[Congressional Bills 118th Congress] [From the U.S. Government Publishing Office] [H.R. 7476 Introduced in House (IH)] <DOC> 118th CONGRESS 2d Session H. R. 7476 To counter the malign influence and theft perpetuated by the People's Republic of China and the Chinese Communist Party. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES February 29, 2024 Mr. Hern (for himself, Mr. Wilson of South Carolina, Mr. Duncan, Mr. Gooden of Texas, Mr. Curtis, Mrs. McClain, Mr. Higgins of Louisiana, Mrs. Harshbarger, Mr. Burchett, Mrs. Cammack, Ms. Van Duyne, Mr. LaMalfa, Mr. Tiffany, Mr. Pfluger, Mr. Reschenthaler, Mr. Rouzer, Mr. Dunn of Florida, Mr. Fleischmann, Mr. Mooney, Mr. Edwards, Ms. Greene of Georgia, Mr. Collins, Mr. Burlison, Mr. Ellzey, Mr. Mike Garcia of California, Mr. Langworthy, Mr. Babin, Mr. Bean of Florida, Mr. Lamborn, Mr. Webster of Florida, Mr. Baird, Mr. Kelly of Pennsylvania, Mr. Scott Franklin of Florida, Mr. Fulcher, Mr. Ezell, Mr. Fry, Mr. Arrington, Mr. Hill, Mr. Bergman, Mr. Van Drew, and Mr. Moore of Alabama) introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, Rules, the Judiciary, Oversight and Accountability, Energy and Commerce, Intelligence (Permanent Select), Agriculture, Science, Space, and Technology, Natural Resources, Education and the Workforce, Armed Services, Transportation and Infrastructure, and Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned _______________________________________________________________________ A BILL To counter the malign influence and theft perpetuated by the People's Republic of China and the Chinese Communist Party. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Countering Communist China Act''. (b) Table of Contents.--The table of contents of this Act is as follows: TITLE I--MATTERS RELATED TO TRADE, INVESTMENT, AND ECONOMIC RELATIONS TITLE II--MATTERS RELATING TO COUNTERING CHINA'S MALIGN INFLUENCE TITLE III--MATTERS RELATING TO MEDICAL AND NATIONAL SECURITY SUPPLY CHAINS TITLE IV--MATTERS RELATING TO RESEARCH AND DEVELOPMENT TITLE V--MATTERS RELATED TO EDUCATION TITLE VI--MATTERS RELATED TO DEMOCRACY, HUMAN RIGHTS AND TAIWAN TITLE VII--MATTERS RELATED TO DEFENSE TITLE VIII--MATTERS RELATED TO THE PROTECTION OF INTELLECTUAL PROPERTY TITLE IX--MATTERS RELATED TO FINANCIAL SERVICES TITLE X--OFFSETS XI--NATIONAL SECURITY AUTHORIZATIONS XII--FENTANYL XIII--ENERGY SEC. 2. FINDINGS. Congress finds the following: (1) The People's Republic of China and the Chinese Communist Party represent the foremost national security threat faced by the United States. (2) The People's Republic of China and the Chinese Communist Party are founded on the principles antithetical to human freedom and dignity including Communism and authoritarianism. (3) The People's Republic of China and the Chinese Communist Party seek to undermine free societies around the world and establish an alternative world order rooted in authoritarianism. (4) In November 2012, at the 17th CCP Congress, General Secretary Xi Jinping first announced his vision for achieving ``the Chinese dream of national rejuvenation'' and military and economic dominance. (5) The People's Republic of China currently has the world's second-largest economy in terms of nominal GDP ($14.14 trillion) and the largest in terms of purchasing power parity (PPP) GDP ($27.31 trillion). In 2000, the People's Republic of China controlled only 4 percent of the global economy, and the United States controlled 31 percent. Today, the People's Republic of China stands at 15 percent and the United States share has dropped to 24 percent. (6) The growth of the People's Republic of China's centrally controlled economy has been fueled largely by tools of economic coercion, including intellectual property theft and economic espionage of U.S. companies. In 2019 alone, one in five North American-based companies said that Chinese firms had stolen their intellectual property (IP) within the last year. (7) Former Secretary of Defense Mark Esper has stated that the People's Republic of China ``is perpetrating the greatest intellectual property theft in human history''. (8) In addition to its economic aggression and military modernization, the People's Republic of China conducts political warfare and disinformation campaigns against the United States and other democracies. It frequently targets academia, the media, business, and cultural institutions to suppress criticism and promote positive views of the CCP. (9) The foremost victims of the People's Republic of China and the Chinese Communist Party are the Chinese people who continue to suffer under communist authoritarian rule. (10) The People's Republic of China continues to perpetuate a genocide against the Uyghur Muslims in Xinjiang province, in addition to brutal crackdowns against the people of Tibet and Hong Kong. (11) The CCP continues to obfuscate the origins of the COVID-19 pandemic which started in Wuhan, China and has refused to allow an impartial international investigation into the