No CRS summary available for this bill.
This section prohibits United States persons from purchasing, selling, or holding (1) publicly traded securities issued by a covered entity, (2) publicly traded derivatives of such securities, or (3) securities providing investment exposure to such securities, not later than 90 days after enactment. It defines covered entities to include Chinese entities (or those under common ownership or control) on specified U.S. government lists, such as the Specially Designated Nationals and Blocked Persons List, Non-SDN Chinese Military-Industrial Complex List, Department of Defense Section 1260H list, Global Magnitsky sanctions list, Commerce Entity List and Military End-User List, Uyghur Forced Labor Prevention Act lists, and certain withhold release orders under the Tariff Act of 1930. It directs the President, not later than 90 days after enactment, to compile and publicly maintain a single list of covered entities (including unique identifiers such as CUSIP numbers where possible). It requires United States persons to divest prohibited securities within 180 days of enactment (for those identified in the initial 90-day period) or of identification (thereafter), exempting divestment-facilitating transactions from the prohibition. It authorizes civil penalties for violations of up to $250,000 or twice the transaction amount (whichever is greater) and criminal penalties for willful violations of up to $1,000,000 fines (or, for individuals, such fines plus up to 20 years imprisonment).