Countering Communist China Act

(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.

This section may be cited as the Preventing Adversaries from Developing Critical Capabilities Act.

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.

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.

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.

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.

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.

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).

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.

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.

The President shall, upon receipt of a notification under subparagraph (A), promptly inspect the notification for completeness.

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.

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.

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.

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.

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.

Each report required by this section shall be submitted in unclassified form, but may include a classified annex.

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.

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.

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 in covered sectors with respect to which covered activities are prohibited under subsection (c)(2) or require a notification under subsection (d)(2); and

(C) a process by which parties can ask questions and get timely guidance as to whether a covered activity is prohibited under subsection (c)(2) or requires a notification under subsection (d)(2).

The President shall prescribe regulations further defining the terms used in this Act, including the terms covered activity, covered foreign entity, and party, to maximize the effectiveness of carrying out this Act in accordance with subchapter II of chapter 5 and chapter 7 of title 5 (commonly known as the Administrative Procedure Act).

Regulations issued pursuant to paragraph (1) shall be subject to public notice and comment.

In prescribing regulations under this section, the President shall, to the extent practicable, structure the regulations—

(A) to minimize the cost and complexity of compliance for affected parties;

(B) to ensure the benefits of the regulations outweigh their costs;

(C) to adopt the least burdensome alternative that achieves regulatory objectives;

(D) to prioritize transparency and stakeholder involvement in the process of prescribing the regulations; and

(E) to regularly review and streamline existing regulations promulgated pursuant to this Act to reduce redundancy and complexity.

Regulations issued under this section shall, consistent with the authority provided by subsection (b)(1), provide for the imposition of civil penalties for violations of this section, that involve—

(A) engaging in a covered activity prohibited under subsection (c)(2) pursuant to the regulations issued under this section;

(B) failing to submit a timely notification under subsection (d)(2) with respect to a covered activity or to submit other information as required by the designated agency; or

(C) submitting a material misstatement or omitting a material fact in any information submitted in a notification under subsection (d)(2).

Consistent with the authority provided by subsection (b)(1), the President may direct the Attorney General to seek appropriate relief in the district courts of the United States, in order to implement and enforce this Act.

The President shall submit to the appropriate congressional committees all regulations prescribed to carry out this Act not later than 30 days before such regulations are to take effect.

The President shall delegate the authorities and functions under this section to the Secretary of State.

The Secretary of State, in coordination with the heads or other relevant Federal agencies, should—

(A) conduct bilateral and multilateral engagement with the governments of countries that are allies and partners of the United States to promote and increase coordination of protocols and procedures to facilitate the effective implementation of and appropriate compliance with the prohibitions and notifications pursuant to this Act;

(B) upon adoption of protocols and procedures described in subparagraph (A), work with those governments to establish mechanisms for sharing information, including trends, with respect to such activities; and

(C) work with and encourage the governments of countries that are allies and partners of the United States to develop similar mechanisms of their own.

Not later than 180 days after the date of the enactment of this Act, the Secretary of State, in coordination with the heads of other relevant Federal agencies, should—

(A) develop a strategy to work with the governments of countries that are allies and partners of the United States to develop mechanisms that are comparable to the prohibitions and notifications pursuant to this Act; and

(B) assess opportunities to provide technical assistance to those countries with respect to the development of those mechanisms.

Not later than one year after the date of the enactment of this Act, and annually thereafter for 4 years, the Secretary of State shall submit to the appropriate congressional committees a report that includes—

(A) a discussion of any strategy developed pursuant to paragraph (3)(A), including key tools and objectives for the development of comparable mechanisms by the governments of allies and partners of the United States;

(B) a list of partner and allied countries to target for cooperation in developing their own screening programs;

(C) the status of the strategy’s implementation and outcomes; and

(D) a description of impediments to the establishment of comparable mechanisms by governments of allies and partners of the United States.

There is authorized to be appropriated $25,000,000, to be derived from amounts otherwise authorized to be appropriated to the President, for each of the first two fiscal years beginning on or after the date of the enactment of this Act, to carry out this Act, including to provide outreach to industry and persons affected by this Act.

The President may appoint, without regard to the provisions of sections 3309 through 3318 of title 5, United States Code, not more than 15 candidates directly to positions in the competitive service (as defined in section 2102 of that title).

The head of the Federal department or agency designated under subsection (c)(2) to hold primary responsibility for administering this Act may appoint, without regard to the provisions of sections 3309 through 3318 of title 5, United States Code, not fewer than 25 candidates directly to positions in the competitive service (as defined in section 2102 of that title) of such department or agency.

The primary responsibility of individuals in positions authorized to be hired under this subsection shall be to administer this Act.

Nothing in this Act may be construed to—

(1) restrain or deter United States activities abroad if such activities do not pose a risk to the national security of the United States; or

(2) alter or negate the authority of the President under any authority, process, regulation, investigation, enforcement measure, or review provided by or established under any other provision of Federal law, or any other authority of the President or the Congress under the Constitution of the United States.

Subject to paragraph (2), the President is authorized to exempt from any applicable prohibition or notification requirement any activity determined by the President, in consultation with the heads of relevant Federal agencies, as appropriate, to be in the national interest of the United States.

The President shall—

(A) notify the appropriate congressional committees not later than 48 hours after issuing a waiver under paragraph (1); and

(B) include in such notification an identification of the national interest justifying the use of the waiver.

In this Act:

The term appropriate congressional committees means—

(A) the Committee on Foreign Affairs, the Committee on Financial Services, the Committee on Ways and Means, the Committee on Appropriations, and the Permanent Select Committee on Intelligence of the House of Representatives; and

(B) the Committee on Foreign Relations, the Committee on Banking, Housing, and Urban Affairs, the Committee on Finance, the Committee on Appropriations, and the Select Committee on Intelligence of the Senate.

The term country of concern —

(A) means—

(i) the Democratic People’s Republic of North Korea;

(ii) the People’s Republic of China, including the Hong Kong Special Administrative Region and the Macau Special Administrative Region;

(iii) the Russian Federation; and

(iv) the Islamic Republic of Iran; and

(B) includes any other country the President determines necessary to ensure a country specified in clause (i), (ii), (iii), or (iv) of subparagraph (A) is unable to circumvent the provisions of this Act and the regulations issued pursuant to this Act.

Subject to such regulations as may be prescribed in accordance with subsection (g), and except as provided in subparagraph (B), the term covered activity means any activity engaged in by a United States person that involves—

(i) an acquisition by such United States person of an equity interest or contingent equity interest, or monetary capital contribution, in a covered foreign entity, directly or indirectly, by contractual commitment or otherwise, with the goal of generating income or gain;

(ii) an arrangement for an interest held by such United States person in the short- or long-term debt obligations of a covered foreign entity that includes governance rights that are characteristic of an equity investment, management, or other important rights;

(iii) the establishment of a wholly owned subsidiary in a country of concern, such as a greenfield investment, for the purpose of production, design, testing, manufacturing, fabrication, or development related to one or more covered sectors;

(iv) the establishment by such United States person of a joint venture in a country of concern or with a covered foreign entity for the purpose of production, design, testing, manufacturing, fabrication, or research, or other contractual or other commitments involving a covered foreign entity to jointly research and develop new innovation, including through the transfer of capital or intellectual property or other business proprietary information; or

(v) the acquisition by a United States person with a covered foreign entity of—

(I) operational cooperation, such as through supply or support arrangements;

(II) the right to board representation (as an observer, even if limited, or as a member) or an executive role (as may be defined through regulation) in a covered foreign entity;

(III) the ability to direct or influence such operational decisions as may be defined through such regulations;

(IV) formal governance representation in any operating affiliate, such as a portfolio company, of a covered foreign entity; or

(V) a new relationship to share or provide business services, such as financial services, marketing services, maintenance, or assembly functions; or

(vi) knowingly directing transactions by foreign persons that would constitute covered activity if engaged in by a United States person.

The term covered activity does not include—

(i) any transaction the value of which the President determines is de minimis, as defined in regulations prescribed in accordance with subsection (f);

(ii) any category of transactions that the President determines is in the national interest of the United States, as may be defined in regulations prescribed in accordance with subsection (f);

(iii) an investment in—

(I) a publicly traded security (as such term is defined in section 3(a)(10) of the Securities Exchange Act of 1934);

(II) an index fund, mutual fund, exchange-traded fund, or a similar instrument (including associated derivatives) offered by an investment company (as such term is defined in section 3(a)(1) of the Investment Company Act of 1940), or by a private investment fund; or

(III) a venture capital fund, private equity fund, fund of funds, or other pooled investment funds, as the limited partner, in each case in which the limited partner’s contribution is solely capital in a limited partnership structure and—

(aa) the limited partner cannot make managerial decisions, is not responsible for any debts beyond its investment, and does not have the ability (formally or informally) to influence or participate in the fund’s or a covered foreign entity’s decision making or operations; and

(bb) the investment is below a de minimis threshold to be determined by the President;

(iv) the acquisition of the equity or other interest owned or held by a covered foreign entity in an entity or assets located outside of a country of concern in which the United States person is acquiring all interests in the entity or assets held by covered foreign entity;

(v) an intracompany transfer of funds from a United States parent company to a subsidiary located in a country of concern;

(vi) a transaction made pursuant to a binding, uncalled capital commitment entered into before the date on which the regulations prescribed in accordance with section 6 take effect; or

(vii) any ordinary or administrative business transaction as may be defined in such regulations.

Subject to regulations prescribed in accordance with subsection (f), the term covered foreign entity means the following:

(A) Any entity that is incorporated in, has a principal place of business in, or is organized under the laws of a country of concern.

(B) Any entity the equity securities of which are traded in the ordinary course of business on one or more exchanges in a country of concern.

(C) Any agency or instrumentality of the government of a country of concern.

(D) Any other entity that is not a United States person and that meets such criteria as may be specified by the President in such regulations prescribed in accordance with subsection (f).

Subject to regulations prescribed in accordance with subsection (f), the term covered sectors includes sectors within the following areas:

(A) Semiconductors and microelectronics.

(B) Artificial intelligence.

(C) Quantum information science and technology.

(D) Hypersonics.

(E) High-performance computing and supercomputing.

(F) Biotechnology.

(G) Satellite communication.

The term party, with respect to an activity, has the meaning given that term in regulations prescribed in accordance with subsection (g).

The term United States person means—

(A) an individual who is a United States citizen or an alien lawfully admitted for permanent residence to the United States; or

(B) an entity organized under the laws of the United States or of any jurisdiction within the United States, including any foreign branch of such an entity.

Not later than 180 days after the date of the enactment of this Act, the President shall impose the sanctions described in subsection (e) with respect to any foreign person determined by the Secretary of the Treasury, in consultation with the Secretary of State and, as the Secretary of the Treasury determines appropriate, the Secretary of Defense, to knowingly engage in significant operations in the defense and related materiel sector or the surveillance technology sector of the economy of the People’s Republic of China.

