,,ii  #aahth ,,congress  #b;d ,session  
,s4 #dehf  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,june #ah1     
#bjbd,mr4 ,scott of ,florida introduced 
the following bill2 which was read twice
 and referred to the ,committee on      
,banking1 ,housing1 and ,urban ,affairs 
,a ,,bill  ,to prevent the funding of   
malign activities of the ,chinese       
,communist ,party though the sale of    
,a-,shares on certain securities        
exchanges controlled by the ,chinese    
,communist ,party by prohibiting the    
purchase1 sale1 and ownership of such   
securities by ,united ,states investors1
 and for other purposes4  #a4 ,short    
title ,this ,act may be cited as the    
,stop ,funding the ,,ccp through        
,a-,shares ,act4  #b4 ,findings2        
purposes  7a7 ,basis of findings ,the   
findings set forth in subsection 7b7 are
 based on facts disclosed by-- 7#a7     
,executive ,order #aciei1 ,executive    
,order #acigd1 and ,executive ,order    
#adjcb 7#ej ,u4,s4,c4 #agja note2       

relating to addressing the threat from  
securities investments that finance     
certain companies of the ,people's      
,republic of ,china72  7#b7 the record  
and reports of-- 7,a7 the ,united       
,states-,china ,economic and ,security  
,review ,commission with respect to the 
national security implications of the   
bilateral economic and financial        
relationship between the ,united ,states
 and the ,people's ,republic of ,china  
under section #abch7;b77#b7 of the      
,floyd ,d4 ,spence ,national ,defense   
,authorization ,act for ,fiscal ,year   
#bjja 7as enacted into law by ,public   
,law #ajf-cih2 #bb ,u4,s4,c4            
#gjjb7;b77#b772  7,b7 the               
,congressional-,executive ,commission on
 the ,people's ,republic of ,china with 
respect to the acts of the ,people's    
,republic of ,china that reflect        
compliance with or violation of human   
rights and the development of the rule  
of law in the ,people's ,republic of    
,china under title ,,iii of the         

,u4,s4-,china ,relations ,act of #bjjj  
7#bb ,u4,s4,c4 #fiaa et seq472 and  7#c7
 the annual threat assessment of the    
intelligence community under section    
#ajh;,b of the ,national ,security ,act 
of #aidg 7#ej ,u4,s4,c4 #cjdc;b72  7#d7 
the annual report of the ,department of 
,defense on military and security       
developments involving the ,people's    
,republic of ,china under section #abjb 
of the ,national ,defense ,authorization
 ,act for ,fiscal ,year #bjjj 7,public  
,law #ajf-fe2 #aj ,u4,s4,c4 #aac note72 
7#e7 the annual ,country ,reports on    
,human ,rights ,practices of the        
,department of ,state2 and  7#f7 facts  
otherwise disclosed and ascertained4    
7b7 ,findings ,congress finds that      
investments in securities listed on     
certain securities exchanges in the     
,people's ,republic of ,china adversely 
affect the public interest of the       
,united ,states and the interest of     
,united ,states investors1 in that1     
among other things-- 7#a7 the ideology1 

goals1 and actions of the ,chinese      
,communist ,party are inimical to the   
national security1 economic security1   
fundamental values1 and liberty of the  
,united ,states and citizens of the     
,united ,states2  7#b7 all governmental1
 economic1 business1 and social         
institutions in the ,people's ,republic 
of ,china are effectively               
instrumentalities of the ,chinese       
,communist ,party1 as reflected in the  
,party's charter1 which states1         
,government1 the military1 society and  
schools1 north1 south1 east and         
west--the party leads them all1 and are 
utilized by the ,chinese ,communist     
,party to achieve its goals1 paramount  
among which are staying in power and    
vanquishing the ,united ,states as the  
world's leading superpower2  7#c7 among 
those institutions is the ,people's     
,liberation ,army1 an instrumentality of
 the ,chinese ,communist ,party         
reporting to the ,central ,military     
,commission of the ,chinese ,communist  

