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Congress·In Committee·about 2 months ago

Congress Proposes Ban on American Investment in Chinese Companies Linked to Military and Surveillance

Also known as: Divesting from Communist China’s Military Act of 2026

Legislative Progress

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Senate
House
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Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

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.
Economy FinanceNational Security Foreign Policy

Milestones

2 milestones2 actions
Jan 14, 2026Senate

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Jan 14, 2026

Introduced in Senate

Related News

3 articles
NTD News·about 2 months ago

Bill Aims to Close Loophole That Allows Chinese Military to Access US Capital

Rep. Scott Perry on Jan. 14 introduced the Divesting from Communist China's Military Act, which would sanction and prohibit investment in Chinese military companies on the Pentagon's blacklist. Sen. Rick Scott is introducing companion legislation in the Senate.

R+
Florida Politics·about 2 months ago

Delegation 1.16.26: Inside trader — dictators — diplomacy — tech immunity — AI arms race

Senator Rick Scott introduced the Divesting from Communist China's Military Act this week. The bill aims to ensure American investments are not used to support adversarial entities that undermine U.S. interests by aligning Treasury and Defense Department blacklists.

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Chief Investment Officer·3 months ago

Senate Passes $900B Defense Bill That Restricts Investment in China

The Senate approved a defense bill that includes measures to limit U.S. investments in China's technology and defense sectors. The legislation covers a wide range of financial activities, including equity and debt investments and passive index funds.

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Source Information

Document Type

Congressional Bill

Official Title

Divesting from Communist China’s Military Act of 2026

Bill NumberS 3640
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Sponsor

Cosponsors

(3)
R: 3

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.