Not less frequently than annually, the Secretary of the Treasury shall—

(1) undertake the determination described under subsection (a) with respect to foreign persons listed in the Annex to Executive Order 14032 (as amended by any revision to such Annex); and

(2) submit a report explaining the results of the determination to the appropriate congressional committees.

For the purpose of making the determination described under subsection (a), the Secretary of the Treasury, in consultation with the Secretary of State, the Secretary of Commerce, and the Secretary of Defense, shall—

(1) assess whether, under existing authorities, sanctions should be imposed with respect to the activities of—

(A) foreign persons listed on the Military End User List (Supplement No. 7 to part 744 of the Export Administration Regulations) that are located in the People’s Republic of China;

(B) foreign persons listed by the Department of Commerce on the Denied Persons List or the Entity List (Supplement No. 4 to part 744 of the Export Administration Regulations) that are located in the People’s Republic of China; or

(C) foreign persons listed pursuant to section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (10 U.S.C. 113 note); and

(2) submit a report to the appropriate congressional committees summarizing such assessment, which shall include an explanation of why the sanctions described under subsection (e) may not be applicable to foreign persons included on the lists described under paragraph (1).

For the purpose of making the determination described under subsection (a), the Secretary of the Treasury may, to the extent practicable, focus particular attention on foreign persons engaging in any of the following:

(1) Artificial intelligence, machine learning, autonomy, and related advances.

(2) High-performance computing, semiconductors, and advanced computer hardware and software.

(3) Quantum information science and technology.

(4) Robotics, automation, and advanced manufacturing.

(5) Advanced communications technology and immersive technology.

(6) Biotechnology, medical technology, genomics, and synthetic biology.

(7) Data storage, data management, and cybersecurity, including biometrics.

(8) Advanced materials science, including composites and 2D materials.

The President shall exercise all of the powers granted to the President under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all transactions in property and interests in property of a foreign person if such property and interests in property—

(1) are in the United States;

(2) come within the United States; or

(3) come within the possession or control of a United States person.

The President may exercise all authorities provided under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this section.

The penalties set forth in section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) apply to violations of any license, order, or regulation issued under this section.

The President may waive the application of sanctions under this section, for renewable periods of one year, if the President certifies in writing to the appropriate congressional committees that the waiver is in the national interest of the United States, with an explanation of the reasons therefor. In lieu of the imposition of such sanctions, the President shall prohibit the purchase or sale of any publicly traded securities, or any publicly traded securities that are derivative of such securities, issued by any person with respect to which sanctions were waived.

Sanctions under this section shall not apply with respect to—

(A) any activity subject to the reporting requirements under title V of the National Security Act of 1947 (50 U.S.C. 3091 et seq.); or

(B) any authorized intelligence or law enforcement activities of the United States.

Nothing in this section shall prohibit transactions for the conduct of the official business of the Federal Government by employees, grantees, or contractors thereof.

The President may not impose sanctions under this section with respect to any person for conducting or facilitating a transaction for the sale of agricultural commodities, food, medicine, or medical devices or for the provision of humanitarian assistance.

The authorities and requirements to impose sanctions authorized under this section shall not include the authority or requirement to impose sanctions on the importation of goods.

In this subsection, the term good means any article, natural or manmade substance, material, supply, or manufactured product, including inspection and test equipment, and excluding technical data.

In this section—

(1) the term appropriate congressional committees means—

(A) the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives; and

(B) the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate;

(2) the term foreign person means an individual or entity that is not a United States person;

(3) the term United States person means—

(A) a United States citizen or an alien lawfully admitted for permanent residence to the United States;

(B) an entity organized under the laws of the United States or of any jurisdiction within the United States, including a foreign branch of such an entity; or

(C) a person in the United States; and

(4) the term knowingly with respect to conduct, a circumstance, or a result, means that a person has actual knowledge, or should have known, of the conduct, the circumstance, or the result.

(a) Within two years of the date of enactment of this section, the provisions of title I of Public Law 106–286 (114 Stat. 880) or any other provision of law, effective on the date of the enactment of this Act—

(1) normal trade relations treatment shall not apply pursuant to section 101 of that Act to the products of the People’s Republic of China; and

(2) following the withdrawal of normal trade relations treatment, tariff rates on products of the People’s Republic of China shall revert to those set forth under Column 2 of the Tariff Act of 1930, without prejudice to any adjustments or modifications that may be made under the law, unless Congress passes China tariff legislation as outlined in Sec. 104.

In this subsection:

The term China tariff legislation means only a bill of either House of Congress—

(i) the title of which is as follows: A bill to set tariff schedules with regards to the People’s Republic of China;

(ii) the sole matter after the short title shall be the modifications of tariffs or duties or modification of any duty or staged rate reduction of any duty set forth in Schedule XX, as defined in section 2(5) of that Act (19 U.S.C. 3501(5)), on the People’s Republic of China; and

(iii) which may not reduce tariffs, duties, or non-tariff barriers on the People’s Republic of China below levels at which such barriers were set as of January 1, 2024.

During the period of two years from the date of enactment of this section, China tariff legislation may be introduced—

(A) in the House of Representatives, by the majority leader or the minority leader; or the Chairman or Ranking Member of the Committee on Ways and Means; and

(B) in the Senate, by the majority leader (or the majority leader’s designee) or the minority leader (or the minority leader’s designee), or the Chairman or Ranking Member of the Committee on Finance.

Notwithstanding Rule XXII of the Standing Rules of the Senate, it is in order at any time after the Committee on Finance reports China tariff legislation to the Senate to move to proceed to the consideration of the China tariff legislation, and all points of order against the China tariff legislation (and against consideration of the China tariff legislation) are waived. The motion to proceed is not debatable. The motion is not subject to a motion to postpone. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order.

Appeals from the decisions of the Chair relating to the application of the rules of the Senate, as the case may be, to the procedure relating to China tariff legislation shall be decided without debate.

Debate in the Senate of any veto message with respect to China tariff legislation, including all debatable motions and appeals in connection with the joint resolution, shall be limited to 10 hours, to be equally divided between, and controlled by, the majority leader and the minority leader or their designees.

This subsection is enacted by Congress—

(A) as an exercise of the rulemaking power of the Senate and the House of Representatives, respectively, and as such is deemed a part of the rules of each House, respectively, and supersedes other rules only to the extent that it is inconsistent with such rules; and

(B) with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner, and to the same extent as in the case of any other rule of that House.

This section may be cited as the Protecting Americans’ Retirement Savings Act or PARSA.

Section 404(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1104(a)) is amended by adding at the end the following:

For purposes of paragraph (1), a fiduciary of a plan may not be considered to act solely in the interest of the participants and beneficiaries of the plan if such fiduciary does not ensure that such plan does not engage in a transaction that the fiduciary knows, or should know, will result in the plan—

(i) acquiring an interest (as defined in section 103(h)) between the plan and a sanctioned entity or foreign adversary entity (as each such term is defined in section 103(h));

(ii) lending money or extending credit to such an entity;

(iii) furnishing goods, services, or facilities to such an entity; or

(iv) transferring, directly or indirectly, to or for use by or for the benefit of such an entity— For the purposes of subclause (II), the term fiduciary includes any person who exercises direct or indirect discretionary authority, responsibility, or control with respect to any participant beneficiary data.

(I) any assets of the plan; or

(II) any data with respect to any participant or beneficiary of the plan.

In the case of a plan holding an investment in a sanctioned entity or foreign adversary entity on the date of enactment of the Protecting Americans’ Retirement Savings Act, such plan may continue to hold such investment if the fiduciary of such plan complies with the requirements of subparagraphs (I) and (J) of section 103(b)(3).

In the case of a plan that has entered into a binding agreement prior to the date of enactment of the Protecting Americans’ Retirement Savings Act obligating such plan to engage in a transaction described under subparagraph (A), if the fiduciary of such plan complies with the requirements of subparagraphs (I), (J), and (K) of section 103(b)(3), such plan may fulfill the terms of such agreement until such agreement—

(i) expires; or

(ii) allows for termination.

Section 103(b)(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1023(b)(3)) is amended—

(A) in subparagraph (H)(iv), by striking the period at the end and inserting; and; and

(B) by inserting at the end the following:

(I) a separate statement of all assets in the plan that consist, in whole or in part, of an interest in a sanctioned entity, including—

(i) the aggregate value of such assets in the plan;

(ii) the identity of each sanctioned entity in which such plan holds an interest; and

(iii) information identifying each list under subsection (h)(5) on which such sanctioned entity is listed, and the reasons for which an entity may be placed on such list;

(J) a separate statement of all assets in the plan that consist, in whole or in part, of an interest in a foreign adversary entity, including—

(i) the aggregate value of such assets in the plan;

(ii) the specific interest, and value thereof, that such plan holds in each such foreign adversary entity;

(iii) the name of any investment vehicle through which the plan holds such interest;

(iv) the name of the fiduciary responsible for such investment; and

(v) a brief statement of factors considered by the fiduciary in maintaining such investment;

(K) a description of any ongoing agreement subject to section 404(a)(3)(C), including—

(i) the assets involved in such agreement;

(ii) the date on which such agreement expires;

(iii) the date on which such commitment may be terminated; and

(iv) such other information as the Secretary may deem appropriate.

Section 103 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1023) is further amended by adding at the end the following new subsection:

In this section:

The term control has the meaning given in section 800.208 of title 31, Code of Federal Regulations (as in effect on the date of enactment of this Act).

The term Export Administration Regulations means the regulations set forth in subchapter C of chapter VII of title 15, Code of Federal Regulations, or successor regulations.

The term foreign adversary —

(A) has the meaning given the term covered nation in section 4872(d) of title 10, United States Code (as in effect on the date of enactment of this Act); and

(B) includes any Special Administrative Region of any such covered nation.

The term foreign adversary entity means—

(A) any official governmental body at any level in a foreign adversary;

(B) the armed forces of a foreign adversary;

(C) the leading political party of a foreign adversary;

(D) a person organized under the laws of, headquartered in, or with its principal place of business in a foreign adversary; or

(E) a person subject to the direction or control of an entity listed in subparagraphs (A) through (D).

The term interest includes any interest—

(A) held directly or indirectly through any chain of ownership; or

(B) held as a derivative financial instrument or other contractual arrangement with respect to such sanctioned entity, including any financial instrument or other contract which seeks to replicate any financial return with respect to a sanctioned entity or interest in such sanctioned entity.

The term sanctioned entity means an entity listed on any of the following lists:

(A) The Non-SDN Chinese Military-Industrial Complex Companies List (NS–CMIC List) maintained by the Office of Foreign Assets Control of the Department of the Treasury under Executive Order 14032 (86 Fed. Reg. 30145), or any successor order.

