The CLEAR Act of 2025 requires the Secretary of Defense to review Chinese companies on other U.S. government watchlists and consider adding them to the official list of Chinese military companies operating in the United States. Specifically, the bill mandates that during each annual update of the military companies list, the Secretary must examine any Chinese entities that were added to other government lists in the preceding year—lists that track companies of national security concern due to their activities or government ties. This affects Chinese companies and U.S. businesses that may have dealings with them, potentially subjecting additional firms to restrictions on operations in America. The bill contains no new funding provisions and applies to the annual review process going forward, with no specific implementation timeline beyond requiring the review during each yearly update of the list.
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