Direct translation
The U.S. Congress released a major bill, and Xi Jinping's wealth was revealed at the same time
The U.S. Congress released the National Defense Authorization Act (NDAA) for fiscal year 2026 on Sunday (December 7). The bill identifies Beijing as a major strategic challenge to Washington in the military, industrial, diplomatic, and global economic spheres, and attempts to reshape the economic and military competition between the U.S. and China by implementing new investment restrictions, banning a range of Chinese-made technologies from entering the Pentagon's supply chain, and expanding diplomatic and intelligence efforts to track Beijing's global influence. The bill also expands political, economic, and military support for Taiwan.
The 2026 NDAA authorizes the War Department to spend $900 billion, $8 billion more than the White House requested. This includes a 4% pay rise for enlisted personnel, expanded counter-drone authorization, and directives new investments in the Golden Dome missile defense system and nuclear modernization programs, as well as $800 million in military aid to Ukraine over the next two years.
This newly released, over 3,000-page bill is a compromise version after months of negotiations between the Senate and the House of Representatives. The bill repeatedly mentions China and the Chinese Communist Party. According to incomplete statistics from Voice of America, the report mentioned the word "China" more than 170 times, "People's Republic of China" (PRC) more than 90 times, and "Chinese" more than 80 times.
Investment restrictions and Supply Chain Security
A key component of the bill is the establishment of a far-reaching foreign investment review system, requiring U.S. companies and investors to report to the Treasury Department when supporting certain high-risk technologies from China or other "countries of concern." The bill grants the Treasury Department the power to directly block transactions, mandates detailed annual reports to Congress, and gives it new powers to sanction foreign companies linked to Chinese military or surveillance networks.
The bill also includes a procurement ban on biotechnology suppliers, prohibiting the Pentagon and U.S. intelligence agencies from contracting with Chinese gene sequencing and biotechnology companies linked to the People's Liberation Army or Chinese security services.
Other procurement bans restrict the Department of War from procuring advanced batteries, photovoltaic modules, computer monitors, and critical minerals from foreign entities of concern, further tightening U.S. supply chains and moving them away from China. These bans also require the Department of War to phase out the use of Chinese-made computers, printers, and other technological equipment.
Viewing China as the primary strategic Competitor in the Indo-Pacific
The section on defense alliances and partnerships in the Indo-Pacific region in the National Defense Authorization Act reiterates Congress's view of China as the primary strategic competitor.
The Act states that the Secretary of War "should continue efforts to strengthen U.S. defense alliances and partnerships in the Indo-Pacific region to further enhance the United States' comparative advantage in strategic competition with the People's Republic of China."
The Act requires the Department of War to strengthen relations with allies in the Asia-Pacific region, including Japan, South Korea, Australia, New Zealand, Thailand, and the Philippines, while increasing engagement with emerging partners such as India.
On July 14, during Exercise "Talisman Sabre 25" in the Coral Sea, Australia, a U.S. Marine Corps F-35B Lightning II fighter jet prepares to take off from the flight deck of the forward-deployed amphibious assault ship USS America.
Providing strong support for Taiwan
The Act also devotes considerable space to Taiwan and provides strong support for it.
The Act calls for strengthening the U.S.-Taiwan partnership in accordance with the spirit of the Three Communiqués, the Taiwan Relations Act, and the Six Assurances, to enhance Taiwan's defense capabilities and promote peaceful relations across the Taiwan Strait.
The bill directs the Pentagon to develop a detailed five-year strategy to strengthen multilateral defense in the region, expand joint exercises, and increase joint maritime operations “through the Taiwan Strait and the South China Sea.” Congress also extended the Pacific Deterrence Initiative, maintaining investment in forward deployments, integrated air defense, prepositioned munitions, and logistics networks designed to counter the PLA’s force projection.
The National Defense Authorization Act expands the Taiwan Security Cooperation Initiative, increasing support for medical emergency services, combat casualty response capabilities, and other defense-related equipment. Congress authorizes up to $1 billion specifically allocated in fiscal year 2026 for Taiwan’s security needs. Furthermore, the bill directs the Pentagon to launch a joint program with Taiwan “to deploy unmanned and counter-unmanned systems capabilities,” including the joint development of new platforms suitable for asymmetric defense.
The bill also requires Washington to support Taiwan’s participation in the International Monetary Fund (IMF) monitoring activities and ensure Taiwanese citizens have employment opportunities within the IMF, challenging decades of Chinese pressure to limit Taiwan’s influence in global financial institutions.
The bill mandates the disclosure of the wealth of the Chinese leadership
In its China-related sections, the bill requires the Director of National Intelligence, in consultation with the Secretary of State and the Secretary of War, to publish a report on the wealth of the Chinese Communist Party leadership on the Office of the Director of National Intelligence's website within one year of its enactment. This report must also be submitted to the Senate Select Committee on Intelligence and the Senate Committee on Foreign Relations, as well as the House Permanent Select Committee on Intelligence and the House Committee on Foreign Affairs. The investigation covers the General Secretary of the Communist Party of China, members of the Standing Committee of the Political Bureau of the CPC Central Committee, and all members of the Political Bureau of the CPC Central Committee. The bill requires relevant intelligence agencies to provide evidence of their business and financial assets.
In addition to economic measures, the National Defense Authorization Act directs the State Department to deploy a new group of regional China affairs officials to U.S. diplomatic missions around the world to monitor China's commercial, technological, and infrastructure activities in all major geographic regions, including Beijing's Belt and Road Initiative.
Other provisions include reporting requirements on China's cooperation with Russia in the Arctic, China's port activities globally, its cyber cooperation with Southeast Asia, restrictions on China-related entertainment cooperation, and China's influence operations in Europe and elsewhere.
Currently, both houses of Congress are racing to pass this annual defense policy bill by the end of the year and send it to the President for signature.
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