Senator Rick Scott (R-FL) introduced two pieces of legislation on Tuesday, the Chinese List Entity Alignment and Review (CLEAR) Act and the National Defense Supply Chain Integrity Act, aimed at closing loopholes that he asserts allow Communist Chinese military-linked companies to operate in the U.S. and exploit vulnerabilities in national security supply chains.
The legislation focuses on streamlining the process for identifying and restricting Chinese entities that pose a threat to the United States.
The two bills are designed to strengthen the U.S. government’s scrutiny of Chinese companies, particularly concerning their inclusion on the 1260H list—a designation for Chinese companies deemed to be benefiting the military of the People’s Republic of China.
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The CLEAR Act: This bill would mandate the Department of War (DoW) to review any Chinese entity that appears on other U.S. government restriction lists (such as the FCC’s Covered List) to determine if it should also be added to the 1260H list. The goal is to ensure that a company flagged as a threat by one agency is consistently recognized as a threat across the entire federal government.
The National Defense Supply Chain Integrity Act: This bill seeks to solidify the DoW’s authority to add companies to the 1260H list by limiting these companies’ ability to contest their placement through legal challenges. By clarifying the determination as a military or foreign affairs function, Senator Scott aims to prevent Chinese entities from using the U.S. judicial system to overturn their designation.
“If a foreign company is identified as a threat to one aspect of our nation, it should be treated as a threat everywhere,” said Senator Scott. “My two bills… would streamline the ban of dangerous companies that are included on the Department of War’s 1260H list, the FCC’s Covered List, and any government blacklist to ensure our nation is protected on all fronts.”
Scott said that these bills are part of a broader effort to counter Communist China’s influence and secure U.S. supply chains. His past efforts include pressing for greater scrutiny of Chinese entities across federal sanctions lists, pushing for disclosures of pharmaceutical ingredient origins to reduce reliance on Chinese drug manufacturing, and prohibiting DoW from purchasing Chinese-made telecommunications equipment.
The legislation is intended to give the current administration more tools to safeguard national security against economic and military threats posed by the Chinese Communist Party (CCP).
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