,party2  7#d7 the core mission of the   
,people's ,liberation ,army is to       
sustain the ,chinese ,communist ,party's
 grip on power1 as was demonstrated by  
the ,chinese ,communist ,party's use of 
the ,people's ,liberation ,army in      
putting down the pro-democracy          
demonstrations of #aihi2  7#e7 the      
,chinese ,communist ,party is actively  
undermining the national security of the
 ,united ,states through a massive      
buildup of the military capabilities of 
the ,people's ,liberation ,army and     
increasingly aggressive actions by      
military and paramilitary actors2  7#f7 
the ,chinese ,communist ,party supports 
the buildup of those capabilities       
through a program of military-civil     
fusion under which ,chinese companies   
and researchers must share technology   
and equipment with the ,chinese         
military1 with the goal of ensuring that
 the ,people's ,liberation ,army        
achieves global military dominance by   
#bjdi2  7#g7 those companies1 known as  

,chinese military industrial-complex    
companies1 although often representing  
themselves as private and civilian1 are1
 in fact1 directly supporting the       
,chinese ,communist ,party's military1  
intelligence1 and security apparatuses  
and providing aid in their development  
and modernization2  7#h7 the ,chinese   
military industrial-complex companies   
raise substantial capital by selling    
securities to ,united ,states           
institutional and individual investors2 
7#i7 the ,chinese military              
industrial-complex companies            
increasingly do so by listing their     
securities for sale on the ,shanghai and
 ,shenzhen stock exchanges1 which are   
self-proclaimed instrumentalities of the
 ,chinese ,communist ,party and are     
regulated by the ,china ,securities     
,regulatory ,commission1 which is also  
an instrumentality of the ,chinese      
,communist ,party1 and securities so    
listed are commonly referred to as      
,a-,shares2  7#aj7 in addition to       

,chinese military industrial-complex    
companies1 those exchanges are replete  
with listings of securities of-- 7,a7   
,chinese military industrial-complex    
companies not included on ,united       
,states sanctions lists2  7,b7          
subsidiaries of such companies that are 
not included on ,united ,states         
sanctions lists2  7,c7 companies denied 
access to ,united ,states technology and
 equipment because those entities       
support the development1 production1 and
 deployment of military items for use by
 military end-users1 including the      
,chinese armed forces1 national guard1  
national police1 and government         
intelligence organizations2  7,d7       
companies specializing in advanced      
weapons technologies that represent an  
unusual and extraordinary threat to the 
national security of the ,united        
,states2  7,e7 companies managing the   
,people's ,republic of ,china's nuclear 
weapons program and the expansion of    
that program2  7,f7 companies building  

the ,people's ,liberation ,army ,air    
,force's next-generation fighters and   
bombers2  7,g7 companies central to the 
,people's ,republic of ,china's naval   
buildup of aircraft carriers1 surface   
ships1 and submarines2  7,h7 companies  
conducting the construction and         
militarization of artificial islands in 
the ,south ,china ,sea2 and  7,i7       
companies involved in the development   
and use of surveillance technology to   
facilitate repression and egregious     
human rights abuses and advance the     
ideology and strategic goals of the     
,chinese ,communist ,party domestically 
and internationally2  7#aa7 investment  
of ,united ,states capital by ,united   
,states investors in the securities of  
companies listed on those exchanges has 
increased dramatically through the      
inclusion of those securities in indices
 published by major index providers and 
in investment products tracking those   
indexes offered by the most prominent   
asset managers in the ,united ,states2  

7#ab7 investment of ,united ,states     
capital by ,united ,states investors    
through those exchanges in the          
securities of those companies1 which    
directly support the efforts of the     
military1 intelligence1 and other       
security apparatuses of the ,people's   
,republic of ,china1 and in other       
entities indirectly contributing to the 
development of these apparatuses by     
their contribution to the country's     
economy1 presents an unusual and        
extraordinary threat to the national    
security1 foreign policy1 ,united       
,states investor community1 and economy 
of the ,united ,states1 constituting a  
national emergency2  7#ac7 investment of
 ,united ,states capital by ,united     
,states investors in securities listed  
on those exchanges also supports1 both  
indirectly through general economic     
support1 and directly through the       
operations of specific companies1 the   
,chinese ,communist ,party's ongoing    
engagement of widespread1 systematic1   

