Summary of HR 2246 — Foreign Investment Guardrails to Help Thwart (FIGHT) China Act

Date introduced: March 21, 2025

Status: Introduced in the U.S. House of Representatives; referred to the Committee on Foreign Affairs and the Committee on Financial Services. Companion bill: S. 1053.

Purpose and intent

• The bill is designed to strengthen U.S. policy tools to counter China-related national security risks in foreign investment and related financial activities.
• It creates guardrails intended to deter or constrain investments and transactions that could affect U.S. national security, and it establishes specific sanctions, notification requirements, and securities-related measures aimed at Chinese entities tied to military or national security activities.

Key provisions (high-level)

• Title I — Imposition of sanctions
  • Authorizes sanctions to be imposed related to covered activities or actors; provisions to define the scope and mechanisms of sanctions (Sec. 101).
  • Defines key terms used in the sanctions context (Sec. 102).
• Title II — Prohibition and notification on investments relating to covered national security transactions
  • Establishes prohibitions on investments connected to covered national security transactions.
  • Requires notification for certain investments, signaling heightened oversight and potential blocking actions (Sec. 201).
• Title III — Securities and related matters
  • Sets out requirements tied to a specific list: the Non-SDN Chinese Military-Industrial Complex Companies List (Sec. 301).
  • This section would govern securities-related disclosures or compliance obligations related to entities on that list.

Structure and major definitional elements

• Sec. 2: Defines “Secretary” for purposes of the Act (the specific department/office is not detailed in the summary provided).
• Sec. 3: Severability
• Sec. 4: Authorization of appropriations (funding to implement the act)
• Sec. 5: Termination (potential sunset or termination provisions)
• The table of contents indicates a holistic framework spanning sanctions, investment prohibitions/notifications, and securities-related actions.

Who is affected

• U.S. persons and entities engaging in investments or transactions involving China-related national security concerns.
• Financial institutions and market participants subject to sanctions, investment notification requirements, and securities compliance tied to Chinese military-industrial complex activities.
• Entities on the Non-SDN Chinese Military-Industrial Complex Companies List, and potentially their counterparties or investors.

Procedural and timeline aspects

• Introduced in the House on March 21, 2025.
• Referred to the Committee on Foreign Affairs and the Committee on Financial Services; these committees would consider provisions within their jurisdictions before moving to floor action.
• The bill has a companion in the Senate: S. 1053, indicating ongoing bicameral consideration.

Sponsors

• Primary: Andy Barr
• Co-sponsors: Michael T. McCaul (primary sponsor in some contexts lists him as primary and McCaul as cosponsor; the provided list designates Barr as primary), Jared F. Golden, Ann Wagner, Thomas R. Suozzi, Darin LaHood, John R. Moolenaar.

Potential impact and considerations

• Could broaden U.S. government leverage over foreign investments involving China, particularly in areas deemed sensitive to national security.
• May increase compliance requirements for investment firms, fund managers, and corporations with cross-border activities involving Chinese entities.
• The establishment of a list focused on Chinese military-industrial complex companies could influence securities disclosures and investment decisions relating to those entities.
• The sunset/termination provisions (Sec. 5) suggest potential periodic review or expiration unless renewed.

For readers evaluating the bill, key questions include the exact definitions of “covered national security transactions,” which entities qualify as “Non-SDN Chinese Military-Industrial Complex Companies,” and how sanctions would be enforced operationally alongside the investment prohibitions and notification requirements.