Chinese List Entity Alignment and Review Act of 2025; CLEAR Act of 2025
Summary
The CLEAR Act of 2025 mandates the inclusion of Chinese entities found on other US government restriction lists onto the list of Chinese military companies operating in the United States. This aims to strengthen existing regulations by ensuring a more comprehensive approach to identifying and scrutinizing entities with potential ties to the Chinese military. The bill amends Section 1260H(b)(3) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 to enforce this alignment.
Expected Effects
The primary effect will be increased scrutiny and potential restrictions on Chinese companies operating in the US that are also flagged on other government watchlists. This could lead to divestment, sanctions, or other measures to limit their operations. The Act seeks to close loopholes and create a more unified approach to dealing with entities of concern.
Potential Benefits
- Strengthened national security by limiting the influence of potentially hostile entities.
- Improved transparency regarding Chinese military-affiliated companies operating in the US.
- Enhanced enforcement of existing regulations and restrictions.
- Potential reduction in intellectual property theft and other illicit activities.
- Increased accountability for companies operating within the US.
Most Benefited Areas:
Potential Disadvantages
- Potential for retaliatory measures from China, impacting trade and diplomatic relations.
- Increased compliance costs for businesses operating in both countries.
- Risk of misidentification or overreach, impacting legitimate businesses.
- Possible chilling effect on investment and economic cooperation.
- Could lead to further escalation of tensions between the US and China.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the US Constitution's broad mandate to provide for the common defense (Preamble). Congress has the power to regulate commerce with foreign nations (Article I, Section 8), which includes restricting the activities of foreign entities that pose a threat to national security. The bill does not appear to infringe on individual liberties or rights as it targets entities, not individuals.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).