PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the Committee on Foreign Affairs, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Congressional Research Service
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People & committees
Rep. Barr, Andy [R-KY-6] · R–KY
Legislative record
A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.
Referred to the Committee on Foreign Affairs, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Foreign Affairs, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
Source last updated: Jan 10, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2025-03-21 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
This bill would let the government block assets of certain China-linked foreign persons involved in defense or surveillance and restrict certain U.S. investments in sensitive technologies. Other covered investments would have to be reported to Treasury. It would also require U.S. investors to stop knowingly holding securities of companies on a specified Chinese military-industrial list, subject to exceptions and waivers. These are proposed changes, not evidence of enacted law.
The President may exercise all of the powers granted to the President under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all transactions in property and interests in property of a foreign person that is determined to be a covered foreign person pursuant to subsection (a)
that knowingly engaged in significant operations in the defense and related materiel sector or the surveillance technology sector of the economy of a country of concern.
The Secretary may prohibit, in accordance with regulations issued under subsection (e), a United States person from knowingly engaging in a covered national security transaction in a prohibited technology.
to require a United States person that engages in a covered national security transaction in a prohibited technology (unless the Secretary has exercised the authority provided by section 801(a) to prohibit knowingly engaging in such covered national security transaction) or a notifiable technology to submit to the Secretary a written notification of the transaction not later than 30 days after the completion date of the transaction.
The President shall promulgate rules that prohibit a United States person from knowingly holding securities of entities on the Non-SDN Chinese Military-Industrial Complex Companies List, after the date that is 365 days after the date of enactment of this Act.
The proposal is called the Foreign Investment Guardrails to Help Thwart (FIGHT) China Act. Treasury's Secretary would generally administer it. If a provision or its application were held invalid, the remaining provisions and other applications would remain effective.
This title may be cited as the Foreign Investment Guardrails to Help Thwart (FIGHT) China Act.
Except as otherwise provided, in this Act, the term Secretary means the Secretary of the Treasury.
If any provision of this Act, or the application thereof, is held invalid, the validity of the remainder of this Act and the application of such provision to other persons and circumstances shall not be affected thereby.
The bill would authorize, rather than itself provide, $150 million for Treasury for each of the first two fiscal years beginning on or after enactment. Some could be transferred to Commerce for joint outreach. The President could directly appoint up to 15 employees, while Treasury and Commerce could also make direct appointments, bypassing the specified hiring provisions.
There is authorized to be appropriated $150,000,000 to the Department of the Treasury, out of which amounts may be transferred to the Department of Commerce to jointly conduct outreach to industry and persons affected by this Act, for each of the first two fiscal years beginning on or after the date of the enactment of this Act, to carry out this Act.
The President may appoint, without regard to the provisions of sections 3309 through 3318 of title 5, United States Code, not more than 15 individuals directly to positions in the competitive service (as defined in section 2102 of that title) to carry out this Act.
The Secretary and the Secretary of Commerce may appoint, without regard to the provisions of sections 3309 through 3318 of title 5, United States Code, individuals directly to positions in the competitive service (as defined in section 2102 of that title) of the Department of the Treasury and the Department of Commerce, respectively, to carry out this Act.
The entire Act would stop having legal effect if Commerce removed China from the foreign-adversary list in the specified regulation. This is an event-based termination condition, not a fixed expiration date.
This Act shall cease to have any force or effect on the date on which the Secretary of Commerce revises section 791.4 of title 15, Code of Federal Regulations, to remove the People’s Republic of China from the list of foreign adversaries contained in such section.
The sanctions title would cover foreign persons with specified China connections who knowingly conduct significant defense-related or surveillance-technology operations there. China includes Hong Kong and Macau. Connections include incorporation or a principal business location there, primarily trading shares there, Chinese Communist Party Central Committee membership, government status, direction or control, or at least 50% aggregate direct or indirect ownership by specified entities.
The term country of concern— (A) means the People’s Republic of China; and (B) includes the Hong Kong Special Administrative Region and the Macau Special Administrative Region.
The term covered foreign person means a foreign person— (A) (i) that is incorporated in, has a principal place of business in, or is organized under the laws of a country of concern; (ii) the equity securities of which are primarily traded in the ordinary course of business on one or more exchanges in a country of concern; (iii) that is a member of the Central Committee of the Chinese Communist Party; (iv) that is the state or the government of a country of concern, as well as any political subdivision, agency, or instrumentality thereof; (v) that is subject to the direction or control of any entity described in clause (i), (ii), (iii), or (iv); or (vi) that is owned in the aggregate, directly or indirectly, 50 percent or more by an entity or a group of entities described in clause (i), (ii), (iii), or (iv); and (B) that knowingly engaged in significant operations in the defense and related materiel sector or the surveillance technology sector of the economy of a country of concern.
