Two senior Republican lawmakers have introduced legislation that would block American investment in companies tied to Chinese Communist Party (CCP) officials and entities accused of supporting Beijing’s military buildup. Senators and representatives behind the measure say the change aims to prevent U.S. capital from aiding firms linked to China’s defense apparatus.
The bill, filed by Senator Rick Scott and Representative Elise Stefanik, would require Treasury Secretary Scott Bessent to update the Treasury Department’s Non‑SDN Chinese Military‑Industrial Complex Companies (NS‑CMIC) List within one year whenever blacklisted Chinese individuals are identified. The NS‑CMIC List is managed by the Office of Foreign Assets Control (OFAC) and targets companies believed to have ties to China’s military sector. Securities tied to firms on the list are already off‑limits to U.S. investors.
Lawmakers contend the list has not been refreshed since 2021, leaving growing national security risks unaddressed. Under the proposed law, the U.S. President would also have to send Congress a report every two years naming Chinese individuals and entities that should be subject to sanctions.
The bill’s review process would draw on several established U.S. government blacklists, including the Commerce Department’s Entity List, the Pentagon’s 1260H List and the State Department’s Uyghur Forced Labor Prevention Act Entity List. Supporters say that cross‑referencing those lists would speed sanctions and reduce regulatory gaps.
Senator Scott said the United States must stop letting entities tied to the CCP’s military establishment benefit from American capital markets and called Communist China a direct national security threat. Representative Stefanik argued the measure would curb U.S. economic dependence on Chinese companies and prevent delays when companies tied to Beijing’s military expansion and political influence are identified.
The push comes amid heightened concern that China’s military‑civil fusion strategy allows civilian firms and research institutions to contribute to the modernization of the People’s Liberation Army, increasing the national security stakes of U.S. investments in certain Chinese companies.
This report is based on syndicated content received by The Tribune; the publication disclaims responsibility for the accuracy or completeness of that feed.