and egregious violations of human       
rights1 including-- 7,a7 pursuit of a   
relentless campaign against the ,uyghurs
 in the ,xinjiang ,uyghur ,autonomous   
,region in the western ,people's        
,republic of ,china1 characterized by   
the ,united ,states ,department of      
,state as one of genocide1 involving    
forced labor1 rape1 compulsory          
sterilization1 and organ harvesting1 all
 of which continue1 despite the         
enactment of the ,act entitled ,an ,act 
to ensure that goods made with forced   
labor in the ,xinjiang ,autonomous      
,region of the ,people's ,republic of   
,china do not enter the ,united ,states 
market1 and for other purposes1 approved
 ,december #bc1 #bjba 7,public ,law     
#aag-gh2 #ace ,stat4 #aebe7 7commonly   
referred to as the ,uyghur ,forced      
,labor ,prevention ,act71 which was     
intended to block goods made with       
,uyghur forced labor from entering the  
,united ,states2  7,b7 continued pursuit
 of the decades-long campaign to        

eradicate ,tibet's unique religious1    
ethnic1 cultural1 and linguistic        
identity1 with ,tibetans living in a    
virtual police state and facing severe  
restrictions of their human rights and  
fundamental freedoms1 including freedom 
of religion or belief2  7,c7 pursuit of 
a #e-year plan to bring all religious   
doctrine and practice in line with      
,communist ,party doctrine1 including   
forbidding youth from participating in  
religious activities and implementation 
of mass detention camps that            
indoctrinate detainees in ,chinese      
,communist ,party ideology and force    
renunciation of faith and subjecting    
individuals found violating the laws and
 regulations controlling religion to    
harassment1 surveillance1 interrogation1
 arrest1 beatings1 sentences to prison1 
detention1 or disappearance2  7,d7      
strict control of all domestic news     
reporting and the telecommunications    
infrastructure1 ensuring that only      
information matching the ,chinese       

,communist ,party's desired narrative is
 shared1 through the blocking of        
websites1 mass deletion of posts and    
user accounts1 and imposition of severe 
punishment on those who dare speak out2 
7,e7 arbitrary arrest of those who do   
not conform to ,chinese ,communist      
,party ideology1 with those brave enough
 to speak out subject to prolonged and  
secret detention without access to legal
 counsel or the ability to communicate  
with their families1 and the use of such
 arrests and the terror they            
deliberately instill as tools in the    
,chinese ,communist ,party's arsenal to 
maintain unchallenged power over people2
  7,f7 operation of a factory system in 
which occupational safety and health    
violations are prevalent and working and
 living conditions in factories with    
adjacent dormitories are tantamount to  
forced labor camps1 including1 in the   
,xinjiang ,uyghur ,autonomous ,region1  
the subsidization by the ,chinese       
,communist ,party of ,chinese companies 

to set up factories near detention camps
 in the region and to transfer camp     
victims and others from rural areas to  
factories in other parts of the region  
and throughout the ,people's ,republic  
of ,china to work as forced labor under 
the guise of vocational training and    
poverty alleviation programs2 and  7,g7 
imposition of a similar regime of       
systemic repression on the people of    
,hong ,kong1 in violation of promises to
 the contrary1 including enactment of   
draconian national security legislation 
that provides for up to life in prison  
for the ambiguously defined crimes of   
secession1 subversion1 terrorism1 and   
collusion with foreign powers1 removal  
of books critical of the ,chinese       
,communist ,party from bookstore and    
library shelves1 banning democratic     
political slogans1 and requiring schools
 to enforce censorship of teachers and  
students2  7#ad7 investment of ,united  
,states capital by ,united ,states      
investors in securities listed on       