Sanctions would be discretionary. After Treasury, consulting State, determined that a foreign person qualified, the President could block transactions involving that person's property in the United States or held or controlled by a U.S. person. The President would have to delegate this section's authorities to Treasury.
The President may impose the sanctions described in subsection (b) with respect to any foreign person determined by the Secretary, in consultation with the Secretary of State, to be a covered foreign person.
to block and prohibit all transactions in property and interests in property of a foreign person that is determined to be a covered foreign person pursuant to subsection (a) if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.
The President shall delegate the authorities granted by this section to the Secretary.
Sanctions violations, attempts, conspiracies, and causing violations would carry penalties imported from the International Emergency Economic Powers Act. The sanctions would not apply to specified intelligence activities or prevent official federal business conducted by employees, grantees, or contractors.
The penalties provided for in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) shall apply to any person who violates, attempts to violate, conspires to violate, or causes a violation of any prohibition of this section, or an order or regulation prescribed under this section
Sanctions under this section shall not apply with respect to any activity subject to the reporting requirements under title V of the National Security Act of 1947 (50 U.S.C. 3091 et seq.) or any authorized intelligence activities of the United States.
Nothing in this section shall prohibit transactions for the conduct of the official business of the Federal Government by employees, grantees, or contractors thereof.
Within 365 days of enactment and annually afterward for seven years, Treasury would report whether each foreign person on its Chinese military-industrial companies list qualified for these sanctions. The report would be unclassified, with a classified annex allowed. Sanctions determinations could consider credible information from other countries, nongovernmental organizations, congressional committees, and other information Treasury deemed relevant.
Not later than 365 days after the date of the enactment of this Act, and annually thereafter for 7 years, the Secretary shall submit to the appropriate congressional committees a report that— (1) states whether each foreign person on the Non-SDN Chinese Military-Industrial Complex Companies List is a covered foreign person; and (2) shall be submitted in unclassified form, but may include a classified annex.
In determining whether a foreign person is a covered foreign person, the President— (1) may consider credible information obtained by other countries, nongovernmental organizations, or the appropriate congressional committees that relates to the foreign person; and (2) may consider any other information that the Secretary deems relevant.
Section 201 would add an investment-control framework to the Defense Production Act. It would cover U.S. citizens, lawful permanent residents, U.S.-organized entities and their foreign branches, and anyone in the United States. Its China-linked foreign-person definition includes specified businesses, Communist Party Central Committee members, and persons under specified direction, control, or at least 50% ownership; it does not require the sanctions title's defense-or-surveillance operations test.
The Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) is amended by adding at the end the following:
The term United States person means— (A) any United States citizen or an alien lawfully admitted for permanent residence to the United States; (B) an entity organized under the laws of the United States or of any jurisdiction within the United States (including any foreign branch of such an entity); or (C) any person in the United States.
Subject to regulations prescribed in accordance with this title, the term covered foreign person means a foreign person that— (A) is incorporated in, has a principal place of business in, or is organized under the laws of a country of concern; (B) is a member of the Central Committee of the Chinese Communist Party; (C) is subject to the direction or control of a country of concern, an entity described in subparagraph (A) or (B), or the state or the government of a country of concern (including any political subdivision, agency, or instrumentality thereof); or (D) is owned in the aggregate, directly or indirectly, 50 percent or more by a country of concern, an entity described in subparagraph (A) or (B), or the state or the government of a country of concern (including any political subdivision, agency, or instrumentality thereof).
The term country of concern— (A) means the People’s Republic of China; and (B) includes the Hong Kong Special Administrative Region and the Macau Special Administrative Region.
and (B) that knowingly engaged in significant operations in the defense and related materiel sector or the surveillance technology sector of the economy of a country of concern.
Covered investments would include ownership purchases, rights to future ownership, loans convertible into ownership or carrying management or board-appointment rights, joint ventures, and conversions of debt or contingent interests into ownership. They would also include specified new operations in China, knowingly directing equivalent foreign-person transactions, and certain fund investments made with knowledge of the fund's intended activities.
(i) the acquisition of an equity interest or contingent equity interest in a covered foreign person; (ii) the provision of a loan or similar debt financing arrangement to a covered foreign person, where such debt financing— (I) is convertible to an equity interest; or (II) affords or will afford the United States person the right to make management decisions with respect to or on behalf of a covered foreign person or the right to appoint members of the board of directors (or equivalent) of the covered foreign person; (iii) the entrance by such United States person into a joint venture with a covered foreign person; (iv) the conversion of a contingent equity interest (or interest equivalent to a contingent equity interest) or conversion of debt to an equity interest in a covered foreign person;
(v) the acquisition, leasing, or other development of operations, land, property, or other assets in a country of concern that will result in, or that the United States person intends to result in— (I) the establishment of a covered foreign person; or (II) the engagement of a person of a country of concern in a prohibited technology where it was not previously engaged in such prohibited technology; (vi) knowingly directing transactions by foreign persons that the United States person has knowledge at the time of the transaction would constitute an activity described in clause (i), (ii), (iii), (iv), or (v), if engaged in by a United States person; or (vii) the acquisition of a limited partner or equivalent interest in a venture capital fund, private equity fund, fund of funds, or other pooled investment fund that the United States person has knowledge at the time of the acquisition, intends to engage in an activity described in clause (i), (ii), (iii), (iv), (v), or (vi).
