Congress locks Americans out of Chinese stocks—with a one-year exit window
H.R. 7075 — Divesting from Communist China’s Military Act of 2026 · Filed by Scott Perry (R-PA) · 1 cosponsor · Introduced Jan 14, 2026 · Referred to committee
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What it does
This bill requires the Treasury Department to maintain a list of Chinese companies tied to China's military and prevent U.S. investors from buying or selling their stocks, except during a one-year divestment window after a company is added to the list. After that window closes, Americans cannot trade these securities at all. The bill aims to cut off capital flows to entities that support China's military modernization.
Why we flagged it
The bill's core function is to prohibit U.S. persons from trading securities of Chinese military-linked companies, operationalized through a Treasury-maintained list and a one-year divestment window. It is a capital-flow restriction tool, not a commemorative or appropriations measure.
What the text implies
- The one-year divestment window creates a known deadline for forced selling, potentially depressing prices and harming retail investors who may not be aware of the listing or may be unable to exit positions in time.
- The bill references Executive Orders 13959 and 14032 but does not define the criteria for what constitutes a 'Chinese military company' — that definition is delegated to the Secretary of Defense and Treasury, creating regulatory uncertainty and potential for retroactive application.
The full analysis lists 5 implications of this text.
Who stands to gain
U.S. defense contractors (reduced competition from Chinese military-linked suppliers); Domestic technology and manufacturing sectors (reduced Chinese capital competition)