New Bill Mandates Global Sanctions on Chinese Firms Supplying Russia’s War Machine, Targeting Dual-Use Tech and Arms

This legislation, officially titled the Severing Technology Transfer Operations and Partnerships between China and Russia Act of 2025 (or the STOP China and Russia Act), is a direct and aggressive move to cut off the flow of goods and services from the People’s Republic of China (PRC) that are fueling Russia’s defense industrial base. The core idea is simple: if you’re a Chinese person or company knowingly selling specific tech to Russia’s military, the U.S. government will hit you with sanctions.

Starting 90 days after the bill becomes law, the President must impose sanctions on any "PRC person"—meaning a Chinese citizen or entity—found to be knowingly supplying goods or services for the ultimate use by the Russian Armed Forces or their defense industry. The bill explicitly lists things like advanced computer tools, specific chemical additives (like nitrocellulose for propellants), fiber optic cables, and advanced sensors. The key here is the word "knowingly," which the bill defines broadly to include not only actual knowledge but also situations where the person "should have known" about the end use. This broad definition gives the government a lot of room to apply these sanctions.

The Sanction Hammer: Property and Travel Bans

What do these sanctions actually look like? They hit people and companies where it hurts: their money and their ability to travel. For any designated Chinese person or entity, the U.S. government must block all property and property interests that are in the U.S. or come under the control of a U.S. person. For individuals, the consequences are even more immediate and personal: they become inadmissible to the U.S., and any existing U.S. visa or entry documentation they hold gets automatically revoked.

Imagine a CEO of a mid-sized Chinese manufacturing firm who thought they were just selling advanced machine tools to a Russian distributor. If the U.S. determines those tools are ending up in a Russian defense plant, that CEO could suddenly find their U.S. bank accounts frozen and their business travel to the U.S. permanently blocked. This is a powerful deterrent aimed squarely at the supply chain.

Mandatory Targets: China’s Defense Giants

Beyond the general sanctions, Section 5 of the bill names specific, massive Chinese state-owned enterprises (SOEs) that the President must investigate within 90 days. This list includes heavy hitters like China North Industries Group Corporation and the Aviation Industry Corporation of China. For these named entities, the President doesn't have discretion; they must determine if these companies are providing arms, weapons systems, or the specific dual-use goods listed in the bill to Russia. If the answer is yes, sanctions are mandatory.

This is a significant policy shift because it removes the Executive Branch's ability to selectively apply sanctions to these major players for diplomatic reasons. It forces a hard choice: either these Chinese defense giants stop supporting Russia, or they face immediate, mandated U.S. sanctions. The potential fallout for U.S.-China diplomatic relations is high, as the bill targets core components of the PRC's industrial and military complex.

The Diplomacy Playbook and the Waiver Loophole

While the bill is heavy on sanctions, it also requires a coordinated diplomatic strategy. The Secretary of State and the Secretary of the Treasury must develop a plan within 30 days to work with key allies—including the EU, UK, Japan, and South Korea—to synchronize sanctions and export controls against China’s support for Russia. This acknowledges that U.S. sanctions alone won't be enough; effective disruption requires a global effort.

However, the bill includes a crucial escape hatch: the Presidential Waiver Authority. The President can waive the application of these sanctions for up to 90 days at a time if they determine the waiver is in the “national interests of the United States.” This means that even if a major Chinese firm is found to be in violation, the President can hit the pause button for three months, potentially to allow for sensitive diplomatic negotiations or to avoid disruption to a critical economic sector. While necessary for foreign policy flexibility, this waiver is a point of concern, as it allows the Executive Branch to temporarily override the mandatory sanctions Congress is imposing.