑sharing, and a risk‑based prioritization framework so agencies target high‑risk PRC‑linked entities more effectively and Congress receives better oversight.
Federal agencies and program staff: the bill provides dedicated funding ($150 million per year for two years) and temporary direct‑hire/appointment authority to stand up the program and carry out outreach and enforcement.
Financial institutions, investors, and small businesses: the bill will raise compliance and monitoring costs and constrain financing and investment options as firms must screen, report, or avoid transactions involving covered foreign persons.
Investors and companies holding affected assets: entities and investors face heightened risk of designation, forced divestment, or asset writedowns if counterparties are added to covered lists, which can reduce asset values and harm business operations.
U.S. economy and supply chains: expanding restrictions and use of emergency economic authorities could strain U.S.–China economic relations and prompt retaliatory measures that disrupt trade and global supply chains.
Based on analysis of 8 sections of legislative text.
Authorizes Treasury to restrict or ban U.S. investments in foreign entities tied to PRC military‑industrial and dual‑use tech, funds implementation, and requires recurring entity reviews and reports to Congress.
Introduced December 17, 2025 by John Cornyn · Last progress December 17, 2025
Limits and controls certain U.S. investments in foreign entities tied to the People’s Republic of China and other countries of concern, funds Treasury (with possible Commerce transfers) to implement those controls, and creates reporting and review requirements. It authorizes Treasury to use IEEPA sanctions to bar U.S. persons from investing in or buying significant equity or debt of covered foreign persons, sets hiring flexibilities and funding to administer the program, requires recurring reviews of Chinese-related entities across several federal lists, and includes a seven-year sunset. The bill also adds a placeholder to the Defense Production Act for new rules on prohibitions and notifications for investments tied to national security transactions, requires periodic reports to Congress about PRC-linked entities and the OFAC Non‑SDN Chinese Military‑Industrial Complex Companies List, and exempts certain authorized U.S. government intelligence and law enforcement transactions from the restrictions.