SEC would halt trades involving repeatedly listed Chinese military companies

The SEC would indefinitely stop trading in the covered company’s securities. This would cover companies that remain on the Defense Department list through two annual revisions. If Treasury’s Office of Foreign Assets Control adds a covered company to its Non-SDN Chinese Military-Industrial Complex Companies List, the SEC would notify the named House and Senate committees instead of stopping trading. The SEC would suspend trading within 10 days after the relevant Defense Department list revision. It would send the exception notice within 10 days after Treasury adds the company to its list.

The SEC would issue rules and orders needed to carry out the trading-halt provisions. The rules could cover identifying securities, running and enforcing the halt, applying the exception, and sending notices to Congress. The SEC could not set list membership rules, add requirements or penalties not authorized here, extend the trading halt, or regulate beyond what implementation requires. Chapters 5 and 7 of Title 5 would not apply to these rules.