S. 3153: Chinese List Entity Alignment and Review Act of 2025

This bill, known as the Chinese List Entity Alignment and Review Act of 2025 or the CLEAR Act of 2025, proposes to enhance the oversight of Chinese entities operating in the United States. The primary focus of the bill is to require that Chinese entities that are included on certain other U.S. government lists—specifically those that are subject to restrictions or scrutiny—are also included on the list of Chinese military companies.

Key Provisions

• Increased Review: The bill mandates that the Secretary of Defense conducts an annual review of entities added to other lists maintained by the U.S. government that relate to concerns about their activities or affiliations. This ensures that any Chinese entity that raises red flags in other contexts is also scrutinized for military-related activities.
• Aligning Lists: By updating the existing list of Chinese military companies to include these entities, the bill seeks to improve transparency and security concerning foreign businesses operating in the U.S.

Purpose

The intent behind this legislation is to strengthen national security by ensuring that Chinese companies operating within the U.S. are adequately monitored for connections to military activities. This reflects ongoing concerns about the implications of foreign influence and security risks associated with certain foreign companies.

Implementation

The Secretary of Defense will be responsible for incorporating entities from other lists into the military companies list. This new requirement aims to provide a more comprehensive view of foreign entities and their potential risks to U.S. security interests.

Broad Impact

The legislation represents a proactive step in the U.S. government's efforts to address the complexities of international relations and security, particularly with respect to China. By aligning the monitoring of military-related activities with other governmental scrutiny, the bill illustrates a more cohesive strategy for managing foreign corporate engagement in America.

Relevant Companies

• BABA - Alibaba Group Holding Limited: As a major Chinese technology and e-commerce conglomerate, Alibaba may face increased scrutiny and potential inclusion on military-related lists due to its operations and connections in China.
• TCEHY - Tencent Holdings Limited: Tencent's extensive reach in various sectors including gaming and social media could lead to heightened oversight under this bill.