origins of the pandemic. (12) Manifestations of expressions of racism, bigotry, discrimination, anti-Asian rhetoric, and xenophobia against people of Asian descent are contrary to the values we hold dearest as Americans, counterproductive to countering the CCP's malign influence, and denounced by the Congress of the United States. SEC. 3. SEVERABILITY. If any provision of this Act, or an amendment made by this Act, or the application of such provision or amendment to any person or circumstance, is held to be invalid, the remainder of this Act, the amendments made by this Act, and the application of such provision and amendments to other persons or circumstances, shall not be affected. TITLE I--MATTERS RELATED TO TRADE, INVESTMENT, AND ECONOMIC RELATIONS SEC. 101. PREVENTING ADVERSARIES FROM DEVELOPING CRITICAL CAPABILITIES. (a) Short Title.--This section may be cited as the ``Preventing Adversaries from Developing Critical Capabilities Act''. (b) Exercise of Authorities Under the International Emergency Economic Powers Act.-- (1) In general.--The President may exercise all authorities provided under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) necessary to carry out the provisions of this section, including authorities to impose penalties under section 206 of such Act. (2) Delegation.--The President may delegate the authorities described in paragraph (1) to the head of any Federal agency the President determines appropriate in order to carry out the provisions of this section. (c) Prohibition on Covered Activities in Covered Sectors That Pose Particularly Acute Threats to United States National Security.-- (1) Identification of categories of technologies and products.-- (A) In general.--Not later than one year after the date of the enactment of this Act, and annually thereafter as described in subparagraph (B), the President-- (i) shall identify categories of technologies and products in covered sectors that may pose a particularly acute threat to the national security of the United States if developed or acquired by a country of concern; and (ii) publish a list of the categories of technologies and products identified under subparagraph (A) in the Federal Register. (B) Updates.--The President shall annually review and update the list of the categories of technologies and products identified under subparagraph (A)(i) and update the Federal Register under subparagraph (A)(ii) as appropriate. (2) Prohibition on covered activities.--The President shall, on or after the date on which the initial list of categories of technologies and products is published in the Federal Register pursuant to paragraph (1)(A)(ii), prescribe, subject to public notice and comment, regulations to prohibit a United States person from engaging, directly or indirectly, in a covered activity involving a category of technologies and products on such list of categories of technologies and products in a covered sector. Such regulations should-- (A) require that a United States person take all reasonable steps to prohibit and prevent any transaction by a foreign entity under the control of the United States person that would be a prohibited transaction if engaged in by a United States person; and (B) exclude any transaction consisting of the acquisition of an equity or other interest in an entity located outside a country of concern, where the President has determined that the government of the country in which that entity is established or has its principal place of business has in place a program for the restriction of certain activities involving countries of concern that is comparable to the provisions provided for in this Act. (3) Sense of congress.--It is the sense of Congress that the covered sectors include certain categories of technologies and products that would pose a particularly acute threat to the national security of the United States if developed or acquired by a country of concern, and that the President should identify certain technologies and products in the covered sectors as categories of technologies and products in covered sectors for purposes of paragraph (1)(A). (d) Mandatory Notification of Covered Activities in Covered Sectors That May Pose Threats to United States National Security.-- (1) Identification of categories of technologies and products.--Not later than one year after the date of the enactment of this Act, the President shall-- (A) identify categories of technologies and products in covered sectors that may pose a threat to the national security of the United States if developed or acquired by a country of concern; (B) publish a list of the categories of technologies and products identified under subparagraph (A) in the Federal Register; and (C) annually thereafter, review the categories of technologies and products identified under subparagraph (A) and publish an updated list of the categories of technologies and products in the Federal Register under subparagraph (B) if the list identified in subparagraph (B) has changed. (2) Mandatory notification.