exchanges described in paragraph 7#i7   
also benefits companies engaged in or   
benefitting from the ,chinese ,communist
 ,party's implementation1 through       
instrumentalities it controls1 of unfair
 and malicious economic and commercial  
practices1 including-- 7,a7 intellectual
 property theft and coerced transfer of 
intellectual property in exchange for   
market access2  7,b7 abuse of           
international trade rules and fora2     
7,c7 campaigns to monopolize targeted   
industries and destroy competitors via  
state subsidization of capital and      
inputs1 import protections and export   
incentives1 and exploitation of labor   
and the environment2  7,d7 appropriation
 of fishery and mineral rights of other 
countries through means of intimidation 
and coercion by military and            
paramilitary actors2 and  7,e7          
international exploitation and          
destruction of mineral and fishery      
resources1 and associated labor abuses2 
and  7#ae7 investment of ,united ,states

 capital by ,united ,states investors in
 securities listed on those exchanges   
also poses a substantial1 and           
intolerable1 risk to ,united ,states    
investors arising from-- 7,a7 the       
refusal of the ,china ,securities       
,regulatory ,commission to accept normal
 accounting standards in its capital    
markets for any securities1 preventing  
third-party auditors from knowing       
whether a ,chinese company is adhering  
to the generally accepted accounting    
principles guidelines required of       
securities traded on ,united ,states    
stock exchanges2 and  7,b7 the failure  
of ,chinese publicly traded companies to
 engage in adequate material risk       
disclosure1 publish their financial     
information1 implement the rule of law1 
and adopt accepted corporate governance 
standards4  7c7 ,purposes ,the purposes 
of this ,act are to mitigate and1 to the
 extent feasible1 to eliminate the      
conditions described in subsection 7b71 
which adversely affect the public       

interest of the ,united ,states and the 
interests of ,united ,states investors4 
#c4 ,prohibited acts  7a7 ,definitions  
,in this section3 7#a7 ,acting in a     
professional capacity ,the term acting  
in a professional capacity includes     
acting as-- 7,a7 a member 7as defined in
 section #c7;a77#c77;,a7 of the         
,securities ,exchange ,act of #aicd 7#ae
 ,u4,s4,c4 #gh;c7a77#c77;,a777 of a     
national securities exchange2  7,b7 a   
member 7as defined in section           
#c7;a77#c77;,b7 of the ,securities      
,exchange ,act of #aicd 7#ae ,u4,s4,c4  
#gh;c7a77#c77;,b777 of a registered     
securities association2 or  7,c7 an     
associated person of a member 7as       
defined in section #c7;a7 of the        
,securities ,exchange ,act of #aicd 7#ae
 ,u4,s4,c4 #gh;c7a777 described in      
subparagraph 7,a7 or 7,b74  7#b7        
,assignment ,the term assignment has the
 meaning given the term in section      
#b7;a7 of the ,investment ,company ,act 
of #aidj 7#ae ,u4,s4,c4 #hj;a-#b7;a774  

7#c7 ,commerce ,the term commerce has   
the meaning given the term in section #d
 of the ,federal ,trade ,commission ,act
 7#ae ,u4,s4,c4 #dd74  7#d7 ,covered    
exchange ,the term covered exchange     
means-- 7,a7 the ,shanghai ,stock       
,exchange 7or any subsidiary of that    
exchange72  7,b7 the ,shenzhen ,stock   
,exchange 7or any subsidiary of that    
exchange72  7,c7 the ,beijing ,stock    
,exchange 7or any subsidiary of that    
exchange72 or  7,d7 any other national  
exchange1 or subsidiary of such an      
exchange1 that is subject to the        
influence or control of the ,party      
,committee of the ,china ,securities    
,regulatory ,commission1 other than the 
,stock ,exchange of ,hong ,kong4  7#e7  
,covered security ,the term covered     
security means a security that-- 7,a7 as
 of the date on which a covered         
transaction is executed with respect to 
the security1 is listed on a covered    
exchange2  7,b7 is derivative of a      
security described in subparagraph 7,a72

