Divesting from Communist China’s Military Act of 2026

Key Points

• This bill, introduced by Senator Scott of Florida, would stop Americans from investing in companies that help the Chinese military. It requires the Treasury Department to create a 'no-invest' list for any business the Department of Defense identifies as being tied to China's armed forces or police.
• If this becomes law, everyday investors, banks, and retirement funds would be banned from buying or selling stocks or bonds in these specific Chinese companies. This is meant to ensure that American money isn't used to build up a foreign military or fund technology used for spying and human rights abuses.
• The policy targets companies that are owned or controlled by the Chinese military or intelligence agencies. It also includes 'private' companies that work closely with the Chinese government to develop new military equipment or weapons.
• People who already own shares in these companies would have one year to sell them. After that one-year grace period, trading these specific stocks would be illegal for U.S. citizens and businesses. This gives investors time to move their money without being punished immediately.
• This action builds on previous orders signed by President Donald J. Trump and President Joseph R. Biden. It aims to close a loophole where the government was already banned from buying products from these companies, but regular Americans were still allowed to invest in them through the stock market.