(B) The list of Chinese military companies identified by the Secretary of Defense pursuant to section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283; 10 U.S.C. 113 note).

(C) The Entity List maintained by the Department of Commerce and set forth in Supplement No. 4 to part 744 of the Export Administration Regulations.

(D) The Denied Persons List maintained by the Department of Commerce and described in section 764.3(a)(2) of the Export Administration Regulations.

(E) The Unverified List set forth in Supplement No. 6 to part 744 of the Export Administration Regulations.

(F) The Military End User List set forth in Supplement No. 7 to part 744 of the Export Administration Regulations.

(G) The list of companies whose equipment or services are maintained by the Federal Communications Commission under section 2(a) of the Secure and Trusted Communications Networks Act of 2019 (47 U.S.C. 1601(a)), commonly referred to as the FCC Covered list.

(H) The Uyghur Forced Labor Prevention Act Entity List maintained by the Department of Homeland Security pursuant to Public Law 117–78.

(I) The Withhold Release Orders and Findings List maintained by the Commissioner of U.S. Customs and Border Protection pursuant to Public Law 117–78.

Not more than 180 days after the enactment of this Act, the Secretary shall issue regulations implementing this section.

The regulations issued under subparagraph (A) shall take effect not later than 1 year after the date of enactment of this Act.

Subject to subsection (e), the President is authorized to enter into an agreement with Taiwan, the Philippines, Indonesia, Thailand, Malaysia, New Zealand, and the United Kingdom consistent with the policy described in subsection (e), and the provisions of section 151(c) of the Trade Act of 1974 (19 U.S.C. 2191(c)) shall apply with respect to a bill to implement such agreement.

Whenever the President submits to Congress a bill to implement a trade agreement described in subsection (d) the bill shall be introduced (by request) in the House of Representatives and in the Senate as described in section 151(c) of the Trade Act of 1974 (19 U.S.C. 2191(c)).

A bill to implement a trade agreement described in subsection (d) shall contain provisions that are necessary to implement the trade agreement, and shall include trade-related labor and environmental protection standards, but may not include amendments to title VII of the Tariff Act of 1930, title II of the Trade Act of 1974, or any antitrust law of the United States.

Section 151 of the Trade Act of 1974 (19 U.S.C. 2191) is amended—

(A) in subsection (b)(1), by inserting section 191 of the Countering Communist China Act, after section 282 of the Uruguay Round Agreements Act,; and

(B) in subsection (c)(1), by inserting section 191 of the Countering Communist China Act, after the Uruguay Round Agreements Act,.

This section may be cited as the Disclosing Investments in Foreign Adversaries Act of 2024.

In this section:

The term Commission means the Securities and Exchange Commission.

The term country of concern —

(A) has the meaning given the term covered nation in section 4872(d) of title 10, United States Code; and

(B) includes a jurisdiction that the Commission, in consultation with the Secretary of State and the Secretary of the Treasury, determines to be subject to the political and legal control of a covered nation, as defined in section 4872(d) of title 10, United States Code.

The term covered entity means an entity or person that is required to file Form PF.

The term exempt reporting adviser means an investment adviser described in section 275.204–4(a) of title 17, Code of Federal Regulations, or any successor regulation.

The term Form ADV means the form described in section 279.1 of title 17, Code of Federal Regulations, or any successor regulation.

The term Form PF means the form described in section 279.9 of title 17, Code of Federal Regulations, or any successor regulation.

The term private fund has the meaning given the term in section 202(a) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a)).

The term private fund assets has the meaning given the term in section 275.204(b)–1 of title 17, Code of Federal Regulations, or any successor regulation.

Not later than 1 year after the date of enactment of this Act, the Commission shall amend Form PF and Form ADV, and the rules of the Commission governing the submission of Form PF and Form ADV, to, subject to subparagraph (B), require each covered entity and each exempt reporting adviser to annually disclose when submitting Form PF or Form ADV, respectively, the total private fund assets in countries of concern attributable to the private funds advised by the covered entity or exempt reporting adviser, as applicable, which shall be broken down by the percentage of those assets in each country of concern.

For the purposes of subparagraph (A), the Commission shall determine whether a private fund asset is in a country of concern based on—

(i) the amount of capital that is invested in an entity (including a subsidiary of an entity)—

(I) that has a physical presence or employees in that country of concern; or

(II) the plurality of the sales of which are from that country of concern; and

(ii) the proportion of the total assets and liabilities of an entity described in clause (i) that are located in that country of concern.

Not later than 1 year after the date on which the Commission makes the amendments required under paragraph (1), and not less frequently than annually thereafter, the Commission shall prepare and make publicly available a report containing a list of covered entities and exempt reporting advisers that, for the period covered by the report, have disclosed more than 0 private fund assets under Form PF or Form ADV (as amended pursuant to that subsection) in at least 1 country of concern, which shall be aggregated by the covered entity or exempt reporting adviser making that disclosure.

Each report prepared and made available by the Commission under clause (i) shall—

(I) be aggregated by covered entity or exempt reporting adviser; and

(II) include the percentage of private fund assets disclosed by a covered entity or exempt reporting adviser, as applicable.

Nothing in this subsection may be construed to permit the Commission to make available any information that appears on Form PF or Form ADV other than the information that is included on Form PF or Form ADV as a result of the requirements under paragraph (1).

The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by inserting after section 13A (15 U.S.C. 78m–1) the following:

In this section:

The term beneficial owner means a person that is determined to be a beneficial owner under section 240.13d–3 of title 17, Code of Federal Regulations, or any successor regulation.

The term country of concern —

(A) has the meaning given the term covered nation in section 4872(d) of title 10, United States Code; and

(B) includes a jurisdiction that the Commission, in consultation with the Secretary of State and the Secretary of the Treasury, determines to be subject to the political and legal control of a covered nation, as defined in section 4872(d) of title 10, United States Code.

The term covered exempted transaction means an offer or sale of a security that is—

(A) exempt from registration under section 5 of the Securities Act of 1933 (15 U.S.C. 77e); and

(B) structured or intended to comply with—

(i) section 230.506(b) of title 17, Code of Federal regulations, or any successor regulation;

(ii) sections 230.901, 230.902, and 230.903 of title 17, Code of Federal Regulations, or any successor regulations; or

(iii) section 230.144A of title 17, Code of Federal Regulations, or any successor regulation.

Notwithstanding any other provision of law, in the case of an issuer that conducts a covered exempted transaction described in paragraph (2), that issuer shall provide to the Commission, at such time and in such manner as the Commission may prescribe, the following information:

(A) The identity of the issuer.

(B) The place of incorporation of the issuer.

(C) Whether the issuer is associated with at least 1 consolidated entity, the plurality of the assets of which are in a country of concern.

(D) Whether the issuer is associated with at least 1 consolidated entity that is incorporated in a country of concern.

(E) The amount of securities sold pursuant to the covered exempted transaction and the net proceeds to the issuer.

(F) The beneficial owners of the issuer.

(G) The intended use of the proceeds from the covered exempted transaction, including each country in which the issuer intends to invest those proceeds, which shall be broken down by the percentage of net proceeds by industry within each such country.

(H) The exemption the issuer relies on with respect to the covered exempted transaction.

A covered exempted transaction described in this paragraph is, with respect to the issuer offering or selling the security that is the subject of the covered exempted transaction, either of the following instances:

(A) An offer or sale of securities in an amount that is not less than $25,000,000.

(B) An offer or sale of a security such that the offer or sale, together with all covered exempted transactions by that issuer during the 1-year period preceding the date on which the issuer offers or sells the security, constitutes offers or sales in the aggregate of an amount that is not less than $50,000,000.

The Commission shall, for the protection of investors and fair and orderly markets—

(1) revise and issue such rules, regulations, and forms as may be necessary to carry out this section; and

(2) issue rules to set conditions that limit the future use of covered exempted transactions for issuers that do not comply with the disclosure requirements of this section.

This section shall apply with respect to any covered exempted transaction that occurs on or after the date that is 1 year after the date of enactment of this section.

The Commission shall, on a quarterly basis, prepare and make publicly available a report that includes all information submitted by an issuer under this section during the quarter covered by the report, if that issuer—

(1) is—

(A) incorporated in a country of concern; or

(B) incorporated outside of a country of concern and is associated with at least 1 consolidated entity—

(i) the plurality of the assets of which are in a country of concern; or

(ii) that is incorporated in a country of concern; or

(2) discloses in a filing made pursuant to this section that the issuer intends to invest the proceeds from a covered exempted transaction in a country of concern.

This Act may be cited as the Stop Funding the CCP through A-Shares Act.

In this section:

The term acting in a professional capacity includes acting as—

(A) a member (as defined in section 3(a)(3)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(3)(A))) of a national securities exchange;

(B) a member (as defined in section 3(a)(3)(B) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(3)(B))) of a registered securities association; or

(C) an associated person of a member (as defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))) described in subparagraph (A) or (B).

The term assignment has the meaning given the term in section 2(a) of the Investment Company Act of 1940 (15 U.S.C. 80a– 2(a)).

The term commerce has the meaning given the term in section 4 of the Federal Trade Commission Act (15 U.S.C. 44).

The term covered exchange means—

(A) the Shanghai Stock Exchange (or any subsidiary of that exchange);

(B) the Shenzhen Stock Exchange (or any subsidiary of that exchange);

(C) the Beijing Stock Exchange (or any subsidiary of that exchange); or

(D) any other national exchange, or subsidiary of such an exchange, that is subject to the influence or control of the Party Committee of the China Securities Regulatory Commission, other than the Stock Exchange of Hong Kong.

The term covered security means a security that—

(A) as of the date on which a covered transaction is executed with respect to the security, is listed on a covered exchange;

(B) is derivative of a security described in subparagraph (A); or

(C) is designed to provide investment exposure to a security described in subparagraph (A).

The term covered transaction means a purchase, sale, or assignment.

The term engage in, with respect to a transaction, means to order, approve, or otherwise perform any act in furtherance of that transaction.

The terms purchase, sale, and security have the meanings given those terms in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).

The term U.S. person has the meaning given the term in section 120.62 of title 22, Code of Federal Regulations, or any successor regulation.

The term willfully, with respect to an action, means that the action is taken voluntarily and intentionally in violation of a known legal duty.

Except for the purposes of complying with paragraph (2), beginning on the date of enactment of this Act, it shall be unlawful for any U.S. person to make use of the mails or any means or instrumentality of commerce to engage in a covered transaction with respect to a covered security.

Not later than 180 days after the date of enactment of this Act, each U.S. person shall divest of all covered securities held by the U.S. person.

