This bill seeks to counter the Chinese Communist Party's military-civil fusion strategy by preventing United States contributions to the development of dual-use technology in China. It establishes prohibitions on certain scientific research and technical exchanges between "covered entities" in the U.S. and "Chinese entities of concern." The goal is to safeguard U.S. technology and expertise from being leveraged for the People's Liberation Army's military advancements. A "covered entity" includes federal agencies, institutions of higher education, private research institutions, and U.S. private companies that receive federal financial assistance. A "Chinese entity of concern" encompasses specific Chinese colleges and universities involved in military-civil fusion, government-owned enterprises, private companies supporting military initiatives, and entities identified as Chinese military companies. These definitions are crucial for determining which collaborations are restricted under the bill. The bill prohibits covered entities from engaging in scientific research or technical exchanges that have a direct bearing on, or potential for dual use in, technologies prioritized by China's military-civil fusion strategy. The Secretary of Defense, in consultation with other agencies, must establish and periodically update a public website listing these specific prohibited technology areas, such as quantum computing , artificial intelligence , and biotechnology , as well as the identified Chinese entities of concern. An exception exists for collaborative studies not substantially contributing to military-civil fusion goals. Furthermore, covered entities are required to submit annual reports disclosing all research relationships, both existing and considered, with Chinese entities of concern. The Secretary of Defense is authorized to audit these reports to ensure compliance. Any covered entity, excluding federal agencies, that violates these prohibitions or reporting requirements will be precluded from receiving any further federal financial assistance, with the Secretary of Defense tasked to promulgate enforcement regulations.