Sponsors (7)
The bill tightens financial controls on PRC-linked military and surveillance firms to strengthen U.S. national security and improve compliance clarity, while imposing significant economic costs, market uncertainty, and some reductions in oversight and hiring transparency.
Many Americans benefit from reduced national-security risk because the bill authorizes blocking assets and banning investment in PRC-linked defense and surveillance firms, limiting their access to the U.S. financial system.
Investors and U.S. financial institutions gain clearer guidance and an OFAC reporting regime (annual unclassified reports with optional classified annex) that improves transparency and helps compliance.
The bill provides dedicated implementation resources — $150 million per year for two years to Treasury and Commerce and authority for expedited hiring — to stand up enforcement and outreach more quickly.
U.S. investors (including retirement accounts and ordinary savers) will be forced to divest affected securities within a year, risking realized losses, fire-sales, and reduced portfolio diversification.
Broad definitions of 'PRC person' and covered foreign persons create legal uncertainty that could ensnare indirectly linked firms and chill legitimate trade and investment.
Compliance costs, transaction restrictions, and increased reporting will raise burdens for U.S. banks, brokerages, and businesses and may disrupt markets and ordinary commerce.
Based on analysis of 14 sections of legislative text.
Provides Treasury/Commerce funding and hiring, authorizes IEEPA blocking sanctions on certain China‑linked defense/surveillance entities, and bans U.S. persons from holding securities of listed firms after 365 days.
Introduced March 21, 2025 by Garland H. Barr · Last progress March 21, 2025
Authorizes funding and hiring at the Treasury (with transfers to Commerce) to implement new export‑/investment‑screening and sanctions measures targeting certain China‑linked defense and surveillance companies, and gives the President IEEPA authority to block property of designated "covered foreign persons." It also directs a phased prohibition on U.S. persons knowingly holding securities of companies on the OFAC Non‑SDN Chinese Military‑Industrial Complex Companies List starting 365 days after enactment, requires repeated reports to Congress, and ends automatically if Commerce removes the People’s Republic of China from a specified regulatory "foreign adversaries" list.