A U.S. person that violates, attempts to violate, conspires to violate, or causes a violation of this section shall be subject to any of the following penalties:

(1) A civil penalty in an amount not to exceed the greater of—

(A) $350,000; or

(B) an amount that is twice the amount of the covered transaction that is the basis of the violation with respect to which the penalty is imposed.

(2) With respect to a U.S. person that willfully violates, willfully attempts to violate, willfully conspires to violate, or willfully aids or abets in the commission of a violation of this section, a criminal penalty as follows:

(A) If that U.S. person is an individual not acting in a professional capacity, a fine of not more than $1,000,000, a term of imprisonment of not more than 5 years, or both.

(B) If that U.S. person is an individual acting in a professional capacity, a fine of not more than $5,000,000, a term of imprisonment of not more than 20 years, or both.

(i) If that U.S. person is an organization, including any entity described in clause (ii), a fine of not more than $25,000,000.

(ii) An entity described in this clause is any of the following:

(I) An investment company, as defined in section 3 of the Investment Company Act of 1940 (15 U.S.C. 80a–3).

(II) A bank, broker, dealer, exchange, insurance company, investment banker, underwriter, savings and loan association, business development company, commodity pool, commodity pool operator, commodity trading advisor, major swap participant, swap dealer, or swap execution facility, as those terms are defined in section 2(a) of the Investment Company Act of 1940 (15 U.S.C. 80a–2(a)).

(III) An investment adviser, as defined in section 202(a) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a)).

(IV) A market intermediary, as defined in section 3(c)(2)(B)(i) of the Investment Company Act of 1940 (15 U.S.C. 80a–3(c)(2)(B)(i)).

(V) A fund described in section 3(c)(10)(B) of the Investment Company Act of 1940 (15 U.S.C. 80a–3(c)(10)(B)).

(VI) A qualified pension, profit-sharing, or stock bonus plan described in section 401 of the Internal Revenue Code of 1986.

(VII) An individual retirement account, as defined in section 408(a) of the Internal Revenue Code of 1986.

(VIII) A tax credit employee stock ownership plan, as defined in section 409(a) of the Internal Revenue Code of 1986.

In accordance with subsection (b), the Secretary of the Treasury, in consultation with the Secretary of Commerce, the Secretary of State, the Secretary of Defense, the Assistant to the President for National Security Affairs, and the Director of National Intelligence, shall submit to Congress a report on, for the period covered by the report—

(1) the extent of mitigation and elimination of the conditions described in section 2(b); and

(2) the extent of the occurrence of the conditions described in section 2(b) with respect to securities listed on the Stock Exchange of Hong Kong.

The Secretary of the Treasury shall submit to Congress a report described in subsection (a)—

(1) not later than 90 days after the date of enactment of this Act;

(2) not later than 180 days after the date of enactment of this Act; and

(3) once every 180 days after the date on which the Secretary submits the report required under paragraph (2) of this subsection.

In this section:

The term Chinese entity means an entity organized under the laws of the People’s Republic of China or otherwise subject to the jurisdiction of the Government of the People’s Republic of China.

The term United States person means—

(A) a United States citizen or an alien lawfully admitted for permanent residence to the United States; or

(B) an entity organized under the laws of the United States or any jurisdiction within the United States, including a foreign branch of such an entity.

Not later than 1 year after the date of enactment of this Act, and annually thereafter, the Secretary of the Treasury shall submit to Congress a report on portfolio investments by United States persons in the People’s Republic of China, including such investments routed through a jurisdiction outside the United States.

Each report required by subsection (b) shall include an assessment of the involvement of the following in portfolio investments in the People’s Republic of China:

(1) United States persons making such investments, including an assessment of—

(A) the types of United States persons making such investments, including State pension funds; and

(B) United States persons making more than 2 percent of the total of such investments in a year.

(2) Chinese entities receiving such investments, including an assessment of—

(A) such entities in individual sectors of the economic of the People’s Republic of China, including the housing sector;

(B) any Chinese entities subject to sanctions imposed by the United States receiving such investments; and

(C) Chinese entities that receive more than $100,000,000 from such investments.

The period covered by a report required by subsection (b) shall be—

(1) in the case of the first such report, the period beginning on January 1, 2008, and ending on the date of the report; and

(2) in the case of each subsequent such report, the 1-year period preceding submission of the report.

The Secretary of the Treasury and the Securities and Exchange Commission may coordinate to carry out this Act.

For the purposes of carrying out section 3(c)(2), the Secretary of the Treasury and the Securities and Exchange Commission may coordinate with the Attorney General.

The President shall impose the sanctions described in subsection (b) with respect to any foreign person that the President determines knowingly commits a significant act of malign disinformation on behalf of the government of a foreign country or foreign political party that has the direct purpose or effect of influencing political, diplomatic, or educational activities in the United States for the purpose of harming—

(1) the national security or defense of the United States; or

(2) the safety and security of any United States citizen or alien lawfully admitted for permanent residence.

The sanctions described in this subsection with respect to a foreign person determined by the President to be subject to subsection (a) are the following:

The President shall exercise of all powers granted to the President by the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all transactions in property and interests in property of the foreign person if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.

In the case of a foreign person who is an individual, the foreign person is—

(I) inadmissible to the United States;

(II) ineligible to receive a visa or other documentation to enter the United States; and

(III) otherwise ineligible to be admitted or paroled into the United States or to receive any other benefit under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.).

In the case of a foreign person who is an individual, the visa or other documentation issued to the person shall be revoked, regardless of when such visa or other documentation is or was issued.

A revocation under subclause (I) shall—

(aa) take effect immediately; and

(bb) automatically cancel any other valid visa or entry documentation that is in the person’s possession.

A person that violates, attempts to violate, conspires to violate, or causes a violation of any regulation, license, or order issued to carry out paragraph (1)(A) shall be subject to the penalties set forth in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) to the same extent as a person that commits an unlawful act described in subsection (a) of that section.

Sanctions under paragraph (1)(B) shall not apply to a foreign person who is an individual if admitting the person into the United States is necessary to permit the United States to comply with the Agreement regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, between the United Nations and the United States, or other applicable international obligations.

The President may, for one period not to exceed one year, waive the application of sanctions imposed with respect to a foreign person under this section if the President certifies to the appropriate congressional committees not later than 15 days before such waiver is to take effect that the waiver is vital to the national security interests of the United States.

The President may exercise all authorities provided to the President under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) for purposes of carrying out this section.

Not later than 90 days after the date of the enactment of this Act, the President shall promulgate such regulations as are necessary for the implementation of this section.

Not less than 10 days before the promulgation of regulations under paragraph (1), the President shall notify and provide to the appropriate congressional committees the proposed regulations and an identification of the provisions of this section that the regulations are implementing.

In this section:

The terms admitted and alien have the meanings given those terms in section 101(a) of the Immigration and Nationality Act (8 U.S.C. 1101(a)).

The term appropriate congressional committees means—

(A) the Committee on Foreign Affairs, the Committee on the Judiciary, the Committee on Ways and Means, and the Committee on Financial Services of the House of Representatives; and

(B) the Committee on Foreign Relations, the Committee on the Judiciary, the Committee on Finance, and the Committee on Banking, Housing, and Urban Affairs of the Senate.

The term foreign person means a person that is not a United States person.

The term knowingly, with respect to conduct, a circumstance, or a result, means that a person has actual knowledge, or should have known, of the conduct, the circumstance, or the result.

The term person means an individual or entity.

The terms property and interest in property have the meanings given the terms property and property interest, respectively, in section 576.312 of title 31, Code of Federal Regulations, as in effect on the day before the date of the enactment of this Act.

The term United States person means—

(A) an individual who is a United States citizen or an alien lawfully admitted for permanent residence to the United States;

(B) an entity organized under the laws of the United States or any jurisdiction within the United States, including a foreign branch of such an entity; or

(C) any person in the United States.

This section shall cease to be effective beginning on January 1, 2026.

Paragraph (1) shall not apply with respect to sanctions imposed with respect to a foreign person under this section before January 1, 2026.

Not later than 90 days after the date of enactment of this Act, the Secretary of State shall submit to the appropriate congressional committees a determination, including a detailed justification, on whether the United Front Work Department of the Chinese Communist Party, or any component or official thereof, meets the criteria for the application of sanctions pursuant to—

(1) section 101 of this Act;

(2) section 1263 of the Global Magnitsky Human Rights Accountability Act (subtitle F of title XII of Public Law 114–328; 22 U.S.C. 2656 note);

(3) section 6 of the Uyghur Human Rights Policy Act of 2020 (Public Law 116–145; 22 U.S.C. 6901 note); or

(4) Executive Order 13694 (50 U.S.C. 1701 note; relating to blocking property of certain persons engaged in significant malicious cyber-enabled activities).

The determination required by subsection (a) shall be submitted in unclassified form but may contain a classified annex.

In this section, the term appropriate congressional committees means—

(1) the Committee on Armed Services, the Committee on Foreign Affairs, the Permanent Select Committee on Intelligence, the Committee on Financial Services, and the Committee on the Judiciary of the House of Representatives; and

(2) the Committee on Armed Services, the Committee on Foreign Relations, the Select Committee on Intelligence, the Committee on Banking, Housing, and Urban Affairs, and the Committee on the Judiciary of the Senate.

Section 203 of the International Emergency Economic Powers Act (50 U.S.C. 1702) is amended—

(1) by redesignating subsection (c) as subsection (d); and

(2) by inserting after subsection (b) the following new subsection:

(1) Notwithstanding subsection (b), the authority granted to the President by this section includes the authority to regulate or prohibit transactions with a mobile application or software program that—

(A) engages in the theft or unauthorized transmission of a user’s data; and

(B) provides to a covered country or covered foreign political party access to such data.

(2) In this subsection, the term covered country means any of the following:

(A) A communist country.

(B) A foreign adversary.

(C) A state sponsor of terrorism.

(3) In this subsection:

(A) The term communist country has the meaning given such term in section 620(f)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 2370(f)(1)).

(B) The term covered foreign political party means the Chinese Communist Party (CCP).

(C) The term foreign adversary has the meaning given such term in Executive Order 13920, issued on May 1, 2020, entitled Securing the United States BulkPower System, and including the list of foreign adversaries identified by the Department of Energy’s Office of Electricity pursuant to such Executive Order on July 7, 2020, as in effect on January 19, 2021.

(D) The term state sponsor of terrorism means a country the government of which the Secretary of State determines has repeatedly provided support for international terrorism pursuant to—

(i) section 1754(c)(1)(A) of the Export Control Reform Act of 2018 (50 U.S.C. 4813(c)(1)(A));

(ii) section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371);

(iii) section 40 of the Arms Export Control Act (22 U.S.C. 2780); or

(iv) any other provision of law.

