I 
117TH CONGRESS 
1ST SESSION H. R. 5786 
To limit the sale and purchase of certain securities, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 28, 2021 
Mr. PERRY (for himself, Mr. TIFFANY, Mr. STEUBE, Mr. DESJARLAIS, and 
Mr. MAST) introduced the following bill; which was referred to the Com-
mittee on Foreign Affairs, and in addition to the Committees on Finan-
cial Services, and Armed Services, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To limit the sale and purchase of certain securities, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Defund the People’s 
Liberation Army Act’’. 
SEC. 2. COUNTERING CCP HUMAN RIGHTS ABUSERS ACT. 
(a) PROHIBITIONS ON CCP COMPANIES LISTED IN 
BOTH THE SECTION 1237 LIST AND THE SECTION 1260H 
LIST.— 
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(1) PROHIBITION ON PURCHASE OR SALE OF 
CERTAIN SECURITIES.—Except as provided in para-
graph (5) or paragraph (8)(B), a United States per-
son is prohibited from purchasing or selling any— 
(A) publicly traded security issued by a 
covered entity; 
(B) publicly traded security that is deriva-
tive of a publicly traded security issued by a 
covered entity; and 
(C) security that is designed to provide in-
vestment exposure to a publicly traded security 
issued by a covered entity. 
(2) COVERED
ENTITIES.—The term ‘‘covered 
entity’’ includes the following: 
(A) Any person that is a Communist Chi-
nese military company and included on the list 
maintained by the Department of Defense in 
accordance with section 1237(b) of the Strom 
Thurmond National Defense Authorization Act 
for Fiscal Year 1999 (50 U.S.C. 1701 note) as 
of the date of the enactment of this Act. 
(B) Any person that was designated as a 
Communist Chinese military company on June 
2, 2021, in accordance with such section 
1237(b). 
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(C) Any person that is a Chinese military 
company or a military-civil fusion contributor 
and included on the list maintained by the De-
partment of Defense in accordance with section 
1260H(b) of the National Defense Authoriza-
tion Act for Fiscal Year 2021 (10 U.S.C. 113 
note) as of the date of the enactment of this 
Act. 
(3) APPLICABILITY.— 
(A) INITIAL APPLICABILITY.—If a person 
qualifies as covered entity on the date of the en-
actment of this Act, the prohibitions under this 
section shall apply to any purchase or sale that 
occurs at or after 12:01 a.m. eastern daylight 
time on the date that is 60 days after the date 
of the enactment of this Act. 
(B) FUTURE
ADDITIONS.—If a person 
qualifies as covered entity after the date of the 
enactment of this Act, the prohibitions under 
this section shall apply to any purchase or sale 
that occurs at or after 12:01 a.m. eastern day-
light time on the date that is 60 days after the 
date on which the person qualifies as a covered 
entity. 
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(4) RULE OF APPLICATION.—The prohibitions 
under this subsection shall apply except to the ex-
tent provided by statutes, or in any regulation, 
order, directive, or license that may be issued pursu-
ant to this Act, and notwithstanding any contract 
entered into or any license granted before the date 
of enactment of this Act. 
(5) EXCEPTION
WITH
RESPECT
TO
DIVEST-
MENT.—Notwithstanding paragraph (1), the pur-
chase or sale of publicly traded securities otherwise 
prohibited by such paragraph that is made solely to 
affect the divestment, in whole or in part, of such 
securities by a United States person shall be per-
mitted until— 
(A) 12:01 a.m. eastern daylight time on 
June 3, 2022, with respect to any person that 
qualifies as a covered entity on the date of the 
enactment of this Act; or 
(B) 12:01 a.m. eastern daylight time on 
the date that is 1 year after the date on which 
a person qualifies as a covered entity after the 
date of the enactment of this Act. 
(6) MAINTENANCE OF LISTS.—The Secretary of 
Defense is authorized to make additions or deletions 
to the lists described in paragraph (2) on an ongoing 
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basis based on the latest information available. The 
Secretary of Defense shall, concurrently with the 
publication of the lists in accordance with the appli-
cable provisions of law, transmit a copy of such lists 
to the Secretary of State, the Secretary of the 
Treasury, and the Director of National Intelligence. 
(7) EVASION OF PROHIBITION.—The following 
acts are prohibited: 
(A) Any transactions by a United States 
person or within the United States that evade 
or avoid, or have the purpose of evading or 
avoiding, cause a violation of, or attempt to vio-
late the prohibitions set forth in this section. 
(B) Any conspiracy formed to violate any 
of the prohibition set forth in this Act. 
(8) AUTHORIZATION
FOR
REGULATIONS
AND 
PENALTIES.— 
(A) IN GENERAL.—The Secretary of the 
Treasury, after consultation with the Secretary 
of State, the Secretary of Defense, the Director 
of National Intelligence, and the heads of other 
executive departments and agencies as deemed 
appropriate by the Secretary of the Treasury, is 
hereby authorized to take such actions, includ-
ing the promulgation of rules and regulations, 
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and to employ all powers granted to the Presi-
dent by the International Emergency Economic 
Powers Act, to carry out the purposes of this 
Act. 
(B) REGULATIONS.—Rules and regulations 
issued pursuant to this section may, among 
other things, establish procedures to license 
transactions otherwise prohibited pursuant to 
this section if, prior to issuing any license 
under this section, the Secretary of the Treas-
ury shall consult with the Secretary of State, 
the Secretary of Defense, and the Director of 
National Intelligence. 
(C) PENALTIES.—The penalties provided 
for in subsections (b) and (c) of section 206 of 
the International Emergency Economic Powers 
Act (50 U.S.C. 1705) with respect to a person 
that knowingly violates, attempts to violate, 
conspires to violate, or causes a violation of reg-
ulations promulgated under this paragraph or 
commits any acts described in paragraph (6) to 
the same extent that such penalties apply to a 
person that knowingly commits an unlawful act 
described in section 206(a) of that Act. 
(b) LIMITATION ON JUDICIAL REVIEW.— 
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