Sponsors (7)
Official title: To protect the national security of the United States by imposing sanctions with respect to certain persons of the People's Republic of China and prohibiting and requiring notifications with respect to certain investments by United States persons in the People's Republic of China, and for other purposes.
Introduced March 21, 2025 by Garland H. Barr · Last progress March 21, 2025
The bill strengthens U.S. tools to block financing and investment in Chinese military‑linked firms and improves reporting and implementation capacity, but it imposes compliance costs, risks forced divestments for ordinary investors, may provoke PRC retaliation, and raises governance and spending concerns.
U.S. national security: The government gains clear authority to block assets and restrict U.S. investment in Chinese-linked defense and surveillance firms, reducing those firms' access to U.S. capital and financial services.
Investors and financial institutions: The bill requires clearer guidance and annual unclassified reports (with a classified annex option) about covered PRC-linked firms, improving transparency and helping market participants comply and reduce legal risk.
Implementation capacity: Treasury and Commerce receive $150 million per year for two years and temporary direct-hire authority to speed program setup, outreach to industry and affected parties, and program delivery.
Ordinary U.S. investors and retirement accounts: Holders of affected securities must divest within one year, risking forced-fire sales and potential losses for middle‑class investors and small accounts.
Financial institutions and businesses: Broad definitions and listing authority create legal uncertainty and compliance burdens (transaction restrictions, reporting, monitoring), increasing costs and potentially chilling legitimate trade and investment with PRC-linked counterparties.
U.S. businesses and consumers: Sanctions and investment restrictions risk provoking retaliatory measures from the PRC, with possible economic or diplomatic blowback that could harm exports, supply chains, and consumer prices.
Based on analysis of 14 sections of legislative text.
Authorizes $150M/year (2 years) for Treasury/Commerce, expands IEEPA blocking sanctions for PRC-linked defense/surveillance firms, and bans U.S. persons from holding securities of OFAC Non‑SDN listed entities after 365 days.
Authorizes funding and new Treasury/Commerce authorities to identify, sanction, and restrict certain Chinese (including Hong Kong and Macau) firms tied to defense or surveillance sectors. It directs the President and Treasury to use IEEPA blocking sanctions against designated “covered foreign persons,” requires reporting and listings tied to the OFAC Non‑SDN Chinese Military‑Industrial Complex Companies List, and directs a future ban on U.S. persons knowingly holding securities of entities on that OFAC list (effective 365 days after enactment). The Act also provides $150 million per year for two years for Treasury (with transfers to Commerce), creates limited direct-hire authorities to implement the law, and terminates when Commerce removes the People’s Republic of China from a specified foreign-adversary regulatory list.