Press Releases

Washington, D.C. - Congressman Scott Perry (PA-10) introduced his Divesting from Communist China’s Military Act to tighten sanctions on Chinese military companies operating in the U.S. and undermining and threatening American prosperity. Senator Rick Scott (R-FL) is introducing companion legislation in the U.S. Senate.

 

“Our greatest enemy should never have access to, nor benefit from, our capital markets or military procurement process in any way; it’s ludicrous, and shouldn’t even have required legislation, but it does,” said Rep. Perry. “I’m happy to join forces with Senator Scott to get this through Congress, to the President’s desk, and stop this insanity once and for all."

 

Senator Rick Scott said, “Communist China and Xi Jinping have shown time and again that they are our enemy, and American investments should not be used to support them in their attempt to destroy our way of life. For too long, Chinese companies have been given free rein to lie, cheat, and circumvent U.S. regulations intended to keep American investors safe and American dollars out of the hands of companies, like those associated with the Chinese military, bent on ruining our economy and our country. This bill is a commonsense effort to keep Americans’ money out of the hands of our enemies.”  

 

The Act mandates full parity between the U.S. Treasury’s Non-Specially Designated Nationals (SDN), Chinese Military-Industrial Complex Companies (NS-CMIC) List (bars Chinese Communist Party companies from accessing American capital markets), and the Department of War’s 1260H list (annual list of Chinese military companies that operate directly/indirectly in the U.S.).

 

The 1260H CMIC list faces a procurement prohibition beginning on June 30, 2026. Allowing these companies to benefit from American capital runs counter to American interests. This critical legislation aligns the two lists, strengthening our sanctions regime.

 

Read the bill text HERE.