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# Summary of S. 5648, the COINS Act of 2024 This legislation imposes new national security restrictions on U.S. investments in China and Chinese companies. The bill authorizes the Treasury Department to sanction Chinese entities and individuals involved in defense and surveillance technology sectors, and requires U.S. persons and companies to notify the government before making certain investments in Chinese firms developing advanced semiconductors, artificial intelligence, quantum computing, hypersonic missiles, and related technologies. The bill defines "covered foreign persons" as Chinese companies and entities controlled by the Chinese government or Communist Party, and prohibits or restricts U.S. investment in these entities when they work on sensitive technologies. U.S. investors who violate these rules face civil penalties up to $250,000 or twice the transaction value, and the government can compel divestment of prohibited investments. The legislation also requires U.S. investors to divest from Chinese military-industrial companies within one year of enactment. The Treasury and Commerce Departments receive $150 million annually for two years to implement and enforce the law, and the bill requires regular congressional reports on enforcement actions and investment trends. The law expires if China is removed from the list of foreign adversaries in commerce regulations.

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