I 
117TH CONGRESS 
1ST SESSION H. R. 1093 
To prohibit financial investment by a United States person in foreign indus-
trial defense corporations with substantial contracts with, ties to, or 
support from, the Chinese military and affiliated entities, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 18, 2021 
Mr. BANKS introduced the following bill; which was referred to the Committee 
on Financial Services, and in addition to the Committee on Foreign Af-
fairs, for a period to be subsequently determined by the Speaker, in each 
case for consideration of such provisions as fall within the jurisdiction of 
the committee concerned 
A BILL 
To prohibit financial investment by a United States person 
in foreign industrial defense corporations with substantial 
contracts with, ties to, or support from, the Chinese 
military and affiliated entities, 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 ‘‘Stop Funding the PLA 
Act’’. 
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SEC. 2. SPECIFICATION OF PROHIBITED FOREIGN INDUS-
TRIAL DEFENSE CORPORATIONS. 
(a) SPECIFICATION REQUIRED.—Not later than 90 
days after the date of the enactment of this section, and 
annually thereafter, the Secretary, in consultation with the 
Secretary of State, the Secretary of Defense, and the do-
mestic intelligence community, shall submit to the Com-
mittee on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on Financial Services of the 
House of Representatives a report that specifies each for-
eign industrial defense corporation with substantial con-
tracts with, ties to, or support from, a PLA entity. 
(b) EFFECT OF SPECIFICATION.— 
(1) PURCHASE OF SECURITIES PROHIBITED.— 
Beginning on the date that is 180 days after a re-
port is submitted under subsection (a), a United 
States person may not purchase securities of a for-
eign industrial defense corporation specified in such 
report. 
(2) DIVESTMENT REQUIRED.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), not later than 180 days 
after a report is submitted under subsection 
(a), a United States person that owns a secu-
rity of a foreign industrial defense corporation 
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specified in such report shall divest themselves 
of such security. 
(B) EXTENDED WIND-DOWN IN CASE OF 
FINANCIAL
HARDSHIP.—The Secretary may 
allow a United States person a 270-day exten-
sion to the 180-day period for compliance under 
subparagraph (A) if the Secretary determines 
that such entity— 
(i) owns a security of a foreign indus-
trial defense corporation specified in a re-
port submitted under subsection (a); and 
(ii) would experience extreme financial 
hardship to comply within the 180-day pe-
riod under subparagraph (A). 
(c) ASSIGNMENT OF AUTHORITY.— 
(1) ENFORCEMENT.—The Secretary shall en-
force the provisions of this section. 
(2) REGULATIONS.—Not later than 90 days 
after the date of the enactment of this section, the 
Secretary shall issue such regulations and guidance 
as necessary to implement and enforce this section. 
(d) REPORT.—Not later than 360 days after the date 
of the enactment of this section, the Secretary shall sub-
mit to the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on Financial 
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Services of the House of Representatives a report on the 
progress of the divestments required under subsection 
(b)(2). 
(e) PETITION FOR REMOVAL FROM DESIGNATION.— 
(1) IN GENERAL.—A foreign industrial defense 
corporation may petition the Secretary to not be in-
cluded or removed from a report under subsection 
(a). 
(2) REQUIREMENTS.—A petition under para-
graph (1) shall include such documentation of the 
assets and liabilities, company financial records, 
ownership and investor records, and past and cur-
rent business contracts of the foreign industrial de-
fense corporation submitting such petition that the 
Secretary determines necessary. 
(f) FINAL REPORT.—Not later than 8 years after the 
date of the enactment of this section, the Secretary shall 
submit to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Finan-
cial Services of the House of Representatives a final report 
on the implementation of this section, including— 
(1) an analysis of the effectiveness of this sec-
tion; 
(2) the development and maintenance of the re-
ports required under subsection (a); and 
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