Foreign Investment Guardrails to Help Thwart (FIGHT) China Act

This bill aims to protect U.S. national security by imposing sanctions on certain Chinese persons and by prohibiting or requiring notifications for certain U.S. investments in China. It authorizes appropriations and sets a termination condition.

Sec. 2, Secretary defined: The term 'Secretary' in this Act means the Secretary of the Treasury, unless otherwise specified.

Sec. 3, Severability: If any part of this Act is found invalid, the rest of the Act remains in effect.

Sec. 4, Authorization of appropriations: $150,000,000 is authorized for the Treasury Department for the first two fiscal years after enactment, with possible transfer to Commerce for outreach. The President and agency heads may hire up to 15 individuals directly to carry out this Act.

Sec. 5, Termination: This Act ends when the Secretary of Commerce removes China from the list of foreign adversaries in the relevant regulation.

Title I, Sec. 101, Imposition of sanctions: The President may block property and prohibit transactions of any foreign person determined by the Treasury Secretary (with State Department consultation) to be a 'covered foreign person.' Penalties under the International Emergency Economic Powers Act apply. Exceptions exist for intelligence, law enforcement, and U.S. government activities. A report to Congress is required within 365 days and annually for 7 years on whether each person on the Non-SDN Chinese Military-Industrial Complex Companies List is a covered foreign person.

Title I, Sec. 102, Definitions: Defines key terms. 'Country of concern' means the People's Republic of China, including Hong Kong and Macau. A 'covered foreign person' is a foreign person linked to China (e.g., incorporated there, a CCP Central Committee member, or government entity) that knowingly engages in significant operations in China's defense or surveillance technology sectors.

Title II, Sec. 201, Prohibition and notification on investments: Amends the Defense Production Act to add a new title. The Treasury Secretary may prohibit U.S. persons from knowingly engaging in covered national security transactions in prohibited technologies. Evasion is prohibited. Waivers are possible with congressional notification. Regulations must include a process for non-binding feedback, self-disclosure, and civil penalties up to $250,000 or twice the transaction amount. The Secretary may compel divestment. For notifiable technologies, mandatory notification to the Treasury Secretary is required within 30 days after transaction completion, with regulations to be issued within 450 days. Penalties for non-notification are similar. Information filed is confidential except for certain exceptions.

Title III, Sec. 301, Requirements relating to the Non-SDN Chinese Military-Industrial Complex Companies List: Requires the Treasury Secretary to report within 365 days and biennially for 6 years on whether certain PRC persons from other lists qualify for the Non-SDN Chinese Military-Industrial Complex Companies List. The President must establish a process for agencies to share information. The President must also promulgate rules prohibiting U.S. persons from knowingly holding securities of entities on that list after 365 days, with a waiver process for national security or foreign policy reasons.