Sen. Rick Scott Introduces Bills to Block Chinese Military Companies from U.S. Stock Exchanges

U.S. Senator Rick Scott unveiled two pieces of legislation Wednesday aimed at preventing Chinese Communist Party military companies from trading on American stock exchanges, citing national security and investor protection concerns.

The Know Your Sanctioned Securities Act and the Protecting U.S. Investors from Chinese Military Companies Act would direct the Securities and Exchange Commission to identify companies linked to China's military and suspend their trading privileges. The first bill would add a "CMC" ticker modifier to flag Chinese military companies; the second would require mandatory trading suspensions within 10 days of the Department of War updating its list of such entities.

"Communist China's military companies want to use U.S. markets and exchanges to fund the CCP's efforts to attack our way of life using dollars from American investors," Scott said in a statement. "We can't let that happen." The legislation has drawn support from the Coalition for a Prosperous America and the American Securities Association, both of which argue that American retirees and savers should not inadvertently fund adversarial military operations through their investment portfolios.

The bills restrict the SEC's regulatory authority to the specific mechanics of implementation, barring the agency from expanding prohibitions or determining which companies qualify for restriction beyond those officially designated by the Department of War.