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S-1053Senate2025-03-13International Affairs

FIGHT China Act of 2025

YourVoice.Now Summary

Your MoneyWorkers & JobsCivil LibertiesCriminal Justice & Due ProcessCorporate BenefitsHigh-Earner BenefitsTransparency & Accountability

Gives U.S. investors one year to sell stock in listed Chinese military-linked firms and limits new investment in Chinese chip and AI tech.

Your Money

Some Chinese stocks off-limits to you — after 365 days

One year after this becomes law, a U.S. person could not hold shares of Chinese firms on a Treasury sanctions list. You would have that year to sell.

Workers & Jobs

Some federal jobs skip competitive hiring rules — 15 presidential picks

The President could name up to 15 people to run this program without the usual competitive hiring steps. Treasury and Commerce could do the same, with no stated limit.

Civil Liberties

Officials must prove a violation — not the accused

If Treasury takes action over these rules, it has to prove the violation. The accused person does not have to prove they did nothing wrong.

Criminal Justice & Due Process

Sanctions violations carry criminal penalties — plus civil fines

The bill applies the penalties in current sanctions law to anyone who breaks these rules. Those include money fines and criminal charges.

Corporate Benefits

Treasury told to pick least costly rules — where practical

The bill tells Treasury to hold down the cost and complexity of following the new rules. It must choose the least burdensome option that still works.

New reporting duty for China tech deals — within 30 days

A U.S. firm that buys into Chinese chip, AI, or quantum work would have to file a written notice with Treasury. It would be due 30 days after the deal closes.

Fines for banned China deals — $250,000 or more

Treasury could fine a violator $250,000, or twice the value of the deal, whichever is larger. It could also force a sale of the investment.

High-Earner Benefits

Private fund investors exempt — stakes up to $2 million

The investment limits skip anyone who puts $2,000,000 or less into a venture capital or private equity fund. Bigger stakes are covered.

Transparency & Accountability

Treasury could publish a list of restricted firms

Treasury may set up a public list naming Chinese firms caught by these rules. Anyone could also send in evidence about a firm in private.

Deal filings kept from public records requests

Reports that firms file about these deals would be closed to public records requests. No agency or member of Congress could release them.

Commerce could end this law by delisting China

The Act stops having any force on the day Commerce takes China off its list of foreign adversaries. No vote of Congress would be needed.

More about this bill

If you own shares in certain Chinese companies, you would have to sell them. The deadline would be 365 days after this becomes law. The rule covers firms on a Treasury sanctions list tied to China's military. Most other households would notice no direct change. The bill would also limit new U.S. money flowing into Chinese tech. Treasury could ban U.S. investors from backing Chinese chip, AI, or quantum computing work. Deals in other listed tech would need a written report to Treasury within 30 days. Buying stock on an exchange or shares in a registered fund would stay allowed. Fines could reach $250,000, or twice the value of the deal. The President could freeze the U.S. assets of foreign firms in China's defense or surveillance sectors. Breaking those rules would carry fines and possible criminal charges. The bill would authorize $150,000,000 a year for Treasury to run the program, for two years. Treasury would report to Congress each year for seven years. The whole law would end if Commerce drops China from its 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
Source
Congress.gov →

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