 or  7,c7 is designed to provide        
investment exposure to a security       
described in subparagraph 7,a74  7#f7   
,covered transaction ,the term covered  
transaction means a purchase1 sale1 or  
assignment4  7#g7 ,engage in ,the term  
engage in1 with respect to a            
transaction1 means to order1 approve1 or
 otherwise perform any act in           
furtherance of that transaction4  7#h7  
,purchase2 sale2 security ,the terms    
purchase1 sale1 and security have the   
meanings given those terms in section   
#c7;a7 of the ,securities ,exchange ,act
 of #aicd 7#ae ,u4,s4,c4 #gh;c7a774     
7#i7 ,u4,s4 person ,the term ,u4,s4     
person has the meaning given the term in
 section #abj4fb of title #bb1 ,code of 
,federal ,regulations1 or any successor 
regulation4  7#aj7 ,willfully ,the term 
willfully1 with respect to an action1   
means that the action is taken          
voluntarily and intentionally in        
violation of a known legal duty4  7b7   
,prohibition  7#a7 ,in general ,except  

for the purposes of complying with      
paragraph 7#b71 beginning on the date of
 enactment of this ,act1 it shall be    
unlawful for any ,u4,s4 person to make  
use of the mails or any means or        
instrumentality of commerce to engage in
 a covered transaction with respect to a
 covered security4  7#b7 ,divestment    
required ,not later than #ahj days after
 the date of enactment of this ,act1    
each ,u4,s4 person shall divest of all  
covered securities held by the ,u4,s4   
person4  7c7 ,penalties ,a ,u4,s4 person
 that violates1 attempts to violate1    
conspires to violate1 or causes a       
violation of this section shall be      
subject to any of the following         
penalties3 7#a7 ,a civil penalty in an  
amount not to exceed the greater of--   
7,a7 #bej1jjj2 or  7,b7 an amount that  
is twice the amount of the covered      
transaction that is the basis of the    
violation with respect to which the     
penalty is imposed4  7#b7 ,with respect 
to a ,u4,s4 person that willfully       

violates1 willfully attempts to violate1
 willfully conspires to violate1 or     
willfully aids or abets in the          
commission of a violation of this       
section1 a criminal penalty as follows3 
7,a7 ,if that ,u4,s4 person is an       
individual not acting in a professional 
capacity1 a fine of not more than       
#a1jjj1jjj1 a term of imprisonment of   
not more than #e years1 or both4  7,b7  
,if that ,u4,s4 person is an individual 
acting in a professional capacity1 a    
fine of not more than #e1jjj1jjj1 a term
 of imprisonment of not more than #bj   
years1 or both4  7,c7 7i7 ,if that      
,u4,s4 person is an organization1       
including any entity described in clause
 7ii71 a fine of not more than          
#be1jjj1jjj4  7ii7 ,an entity described 
in this clause is any of the following3 
7,i7 ,an investment company1 as defined 
in section #c of the ,investment        
,company ,act of #aidj 7#ae ,u4,s4,c4   
#hj;a-#c74  7,,ii7 ,a bank1 broker1     
dealer1 exchange1 insurance company1    

investment banker1 underwriter1 savings 
and loan association1 business          
development company1 commodity pool1    
commodity pool operator1 commodity      
trading advisor1 major swap participant1
 swap dealer1 or swap execution         
facility1 as those terms are defined in 
section #b7;a7 of the ,investment       
,company ,act of #aidj 7#ae ,u4,s4,c4   
#hj;a-#b7;a774  7,,iii7 ,an investment  
adviser1 as defined in section #bjb7;a7 
of the ,investment ,advisers ,act of    
#aidj 7#ae ,u4,s4,c4 #hj;b-#b7;a774     
7,,iv7 ,a market intermediary1 as       
defined in section #c7;c77#b77;,b77i7 of
 the ,investment ,company ,act of #aidj 
7#ae ,u4,s4,c4                          
#hj;a-#c7;c77#b77;,b77i774  7,v7 ,a fund
 described in section #c7;c77#aj77;,b7  
of the ,investment ,company ,act of     
#aidj 7#ae ,u4,s4,c4                    
#hj;a-#c7;c77#aj77;,b774  7,,vi7 ,a     
qualified pension1 profit-sharing1 or   
stock bonus plan described in section   
#dja of the ,internal ,revenue ,code of 

