S.1359 - Sanction Transactions Originating from Pernicious Chinese Companies and Policies Act of 2025; STOP CCP Act of 2025 (119th Congress)
Summary
S.1359, the STOP CCP Act of 2025, aims to prohibit US persons from investing in publicly traded securities of certain Chinese companies identified as operating in the defense, related materiel, or surveillance technology sectors. It also mandates the expansion of the Non-Specially Designated Nationals Chinese Military-Industrial Complex Companies List (NS-CMIC List). The bill includes provisions for sanctions on Chinese entities and allows for presidential waivers based on national security interests.
Expected Effects
The likely effect of this bill is increased economic pressure on specific Chinese companies and sectors. This could lead to a decrease in investment flow from the US to those companies. It may also strain US-China relations.
Potential Benefits
- Strengthens national security by limiting investment in Chinese companies involved in military or surveillance technologies.
- Protects US investors from unknowingly funding entities that pose a risk to national security.
- Potentially encourages Chinese companies to operate outside of military-industrial complex.
- Closes sanctions loopholes, ensuring consistent application of sanctions across different statutes and executive orders.
- Enhances transparency by expanding the NS-CMIC List.
Most Benefited Areas:
Potential Disadvantages
- May negatively impact US investment firms and individuals holding securities in affected Chinese companies.
- Could provoke retaliatory measures from China, harming US businesses operating there.
- May disrupt global supply chains and increase costs for certain goods.
- The broad definitions of "Chinese entity" and "publicly traded securities" could lead to unintended consequences.
- Presidential waiver authority could be used to undermine the intent of the sanctions.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's focus on national security and regulating commerce aligns with the federal government's enumerated powers, particularly Article I, Section 8, which grants Congress the power to regulate commerce with foreign nations and to provide for the common defense. The bill does not appear to infringe upon individual liberties or rights protected by the Constitution. The presidential waiver authority raises some concerns about the separation of powers, but such waivers are common in foreign policy legislation.
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).