Treasury could prohibit knowingly making covered investments in technologies classified as prohibited. Evasion would also be prohibited. Activities could receive national-interest exemptions based on a presidential determination following consultation; Treasury would have to notify the relevant congressional committees within five business days and identify the national interest supporting the waiver.
The Secretary may prohibit, in accordance with regulations issued under subsection (e), a United States person from knowingly engaging in a covered national security transaction in a prohibited technology.
Any transaction by a United States person or within the United States that evades or avoids, has the purpose of evading or avoiding, causes a violation of, or attempts to violate the prohibition set forth in subsection (a) is prohibited.
the Secretary is authorized to exempt from the prohibition set forth in subsection (a) any activity determined by the President, in consultation with the Secretary, the Secretary of Commerce and, as appropriate, the heads of other relevant Federal departments and agencies, to be in the national interest of the United States.
The Secretary shall— (1) notify the appropriate congressional committees not later than 5 business days after issuing a waiver under subsection (c); and (2) include in such notification an identification of the national interest justifying the use of the waiver.
Subject to regulations developed with public comment and consultation with Congress, investment controls would exclude transactions Treasury deemed too small to count or categories deemed in the national interest. Exclusions would also cover publicly traded securities, securities of registered investment companies, certain related financial contracts, and limited-partner fund investments with committed capital of no more than $2 million across the fund's investment and co-investment vehicles or a binding assurance against using the money for covered transactions.
Subject to notice and comment regulations prescribed in consultation with Congress and in accordance with this title, the term covered national security transaction does not include— (i) any transaction the value of which the Secretary determines is de minimis; (ii) any category of transactions that the Secretary determines is in the national interest of the United States;
(iii) an investment— (I) in a security (as defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))) that is traded on an exchange or the over-the-counter market in any jurisdiction; (II) in a security issued by an investment company (as defined in section 3 of the Investment Company Act of 1940 (15 U.S.C. 80a–3)) that is registered with the Securities and Exchange Commission; (III) made as a limited partner or equivalent in a venture capital fund, private equity fund, fund of funds, or other pooled investment fund (other than as described in subclause (II)) where— (aa) the limited partner or equivalent’s committed capital is not more than $2,000,000, aggregated across any investment and co-investment vehicles of the fund; or (bb) the limited partner or equivalent has secured a binding contractual assurance that its capital in the fund will not be used to engage in a transaction that would be a covered national security transaction if engaged in by a United States person; or (IV) in a derivative of a security described under subclause (I), (II), or (III);
Other investment exclusions would cover specified financial services and secondary transactions, ordinary administrative business, and transactions completed before enactment. They would also cover buying all of a covered foreign person's interest in entities or assets outside China and specified transfers within corporate groups, including transactions maintaining covered activities that a controlled foreign person was already conducting before January 2, 2025. These exclusions would be subject to regulations.
Subject to notice and comment regulations prescribed in consultation with Congress and in accordance with this title, the term covered national security transaction does not include
(iv) any ancillary transaction undertaken by a financial institution (as defined in section 5312 of title 31, United States Code); (v) the acquisition by a United States person of the equity or other interest owned or held by a covered foreign person in an entity or assets located outside of a country of concern in which the United States person is acquiring the totality of the interest in the entity held by the covered foreign person; (vi) an intracompany transfer of funds, as defined in regulations prescribed in accordance with this title, from a United States parent company to a subsidiary located in a country of concern or a transaction that, but for this clause, would be a covered national security transaction between a United States person and its controlled foreign person that supports operations that are not covered national security transactions or that maintains covered national security transactions that the controlled foreign person was engaged in prior to January 2, 2025;
(vii) a transaction secondary to a covered national security transaction, including— (I) contractual arrangements or the procurement of material inputs for any covered national security transaction (such as raw materials); (II) bank lending; (III) the processing, clearing, or sending of payments by a bank; (IV) underwriting services; (V) debt rating services; (VI) prime brokerage; (VII) global custody; (VIII) equity research or analysis; or (IX) other similar services; (viii) any ordinary or administrative business transaction as may be defined in such regulations; or (ix) any transaction completed before the date of the enactment of this title.
If Treasury issued investment-prohibition regulations, they would require public notice and comment, confidential nonbinding guidance on proposed transactions, and consideration of voluntary disclosure when deciding consequences. Treasury could limit frivolous guidance requests. Disclosure letters would have to explain the violation and propose ways to reduce its harm. Rules would seek to minimize compliance burdens where practicable while protecting national security.
