HR2246-119

What This Bill Does

The FIGHT China Act builds an outbound-investment and sanctions framework focused on the People's Republic of China, Hong Kong, and Macau. It authorizes $150 million for Treasury for each of the first two fiscal years after enactment, with transfers allowed to Commerce, and permits direct hiring to carry out the Act. The President may impose IEEPA property-blocking sanctions on covered foreign persons identified by Treasury in consultation with State. It then amends the Defense Production Act to let Treasury prohibit U.S. persons from knowingly engaging in covered national security transactions in prohibited technologies involving covered foreign persons, with anti-evasion rules, national-interest waivers, congressional notice within five business days, and regulations. Treasury must also require U.S. persons to notify Treasury within 30 days after completing covered transactions in prohibited or notifiable technologies unless the transaction was prohibited. Treasury must report annually for seven years on enforcement, technology definitions, military and human rights concerns, effects on supply chains, and other risks; coordinate with allies and partners; and may create a public database of covered foreign persons with confidential evidence submissions from Congress, investors, stakeholders, and nongovernmental organizations. The bill also requires periodic reports on whether PRC persons on the Military End-User List, section 1260H list, or Commerce Entity List should be added to the Non-SDN Chinese Military-Industrial Complex Companies List.

Who Benefits and How

U.S. national security agencies benefit from authority to restrict capital and know-how flowing to PRC-linked prohibited technologies. Treasury investment-security staff benefit from $150 million annual implementation funding for two fiscal years and direct-hire authority. Commerce export-control staff benefit from transfers, outreach funding, and information-sharing tied to PRC military-industrial entities. Congressional national security committees benefit from waiver notices, annual reports, database evidence channels, and Non-SDN list reviews. Allied governments benefit from U.S. engagement to coordinate outbound investment controls and information sharing.

Who Bears the Burden and How

U.S. investors must avoid prohibited covered national security transactions and notify Treasury about covered notifiable transactions within 30 days. PRC covered foreign persons face blocked property, public database exposure, and possible investment prohibitions. Treasury rulemaking staff must define prohibited and notifiable technologies, issue regulations within 450 days, run waivers, report annually, and maintain any database. President of the United States must decide sanctions, waivers, and outbound-investment restrictions under the Act. Chinese military-industrial companies face recurring review for possible inclusion on the Non-SDN Chinese Military-Industrial Complex Companies List.

Key Provisions

• Authorizes $150 million for Treasury in each of the first two fiscal years after enactment, with Commerce transfers and direct hiring.
• Authorizes IEEPA blocking sanctions against covered PRC-linked foreign persons.
• Prohibits U.S. persons from covered national security transactions in prohibited technologies involving covered foreign persons.
• Requires 30-day Treasury notification for covered transactions in prohibited or notifiable technologies that are not banned.
• Requires annual reports for seven years and allied coordination on outbound investment controls.
• Allows a public database of covered foreign persons using confidential evidence submissions.
• Requires biennial reports for six years on PRC list entities and possible Non-SDN Chinese Military-Industrial Complex Companies List inclusion.