Notwithstanding any other provision of law, the President is authorized to impose the sanctions described in subsection (b) with respect to any foreign person that the President determines has developed, maintains, provides, owns, or controls a mobile application or software program that—

(1) engages in the theft or unauthorized transmission of a user’s data to servers located in China; and

(2) provides to the Government of the People’s Republic of China (PRC), the Chinese Communist Party (CCP), or any person owned by or controlled by the PRC or CCP access to such data.

The sanctions described in this subsection with respect to a foreign person determined by the President to be subject to subsection (a) are the following:

The President shall exercise of all powers granted to the President by the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all transactions in property and interests in property of the foreign person if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.

In the case of a foreign person who is an individual, the foreign person is—

(I) inadmissible to the United States;

(II) ineligible to receive a visa or other documentation to enter the United States; and

(III) otherwise ineligible to be admitted or paroled into the United States or to receive any other benefit under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.).

In the case of a foreign person who is an individual, the visa or other documentation issued to the person shall be revoked, regardless of when such visa or other documentation is or was issued.

A revocation under subclause (I) shall—

(aa) take effect immediately; and

(bb) automatically cancel any other valid visa or entry documentation that is in the person’s possession.

The penalties provided for in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) shall apply to a person that violates, attempts to violate, conspires to violate, or causes a violation of regulations promulgated under subsection (e) to implement this section to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of such Act.

Sanctions under paragraph (1)(B) shall not apply to a foreign person who is an individual if admitting the person into the United States is necessary to permit the United States to comply with the Agreement regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, between the United Nations and the United States, or other applicable international obligations.

The President may, on a case-by-case basis and for periods not to exceed 180 days, waive the application of sanctions imposed with respect to a foreign person under this section if the President certifies to the appropriate congressional committees not later than 15 days before such waiver is to take effect that the waiver is vital to the national security interests of the United States.

The President may exercise all authorities provided to the President under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) for purposes of carrying out this section. The exceptions to the President’s authority described in section 203(b) of the International Emergency Economic Powers Act, as shall not apply to the President’s authority to exercise authorities under this section.

The President shall, not later than 180 days after the date of the enactment of this Act, prescribe regulations as necessary for the implementation of this Act and the amendments made by this Act.

No later than 10 days before the prescription of regulations under subsection (1), the President shall notify the appropriate congressional committees regarding the proposed regulations and the provisions this Act and the amendments made by this Act that the regulations are implementing.

In this section:

The terms admitted and alien have the meanings given those terms in section 101(a) of the Immigration and Nationality Act (8 U.S.C. 1101(a)).

The term appropriate congressional committees means—

(A) the Committee on Foreign Affairs, the Committee on the Judiciary, the Committee on Ways and Means, and the Committee on Financial Services of the House of Representatives; and

(B) the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.

The term foreign person means a person that is not a United States person.

Not later than 90 days after the date of the enactment of this Act, the Secretary of State shall submit to the appropriate congressional committees a determination, including a detailed justification, regarding whether WeChat and TikTok, or any component thereof, or any entity owned or controlled by WeChat, satisfies the criteria for the application of sanctions pursuant to—

(1) section 205 of this Act; or

(2) Executive Order 13694 (50 U.S.C. 1701 note; relating to blocking property of certain persons engaged in significant malicious cyber-enabled activities).

The determination required by subsection (a) shall be submitted in unclassified form but may contain a classified annex.

In this section, the term appropriate congressional committees means—

(1) the Committee on Armed Services, the Committee on Foreign Affairs, the Permanent Select Committee on Intelligence, the Committee on Financial Services, and the Committee on the Judiciary of the House of Representatives; and

(2) the Committee on Armed Services, the Committee on Foreign Relations, the Select Committee on Intelligence, the Committee on Banking, Housing, and Urban Affairs, and the Committee on the Judiciary of the Senate.

The Lobbying Disclosure Act of 1995 (2 U.S.C. 1601 et seq.) is amended by inserting after section 5 the following new section:

Notwithstanding any other provision of law, no person may receive direct or indirect compensation in any form, including intangible or in-kind, for serving as an agent of a foreign country of concern, or making a lobbying contact on behalf of a foreign country of concern.

In addition to any other penalty under this Act, any person who violates subsection (a) shall be subject to a fine of at least an amount greater than the total compensation the person received in violation of subsection (a) and shall be subject of a fine of no more than three times the total compensation the person received in violation of subsection (a).

In this section, a foreign country of concern means a country defined under section 19221(a)(1) of title 42, United States Code, as well as any agent, instrumentality or entity owned or controlled by a foreign country of concern.

The amendments made by this section shall apply with respect to lobbying contacts under the Lobbying Disclosure Act of 1995 which are made on or after the date of the enactment of this Act.

Section 6033(b) of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (15), by redesignating paragraph (16) as paragraph (17) and by inserting after paragraph (15) the following new paragraph:

(16) with respect to each government of a foreign country (within the meaning of section 1(e) of the Foreign Agents Registration Act of 1938 (22 U.S.C. 611(e))) and each foreign political party (within the meaning of section 1(f) of such Act (22 U.S.C. 611(f)) which made aggregate contributions and gifts to the organization during the year in excess of $50,000, the name of such government or political party and such aggregate amount, and

Section 6104 of such Code is amended by adding at the end the following new subsection:

The Secretary shall make publicly available in a searchable database the following information:

(1) The information furnished under section 6033(b)(16) of the Internal Revenue Code of 1986, as amended by this section.

(2) The name of the organization furnishing the information described in paragraph (1).

(3) The aggregate amount reported under such section as having been received as contributions or gifts in each year from the People’s Republic of China and (stated separately) from the Chinese Communist Party.

The amendments made by this section shall apply to returns filed for taxable years beginning after the date of the enactment of this Act.

Notwithstanding any other provision of law, the President is authorized to impose the sanctions described in subsection (b) with respect to any foreign person the President determines—

(1) is a senior official of the CCP, including a member of the CCP Politburo; and

(2) has engaged in or provided support to or for—

(A) a malign disinformation campaign or political warfare operation against the United States;

(B) the theft of intellectual property of a United States person;

(C) threats or actions undermining the sovereignty of Taiwan; and

(D) the forced closure or destruction of churches, mosques, Buddhist temples or any other place of worship in China, or religious practice of Christians, Muslims, Buddhists or any other religious group in China.

The sanctions described in this subsection with respect to a foreign person determined by the President to be subject to subsection (a) are the following:

The President shall exercise of all powers granted to the President by the International Emergency Economic Powers Act (U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all transactions in property and interests in property of the foreign person if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.

Such a foreign person is—

(I) inadmissible to the United States;

(II) ineligible to receive a visa or other documentation to enter the United States; and

(III) otherwise ineligible to be admitted or paroled into the United States or to receive any other benefit under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.).

The visa or other documentation issued to such a foreign person shall be revoked, regardless of when such visa or other documentation is or was issued.

A revocation under subclause (I) shall—

(aa) take effect immediately; and

(bb) automatically cancel any other valid visa or entry documentation that is in the person’s possession.

The penalties provided for in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 24 U.S.C. 1705) shall apply to a person that violates, attempts to violate, conspires to violate, or causes a violation of regulations promulgated under subsection (f) to implement this section to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of that Act.

Sanctions under paragraph (1)(B) shall not apply to a foreign person who is an individual if admitting the person into the United States is necessary to permit the United States to comply with the Agreement regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, between the United Nations and the United States, or other applicable international obligations.

The President may, on a case-by-case basis and for one period not to exceed one year, waive the application of sanctions imposed with respect to a foreign person under this section if the President certifies to the appropriate congressional committees not later than 15 days before such waiver is to take effect that such waiver is vital to the national security interests of the United States.

The President may terminate the application of sanctions under this section if the President determines and reports to the appropriate congressional committees not later than 15 days before the termination takes effect that the President has determined that the foreign person no longer is involved in any of the activities described in subsection (a).

The President may exercise all authorities provided to the President under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) for purposes of carrying out this section.

Not later than 90 days after the date of the enactment of this Act, the President shall promulgate regulations as necessary for the implementation of this section.

Not later than 10 days before the promulgation of regulations under paragraph (1), the President shall notify and provide to the appropriate congressional committees the proposed regulations and the provisions of this section that such regulations are implementing.

This section shall terminate on January 1, 2026.

Paragraph (1) shall not apply with respect to sanctions imposed with respect to a foreign person under this section before January 1, 2026.

In this section:

The term admitted has the meaning given such term in section 101(3) of the Immigration and Nationality Act (8 U.S.C. 1101(3)).

The term appropriate congressional committees means—

(A) the Committee on Foreign Affairs, the Committee on the Judiciary, the Committee on Ways and Means, and the Committee on Financial Services of the House of Representatives; and

(B) the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.

The term foreign person means a person that is not a national or citizen of the United States or lawfully admitted for permanent residence in the United States.

Not later than 180 days after the date of the enactment of this Act, the Secretary of State, in consultation with the Secretary of the Treasury, shall submit to the appropriate congressional committees a determination, including a detailed justification, regarding whether any member of the Chinese Communist Party (CCP) Politburo satisfies the criteria for the application of sanctions pursuant to any of the following:

(1) Section 208 of this Act.

(2) Executive Order 13694 (50 U.S.C. 1701 note; relating to blocking property of certain persons engaged in significant malicious cyber-enabled activities).

(3) The Global Magnitsky Human Rights Accountability Act (22 U.S.C. 2656 note).

(4) The Uyghur Human Rights and Policy Act of 2020 (Public Law 116–145).

(5) The Hong Kong Human Rights and Democracy Act of 2019 (Public Law 116–76).

The determination required by subsection (a) shall be submitted in unclassified form but may contain a classified annex.

In this section, the term appropriate congressional committees means—

(1) the Committee on Armed Services, the Committee on Foreign Affairs, the Committee on Financial Services, and the Committee on the Judiciary of the House of Representatives; and

(2) the Committee on Armed Services, the Committee on Foreign Relations, the Committee on Banking, Housing, and Urban Affairs, and the Committee on the Judiciary of the Senate.

No later than 180 days after the date of the enactment of this Act, the President shall impose the sanctions described in section 108 with respect to each individual specified in subsection (b).

The individuals specified in this subsection are the following:

(1) He Lifeng.

(2) Zhao Leji.

(3) Cai Qi.

(4) Ding Xuexiang.

(5) Li Xi.

This section may be cited as the Sanctioning Tyrannical and Oppressive People within the Chinese Communist Party Act or the STOP CCP Act.

Congress finds the following:

(1) The Hong Kong National Security Law promulgated on July 1, 2020—

(A) contravenes the Basic Law of the Hong Kong Special Administrative Region that provides in Article 23 that the Legislative Council of Hong Kong shall enact legislation related to national security;

(B) violates the People’s Republic of China’s commitments under international law, as defined by the Joint Declaration; and

(C) causes severe and irreparable damage to the one country, two systems principle and further erodes global confidence in the People’s Republic of China’s commitment to international law.