The regulations issued under paragraph (1) shall include a process under which a person can request non-binding feedback on a confidential basis as to whether a transaction would constitute a covered national security transaction in a prohibited technology.
the Secretary may prescribe limitations on requests for feedback identified as frivolous
The regulations issued under paragraph (1) shall account for whether a United States person has self-identified a violation of the prohibition set forth in subsection (a) in determining the legal consequences of that violation.
shall dictate the form and content of a letter of self-disclosure, which shall include relevant facts about the violation, why the United States person believes its activity to have violated the prohibition set forth in subsection (a), and a proposal for mitigation of the harm of such action.
The regulations issued under paragraph (1) shall be subject to public notice and comment.
the Secretary shall balance the priority of protecting the national security interest of the United States while, to the extent practicable— (A) minimizing the cost and complexity of compliance for affected parties, including the duplication of reporting requirements under current regulations; (B) adopting the least burdensome alternative that achieves regulatory objectives; and (C) prioritizing transparency and stakeholder involvement in the process of issuing the rules.
Investment-prohibition enforcement could include civil penalties up to the greater of $250,000 or twice the transaction amount. Treasury could compel divestment—giving up the investment—and the President could direct the Attorney General to seek court relief. Treasury would bear the burden of proving a prohibition violation.
The Secretary may impose a civil penalty on any person who commits an unlawful act described in clause (i) in an amount not to exceed the greater of— (I) $250,000; or (II) an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.
The Secretary may compel the divestment of a covered national security transaction in a prohibited technology determined to be in violation of this title.
The President may direct the Attorney General of the United States to seek appropriate relief, including divestment relief, in the district courts of the United States, in order to implement and enforce this title.
in an enforcement action for a violation of the prohibition set forth in subsection (a), the burden of proof shall be upon the Secretary.
Within 450 days of enactment of the investment title, Treasury would have to issue notification regulations. Covered transactions in reportable technologies, and in prohibited technologies that Treasury had not actually prohibited, would require written notice within 30 days after completion. Treasury would check submissions, explain material omissions, and establish a process to find unreported transactions where information was reasonably available. Notification violations could carry civil penalties up to the greater of $250,000 or twice the transaction amount.
Not later than 450 days after the date of the enactment of this title, the Secretary shall issue regulations prescribed in accordance with subsection (b), to require a United States person that engages in a covered national security transaction in a prohibited technology (unless the Secretary has exercised the authority provided by section 801(a) to prohibit knowingly engaging in such covered national security transaction) or a notifiable technology to submit to the Secretary a written notification of the transaction not later than 30 days after the completion date of the transaction.
The Secretary shall, upon receipt of a notification under subsection (a), and in consultation with the Secretary of Commerce, promptly inspect the notification for completeness.
If a notification submitted under subsection (a) is incomplete, the Secretary shall promptly inform the United States person that submits the notification that the notification is not complete and provide an explanation of relevant material respects in which the notification is not complete.
shall establish a process to identify covered national security transactions in a prohibited technology or a notifiable technology for which— (A) a notification is not submitted to the Secretary under subsection (a); and (B) information is reasonably available.
A civil penalty may be imposed on any person who commits an unlawful act described in clause (i) in an amount not to exceed the greater of— (I) $250,000; or (II) an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.
Transaction notices would generally be protected from public disclosure. Exceptions would permit disclosures for administrative or court proceedings, to Congress, for specified national-security sharing with domestic governments or allied or partner governments, with the parties' consent, or when Treasury determined disclosure served the national-security interest.
any information or documentary material filed with the Secretary pursuant to this section shall be exempt from disclosure under section 552(b)(3) of title 5, United States Code, and no such information or documentary material may be made public by any government agency or Member of Congress.
(A) Information relevant to any administrative or judicial action or proceeding. (B) Information provided to Congress or any of the appropriate congressional committees. (C) Information important to the national security analysis or actions of the Secretary to any domestic governmental entity, or to any foreign governmental entity of an ally or partner of the United States, under the direction and authorization of the Secretary, only to the extent necessary for national security purposes, and subject to appropriate confidentiality and classification requirements. (D) Information that the parties have consented to be disclosed to third parties. (E) Information where the disclosure of such information is determined by the Secretary to be in the national security interest.
Treasury, consulting Commerce, would report on investment enforcement, notifications, technology risks, and recommended policy changes within one year after prohibition regulations took effect, then at least annually for seven years. The report would assess whether to add or remove prohibited technologies and recommend changes concerning domestic technology support, investment needs, program administration, and covered countries. Reports would be unclassified, with classified annexes allowed.
