26. Trade · Notable · Contested — excluded from counts

Bar Chinese state-owned enterprises from U.S. procurement contracts

Attempted

Printed page 789 26. Trade · from “The Case for Fair Trade”

“Prohibit Communist Chinese state-owned enterprises from bidding on U.S. government procurement contracts (for example, contracts for subway and other transportation systems).”

What has happened

Feb 17, 2026 Attempted
The FAR Council proposed a rule partially implementing section 5949 of the FY2023 NDAA, which bars executive agencies from procuring or obtaining products or services containing semiconductors from named Chinese state-linked producers. It is a proposed rule with comments due 2026-04-20, and the statutory prohibition itself does not bite until 2027-12-23. That is one product line, not a bar on Chinese state-owned enterprises bidding for government contracts generally, and nothing in the window does the general thing.
- Proposed rule: Federal Acquisition Regulation: Prohibition on Certain Semiconductor Products and Services (FAR Case 2023-008)
  Primary Executive branch Feb 17, 2026

Research log

What was searched, and what didn’t count as evidence

Research notes

The Quote’s own example - “contracts for subway and other transportation systems” - was already answered before the evidence window: section 7613 of the FY2020 NDAA barred federal transit funds from buying rail rolling stock or buses from Chinese state-owned, -controlled or -subsidized entities. That is why the item is not flagged pre_satisfied: the example was satisfied in 2019-2021, the general ask was not, and nothing in 2025-2026 broadened it.

The other procurement-side instrument in the window is DFARS Case 2021-D011, Mitigating Risks Related to Foreign Ownership, Control, or Influence (proposed rule, 2026-05-07) - a country-neutral FOCI screen for defense contracts, not a bar on Chinese state ownership, so it is a lead rather than an event. https://www.federalregister.gov/documents/2026/05/07/2026-09067/defense-federal-acquisition-regulation-supplement-mitigating-risks-related-to-foreign-ownership

The Revolutionary FAR Overhaul (six proposed rules published 2026-06-23) rewrites the FAR wholesale and does not add a Chinese state-ownership prohibition.

Action: restrict
Object: Chinese state-owned enterprise bidding on U.S. government procurement contracts
ID: 2078