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Ban on Investments in Chinese Military and Human Rights-Linked Companies

New legislation prohibits U.S. persons from buying, selling, or holding securities issued by Chinese entities linked to military activities or human rights abuses. Individuals holding such assets will be required to divest within 180 days, with severe financial penalties and imprisonment for violations. The aim is to protect U.S. investors from supporting entities detrimental to national security and human rights.
Key points
Prohibition on purchasing, selling, or holding securities from listed Chinese military and human rights-linked entities.
Mandatory divestment of prohibited securities within 180 days of identification.
Significant penalties, including fines (up to $250,000 or twice the transaction amount) and imprisonment (up to 20 years) for violations.
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Expired
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Additional Information
Print number: 118_HR_7759
Sponsor: Rep. Sherman, Brad [D-CA-32]
Process start date: 2024-03-20