Not later than one year after the date on which the regulations issued under section 801(e) take effect, and not less frequently than annually thereafter for 7 years, the Secretary, in consultation with the Secretary of Commerce, shall submit to the appropriate congressional committees a report
lists all enforcement actions taken subject to the regulations during the year preceding submission of the report
provides an assessment of whether Congress should amend the definition of the term prohibited technology
lists all notifications submitted under section 802 during the year preceding submission of the report
assesses the overall impact of those notifications, including recommendations for— (A) expanding existing Federal programs to support the production or supply of prohibited technologies or notifiable technologies in the United States, including the potential of existing authorities to address any related national security concerns; (B) investments needed to enhance prohibited technologies or notifiable technologies and reduce dependence on countries of concern regarding those technologies; and (C) the continuation, expansion, or modification of the implementation and administration of this title, including recommendations with respect to whether the definition of the term ‘country of concern’ under section 807(2) should be amended to add or remove countries.
Each report required by this section shall be submitted in unclassified form, but may include a classified annex.
Treasury and Commerce would each testify on investment-related national-security threats within one year of enactment and annually afterward for five years. A written request jointly submitted by a relevant committee's chair and ranking member would require Treasury to assess a technology's threat and explain its determination in the report, including a classification recommendation if it found an acute threat.
Not later than one year after the date of the enactment of this title, and annually thereafter for five years, the Secretary and the Secretary of Commerce shall each provide to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives testimony with respect to the national security threats relating to investments by United States persons in countries of concern and broader international capital flows.
determine if that technology may pose an acute threat to the national security of the United States if developed or acquired by a country of concern
an explanation for such determination and a recommendation whether that technology should be named a prohibited technology or a notifiable technology
if the Secretary determines that— (I) the technology may pose an acute threat
A request under paragraph (1) with respect to whether a technology may pose an acute threat to the national security of the United States if developed or acquired by a country of concern shall be submitted to the Secretary in writing jointly by the chairperson and ranking member of one or more of the appropriate congressional committees.
The bill says Treasury should coordinate investment controls with allies and partners and should develop a strategy within 180 days. That language is advisory. Separately, it would require a report within one year and annually afterward for four years on any strategy, prospective partners, implementation, and obstacles.
The Secretary, in coordination with the Secretary of State, the Secretary of Commerce, and the heads of other relevant Federal agencies, should— (1) conduct bilateral and multilateral engagement with the governments of countries that are allies and partners of the United States to promote and increase coordination of protocols and procedures to facilitate the effective implementation of and appropriate compliance with the prohibitions pursuant to this title
Not later than 180 days after the date of the enactment of this title, the Secretary, in consultation with the Secretary of State, the Secretary of Commerce, and the heads of other relevant Federal agencies, should— (1) develop a strategy
Not later than one year after the date of the enactment of this title, and annually thereafter for four years, the Secretary shall submit to the appropriate congressional committees a report that includes— (1) a discussion of any strategy developed pursuant to subsection (b)(1), including key tools and objectives for the development of comparable mechanisms by the governments of allies and partners of the United States; (2) a list of partner and allied countries to target for cooperation in developing their own prohibitions; (3) the status of the strategy’s implementation and outcomes; and (4) a description of impediments to the establishment of comparable mechanisms by governments of allies and partners of the United States.
Treasury could create a public database of covered foreign persons involved in prohibited technologies, but the database would not be a complete list of everyone covered. Treasury would establish a confidential evidence-submission process. Evidence would generally remain confidential, with exceptions for proceedings, Congress, specified government sharing, and consent. The investment title would preserve other presidential legal authorities and presidential and congressional constitutional authorities.
The Secretary, in consultation with the Secretary of Commerce, may establish a publicly accessible, non-exhaustive database that identifies covered foreign persons in a prohibited technology pursuant to this title.
The Secretary shall establish a mechanism for the public, including Congress, stakeholders, investors, and nongovernmental organizations, to submit evidence on a confidential basis
no such information or documentary material may be made public (other than the identity of a covered foreign person in accordance with subsection (b)).
(A) Information relevant to any administrative or judicial action or proceeding. (B) Information to Congress or any duly authorized committee or subcommittee of Congress. (C) Information important to the national security analysis or actions of the Secretary to any domestic governmental entity, or to any foreign governmental entity of a United States ally or partner, under the exclusive direction and authorization of the Secretary, only to the extent necessary for national security purposes, and subject to appropriate confidentiality and classification requirements. (D) Information that the parties have consented to be disclosed to third parties.
Nothing in this title may be construed to negate the authority of the President under any authority, process, regulation, investigation, enforcement measure, or review provided by or established under any other provision of Federal law, or any other authority of the President or the Congress under the Constitution of the United States.
The reportable-technology category would include certain chip design, fabrication, and packaging outside the prohibited category. It would also include artificial-intelligence systems outside specified prohibited categories that meet military, intelligence, surveillance, cybersecurity, digital-forensics, security-testing, robotics, or training-computation criteria. These criteria distinguish systems designed for a use from systems intended by the foreign person or joint venture for a use.
