STAND with Taiwan Act of 2024, Section 11 ("Prohibition on investments by United States financial institutions that benefit the Government of the People's Republic of China or the Chinese Communist Party")

Summary

Prohibits United States financial institutions from making investments benefiting the Government of the People's Republic of China or the Chinese Communist Party.

Mandates the Secretary of the Treasury to enforce this prohibition within three days of a covered determination.

Defines prohibited investments as monetary investments to entities owned or controlled by the Chinese government, Chinese Communist Party or People's Liberation Army.

Includes investments that benefit priority industrial sectors identified in Chinese strategic plans, such as "Made in China 2025" and the "14th Five Year Smart Manufacturing Development Plan."

Specifies prohibited sectors including artificial intelligence, machine learning, and robotics.

Defines "United States financial institution" to include investment companies, private equity firms, venture capital companies, and hedge funds that qualify as United States persons.

Prohibits U.S. financial institutions from investing in Chinese government-controlled entities or specified industrial sectors.

SEC. 11. Prohibition on investments by United States financial institutions that benefit the Government of the People's Republic of China or the Chinese Communist Party. (a) In general.—Not later than 3 days after a covered determination is made, the Secretary of the Treasury shall prohibit any United States financial institution from making any investments described in subsection (b).

(b) Investments described.—An investment described in this subsection is a monetary investment—

(1) to—

(A) an entity owned or controlled by the Government of the People's Republic of China or the Chinese Communist Party; or

(B) the People’s Liberation Army; or

(2) for the benefit of any priority industrial sector identified in the “Made in China 2025” plan or the “14th Five Year Smart Manufacturing Development Plan”, including—

(A) agriculture machinery;

(B) information technology;

(C) artificial intelligence, machine learning, and robotics;

(D) green energy and green vehicles;

(E) aerospace equipment;

(F) ocean engineering and high tech ships;

(G) railway equipment;

(H) power equipment;

(I) new materials;

(J) medicine and medical devices;

(K) fifth generation and future generation telecommunications and other advanced wireless networking technologies;

(L) semiconductor manufacturing;

(M) biotechnology;

(N) quantum computing;

(O) surveillance technologies, including facial recognition technologies and censorship software;

(P) fiber optic cables; and

(Q) mining and resource development.

(c) United States financial institution defined.—In this section, the term “United States financial institution”—

(1) means any financial institution that is a United States person; and

(2) includes an investment company, private equity company, venture capital company, or hedge fund that is a United States person.