-- (A) In general.--Beginning on the date that is 90 days after the date on which the initial list of categories of technologies and products is published in the Federal Register pursuant to paragraph (1)(B), a United States person engaging in a covered activity involving a category identified in paragraph (1)(A), or controlling a foreign entity engaging in an activity that would be a covered activity if engaged in by a United States person, shall submit to the President a complete written notification of the activity not later than 14 days after the completion date of the activity. (B) Circulation of notification.-- (i) In general.--The President shall, upon receipt of a notification under subparagraph (A), promptly inspect the notification for completeness. (ii) Incomplete notification.--If a notification submitted under subparagraph (A) is incomplete, the President shall promptly inform the United States person that submits the notification that the notification is not complete and provide an explanation for relevant material respect in which the notification is not complete. (C) Identification of non-notified activity.--The President shall establish a process to identify a covered activity involving a category identified under paragraph (1)(A) for which-- (i) a notification is not submitted to the President under subparagraph (A); and (ii) information is reasonably available. (3) Confidentiality of information.-- (A) In general.--Except as provided in subparagraph (B), any information or documentary material filed with the President pursuant to this section shall be exempt from disclosure under section 552(b)(3) of title 5, United States Code, and no such information or documentary material may be made public by any government agency or Member of Congress. (B) Exceptions.--Subject to appropriate confidentiality and classification requirements, the exemption from disclosure provided by subparagraph (A) shall not prevent the disclosure of the following: (i) Information relevant to any administrative or judicial action or proceeding. (ii) Information provided to Congress or any of the appropriate congressional committees. (iii) Information important to national security analysis or actions of the President to any domestic government entity, or to any foreign governmental entity of an ally or partner of the United States, under the direction and authorization of the President, only to the extent necessary for national security purposes. (iv) Information that the parties have consented to be disclosed to third parties. (e) Reporting Requirements.-- (1) In general.--Not later than one year after the date on which the regulations prescribed under subsection (f) take effect, and not less frequently than annually thereafter, the President shall submit to the appropriate congressional committees a report that-- (A) lists all notifications submitted under subsection (d)(2) during the year preceding submission of the report, disaggregated by-- (i) sector; (ii) covered activity; (iii) covered foreign entity; and (iv) country of concern; (B) an assessment of whether to amend the regulations, including whether to amend the definition of ``covered sectors'' to enhance national security; (C) provides additional context and information regarding trends in the sectors, the types of covered activity, and the countries involved in those notifications, including-- (i) the location of the relevant covered foreign entities; and (ii) the country in which the United States person or foreign entity controlled by such United States person involved in the relevant covered activity is located; and (D) assesses the overall impact of those notifications, including recommendations for-- (i) expanding existing Federal programs to support the production or supply of covered sectors in the United States, including the potential of existing authorities to address any related national security concerns; and (ii) the continuation, expansion, or modification of the implementation and administration of this section. (2) Form.--Each report required by this section shall be submitted in unclassified form, but may include a classified annex. (3) Prohibition on disclosure.--Information contained in each report required by this section may be withheld from disclosure only to the extent otherwise permitted by statute, except that all information included pursuant to paragraph (1)(A) shall be withheld from public disclosure. (f) Requirement for Regulations.-- (1) In general.--Not later than 180 days after the date on which the initial list of categories of technologies and products have been published in the Federal Register pursuant to sections (c)(1)(A)(i) and (d)(1)(B), the President shall prescribe and finalize proposed regulations to carry out this Act. (2) Elements.--Regulations prescribed to carry out this section shall specify-- (A) the types of activities that will be considered to be covered activities; (B) the technologies and products