The term notifiable technology means a technology with respect to which a covered foreign person— (i) designs any advanced integrated circuit that is not covered under paragraph (8)(A)(iii); (ii) fabricates any integrated circuit that is not covered under paragraph (8)(A)(iv); (iii) packages any integrated circuit that is not covered under paragraph (8)(A)(v); or (iv) develops any artificial intelligence system that is not covered under clause (vii), (viii), (ix), or (xvi) of paragraph (8)(A)
(I) designed to be used for— (aa) any military end use (such as for weapons targeting, target identification, combat simulation, military vehicle or weapons control, military decision-making, weapons design (including chemical, biological, radiological, or nuclear weapons), or combat system logistics and maintenance); or (bb) any government intelligence or mass-surveillance end use (such as through incorporation of features such as mining text, audio, or video, image recognition, location tracking, or surreptitious listening devices); (II) intended by the covered foreign person or joint venture to be used for— (aa) cybersecurity applications; (bb) digital forensics tools; (cc) penetration testing tools; or (dd) control of robotic systems; or (III) trained using a quantity of computing power greater than 1023 computational operations (such as integer or floating-point operations).
The prohibited-technology category would cover chip-design software, specified chipmaking and advanced-packaging equipment, chips meeting referenced export-control specifications or very-low-temperature criteria, specified advanced chip fabrication, advanced chip packaging, and items designed exclusively for extreme-ultraviolet chipmaking equipment. Classification would make covered investments eligible for prohibition; it would not itself require Treasury to prohibit every such investment.
The term prohibited technology means a technology with respect to which a covered foreign person— (i) develops or produces any design automation software for the design of integrated circuits or advanced packaging; (ii) develops or produces any— (I) electronic design automation software for the design of integrated circuits or advanced packaging; (II) front-end semiconductor fabrication equipment designed for the volume fabrication of integrated circuits, including equipment used in the production stages from a blank wafer or substrate to a completed wafer or substrate; or (III) equipment for performing volume advanced packaging;
(iii) designs any integrated circuit designs that meet or exceed the specifications set in Export Control Classification Number (ECCN) 3A090 in Supplement No. 1 to the Export Administration Regulations, or integrated circuits designed for operation at or below 4.5 Kelvin;
(iv) fabricates integrated circuits that are— (I) logic integrated circuits using a non-planar transistor architecture or with a technology node of 16/14 nanometers or less, including fully depleted silicon-on-insulator (FDSOI) integrated circuits; (II) NOT–AND (NAND) memory integrated circuits with 128 layers or more; (III) dynamic random-access memory (DRAM) integrated circuits using a technology node of 18 nanometer half-pitch or less; (IV) integrated circuits manufactured from a gallium-based compound semiconductor; (V) integrated circuits using graphene transistors or carbon nanotubes; or (VI) integrated circuits designed for operation at or below 4.5 Kelvin; (v) packages any integrated circuit using advanced packaging techniques; (vi) develops, designs, or produces any commodity, material, software, or technology designed exclusively for use in or with extreme ultraviolet lithography fabrication equipment;
The Secretary may prohibit, in accordance with regulations issued under subsection (e), a United States person from knowingly engaging in a covered national security transaction in a prohibited technology.
Prohibited artificial-intelligence technologies would include models meeting a training-computation threshold, models using chips meeting the specified export-control standard, and models designed for China's government, special administrative regions, agencies, or instrumentalities. They would also include systems designed exclusively for military, government-intelligence, or mass-surveillance uses, or intended by the covered foreign person for those uses.
(vii) develops, designs, or produces any artificial intelligence models trained with at least 1025 floating point operations; (viii) develops, designs, or produces any artificial intelligence models that rely upon or utilize advanced integrated circuits that meet or exceed the specifications set in Export Control Classification Number (ECCN) 3A090 in Supplement No. 1 to the Export Administration Regulations; (ix) develops, designs, or produces any artificial intelligence models designed for use by the Government of the People’s Republic of China, its special administrative regions, or its agencies and instrumentalities;
(xvi) develops any artificial intelligence system that is designed to be exclusively used for, or which the relevant covered foreign person intends to be used for, any— (I) military end use (such as for weapons targeting, target identification, combat simulation, military vehicle or weapon control, military decision-making, weapons design (including chemical, biological, radiological, or nuclear weapons), or combat system logistics and maintenance); or (II) government intelligence or mass-surveillance end (such as through incorporation of features such as mining text, audio, or video, image recognition, location tracking, or surreptitious listening devices).
The prohibited category would include quantum computers and critical components; quantum sensing platforms designed or intended for military, government-intelligence, or mass-surveillance uses; and quantum networks or communications systems designed or intended to expand quantum-computing capabilities, provide secure communications, or serve those security-related uses.
