What does Preamble of Divesting from Communist China’s Military Act of 2026 do?

This bill requires the Secretary of the Treasury to include any entity identified as a Chinese military company on the Non-SDN Chinese Military-Industrial Complex Companies List. The bill was introduced in the House of Representatives on January 14, 2026.

What does SHORT TITLE. of Divesting from Communist China’s Military Act of 2026 do?

This bill is formally titled the 'Divesting from Communist China's Military Act of 2026'.

What does FINDINGS. of Divesting from Communist China’s Military Act of 2026 do?

This section outlines findings related to the financing of the People's Republic of China's military-industrial complex through U.S. capital. It references Executive Orders 13959 and 14032, highlighting concerns about China's military-civil fusion strategy and the use of surveillance technology. It defines 'Chinese military company' based on Section 1260H(g) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021. The section notes similarities between Chinese military companies and contributors to the military-industrial complex, suggesting similar treatment under U.S. law. It describes restrictions imposed by Section 805 of the National Defense Authorization Act for Fiscal Year 2024, limiting the Department of Defense's purchases from Chinese military companies. The findings express concern that companies subject to these restrictions may still raise capital through U.S. securities exchanges. Congress states that harmonizing enforcement approaches across U.S. sanctions regimes can enhance the effectiveness of sanctions and investment restrictions.

What does INCLUSION OF CHINESE MILITARY COMPANIES ON NON-SDN CHINESE of Divesting from Communist China’s Military Act of 2026 do?

This section outlines the process for adding Chinese military companies to the Non-SDN Chinese Military-Industrial Complex Companies List (NS-CMIC List). The Secretary of the Treasury must add an entity to the NS-CMIC List within 90 days of the Secretary of Defense identifying it as a Chinese military company operating in the United States. Upon inclusion on the NS-CMIC List, prohibitions outlined in Executive Order 13959 generally apply to the entity. A one-year divestment period is provided, allowing U.S. persons to purchase or sell publicly traded securities issued by the listed entity to divest their holdings. The section defines key terms including 'appropriate congressional committees,' 'Executive Order 13959,' 'NS-CMIC List,' 'publicly traded security,' and 'United States person'.

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Divesting from Communist China’s Military Act of 2026

Last updated: 1/14/2026 · Introduced: 1/14/2026

Author: Scott Perry (R-PA)

TL;DR (AI)

This bill mandates the Secretary of the Treasury to add entities identified by the Secretary of Defense as Chinese military companies to a designated list, triggering related prohibitions.
U.S. persons holding publicly traded securities of companies added to this list will have a one-year period to divest their holdings.
The bill aims to harmonize enforcement of sanctions and investment restrictions related to Chinese military companies with existing U.S. law and Executive Orders.

119th Congressin committeeS. 3640(In Committee)Official page

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Includes provisions on preamble, short title., and 2 more.

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