S. 1359 — STOP CCP Act of 2025

This section defines three terms for purposes of the Act: (1) "Chinese entity" as an entity organized under the laws of the People's Republic of China (PRC) or otherwise subject to the jurisdiction of the PRC government; (2) "publicly traded securities" as any security (as defined in 15 U.S.C. 78c(a)) denominated in any currency that trades on a securities exchange or over-the-counter in any jurisdiction, or any derivative thereof designed to provide investment exposure to such a security; and (3) "United States person" as a U.S. citizen, alien lawfully admitted for permanent residence, entity organized under U.S. or state law (including foreign branches), or any person in the United States.

This section prohibits United States persons from (1) knowingly purchasing or selling publicly traded securities—or derivatives or other securities designed to provide investment exposure to such securities—issued by persons determined by the Secretary of the Treasury, in consultation with the Secretary of State and as appropriate the Secretary of Defense, to operate or have operated in the defense and related materiel sector or the surveillance technology sector of China's economy, or to own or control (or be owned or controlled by) such persons; (2) executing, supporting, or servicing any such purchase or sale; (3) engaging in any transaction that evades, avoids, or attempts to violate the prohibition; or (4) conspiring to violate the prohibition.

This section directs the Secretary of the Treasury, not later than 180 days after enactment, to prescribe regulations expanding the Non-Specially Designated Nationals Chinese Military-Industrial Complex Companies List (NS-CMIC List) of the Office of Foreign Assets Control (i.e., entities identified under E.O. 13959 as connected to the Chinese military-industrial complex and subject to U.S. investment prohibitions) to include (1) any entity engaged in supporting the Chinese military-industrial complex; (2) any entity owned or controlled by an entity described in (1); (3) any entity formed from a spin-off, merger or acquisition, or sale of a business unit involving an entity described in (1) or otherwise a successor to such an entity; and (4) any entity providing financial services to entities described in (1), (2), or (3).

This section requires the imposition of sanctions under all applicable statutes and executive orders providing for sanctions against a Chinese entity if sanctions are imposed under any such statute or executive order, unless the President waives them or a waiver under the other statute or executive order applies. The section further authorizes the President to waive such sanctions for national security reasons upon certification to Congress, with a report required at least 20 days prior to the waiver's effective date, and requires a report to Congress within 20 days of any such sanction's termination.