(x) develops a quantum computer or produces any critical components required to produce a quantum computer such as a dilution refrigerator or two-stage pulse tube cryocooler; (xi) develops or produces any quantum sensing platform designed for, or which the relevant covered foreign person intends to be used for, any military, government intelligence, or mass-surveillance end use; (xii) develops or produces quantum networks or quantum communication systems designed for or intended to be used for— (I) networking to scale up the capabilities of quantum computers, such as for the purposes of breaking or compromising encryption; (II) secure communications, such as quantum key distribution; or (III) any other application that has any military, government intelligence, or mass-surveillance end use;
The prohibited category would also cover specified components designed for hypersonic systems or sustained operation above 1,000 degrees Celsius. It would cover supercomputers meeting both the stated processing-power and space thresholds, plus technologies in five specified sectors that fall under referenced defense, nuclear, or emerging-technology controls.
(xiii) develops, designs, or produces materials, components, avionics, flight control, propulsion, Global Positioning System (GPS), data relay, and target detection systems designed for use in hypersonic systems or capable of sustainable operations above 1,000 degrees Celsius;
(xiv) develops, installs, sells, or produces any supercomputer enabled by advanced integrated circuits that can provide theoretical compute capacity of 100 or more double-precision (64-bit) petaflops or 200 or more single-precision (32-bit) petaflops of processing power within a 41,600 cubic foot or smaller envelope;
(xv) develops, designs, or produces any other technologies in the advanced semiconductors and microelectronics sector, the artificial intelligence sector, the high-performance computing and supercomputing sector, the hypersonic missiles sector, or the quantum information science and technology sector that are— (I) defense articles or defense services included on the United States Munitions List set forth in the International Traffic in Arms Regulations under subchapter M of chapter I of title 22, Code of Federal Regulations; (II) specially designed and prepared nuclear equipment, parts or components, materials, software, or technologies covered by part 810 of title 10, Code of Federal Regulations (relating to assistance to foreign atomic energy activities); (III) nuclear facilities, equipment, or materials covered by part 110 of title 10, Code of Federal Regulations (relating to export and import of nuclear equipment and material); or (IV) emerging or foundational technologies controlled pursuant to section 1758 of the Export Control Reform Act of 2018 (50 U.S.C. 4817);
Treasury, consulting Congress, could revise technical parameters in both technology categories as reasonably needed for national security. For reportable technologies, it could also add or remove categories. The corresponding prohibited-technology update provision authorizes technical-parameter changes, rather than expressly authorizing additions or removals of whole categories.
The Secretary, in consultation with Congress, may prescribe regulations in accordance with this title to refine the technical parameters of technologies described in subparagraph (A) as reasonably needed for national security purposes or to add or remove categories to or from the list in subparagraph (A).
The Secretary, in consultation with Congress, may prescribe regulations in accordance with this title to make updates to the technical parameters of technologies described in subparagraph (A) as reasonably needed for national security purposes.
Within 365 days of enactment and every two years afterward for six years, Treasury would report whether China-linked persons on three other government lists qualified for its Chinese military-industrial securities list. Agencies would share relevant listing information and explain their criteria. Treasury could prioritize reviews by risk and summarize earlier findings without repeating reviews. This provision requires eligibility assessments, not automatic additions to the securities list.
Not later than 365 days after the date of the enactment of this Act, and biennially thereafter for 6 years, the Secretary shall submit to the appropriate congressional committees a report that states whether any of the following foreign persons qualifies for inclusion on the Non-SDN Chinese Military-Industrial Complex Companies List: (A) Any PRC person listed on the Military End-User List (Supplement No. 7 to part 744 of the Export Administration Regulations). (B) Any PRC person listed pursuant to section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (10 U.S.C. 113 note). (C) Any PRC person listed on the Department of Commerce’s Entity List (Supplement No. 4 to part 744 of the Export Administration Regulations).
the President shall establish a process under which the Federal agencies responsible for administering the lists described in subparagraphs (A), (B), and (C) of paragraph (1) shall share with each other all relevant information that led to the identification of the entities described in such lists.
the Secretary may establish a risk-based prioritization framework
The report under paragraph (1) may summarize findings concerning entities previously reviewed pursuant to this section and do not necessitate additional review by the Secretary.
The Secretary shall include in the report required by paragraph (1) an overview of the criteria required for listing on Non-SDN Chinese Military-Industrial Complex Companies List. The heads of the Federal agencies administering the lists described in subparagraphs (A), (B), and (C) of paragraph (1) shall provide an overview of the criteria for entity identification or listing on each respective list.
The President would have to issue rules barring U.S. persons from knowingly holding securities of listed companies after 365 days from enactment. Transactions solely to dispose of those securities would be exempt from these prohibitions if entered into on or before that deadline. The referenced list is maintained by Treasury's Office of Foreign Assets Control under specified executive orders and successor orders.
