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New Rules for US Investments in China: Prohibitions and Mandatory Reporting.

This bill imposes new restrictions on US persons and businesses regarding investments in the People's Republic of China, Hong Kong, and Macau. The goal is to safeguard US national security by prohibiting or requiring notification for transactions involving critical technologies like advanced semiconductors, AI, and quantum systems. Non-compliance can lead to significant financial penalties and forced divestment.
Key points
Investment Bans: US citizens and entities are prohibited from investing in Chinese firms involved in specific, highly advanced technologies deemed critical to national security (e.g., advanced chips, AI models, hypersonic systems).
Mandatory Notification: Investments in other sensitive, but less restricted, technologies in China must be reported to the US government within 30 days of completion.
Penalties for Violations: Breaking the rules or failing to report transactions can result in civil fines up to $250,000 or twice the transaction value, plus mandatory divestment.
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Expired
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Additional Information
Print number: 118_S_5598
Sponsor: Sen. Cornyn, John [R-TX]
Process start date: 2024-12-18
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

A bill to prohibit and require notifications with respect to certain investments by United States persons in the People's Republic of China, and for other purposes.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_5598.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-12-18.

What are the main provisions?

Key points include:

  • Investment Bans: US citizens and entities are prohibited from investing in Chinese firms involved in specific, highly advanced technologies deemed critical to national security (e.g., advanced chips, AI models, hypersonic systems).
  • Mandatory Notification: Investments in other sensitive, but less restricted, technologies in China must be reported to the US government within 30 days of completion.
  • Penalties for Violations: Breaking the rules or failing to report transactions can result in civil fines up to $250,000 or twice the transaction value, plus mandatory divestment.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Cornyn, John [R-TX].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

CATEGORIES

Security Economy