Senator Rick Scott of Florida has introduced new legislation Friday, titled the “No Safe Harbor for the Enemy Act,” aimed at preventing companies identified as Chinese Military Companies (CMCs) from challenging their national security designations in U.S. courts.
The bill seeks to make the Department of Defense’s determination of entities listed under Section 1260H of the National Defense Authorization Act for Fiscal Year 2021 final and exempt from judicial review.
The proposed legislation would amend the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021.
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Specifically, it targets a perceived loophole that Senator Scott argues allows companies with ties to Communist China’s military to use the U.S. legal system to delay sanctions and maintain their presence in American supply chains.
“The Chinese Communist Party should never be allowed to exploit America’s legal protections to build up our adversary and its military efforts by contesting its designation on the Department of Defense’s list of companies that benefit an adversarial military,” Senator Scott stated. “The No Safe Harbor for the Enemy Act closes a dangerous loophole that has allowed Communist China to argue their designation, and ensure decisions made to protect our national security are not second-guessed by the court system.”
The core of the bill lies in a new subsection which reads: “FINALITY OF DECISIONS.—The decision of the Secretary of Defense as to any question regarding the addition of an entity to the list required by subsection (b)(1) shall be final and conclusive and may not be reviewed by any other official or by any court, whether by an action in the nature of mandamus or otherwise.”
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Scott argues that it is a necessary step to protect U.S. national security and prevent entities deemed a threat from using legal maneuvering to undermine sanctions and continue operating within the U.S. economy.
“We must act decisively by passing the No Safe Harbor for the Enemy Act to stop our enemies from benefiting from our system or our tax dollars while they build up a military to defeat us, threaten our national defense and economic infrastructure,” said Scott.
The effectiveness and potential legal implications of removing judicial review for such designations are likely to be key points of discussion as the bill moves through the legislative process.
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