#aihf4  7,,vii7 ,an individual          
retirement account1 as defined in       
section #djh7;a7 of the ,internal       
,revenue ,code of #aihf4  7,,viii7 ,a   
tax credit employee stock ownership     
plan1 as defined in section #dji7;a7 of 
the ,internal ,revenue ,code of #aihf4  
#d4 ,reports to ,congress  7a7 ,in      
general ,in accordance with subsection  
7b71 the ,secretary of the ,treasury1 in
 consultation with the ,secretary of    
,commerce1 the ,secretary of ,state1 the
 ,secretary of ,defense1 the ,assistant 
to the ,president for ,national         
,security ,affairs1 and the ,director of
 ,national ,intelligence1 shall submit  
to ,congress a report on1 for the period
 covered by the report-- 7#a7 the extent
 of mitigation and elimination of the   
conditions described in section #b7;b72 
and  7#b7 the extent of the occurrence  
of the conditions described in section  
#b7;b7 with respect to securities listed
 on the ,stock ,exchange of ,hong ,kong4
  7b7 ,frequency of submission ,the     

,secretary of the ,treasury shall submit
 to ,congress a report described in     
subsection 7a7-- 7#a7 not later than #ij
 days after the date of enactment of    
this ,act2  7#b7 not later than #ahj    
days after the date of enactment of this
 ,act2 and  7#c7 once every #ahj days   
after the date on which the ,secretary  
submits the report required under       
paragraph 7#b7 of this subsection4  #e4 
,annual report on ,united ,states       
portfolio investments in the ,people's  
,republic of ,china  7a7 ,definitions   
,in this section3 7#a7 ,chinese entity  
,the term ,chinese entity means an      
entity organized under the laws of the  
,people's ,republic of ,china or        
otherwise subject to the jurisdiction of
 the ,government of the ,people's       
,republic of ,china4  7#b7 ,united      
states person ,the term ,united ,states 
person means-- 7,a7 a ,united ,states   
citizen or an alien lawfully admitted   
for permanent residence to the ,united  
,states2 or  7,b7 an entity organized   

under the laws of the ,united ,states or
 any jurisdiction within the ,united    
,states1 including a foreign branch of  
such an entity4  7b7 ,report ,not later 
than #a year after the date of enactment
 of this ,act1 and annually thereafter1 
the ,secretary of the ,treasury shall   
submit to ,congress a report on         
portfolio investments by ,united ,states
 persons in the ,people's ,republic of  
,china1 including such investments      
routed through a jurisdiction outside   
the ,united ,states4  7c7 ,elements     
,each report required by subsection 7b7 
shall include an assessment of the      
involvement of the following in         
portfolio investments in the ,people's  
,republic of ,china3 7#a7 ,united       
,states persons making such investments1
 including an assessment of-- 7,a7 the  
types of ,united ,states persons making 
such investments1 including ,state      
pension funds2 and  7,b7 ,united ,states
 persons making more than #b percent of 
the total of such investments in a year4

  7#b7 ,chinese entities receiving such 
investments1 including an assessment    
of-- 7,a7 such entities in individual   
sectors of the economic of the ,people's
 ,republic of ,china1 including the     
housing sector2  7,b7 any ,chinese      
entities subject to sanctions imposed by
 the ,united ,states receiving such     
investments2 and  7,c7 ,chinese entities
 that receive more than #ajj1jjj1jjj    
from such investments4  7d7 ,period     
covered ,the period covered by a report 
required by subsection 7b7 shall be--   
7#a7 in the case of the first such      
report1 the period beginning on ,january
 #a1 #bjjh1 and ending on the date of   
the report2 and  7#b7 in the case of    
each subsequent such report1 the #a-year
 period preceding submission of the     
report4  #f4 ,coordination  7a7 ,in     
general ,the ,secretary of the ,treasury
 and the ,securities and ,exchange      
,commission may coordinate to carry out 
this ,act4  7b7 ,coordination on        
imposition of criminal penalties ,for   

the purposes of carrying out section    
#c7;c77#b71 the ,secretary of the       
,treasury and the ,securities and       
,exchange ,commission may coordinate    
with the ,attorney ,general4