Divesting from Communist China’s Military Act of 2026

This bill requires U.S. investors to divest from securities of Chinese military companies identified under existing defense laws. It mandates the Treasury Department to add these companies to the Non-SDN Chinese Military-Industrial Complex Companies List (NS-CMIC List) within 90 days of Defense Department identification. U.S. persons must sell such securities within one year of a company's listing on the NS-CMIC List, with the divestment period starting on the listing date. The policy implements prior executive orders and defense procurement restrictions by extending them to securities markets, directly affecting U.S. investors holding shares in listed Chinese military-linked entities.