Inclusion of Chinese military companies on Non-SDN Chinese Military-Industrial Complex Companies List

(a) In general Not later than 90 days after the Secretary of Defense identifies an entity as a Chinese military company operating directly or indirectly in the United States under section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283; 10 U.S.C. 113 note), the Secretary of the Treasury shall include that entity on the Non-SDN Chinese Military-Industrial Complex Companies List (commonly known as the NS–CMIC List) if the entity is not already included on the NS–CMIC List. (b) Effect of inclusion (1) In general Except as provided by paragraph (2), not later than 60 days after the inclusion of an entity on the NS–CMIC List under subsection (a), the prohibitions set forth in Executive Order 13959 shall apply with respect to the entity. (2) Divestment period A United States person may, during the one-year period beginning on the date on which an entity is included on the NS–CMIC List under subsection (a), purchase or sell publicly traded securities issued by the entity solely for the purpose of divesting, in whole or in part, such securities. (c) Definitions In this section: (1) Appropriate congressional committees The term appropriate congressional committees means— (A) the Committee on Banking, Housing, and Urban Affairs of the Senate; and (B) the Committee on Financial Services of the House of Representatives. (2) Executive Order 13959 The term Executive Order 13959 means Executive Order 13959 (50 U.S.C. 1701 note; relating to addressing the threat from securities investments that finance Communist Chinese Military Companies), as amended by Executive Order 14032 (50 U.S.C. 1701 note; relating to addressing the threat from securities investments that finance certain companies of the People’s Republic of China). (3) Non-sdn Chinese Military-Industrial Complex Companies List; NS–CMIC List The terms Non-SDN Chinese Military-Industrial Complex Companies List and NS–CMIC List mean the list maintained by the Office of Foreign Assets Control of the Department of the Treasury under Executive Order 13959 or any successor order. (4) Publicly traded security The term publicly traded security includes— (A) any security (as defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))) denominated in any currency that trades on a securities exchange, or through the method of trading that is commonly referred to as over-the-counter, in any jurisdiction; and (B) any security that is derivative of or designed to provide investment exposure to a security described in subparagraph (A). (5) United states person The term United States person means— (A) any United States citizen or an alien lawfully admitted for permanent residence to the United States; (B) an entity organized under the laws of the United States or of any jurisdiction within the United States (including any foreign branch of such an entity); or (C) any person in the United States.