Sponsors (8)
The bill strengthens U.S. deterrence and creates powerful sanctions and trade tools to constrain PRC aggression and protect Taiwan and global trade, but it risks sizable costs for U.S. consumers, businesses, financial institutions, and diplomacy while expanding executive sanction authority and compliance burdens.
All Americans (taxpayers and middle‑class families) benefit from stronger U.S. deterrence and a clearer commitment to defend Taiwan and preserve a free and open Indo‑Pacific, which aims to reduce the chance of a major regional war and protect global trade routes.
U.S. authorities gain faster tools to freeze or block PRC financial actors, assets, and transactions, constraining funding for hostile military action and improving the government's ability to respond quickly to threats.
U.S. prohibitions on investment in PRC strategic sectors and sovereign debt reduce capital flowing to PRC military‑industrial development, limiting China’s ability to modernize forces that could threaten U.S. interests.
Middle‑class families, consumers, and businesses face higher prices and supply‑chain disruption because large duties (up to 500%) and restrictions on PRC trade would sharply raise import costs and shift trade flows.
Investors, retirement accounts, and financial institutions could suffer market volatility and losses if bans on trading China‑listed securities and investment prohibitions trigger sudden divestment or market dislocations.
Banks and U.S. firms will face expanded compliance costs and heightened legal risk because broad definitions (including extraterritorial reach) and a 'should have known' standard increase the chance of civil or criminal exposure for inadvertent transactions.
Based on analysis of 10 sections of legislative text.
Introduced March 11, 2026 by Daniel Scott Sullivan · Last progress March 11, 2026
Requires the President to carry out a rapid package of sanctions, trade bans, investment restrictions, and large tariffs against the People’s Republic of China and affiliated actors if the President determines China is engaging or imminently planning hostile acts against Taiwan (invasion, blockade, seizure, debilitating attacks on critical infrastructure, etc.). It creates recurring presidential assessments, an expedited congressional fast-track resolution process, and detailed mandatory measures that take effect within days of a covered determination. Measures include broad blocking sanctions on Chinese officials and entities, restrictions on PRC banks and correspondent accounts, bans on U.S. investment in specified PRC sectors (including energy), prohibitions on purchases of PRC sovereign debt, limits on certain financial messaging services, SEC trading bans for specified China-listed securities, and the power to impose very large ad valorem duties (up to 500%) on imports from the PRC and supporting countries. The President may grant limited, short-term waivers for national security reasons and must notify Congress of waivers and terminations.