Summary

Tightens U.S. national security controls on investments and finance linked to certain Chinese entities. It gives the President new sanctions powers, can restrict U.S. persons from holding securities tied to designated companies, and funds the Treasury Department to run and enforce the program. Provides $150 million per year for two years to Treasury, lets Treasury and Commerce quickly hire needed staff, and supports outreach to affected industries and investors. The policy ends automatically if the Commerce Department removes the People’s Republic of China from its “foreign adversaries” list. A planned new Defense Production Act provision would add a prohibition/notification regime for certain investments, but the specific text was not provided here.

Key Points

• Authorizes $150 million per year for two years to Treasury, with some funds transferable to Commerce for outreach.
• Gives the President authority to sanction “covered foreign persons,” with implementation delegated to Treasury.
• Envisions prohibiting U.S. persons from holding securities of entities on the Non‑SDN Chinese Military‑Industrial Complex Companies List.
• Allows a 365‑day divestment period and narrow waivers for national security or foreign policy.
• Requires interagency information‑sharing and regular reports to Congress.
• Creates special direct‑hire authorities for the President, Treasury, and Commerce to quickly staff up.
• Sunsets automatically if Commerce removes the PRC from its foreign adversaries list in 15 CFR §791.4.
• Directs adding a new Defense Production Act provision for investment prohibitions/notifications (specific text not provided).
• Includes a severability clause to preserve the Act if parts are invalidated.

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