II 

118TH CONGRESS 

1ST SESSION S. 852 

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 

MARCH 16, 2023 

Mr. SCOTT of Florida (for himself, Mr. BRAUN, and Mr. HAGERTY) 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 MilitaryIndustrial Complex Companies List of the Office of Foreign Assets Control, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Sanction Transactions 

5 Originating from Pernicious Chinese Companies and Poli6 cies Act of 2023’’ or the ‘‘STOP CCP Act of 2023’’. 


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1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) CHINESE ENTITY.—The term ‘‘Chinese en4 tity’’ means an entity organized under the laws of 

5 the People’s Republic of China or otherwise subject 

6 to the jurisdiction of the Government of the People’s 

7 Republic of China. 

8 (2) PUBLICLY TRADED SECURITIES.—The term 

9 ‘‘publicly traded securities’’ includes— 

10 (A) any security (as defined in section 3(a) 

11 of the Securities Exchange Act of 1934 (15 

12 U.S.C. 78c(a))) denominated in any currency 

13 that trades on a securities exchange, or through 

14 the method of trading that is commonly re15 ferred to as ‘‘over-the-counter’’, in any jurisdic16 tion; and 

17 (B) any security that is derivative of or de18 signed to provide investment exposure to a se19 curity described in subparagraph (A). 

20 (3) UNITED STATES PERSON.—The term 

21 ‘‘United States person’’ means— 

22 (A) an individual who is a United States 

23 citizen or an alien lawfully admitted for perma24 nent residence to the United States; 

25 (B) an entity organized under the laws of 

26 the United States or any jurisdiction within the 


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1 United States, including a foreign branch of 

2 such an entity; or 

3 (C) any person in the United States. 

4 SEC. 3. PROHIBITION ON SECURITIES INVESTMENTS THAT 

5 FINANCE CERTAIN COMPANIES OF THE PEO6 PLE’S REPUBLIC OF CHINA. 

7 The following activities by a United States person are 

8 prohibited: 

9 (1) The purchase or sale of any publicly traded 

10 securities, or any publicly traded securities that are 

11 derivative of such securities or are designed to pro12 vide investment exposure to such securities, issued 

13 by any person determined by the Secretary of the 

14 Treasury, in consultation with the Secretary of 

15 State, and, as the Secretary of the Treasury deems 

16 appropriate, the Secretary of Defense— 

17 (A) to operate or have operated in the de18 fense and related materiel sector or the surveil19 lance technology sector of the economy of the 

20 People’s Republic of China; or 

21 (B) to own or control, or to be owned or 

22 controlled by, directly or indirectly, a person de23 scribed in subparagraph (A). 

24 (2) The execution, support, or servicing of a 

25 purchase or sale described in paragraph (1). 


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1 (3) Any transaction that evades or avoids, has 

2 the purpose of evading or avoiding, causes a viola3 tion of, or attempts to violate the prohibition under 

4 paragraph (1). 

5 (4) Any conspiracy formed to violate the prohi6 bition under paragraph (1). 

7 SEC. 4. EXPANSION OF NON-SPECIALLY DESIGNATED NA8 TIONALS CHINESE MILITARY-INDUSTRIAL 

9 COMPLEX COMPANIES LIST. 

10 Not later than 180 days after the date of the enact11 ment of this Act, the Secretary of the Treasury shall pre12 scribe regulations to expand the Non-Specially Designated 

13 Nationals Chinese Military-Industrial Complex Companies 

14 List (commonly referred to as the ‘‘NS–CMIC List’’) of 

15 the Office of Foreign Assets Control to include— 

16 (1) any entity engaged in supporting the Chi17 nese military-industrial complex; 

18 (2) any entity that is owned or controlled by an 

19 entity described in paragraph (1); 

20 (3) any entity that is formed from a spin-off, 

21 merger or acquisition, or sale of a business unit in22 volving an entity described in paragraph (1) or is 

23 otherwise a successor to such an entity; and 

24 (4) any entity that provides financial services 

25 for an entity described in paragraph (1), (2), or (3). 


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1 SEC. 5. CLOSING SANCTIONS LOOPHOLES. 

2 (a) IN GENERAL.—If sanctions are imposed with re3 spect to a Chinese entity under any statute or Executive 

4 order described in subsection (b), sanctions shall be im5 posed with respect to the Chinese entity under each other 

6 applicable statute and Executive order described in sub7 section (b) unless— 

8 (1) the President waives the imposition of such 

9 sanctions; or 

10 (2) a waiver provided for under such other stat11 ute or Executive order applies. 

12 (b) STATUTES AND EXECUTIVE ORDERS DE13 SCRIBED.—A statute or Executive order described in this 

14 subsection is a statute or Executive order that provides 

15 for the imposition of sanctions. 

16 (c) NATIONAL SECURITY WAIVER.— 

17 (1) IN GENERAL.—The President may waive 

18 the application of any sanction imposed with respect 

19 to any person under subsection (a) if the President 

20 determines and certifies to Congress that such a 

21 waiver is important to the national security interests 

22 of the United States. 

23 (2) NOTIFICATION OF AND REPORT TO CON24 GRESS.—If the President decides to exercise the 

25 waiver authority provided under paragraph (1), the 


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1 President shall, not less than 20 days before the 

2 waiver takes effect, submit to Congress a report— 

3 (A) notifying Congress of the decision to 

4 exercise the waiver authority; and 

5 (B) fully articulating the rationale and cir6 cumstances that led to the decision. 

7 (d) TERMINATION OF SANCTIONS TO BE REPORTED

8 TO CONGRESS.—Not later than 20 days after the termi9 nation of any sanction under subsection (a), the President 

10 shall promptly submit to Congress a report on that termi11 nation and the reasons for the termination. 

Æ 


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