119-s1359

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1359 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1359

 To prohibit securities investments that finance certain companies 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 Foreign Assets Control, and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 April 8, 2025

Mr. Scott of 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 companies 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 Foreign Assets Control, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Sanction Transactions Originating 
from Pernicious Chinese Companies and Policies Act of 2025'' or the 
``STOP CCP Act of 2025''.

SEC. 2. DEFINITIONS.

 In this Act:

    (1) Chinese entity.--The term ``Chinese entity'' means an 
 entity organized under the laws of the People's Republic of 
 China or otherwise subject to the jurisdiction of the 
 Government of the People's Republic of China.

    (2) Publicly traded securities.--The term ``publicly traded 
 securities'' includes--
        (A) any security (as defined in 

section 3

    (a) of the 
 Securities Exchange Act of 1934 (15 U.S.C. 78c

    (a) )) 
 denominated in any currency that trades on a securities 
 exchange, or through the method of trading that is 
 commonly referred to as ``over-the-counter'', in any 
 jurisdiction; and
        (B) any security that is derivative of or designed 
 to provide investment exposure to a security described 
 in subparagraph
        (A) .

    (3) United states person.--The term ``United States 
 person'' means--
        (A) an individual who is a 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 any jurisdiction within the United 
 States, including a foreign branch of such an entity; 
 or
            (C) any person in the United States.

SEC. 3. PROHIBITION ON SECURITIES INVESTMENTS THAT FINANCE CERTAIN 
 COMPANIES OF THE PEOPLE'S REPUBLIC OF CHINA.

 The following activities by a United States person are prohibited:

    (1) The purchase or sale of any publicly traded securities, 
 or any publicly traded securities that are derivative of such 
 securities or are designed to provide investment exposure to 
 such securities, issued by any person determined by the 
 Secretary of the Treasury, in consultation with the Secretary 
 of State, and, as the Secretary of the Treasury deems 
 appropriate, the Secretary of Defense--
        (A) to operate or have operated in the defense and 
 related materiel sector or the surveillance technology 
 sector of the economy of the People's Republic of 
 China; or
        (B) to own or control, or to be owned or controlled 
 by, directly or indirectly, a person described in 
 subparagraph
        (A) .

    (2) The execution, support, or servicing of a purchase or 
 sale described in paragraph

    (1) .

    (3) Any transaction that evades or avoids, has the purpose 
 of evading or avoiding, causes a violation of, or attempts to 
 violate the prohibition under paragraph

    (1) .

    (4) Any conspiracy formed to violate the prohibition under 
 paragraph

    (1) .

SEC. 4. EXPANSION OF NON-SPECIALLY DESIGNATED NATIONALS CHINESE 
 MILITARY-INDUSTRIAL COMPLEX COMPANIES LIST.

 Not later than 180 days after the date of the enactment of this 
Act, the Secretary of the Treasury shall prescribe regulations to 
expand the Non-Specially Designated Nationals Chinese Military-
Industrial Complex Companies List (commonly referred to as the ``NS-
CMIC List'') of the Office of Foreign Assets Control to include--

    (1) any entity engaged in supporting the Chinese military-
 industrial complex;

    (2) any entity that is owned or controlled by an entity 
 described in paragraph

    (1) ;

    (3) any entity that is formed from a spin-off, merger or 
 acquisition, or sale of a business unit involving an entity 
 described in paragraph

    (1) or is otherwise a successor to such 
 an entity; and

    (4) any entity that provides financial services for an 
 entity described in paragraph

    (1) ,

    (2) , or

    (3) .

SEC. 5. CLOSING SANCTIONS LOOPHOLES.

    (a) In General.--If sanctions are imposed with respect to a Chinese 
entity under any statute or executive order described in subsection

    (b) , sanctions shall be imposed with respect to the Chinese entity 
under each other applicable statute and executive order described in 
subsection

    (b) unless--

    (1) the President waives the imposition of such sanctions; 
 or

    (2) a waiver provided for under such other statute or 
 executive order applies.

    (b) Statutes and Executive Orders Described.--A statute or 
executive order described in this subsection is a statute or executive 
order that provides for the imposition of sanctions.
            (c) National Security Waiver.--

    (1) In general.--The President may waive the application of 
 any sanction imposed with respect to any person under 
 subsection

    (a) if the President determines and certifies to 
 Congress that such a waiver is important to the national 
 security interests of the United States.

    (2) Notification of and report to congress.--If the 
 President decides to exercise the waiver authority provided 
 under paragraph

    (1) , the President shall, not less than 20 days 
 before the waiver takes effect, submit to Congress a report--
        (A) notifying Congress of the decision to exercise 
 the waiver authority; and
        (B) fully articulating the rationale and 
 circumstances that led to the decision.
            (d) Termination of Sanctions To Be Reported to Congress.--Not later 
than 20 days after the termination of any sanction under subsection

    (a) , the President shall promptly submit to Congress a report on that 
termination and the reasons for the termination.
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