II
119THCONGRESS
1
STSESSION S. 1359
To prohibit securities investments that finance certain companies of the Peo-
ple’s Republic of China and to expand the Non-Specially Designated
Nationals Chinese Military-Industrial Complex Companies List of the
Office of Foreign Assets Control, and for other purposes.
IN THE SENATE OF THE UNITED STATES
APRIL8, 2025
Mr. S
COTTof Florida (for himself, Mrs. BLACKBURN, and Mrs. HYDE-SMITH)
introduced the following bill; which was read twice and referred to the
Committee on Banking, Housing, and Urban Affairs
A BILL
To prohibit securities investments that finance certain com-
panies of the People’s Republic of China and to expand
the Non-Specially Designated Nationals Chinese Military-
Industrial Complex Companies List of the Office of For-
eign Assets Control, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Sanction Transactions 4
Originating from Pernicious Chinese Companies and Poli-5
cies Act of 2025’’ or the ‘‘STOP CCP Act of 2025’’. 6
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•S 1359 IS
SEC. 2. DEFINITIONS. 1
In this Act: 2
(1) C
HINESE ENTITY.—The term ‘‘Chinese en-3
tity’’ means an entity organized under the laws of 4
the People’s Republic of China or otherwise subject 5
to the jurisdiction of the Government of the People’s 6
Republic of China. 7
(2) P
UBLICLY TRADED SECURITIES .—The term 8
‘‘publicly traded securities’’ includes— 9
(A) any security (as defined in section 3(a) 10
of the Securities Exchange Act of 1934 (15 11
U.S.C. 78c(a))) denominated in any currency 12
that trades on a securities exchange, or through 13
the method of trading that is commonly re-14
ferred to as ‘‘over-the-counter’’, in any jurisdic-15
tion; and 16
(B) any security that is derivative of or de-17
signed to provide investment exposure to a se-18
curity described in subparagraph (A). 19
(3) U
NITED STATES PERSON .—The term 20
‘‘United States person’’ means— 21
(A) an individual who is a United States 22
citizen or an alien lawfully admitted for perma-23
nent residence to the United States; 24
(B) an entity organized under the laws of 25
the United States or any jurisdiction within the 26
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•S 1359 IS
United States, including a foreign branch of 1
such an entity; or 2
(C) any person in the United States. 3
SEC. 3. PROHIBITION ON SECURITIES INVESTMENTS THAT 4
FINANCE CERTAIN COMPANIES OF THE PEO-5
PLE’S REPUBLIC OF CHINA. 6
The following activities by a United States person are 7
prohibited: 8
(1) The purchase or sale of any publicly traded 9
securities, or any publicly traded securities that are 10
derivative of such securities or are designed to pro-11
vide investment exposure to such securities, issued 12
by any person determined by the Secretary of the 13
Treasury, in consultation with the Secretary of 14
State, and, as the Secretary of the Treasury deems 15
appropriate, the Secretary of Defense— 16
(A) to operate or have operated in the de-17
fense and related materiel sector or the surveil-18
lance technology sector of the economy of the 19
People’s Republic of China; or 20
(B) to own or control, or to be owned or 21
controlled by, directly or indirectly, a person de-22
scribed in subparagraph (A). 23
(2) The execution, support, or servicing of a 24
purchase or sale described in paragraph (1). 25
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(3) Any transaction that evades or avoids, has 1
the purpose of evading or avoiding, causes a viola-2
tion of, or attempts to violate the prohibition under 3
paragraph (1). 4
(4) Any conspiracy formed to violate the prohi-5
bition under paragraph (1). 6
SEC. 4. EXPANSION OF NON-SPECIALLY DESIGNATED NA-7
TIONALS CHINESE MILITARY-INDUSTRIAL 8
COMPLEX COMPANIES LIST. 9
Not later than 180 days after the date of the enact-10
ment of this Act, the Secretary of the Treasury shall pre-11
scribe regulations to expand the Non-Specially Designated 12
Nationals Chinese Military-Industrial Complex Companies 13
List (commonly referred to as the ‘‘NS–CMIC List’’) of 14
the Office of Foreign Assets Control to include— 15
(1) any entity engaged in supporting the Chi-16
nese military-industrial complex; 17
(2) any entity that is owned or controlled by an 18
entity described in paragraph (1); 19
(3) any entity that is formed from a spin-off, 20
merger or acquisition, or sale of a business unit in-21
volving an entity described in paragraph (1) or is 22
otherwise a successor to such an entity; and 23
(4) any entity that provides financial services 24
for an entity described in paragraph (1), (2), or (3). 25
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SEC. 5. CLOSING SANCTIONS LOOPHOLES. 1
(a) I
NGENERAL.—If sanctions are imposed with re-2
spect to a Chinese entity under any statute or executive 3
order described in subsection (b), sanctions shall be im-4
posed with respect to the Chinese entity under each other 5
applicable statute and executive order described in sub-6
section (b) unless— 7
(1) the President waives the imposition of such 8
sanctions; or 9
(2) a waiver provided for under such other stat-10
ute or executive order applies. 11
(b) S
TATUTES AND EXECUTIVEORDERSDE-12
SCRIBED.—A statute or executive order described in this 13
subsection is a statute or executive order that provides for 14
the imposition of sanctions. 15
(c) N
ATIONALSECURITYWAIVER.— 16
(1) I
N GENERAL.—The President may waive 17
the application of any sanction imposed with respect 18
to any person under subsection (a) if the President 19
determines and certifies to Congress that such a 20
waiver is important to the national security interests 21
of the United States. 22
(2) N
OTIFICATION OF AND REPORT TO CON -23
GRESS.—If the President decides to exercise the 24
waiver authority provided under paragraph (1), the 25
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President shall, not less than 20 days before the 1
waiver takes effect, submit to Congress a report— 2
(A) notifying Congress of the decision to 3
exercise the waiver authority; and 4
(B) fully articulating the rationale and cir-5
cumstances that led to the decision. 6
(d) T
ERMINATION OFSANCTIONSTOBEREPORTED 7
TOCONGRESS.—Not later than 20 days after the termi-8
nation of any sanction under subsection (a), the President 9
shall promptly submit to Congress a report on that termi-10
nation and the reasons for the termination. 11
Æ
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