The President shall promulgate rules that prohibit a United States person from knowingly holding securities of entities on the Non-SDN Chinese Military-Industrial Complex Companies List, after the date that is 365 days after the date of enactment of this Act.
The prohibitions on investment imposed under paragraph (1) shall not apply to a transaction in a security that is entered into on or before the date that is 365 days after the date of enactment of this Act by a United States person, if such transaction is entered into solely to divest of the security.
the list maintained by the Office of Foreign Assets Control of the Department of the Treasury under Executive Order 13959, as amended by Executive Order 14032 (50 U.S.C. 1701 note; relating to addressing the threat from securities investments that finance certain companies of the People’s Republic of China), and any successor order.
The President could establish a waiver process for the securities-holding requirements when necessary to protect U.S. national-security or foreign-policy objectives. Each waiver would be entity-specific. Congress would receive advance written notice and a substantive briefing within 30 days after the determination.
The President may establish a process under which the requirements of subsection (b) shall not apply if the President determines to do so is necessary to protect the national security or foreign policy objectives of the United States.
Determinations under paragraph (1) shall be issued on a case-by-case basis for each entity on the Non-SDN Chinese Military-Industrial Complex Companies List.
The President shall notify the appropriate congressional committees in writing in advance of issuing a determination under paragraph (1) and shall provide a substantive briefing on the determination to the appropriate congressional committees within 30 days of issuing a determination.
The supplied official-actions snapshot, updated January 10, 2026, records introduction in the House on March 21, 2025, and referral that day to the Foreign Affairs and Financial Services Committees. It does not establish the bill's subsequent status.
Source snapshot updated 2026-01-10T06:51:22Z.
2025-03-21: Introduced in House
2025-03-21: Referred to the Committee on Foreign Affairs, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
A closer look
Reviewed version: Introduced in House · 2025-03-21. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or policy rider attached to appropriations was identified in the complete supplied introduced text. This conclusion applies only to that version and does not establish the absence of riders in other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for a particular outside recipient or place was identified in the complete supplied introduced text. This is limited to that version; accompanying materials needed to assess formal earmark status are absent.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
Findings to examine
The supplied introduced text contains investment-specific exclusions and a grandfather provision that narrow the main investment controls. These are classifications of statutory treatment, not judgments about their justification or motives.
Investors in publicly traded securities, registered investment-company securities, and specified related derivatives would receive categorical exclusions from the investment title's covered-transaction definition, subject to regulations. This limits that title's reach by investment form; it does not itself exempt holdings from the separate securities-list restrictions.
Subject to notice and comment regulations prescribed in consultation with Congress and in accordance with this title, the term covered national security transaction does not include
(iii) an investment— (I) in a security (as defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))) that is traded on an exchange or the over-the-counter market in any jurisdiction; (II) in a security issued by an investment company (as defined in section 3 of the Investment Company Act of 1940 (15 U.S.C. 80a–3)) that is registered with the Securities and Exchange Commission;
(IV) in a derivative of a security described under subclause (I), (II), or (III);
The President shall promulgate rules that prohibit a United States person from knowingly holding securities of entities on the Non-SDN Chinese Military-Industrial Complex Companies List, after the date that is 365 days after the date of enactment of this Act.
Limited partners and equivalent investors in specified pooled funds would be excluded from the investment controls when their committed capital was no more than $2 million across the fund's investment and co-investment vehicles, or when a binding contract barred use of their capital for covered transactions. This is a specific exemption based on investment size or contractual protections, subject to regulations.
Subject to notice and comment regulations prescribed in consultation with Congress and in accordance with this title, the term covered national security transaction does not include
(III) made as a limited partner or equivalent in a venture capital fund, private equity fund, fund of funds, or other pooled investment fund (other than as described in subclause (II)) where— (aa) the limited partner or equivalent’s committed capital is not more than $2,000,000, aggregated across any investment and co-investment vehicles of the fund; or (bb) the limited partner or equivalent has secured a binding contractual assurance that its capital in the fund will not be used to engage in a transaction that would be a covered national security transaction if engaged in by a United States person;
U.S. persons with controlled foreign persons already conducting covered transactions before January 2, 2025, could benefit from an exclusion for transactions maintaining those activities. Subject to regulations, this gives specified existing corporate operations treatment that new covered activities would not automatically receive.
Subject to notice and comment regulations prescribed in consultation with Congress and in accordance with this title, the term covered national security transaction does not include
a transaction that, but for this clause, would be a covered national security transaction between a United States person and its controlled foreign person that supports operations that are not covered national security transactions or that maintains covered national security transactions that the controlled foreign person was engaged in prior to January 2, 2025;
Full text preserved for this analysis. Legislative record snapshot: Jan 10, 2026. How PlainBill uses AI