Divesting from Communist China’s Military Act of 2026

On January 14, 2026, Senator Rick Scott (R-FL) introduced S. 3640, the 'Divesting from Communist China’s Military Act of 2026.' The bill would expand the Non-SDN Chinese Military-Industrial Complex Companies List to include any entity identified as a Chinese military company under existing executive orders and NDAA definitions. It authorizes zero funding — it is a sanctions/divestment mandate, not a spending bill. The bill was referred to the Committee on Banking, Housing, and Urban Affairs and has seen no further action. It has three cosponsors (Cruz, Banks, Moody) and an identical companion bill (HR 7075) also in early committee stages. Legislative velocity is low: only two actions on the introduction date. The bill's mechanism directly targets U.S. persons (including financial institutions) holding securities in newly designated Chinese military companies, forcing divestment. However, the list of affected entities is not expanded by the bill itself — it merely mandates inclusion once identified. Large U.S. banks like Bank of America ($BAC) with China equity exposure in wealth management and asset management face incremental compliance costs and potential fee income reduction if the bill advances. Tech companies with China supply chains (Apple, Qualcomm, AMD) are structurally unaffected: the bill's mechanism is about securities divestment, not trade restrictions. Real market data shows Bank of America at $53.31, up 2.42% over 7 days and 9.35% over 30 days, indicating no market concern about this bill. Apple ($271.20), Qualcomm ($176.73), and AMD ($342.46) show no bill-related price action. The timeline to potential law is long: the bill must advance out of committee, pass the Senate, pass the House (via companion bill HR 7075), and be signed into law. With only three cosponsors and no markup activity, passage probability in this Congress is low.