S1053119th CongressWALLET

FIGHT China Act of 2025

Sponsored By: Senator John Cornyn

Introduced

Summary

This bill would create a cross-cutting regime using sanctions and new investment controls to prevent China-linked actors from acquiring or developing specified defense and surveillance technologies, centering on _blocking investment and sanctioning Chinese-linked defense and surveillance firms_.

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  • U.S. investors and companies would face a mandatory notification regime for covered transactions in prohibited or notifiable technologies, often within 30 days of completion, and could be barred from transactions. Civil penalties can reach the greater of $250,000 or twice the transaction value and regulators can order divestment.
  • Foreign persons tied to China that meet the bill's definition of a covered foreign person could be designated and hit with IEEPA-based sanctions that block property and bar transactions. U.S. persons must divest securities in entities on the Non-SDN Chinese Military-Industrial Complex Companies List within 365 days unless exempted.
  • Federal agencies and allies would get expanded roles. Treasury and Commerce must write rules, may build a public database, and must report and testify regularly. The bill authorizes outreach funding and new hires to support implementation.

*Would authorize $150 million in appropriations to the Department of the Treasury for outreach, increasing potential federal spending.*

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 2 costs, 1 mixed.

Broad IEEPA sanctions power

This bill would let the President use full emergency IEEPA powers to block property and bar transactions in the United States involving designated covered foreign persons tied to China. Violations would carry the criminal and civil penalties available under IEEPA. The Secretary of the Treasury could carry out many of these authorities after consultation with State. Sanctions would apply to property in the U.S. or controlled by U.S. persons.

New investment ban, penalties, and notices

This bill would create new federal rules that limit and sometimes ban U.S. investments in certain technologies tied to China. It would define which deals count as covered national security transactions and except small limited partners with $2,000,000 or less of committed capital. If you complete a covered or notifiable technology deal, you would have to notify the Secretary in writing within 30 days once agency rules are in place. The Secretary could ban covered deals, force divestment, and fine violations up to the greater of $250,000 or twice the transaction value. The bill would also bar U.S. persons from holding securities on a named Chinese list starting 365 days after enactment, with narrow divestment and waiver exceptions.

Reporting, database, hiring, and outreach

This bill would require annual unclassified reports (with a classified annex if needed) for seven years and yearly congressional testimony for five years about enforcement, notifications, and technology assessments. It would allow the Treasury, with Commerce, to build a public non‑exhaustive database of covered foreign persons and accept confidential evidence submissions. The bill would authorize $150 million per year for the first two fiscal years for Treasury (transferable to Commerce) for outreach and implementation. It would also allow direct temporary hires (including up to 15 presidential appointees) to help run the program.

Act ends if Commerce removes China

This bill would make the whole Act stop working on the date the Commerce Secretary removes the People’s Republic of China from a named regulatory list (15 C.F.R. 791.4). The termination would take effect only after that Commerce regulatory change. The provision itself would be effective on enactment, but the actual end date depends on a later agency action.

Sponsors & CoSponsors

Sponsor

John Cornyn

TX • R

Cosponsors

  • Catherine Cortez Masto

    NV • D

    Sponsored 3/13/2025

  • Tim Scott

    SC • R

    Sponsored 3/13/2025

  • Charles Schumer

    NY • D

    Sponsored 3/13/2025

  • Dan Sullivan

    AK • R

    Sponsored 3/13/2025

  • Elizabeth Warren

    MA • D

    Sponsored 3/13/2025

  • Bill Hagerty

    TN • R

    Sponsored 3/13/2025

  • Andy Kim

    NJ • D

    Sponsored 3/13/2025

  • Pete Ricketts

    NE • R

    Sponsored 3/13/2025

  • Elissa Slotkin

    MI • D

    Sponsored 3/13/2025

  • Jim Banks

    IN • R

    Sponsored 3/13/2025

  • Michael Bennet

    CO • D

    Sponsored 3/13/2025

  • David McCormick

    PA • R

    Sponsored 3/13/2025

  • John Fetterman

    PA • D

    Sponsored 3/13/2025

Roll Call Votes

No roll call votes available for this bill.

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