SEC. 2. DEFINITIONS. 
In this Act: 
(1) CHINESE ENTITY.—The term ‘‘Chinese en-
tity’’ 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 re-
ferred to as ‘‘over-the-counter’’, in any jurisdic-
tion; and 
(B) any security that is derivative of or de-
signed to provide investment exposure to a se-
curity 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 perma-
nent residence to the United States; 
(B) an entity organized under the laws of 
the United States or any jurisdiction within the 
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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 PEO-
PLE’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 pro-
vide 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 de-
fense and related materiel sector or the surveil-
lance 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 de-
scribed in subparagraph (A). 
(2) The execution, support, or servicing of a 
purchase or sale described in paragraph (1). 
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(3) Any transaction that evades or avoids, has 
the purpose of evading or avoiding, causes a viola-
tion of, or attempts to violate the prohibition under 
paragraph (1). 
(4) Any conspiracy formed to violate the prohi-
bition under paragraph (1). 
SEC. 4. EXPANSION OF NON-SPECIALLY DESIGNATED NA-
TIONALS 
CHINESE 
MILITARY-INDUSTRIAL 
COMPLEX COMPANIES LIST. 
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of the Treasury shall pre-
scribe 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 Chi-
nese 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 in-
volving 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). 
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SEC. 5. CLOSING SANCTIONS LOOPHOLES. 
(a) IN GENERAL.—If sanctions are imposed with re-
spect to a Chinese entity under any statute or Executive 
order described in subsection (b), sanctions shall be im-
posed with respect to the Chinese entity under each other 
applicable statute and Executive order described in sub-
section (b) unless— 
(1) the President waives the imposition of such 
sanctions; or 
(2) a waiver provided for under such other stat-
ute or Executive order applies. 
(b) STATUTES
AND
EXECUTIVE
ORDERS
DE-
SCRIBED.—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 CON-
GRESS.—If the President decides to exercise the 
waiver authority provided under paragraph (1), the 
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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 cir-
cumstances that led to the decision. 
(d) TERMINATION OF SANCTIONS TO BE REPORTED 
TO CONGRESS.—Not later than 20 days after the termi-
nation of any sanction under subsection (a), the President 
shall promptly submit to Congress a report on that termi-
nation and the reasons for the termination. 
Æ 
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