(2) Repression of ethnic Muslim minorities in the Xinjiang Uyghur Autonomous Region of the People’s Republic of China has been ongoing, and was formalized with the Strike Hard Campaign against Violent Terrorism that began in 2014.

(3) The mass internment of Uyghur and other Muslim ethnic minorities in the Xinjiang Uyghur Autonomous Region has been ongoing since April 2017.

(4) The People’s Republic of China has conducted a targeted and systemic population-control campaign against ethnic and religious minorities in the Xinjiang Uyghur Autonomous Region by imposing and implementing coercive population-control practices, including selectively enforcing birth quotas, targeting minority women who are in noncompliance with birth quotas, and subjecting women to coercive measures such as forced birth control, forced sterilization, and forced abortion.

(5) On October 6, 2020, 39 countries delivered a cross-regional joint statement to the United States Mission to the United Nations on the human rights abuses on Uyghurs and other minorities for forced birth control including sterilization.

(6) On January 19, 2021, the Department of State determined that the People’s Republic of China committed crimes against humanity and genocide against Uyghurs and other ethnic and religious minority groups in the Xinjiang Uyghur Autonomous Region, citing forced sterilizations, forced abortions, coerced marriages, and separation of Uyghur children from their families.

(7) The Department of State’s 2020 Country Reports on Human Rights Practices affirmed the genocide determination and noted coercive population control measures inflicted on ethnic and religious minority women in China, including forced injections with drugs that cause temporary or permanent end to their menstrual cycles and fertility.

(8) The United States ratified the United Nations Convention on the Prevention and Punishment of Genocide in 1988, recognizing that imposing measures intended to prevent births within the group with intent to destroy a group in whole or part is an act that constitutes genocide.

(9) Taiwan is a free and prosperous democracy of nearly 24,000,000 people and an important contributor to peace and stability around the world.

(10) Section 2(b) of the Taiwan Relations Act (Public Law 96–8; 22 U.S.C. 3301(b)) states that it is the policy of the United States—

(A) to preserve and promote extensive, close, and friendly commercial, cultural, and other relations between the people of the United States and the people on Taiwan, as well as the people on the China mainland and all other peoples of the Western Pacific area;

(B) to declare that peace and stability in the area are in the political, security, and economic interests of the United States, and are matters of international concern;

(C) to make clear that the United States decision to establish diplomatic relations with the People’s Republic of China rests upon the expectation that the future of Taiwan will be determined by peaceful means;

(D) to consider any effort to determine the future of Taiwan by other than peaceful means, including by boycotts or embargoes, a threat to the peace and security of the Western Pacific area and of grave concern to the United States; and

(E) to provide Taiwan with arms of a defensive character;

(F) to maintain the capacity of the United States to resist any resort to force or other forms of coercion that would jeopardize the security, or the social or economic system, of the people on Taiwan.

(11) Since the election of President Tsai Ing-wen as President of Taiwan in 2016, the Government of the People’s Republic of China has intensified its efforts to pressure Taiwan through diplomatic isolation and military provocations.

(12) The rapid modernization of the People’s Liberation Army and recent military maneuvers in and around the Taiwan Strait illustrate a clear threat to Taiwan’s security.

It is the sense of Congress that the Chinese Communist Party, led by General Secretary Xi Jinping, has committed numerous human rights violations against the people of Hong Kong and the people of Taiwan, as well as genocide against Uyghur Muslims in the Xinjiang Uyghur Autonomous Region.

Not later than 30 days after the date of the enactment of this Act, the President shall impose sanctions under paragraph (2) with respect to—

(A) a person who is or was a member of any National Communist Party Congress of the People’s Republic of China; and

(B) any person who is an adult family member, including a spouse or adult family member, of a person described in subparagraph (A).

The sanctions described in this subsection are the following:

The President shall exercise all of the powers granted to the President under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all transactions in property and interests in property of the person if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.

An alien who the Secretary of State or the Secretary of Homeland Security (or a designee of one of such Secretaries) knows, or has reason to believe, has knowingly engaged in any activity described in paragraph (1) is—

(aa) inadmissible to the United States;

(bb) ineligible to receive a visa or other documentation to enter the United States; and

(cc) otherwise ineligible to be admitted or paroled into the United States or to receive any other benefit under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.).

The issuing consular officer, the Secretary of State, or the Secretary of Homeland Security (or a designee of one of such Secretaries) shall, in accordance with section 221(i) of the Immigration and Nationality Act (8 U.S.C. 1201(i)), revoke any visa or other entry documentation issued to an alien described in subclause (I) regardless of when the visa or other entry documentation is issued.

A revocation under item (aa) shall take effect immediately and shall automatically cancel any other valid visa or entry documentation that is in the alien’s possession.

The sanctions described under subparagraph (A)(ii) shall not apply with respect to an alien if admitting or paroling the alien into the United States is necessary to permit the United States to comply with the Agreement regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, between the United Nations and the United States, or other applicable international obligations.

Sanctions under subparagraph (A) shall not apply to any authorized intelligence, law enforcement, or national security activities of the United States.

Notwithstanding any other provision of this section, the authorities and requirements to impose sanctions under this section shall not include the authority or a requirement to impose sanctions on the importation of goods.

In this clause, the term good means any article, natural or man-made substance, material, supply or manufactured product, including inspection and test equipment, and excluding technical data.

The penalties provided for in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) shall apply to a person that violates, attempts to violate, conspires to violate, or causes a violation of regulations promulgated to carry out this section or the sanctions imposed pursuant to this section to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of that Act.

The President may exercise all authorities provided to the President under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) for purposes of carrying out this section.

The President shall, not later than 30 days after the date of the enactment of this Act, promulgate regulations as necessary for the implementation of this section.

The President shall have the authority to waive the sanctions required by paragraph (1) for renewable periods of 30 days, if the President provides a written certification to the appropriate congressional committees, which shall also be made publicly available on a website maintained by the Federal Government, that the People’s Republic of China and the Chinese Communist Party have—

(A) ceased the genocide of the Uyghur Muslim population, including verifiably shutting down all internment camps of Uyghurs and ending the practice of facilitating or supporting Uyghur forced labor and forced sterilization;

(B) ceased all forms of threats, military exercises, and aggression toward Taiwan, including through verifiably, and for at least a period of one year, having not conducted any breach of Taiwan’s air space, territorial waters, or land mass, by any military or intelligence personnel associated with the People’s Republic of China or the Chinese Communist Party, or any agent or instrumentality thereof;

(C) ceased the undermining of the autonomy of Hong Kong, including through respecting the terms of the Sino-British Joint Declaration, and reversing all steps taken to interfere with the democratic process and governance of Hong Kong; and

(D) ceased efforts to steal the intellectual property of United States persons.

The President’s authority to issue waivers or licenses with respect to sanctions required by paragraph (1) or pursuant to sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) with regard to sanctions required by paragraph (1) shall cease to apply beginning on the date that is 2 years after the date of enactment of this Act.

The Secretary of Commerce may not remove Huawei Technologies Co. Ltd., or its subsidiaries and affiliates, from the entity list or modify any of the licensing policies pursuant to its designation on the entity list, including the foreign direct product rule, unless the Secretary, with the concurrence of the End-User Review Committee by a unanimous vote of such Committee, certifies to the appropriate congressional committees that Huawei Technologies Co. Ltd., and its subsidiaries and affiliates—

(1) have not engaged in activities that are contrary to United States national security or foreign policy interests and are unlikely to engage in such activities in the future; and

(2) are not owned, controlled, or influenced by the Communist Party of China.

Not later than 180 days after the date of the enactment of this Act, the Secretary of Commerce—

(1) shall designate Honor Device Co. Ltd. for inclusion on the entity list; and

(2) shall publish a notification with respect to such designation in the Federal Register.

Not later than 30 days after the date of the enactment of this Act, and on a monthly basis thereafter, the Secretary of Commerce shall submit to the appropriate congressional committees a report that—

(A) identifies and describes all license applications received by the Department of Commerce to export, reexport, or transfer (in-country) items subject to the Export Administration Regulations to—

(i) Huawei Technologies Co. Ltd., or its subsidiaries and affiliates; or

(ii) Honor Device Co. Ltd; and

(B) identifies whether such license applications were approved or denied.

The report required by subsection (a) shall be submitted in unclassified form, but may contain a classified annex.

In this section:

The term appropriate congressional committees means the Committee on Foreign Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.

The term End-User Review Committee means the End-User Review Committee described in Supplement No. 9 to part 748 of the Export Administration Regulations.

The term entity list means the list maintained by the Bureau of Industry and Security and set forth in Supplement No. 4 to part 744 of the Export Administration Regulations.

The term Export Administration Regulations means subchapter C of chapter VII of title 15, Code of Federal Regulations.

Subsection (a) of section 108A of the Mutual Educational and Cultural Exchange Act of 1961 (22 U.S.C. 2458a(a)) is amended by adding at the end the following new paragraph:

(3) For purposes of this section, the term foreign government does not include the Government of the People’s Republic of China.

Section 8438 of title 5, United States Code, is amended by adding at the end the following:

(i) Notwithstanding any other provision of this section, no fund established or overseen by the Board may include an investment in any security of—

(1) an entity based in the People’s Republic of China; or

(2) any subsidiary that is owned or operated by an entity described in paragraph (1).

Not later than 30 days after the date of enactment of this Act, the Federal Retirement Thrift Investment Board established under section 8472(a) of title 5, United States Code, shall—

(1) review whether any sums in the Thrift Savings Fund are invested in violation of subsection (i) of section 8438 of that title, as added by subsection (a) of this section;

(2) if any sums are invested in the manner described in paragraph (1), divest those sums in a manner that is consistent with the legal and fiduciary duties provided under chapter 84 of that title, or any other applicable provision of law; and

(3) reinvest any sums divested under paragraph (2) in investments that do not violate subsection (i) of section 8438 of that title, as added by subsection (a) of this section.

Section 8438(b)(5) of title 5, United States Code, is amended by adding at the end the following:

(E) A mutual fund accessible through a mutual fund window authorized under this paragraph may not include an investment in any security of—

(i) an entity based in the People’s Republic of China; or

(ii) any subsidiary that is owned or operated by an entity described in clause (i).

The provisions of Executive Order 13920 (85 Fed. Reg. 26595; relating to securing the United States bulk-power system (May 1, 2020)) (as in effect on May 1, 2020) are enacted into law.

In publishing this Act in slip form and in the United States Statutes at Large pursuant to section 112 of title 1, United States Code, the Archivist of the United States shall include after the date of approval at the end an appendix setting forth the text of the Executive order referred to in subsection (a) (as in effect on May 1, 2020).

