US lawmakers push legislation to block Chinese acquisition of general aviation firms

Two Republican lawmakers have introduced the "General Aviation Protection Act" in the U.S. Congress, aiming to block Chinese companies from acquiring American general aviation firms. Representatives Pat Harrigan and Ryan Mackenzie introduced the bill on July 16, 2026, citing national security vulnerabilities.

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China has a major loophole in its national security, and entities backed by the Chinese government have used this loophole to acquire more than 20 American general aviation companies over the past 20 years.

They argue that Chinese government-backed entities have exploited a loophole to acquire more than 20 U.S. general aviation companies over the past two decades. General aviation encompasses all civil aviation activities outside of scheduled commercial flights, including recreational flying, business travel, medical services, and flight training.

Harrigan stated that entities linked to the state-owned Aviation Industry Corporation of China (AVIC), designated as a Chinese military company by the U.S. Department of Defense, have acquired U.S. manufacturers of engines and airframes, avionics developers, and flight training schools. These companies are crucial to U.S. military pilot training and the defense supply chain.

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These companies manufacture engines, airframes, and aviation equipment, and directly feed into U.S. military pilot training and the U.S. defense supply chain.

In a separate but related move, other Republican lawmakers urged the U.S. Securities and Exchange Commission (SEC) to limit American investment in Chinese companies listed on U.S. stock exchanges. A letter from Representative John Moolenaar and Senator Rick Scott to SEC Chair Paul Atkins requested action to prevent Chinese firms, including tech giants like Alibaba and Baidu, from raising capital in the U.S. The lawmakers expressed concern that such funds could support the modernization of the People's Liberation Army.

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We urge the SEC to take whatever actions are within its existing authority to properly address the issue of these Chinese companies accessing U.S. capital markets and raising funds that could potentially be used to support the modernization efforts of the Chinese People's Liberation Army.