American companies and investors would face strict new rules on financial ties to China's military-industrial complex. The bill lets the President sanction foreign persons connected to covered Chinese entities — freezing their U.S. assets and blocking transactions. It also prohibits or requires notification for certain U.S. investments in Chinese companies involved in semiconductors, AI, quantum computing, and other sensitive technologies. The legislation authorizes $150 million per year for the first two years to staff up enforcement and would automatically expire if China is removed from the government's list of foreign adversaries.
Congressional Summary
Foreign Investment Guardrails to Help Thwart China Act of 2025 or FIGHT China Act of 2025 This bill authorizes sanctions on certain foreign persons (individuals and entities) that are involved with China's defense or surveillance technology sectors. The bill also requires U.S. persons to notify the Department of the Treasury about their investments with certain foreign persons in various technologies, and (2) authorizes Treasury to prohibit U.S. persons from making investments with such foreign persons in some of these technologies. Specifically, the President is authorized to impose property-blocking sanctions on certain foreign persons (including members of the Chinese Communist Party Central Committee, Chinese businesses, Chinese governmental entities, and businesses with equity securities primarily traded on Chinese stock exchanges) that Treasury determines to be knowingly engaged in significant operations in China's defense, defense-related material, or surveillance technology sectors. Additionally, the bill authorizes Treasury to bar U.S. persons from knowingly engaging in certain transactions (such as acquiring an equity interest, providing a loan, or entering into a joint venture) with most of these categories of foreign persons if they involve a prohibited technology. Prohibited technologies include those thatdevelop a quantum computer; develop, design, or produce materials, components, or systems for hypersonic systems; ordevelop, design, or produce artificial intelligence models for use by the Chinese government.Treasury must require U.S. persons to notify Treasury if they engage in such transactions involving a range of technologies, including the prohibited technologies.
Details
- Congress
- 119th
- Chamber
- Senate
- Status
- summarized
- Action
- Introduced in Senate
- Action Date
- 2025-03-13
- Date Added
- 2026-03-30