Section 721(a)(4) of the Defense Production Act of 1950 (50 U.S.C. 4565(a)(4)) is amended—

(1) in subparagraph (A)—

(A) in clause (i), by striking; and and inserting a semicolon;

(B) in clause (ii), by striking the period at the end and inserting; and; and

(C) by adding at the end the following:; and

(iii) any transaction described in subparagraph (B)(vi) proposed or pending on or after the date of the enactment of the Countering Communist China Act.

(2) in subparagraph (B), by adding at the end the following:

(vi) An investment by a foreign person that—

(I) involves—

(aa) the completed or planned purchase or lease by, or a concession to, the foreign person of private or public real estate in the United States; and

(bb) the establishment of a United States business to operate a factory or other facility on that real estate; and

(II) could result in control, including through formal or informal arrangements to act in concert, of that United States business by—

(aa) the Government of the People’s Republic of China;

(bb) a person owned or controlled by, or acting on behalf of, that Government;

(cc) an entity in which that Government has, directly or indirectly, including through formal or informal arrangements to act in concert, a 5 percent or greater interest;

(dd) an entity in which that Government has, directly or indirectly, the right or power to appoint, or approve the appointment of, any members of the board of directors, board of supervisors, or an equivalent governing body (including external directors and other individuals who perform the duties usually associated with such titles) or officers (including the president, senior vice president, executive vice president, and other individuals who perform duties normally associated with such titles) of any other entity that held, directly or indirectly, including through formal or informal arrangements to act in concert, a 5 percent or greater interest in the entity in the preceding 3 years; or

(ee) an entity in which any members or officers described in item (dd) of any other entity holding, directly or indirectly, including through formal or informal arrangements to act in concert, a 5 percent or greater interest in the entity are members of the Chinese Communist Party or have been members of the Chinese Communist Party in the preceding 3 years.

Section 721(a) of the Defense Production Act of 1950 (50 U.S.C. 4565(a)) is amended—

(1) by redesignating paragraphs (8) through (13) as paragraphs (9) through (14), respectively; and

(2) by inserting after paragraph (7) the following:

The term Government of the People’s Republic of China includes the national and subnational governments within the People’s Republic of China, including any departments, agencies, or instrumentalities of such governments.

Section 721(b)(1)(C)(v)(IV)(bb) of the Defense Production Act of 1950 (50 U.S.C. 4565(b)(1)(C)(v)(IV)(bb)) is amended by adding at the end the following:

The parties to a covered transaction described in subsection (a)(4)(B)(vi) shall submit a declaration described in subclause (I) with respect to the transaction.

Section 203 of the International Emergency Economic Powers Act (50 U.S.C. 1702) is amended—

(1) in subsection (b)—

(A) in the matter preceding paragraph (1), by striking to regulate or prohibit, directly or indirectly and inserting to directly regulate or prohibit; and

(B) in the first sentence of paragraph (3)—

(i) by striking but not limited to,; and

(ii) by inserting, but excluding sensitive personal data; and

(2) by adding at the end the following:

In subsection (b)(3), the term sensitive personal data means any of the following:

(1) Personally identifiable information, including the following:

(A) Financial data that could be used to analyze or determine an individual’s financial distress or hardship.

(B) The set of data in a consumer report, as defined under section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a), unless such data is obtained from a consumer reporting agency for one or more purposes identified in subsection (a) of such section.

(C) The set of data in an application for health insurance, long-term care insurance, professional liability insurance, mortgage insurance, or life insurance.

(D) Data relating to the physical, mental, or psychological health condition of an individual.

(E) Non-public electronic communications, including email, messaging, or chat communications, between or among users of a United States business’s products or services if a primary purpose of such product or service is to facilitate third-party user communications.

(F) Geolocation data collected using positioning systems, cell phone towers, or WiFi access points such as via a mobile application, vehicle GPS, other onboard mapping tool, or wearable electronic device.

(G) Biometric enrollment data including facial, voice, retina/iris, and palm/fingerprint templates.

(H) Data stored and processed for generating a Federal, State, tribal, territorial, or other government identification card.

(I) Data concerning United States Government personnel security clearance status.

(J) The set of data in an application for a United States Government personnel security clearance or an application for employment in a position of public trust.

(2) Genetic information, which includes the results of an individual’s genetic tests, including any related genetic sequencing data, whenever such results, in isolation or in combination with previously released or publicly available data, constitute identifiable data. Such results shall not include data derived from databases maintained by the United States Government and routinely provided to private parties for purposes of research. For purposes of this paragraph, the term genetic test has the meaning provided in section 2791(d)(17) of the Public Health Service Act (42 U.S.C. 300gg–91(d)(17)).

The amendments made by this section—

(1) take effect on the date of the enactment of this Act; and

(2) apply with respect to any exercise of the authority granted to the President under section 203 of the International Emergency Economic Powers Act on or after such date of enactment.

The Secretary of Agriculture shall take such actions as may be necessary to prohibit the purchase of agricultural land located in the United States by companies owned, in full or in part, by the People’s Republic of China. Beginning on the date of the enactment of this Act, agricultural land owned by the People’s Republic of China or companies owned, in full or in part, by the People’s Republic of China shall not be eligible for participation in programs administered by the Secretary of Agriculture.

The Director of National Intelligence shall annually submit to Congress a report on ownership structures and spending on media outlets, including in the form of paid advertorials, by entities with economic ties to Chinese state actors.

The President shall take such steps as may be necessary to prohibit the awarding or renewal of any Federal contract or procurement agreement with any technology company the President determines has provided hardware or software to the Government of the People’s Republic of China or to any state-owned enterprise of China.

A technology company shall not be subject to the prohibition under subsection (a) if the company agrees to provide bulk data to the United States Government on demand.

The President may waive the prohibition under subsection (a) on a case-by-case basis if the President certifies to Congress that such a waiver is in the national security interests of the United States.

The Chair or Ranking Member of the Committee on Foreign Affairs of the House of Representatives or the Committee on Foreign Relations of the Senate may refer to the President the identities of companies the Chair or Ranking member believes meets the definition of technology company for purposes of this section and should be subject to the prohibition under subsection (a).

This section may be cited as the Establishing New Authorities for Businesses Laundering and Enabling Risks to Security Act or the ENABLERS Act.

Section 5312(a)(2) of title 31, United States Code, as amended by the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021, is amended—

(A) by redesignating subparagraphs (Z) and (AA) as subparagraphs (GG) and (HH), respectively; and

(B) by inserting after subparagraph (Y) the following:

(Z) a person engaged in the business of providing investment advice for compensation;

(AA) a person engaged in the trade in works of art, antiques, or collectibles, including a dealer, advisor, consultant, custodian, gallery, auction house, museum, or any other person who engages as a business in the solicitation or the sale of works of art, antiques, or collectibles;

(BB) an attorney, law firm, or notary involved in financial activity or related administrative activity on behalf of another person;

(CC) a trust or company service provider, including—

(i) a person involved in forming a corporation, limited liability company, trust, foundation, partnership, or other similar entity or arrangement;

(ii) a person involved in acting as, or arranging for another person to act as, a registered agent, trustee, or nominee to be a shareholder, officer, director, secretary, partner, signatory, or other similar position in relation to a person or arrangement;

(iii) a person involved in providing a registered office, address, or other similar service for a person or arrangement; or

(iv) any other person providing trust or company services, as defined by the Secretary of the Treasury;

(DD) a certified public accountant or public accounting firm;

(EE) a person engaged in the business of public relations, marketing, communications, or other similar services in such a manner as to provide another person anonymity or deniability;

(FF) a person engaged in the business of providing third-party payment services, including payment processing, check consolidation, cash vault services, or other similar services designated by the Secretary of the Treasury;

Not later than December 31, 2023—

(i) the Secretary of the Treasury shall repeal section 103.170 of title 31, Code of Federal Regulations (relating to exemptions for certain financial institutions); and

(ii) the Secretary of the Treasury shall issue one or more rules to require all financial institutions (as defined in section 5312(a)(2) of title 31, United States Code) that have not already done so to—

(I) report suspicious transactions under section 5318(g) of title 31, United States Code;

(II) establish anti-money laundering programs under section 5318(h) of title 31, United States Code;

(III) establish due diligence policies, procedures, and controls under section 5318(i) of title 31, United States Code; and

(IV) identify and verify their account holders under section 5318(l) of title 31, United States Code.

In promulgating a rule under subparagraph (A)(ii) to implement subparagraph (CC) of section 5312(a)(2) of title 31, United States Code, as added by paragraph (1), the Secretary of Treasury shall exclude from the category of covered persons—

(i) any government agency; and

(ii) any attorney or law firm that uses a paid trust or company service provider, including any paid entity formation agent, operating within the United States.

Subparagraphs (Z) through (FF) of section 5312(a)(2) of title 31, United States Code, as added by paragraph (1), shall take effect on December 31, 2023.

With respect to a person described under subparagraphs (Z) through (FF) of section 5312(a)(2) of title 31, United States Code, as added by paragraph (1), the Secretary of the Treasury may not exempt such person from any requirement under subchapter II of chapter 53 of title 31, United States Code, including any delay in such application.

Any financial institution (as defined in section 5312(a)(2) of title 31, United States Code) that is not already required to comply with subsections (g), (h), (i), and (l) of section 5318 of title 31, United States Code, shall do so on and after June 30, 2024, whether or not a rule has been issued under paragraph (2)(A)(ii).

The Secretary of the Treasury, acting through the Director of the Financial Crimes Enforcement Network, shall establish a task force to—

(A) develop an ambitious, comprehensive, and multi-year United States Government strategy to impose anti-money laundering safeguards on all necessary gatekeeper professions;

(B) designate and authorize a Federal or State agency to enforce anti-money laundering requirements for each type of financial institution defined in section 5312(a)(2) of title 31, United States Code; and

(C) advance the regulatory rulemaking required under subsection (b)(2) of this section.

Section 262 of the Countering America’s Adversaries Through Sanctions Act (Public Law 115–44), is amended by inserting after paragraph (10) the following:

A description of efforts to impose anti-money laundering safeguards on all necessary gatekeeper professions, including art dealers, investment advisors, real estate professionals, lawyers, accountants, trust or company service providers, public relations professionals, dealers of luxury vehicles, money service businesses, and other similar professions.

If, before the date of the enactment of this Act, all updates to the national strategy required by section 261(b) of the Countering America’s Adversaries Through Sanctions Act (Public Law 115–44) have been completed, the President shall provide an additional update of such national strategy to the Congress containing the contents required under the amendment made by subparagraph (A).

Not later than 90 days after the date of the enactment of this Act, the Secretary of the Treasury shall promulgate a rule requiring a domestic title insurance company to obtain, maintain, and report to the Secretary information on the beneficial owners of entities that purchase or sell residential or commercial real estate in transactions in which the domestic title insurance company is involved.

There are authorized to be appropriated to the Secretary such sums as may be necessary to carry out this section.

