CLEAR Act of 2025
- Bill Number
- S. 3153
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Armed Forces and National Security
- Status
- Introduced
- Latest Action
- 2025-11-07: Read twice and referred to the Committee on Armed Services.
- Last Updated
- 2025-11-25T19:10:37Z
AI-Generated Summary
Purpose
The Chinese List Entity Alignment and Review Act of 2025 (CLEAR Act of 2025) aims to enhance U.S. oversight of Chinese entities potentially linked to military activities by requiring the alignment of various government lists. It ensures that Chinese companies or organizations added to other U.S. restricted lists are reviewed for inclusion on the official list of Chinese military companies operating in the United States, promoting a more comprehensive and coordinated approach to national security concerns.
Key Provisions
- Short Title: The bill is titled the "Chinese List Entity Alignment and Review Act of 2025" or "CLEAR Act of 2025."
- Amendment to Existing Law: It modifies Section 1260H(b)(3) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (a law that requires maintaining a list of Chinese military companies operating in the U.S.).
- The amendment restructures the section to include a new subparagraph (B).
- This new provision mandates that the Secretary of Defense review, during each annual update of the military companies list, any Chinese entities added in the previous year to other U.S. Government lists.
- These other lists must involve restrictions or increased scrutiny due to concerns about the entities' activities or affiliations (e.g., potential military ties).
- Scope of Review: The review focuses on entities subject to U.S. Government restrictions related to national security risks from Chinese military involvement.
Significant Changes to Existing Law
- The original law (Section 1260H) already requires the Secretary of Defense to maintain and annually update a list of Chinese military companies operating in the U.S., based on assessments of their military-civil fusion activities (where civilian companies support military efforts).
- The CLEAR Act adds a mandatory cross-review process with other U.S. lists (such as sanctions or export control lists maintained by agencies like the Treasury or Commerce Departments), which was not explicitly required before.
- This change expands the sources of information for the list, potentially broadening its scope without needing separate investigations.
Potential Impacts
- On Government Agencies: The Department of Defense will face additional administrative workload to coordinate with other agencies (e.g., reviewing lists from the Office of Foreign Assets Control or Bureau of Industry and Security), but this could improve inter-agency efficiency in identifying security threats.
- On Citizens and Businesses: U.S. investors, companies, and individuals may encounter more restrictions on dealings with newly listed Chinese entities, such as prohibitions on certain investments under laws like the National Defense Authorization Act. This could limit business opportunities but enhance protections against funding entities tied to foreign military activities.
- On International Relations: The bill could heighten U.S.-China tensions by signaling stricter scrutiny of Chinese firms, potentially leading to retaliatory measures from China or challenges in bilateral trade and diplomatic talks. It may also influence global supply chains involving Chinese technology or manufacturing.
Main Stakeholders Affected
- U.S. Department of Defense: Primarily responsible for implementing the reviews and updates.
- Other U.S. Government Agencies: Including those maintaining restricted lists (e.g., Department of the Treasury, Department of Commerce), which must share data for reviews.
- Chinese Entities: Companies or organizations on U.S. restricted lists, facing potential addition to the military companies list, which could result in investment bans or operational limits in the U.S.
- U.S. Businesses and Investors: Those with ties to China, who may need to divest or avoid transactions with affected entities to comply with U.S. law.
- Broader International Community: Allies and partners in national security matters, who might align their policies with the updated U.S. list.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Strengthens enforcement of existing national security laws by automating cross-list reviews, reducing gaps in oversight. However, it could raise due process questions if entities are added without individualized evidence beyond list membership, though the law allows for annual revisions and potential removals.
- Constitutional Implications: Aligns with Congress's authority under Article I to regulate foreign commerce and provide for national defense, but may face scrutiny if perceived as overreach into executive foreign policy functions.
- Political Implications: Reflects bipartisan concerns over Chinese military expansion and economic espionage, potentially advancing U.S. strategic competition policies. It could influence future legislation on China-related sanctions, but risks politicizing corporate listings if driven by geopolitical pressures rather than strict evidence.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2025-11-07: Read twice and referred to the Committee on Armed Services.
- 2025-11-07: Introduced in Senate
Bill Versions
- Chinese List Entity Alignment and Review Act of 2025 — issued 2025-11-07 — PDF (2 pages)