[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