Divesting from Communist China’s Military Act of 2026

Key Points

• This bill would require the Treasury Department to add any company identified by the Defense Department as a Chinese military company to a restricted investment list (the NS-CMIC List) within 90 days of that identification.
• Once a company is placed on the list, Americans would be banned from buying or holding its stocks, bonds, or derivative financial products. The prohibitions from Executive Order 13959 would kick in 60 days after listing.
• Investors who already own securities in newly listed companies would get a one-year window to sell their holdings, giving them time to divest without being forced into sudden losses.
• The bill builds on earlier executive orders by both Trump and Biden that identified Chinese military-civil fusion as a national security threat, and aims to close a gap where companies banned from Defense Department contracts can still raise money from U.S. investors.
• The definition of affected companies is broad, covering entities owned, controlled, or affiliated with the People's Liberation Army, Chinese security forces, or key Chinese government agencies involved in defense and industry.