In this subsection:

The term beneficial owner, with respect to an entity, has the meaning as defined in section 5336 of subchapter II of chapter 53 of title 31, United States Code.

The term domestic title insurance company has the meaning given that term in regulations prescribed by the Secretary.

Subsection (b) of section 36 of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2708) is amended—

(1) in paragraph (12), by striking or after the semicolon at the end;

(2) in paragraph (13), by striking the period at the end and inserting; or; and

(3) by adding at the end the following new paragraph:

(14) the identification of credible information regarding the origins of COVID–19, or any person or entity involved in the coverup of the origins of COVID–19, or the identification of any person or entity that provides nonpublic information related to gain of function research connected to Chinese laboratories, including the Wuhan Institute of Virology, with relation to coronaviruses that has been covered up by the Government of China and the Chinese Communist Party.

Notwithstanding any other provision of law, no funds available to any Federal department or agency may be used to seek membership by the United States in the World Health Organization or to provide assessed or voluntary contributions to the World Health Organization until such time as the President certifies to Congress that the World Health Organization meets the conditions described in subsection (b).

The conditions described in this subsection are the following:

(1) The World Health Organization has adopted meaningful reforms to ensure that humanitarian assistance is not politicized and is to be provided to those with the most need.

(2) The World Health Organization is not under the control or significant malign influence of the Chinese Communist Party.

(3) The World Health Organization is not involved in a coverup of the Chinese Communist Party’s response to the COVID–19 pandemic.

(4) The World Health Organization grants observer status to Taiwan.

(5) The World Health Organization does not divert humanitarian or medical supplies to Iran, North Korea, or Syria.

(6) The World Health Organization has put in place mechanisms to increase transparency and accountability in its operations and eliminate waste, fraud, and abuse.

Section 502 of the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (22 U.S.C. 5601) is amended—

(1) in the section heading, by adding at the end before the period the following: AND DEFINITIONS;

(2) by striking The purposes and inserting (a) purposes.—The purposes;

(3) in paragraph (1)—

(A) by striking or use and insert use; and

(B) by inserting, or engage in an act or acts of gross negligence with respect to a chemical or biological program owned, controlled, or directed by, or subject to the jurisdiction of the government of a foreign state after nationals; and

(4) by adding at the end the following:

In this Act:

The term gross negligence, with respect to an act or acts of a government of a foreign state, includes the government knew, or should have known, the act or acts would result in injury or damages to another foreign state or other such foreign states.

The term foreign state —

(i) has the meaning given that term in subsection (a) of section 1603 of title 28, United States Code; and

(ii) includes an agency or instrumentality of a foreign state as that term is defined in subsection (b) of such section; and

(B) includes an entity that is—

(I) directly or indirectly owned, controlled, or beneficially owned by, or in an official or unofficial capacity acting as an agent of or on behalf of, the government of a foreign state; or

(II) received significant material support from the government of a foreign state; and

(ii) engaged in providing commercial services, shipping, manufacturing, producing, or exporting.

Section 506 of the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (22 U.S.C. 5604) is amended—

(1) in subsection (a)—

(A) by redesignating paragraph (3) as paragraph (4);

(B) by inserting after paragraph (2) the following:; and

Whenever credible information becomes available to the executive branch indicating a substantial possibility that, on or after January 1, 2020, the government of a foreign country has engaged in an act or acts of gross negligence with respect to a chemical or biological program owned, controlled, or directed by, or subject to the jurisdiction of the government of a foreign state, the President shall, within 60 days after the receipt of such information by the executive branch, determine whether that government, on or after such date, has engaged in an act or acts of gross negligence with respect to a chemical or biological program owned, controlled, or directed by, or subject to the jurisdiction of the government of a foreign state. Section 507 applies if the President determines that that government has so engaged in such act or acts of gross negligence.

In making the determination under subparagraph (A), the President shall consider the following:

(i) All physical and circumstantial evidence available bearing on the possibility that the government in question engaged in an act or acts of gross negligence with respect to a chemical or biological program owned, controlled, or directed by, or subject to the jurisdiction of the government of a foreign state.

(ii) Whether evidence exists that such program or programs have civilian and military purposes or applications.

(iii) Whether the government in question attempted to conceal or otherwise withhold information from other governments or international organizations regarding an act or acts of gross negligence.

(iv) Whether, and to what extent, the government in question is compliant with its obligations under the Biological and Toxin Weapons Convention or Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction, as applicable.

(v) Whether, and to what extent, the government in question is providing or otherwise voluntarily disclosing substantive information to relevant international organizations.

(C) in paragraph (4) (as redesignated)—

(i) in the first sentence, by inserting or (3) after paragraph (1);

(ii) in the second sentence, by inserting under paragraph (1) after determination; and

(iii) by adding at the end the following: If the determination under paragraph (3) is that a foreign government had engaged in an act or acts of gross negligence with respect to a chemical or biological program owned, controlled, or directed by, or subject to the jurisdiction of the government of a foreign state, the report shall specify the sanctions to be imposed pursuant to section 507A.; and

(2) in subsection (b)—

(A) in paragraph (1)—

(i) by striking whether a particular foreign government and inserting the following: whether—;

(A) a particular foreign government

(ii) by striking the period at the end and inserting; or; and

(iii) by adding at the end the following:; and

(B) a particular foreign government, on or after January 1, 2020, has engaged in an act of acts of gross negligence with respect to a chemical or biological program owned, controlled, or directed by, or subject to the jurisdiction of the government of a foreign state.

(B) in paragraph (2)—

(i) in the first sentence—

(I) by striking whether the specified government and inserting the following: whether—;

(A) the specified government

(II) by striking the period at the end and inserting; or; and

(III) by adding at the end the following:; and

(B) the specified government, on or after January 1, 2020, has engaged in an act or acts of gross negligence with respect to a chemical or biological program owned, controlled, or directed by, or subject to the jurisdiction of the government of a foreign state.

(ii) in the second sentence—

(I) by inserting or (3)(B), as applicable after subsection (a)(2); and

(II) by moving the margin of the second sentence so it has the same level of indentation as margin of the matter preceding subparagraph (A) of the first sentence.

The Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (22 U.S.C. 5601 et seq.) is amended by inserting after section 507 the following:

If the President makes a determination pursuant to section 506(a)(3) with respect to the government of a foreign state, the President shall, within 30 days of making such determination, impose the sanctions described in paragraph (2) with respect to the foreign state.

The sanctions described in this paragraph are the following:

(A) The United States Government shall suspend all scientific cooperative programs and efforts with the government of the foreign state.

(B) The President shall prohibit the export to the foreign state of any goods, services or technology under Category 1 and Category 2 of the Commerce Control List.

(C) The United States Government may not procure, or enter into any contract for the procurement of, any goods or services from any person operating in the chemical or biological sectors of the foreign state.

Not later than 120 days after making a determination pursuant to section 506(a)(3) with respect to a government of a foreign state, the President shall submit to the appropriate congressional committees a determination as to whether—

(A) such government has adequately addressed an act or acts of gross negligence with respect to a chemical or biological program owned, controlled, or directed by, or subject to the jurisdiction of the government of a foreign state;

(B) such government has developed or is developing necessary measures to prevent any future act or acts of gross negligence;

(C) such government is providing or otherwise voluntarily disclosing substantive information to the United States and relevant international organizations; and

(D) such government is compliant with its obligations under the Biological and Toxin Weapons Convention or the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction, as applicable.

If the President is unable to certify that a government of a foreign state has taken the actions described in subparagraphs (A), (B), (C), and (D) of paragraph (1), the President shall impose 2 or more of the sanctions described in paragraph (3) with respect to the government of the foreign state.

The sanctions described in this paragraph are the following:

(A) The United States Government shall terminate assistance to the government of the foreign state under the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.), except for urgent humanitarian assistance and food or other agricultural commodities or products.

(B) No sales of any defense articles, defense services, or design and construction services under the Arms Export Control Act (22 U.S.C. 2751 et seq.) may be made to the government of the foreign state.

(C) No licenses for export of any item on the United States Munitions List that include the government of the foreign state as a party to the license may be granted.

(D) No exports of any goods or technologies controlled for national security reasons under the Export Administration Regulations may be made to the government of the foreign state, except that such prohibition shall not apply to any transaction subject to the reporting requirements of title V of the National Security Act of 1947 (50 U.S.C. 413 et seq.; relating to congressional oversight of intelligence activities).

(E) The President may order the United States Government not to issue any specific license and not to grant any other specific permission or authority to export any goods or technology to the government of the foreign state under—

(i) the Export Control Reform Act of 2018 (50 U.S.C. 4801 et seq.);

(ii) the Arms Export Control Act (22 U.S.C. 2751 et seq.);

(iii) the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.); or

(iv) any other statute that requires the prior review and approval of the United States Government as a condition for the export or reexport of goods or services.

Not later than 210 days after making a determination pursuant to section 506(a)(3) with respect to a government of a foreign state, the President shall submit to the appropriate congressional committees a determination as to whether the government of the foreign state has taken the actions described in subparagraphs (A), (B), (C), and (D) of subsection (b)(1).

If the President is unable to certify that a government of a foreign state has taken the actions described in subparagraphs (A), (B), (C), and (D) of subsection (b)(1), the President shall impose the sanctions described in paragraph (3) with respect to the government of the foreign state.

The sanctions described in this paragraph are the following:

(A) The President shall, pursuant to such regulations as the President may prescribe, prohibit any transactions in foreign exchange that are subject to the jurisdiction of the United States and in which the government of the foreign state has any interest.

(B) The President shall, pursuant to such regulations as the President may prescribe, prohibit any transfers of credit or payments between one or more financial institutions or by, through, or to any financial institution, to the extent that such transfers or payments are subject to the jurisdiction of the United States and involve any interest of the government of the foreign state.

The President shall remove the sanctions imposed with respect to the government of a foreign state pursuant to this section if the President determines and so certifies to the Congress, after the end of the 12-month period beginning on the date on which sanctions were initially imposed on that government of a foreign state pursuant to subsection (a), that—

(1) such government has adequately addressed an act or acts of gross negligence with respect to a chemical or biological program owned, controlled, or directed by, or subject to the jurisdiction of the government of a foreign state;

(2) such government has developed or is developing necessary measures to prevent any future act or acts of gross negligence;

(3) such government is providing or otherwise voluntarily disclosing substantive information to the United States and relevant international organizations;

(4) such government is compliant with its obligations under the Biological and Toxin Weapons Convention or Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction, as applicable; and

(5) such government is making restitution to those affected by an act or acts of gross negligence with respect to a chemical or biological program owned, controlled, or directed by, or subject to the jurisdiction of the government of a foreign state, including United States persons.

The President may, for periods not to exceed 180 days, waive the imposition of sanctions under this section if the President certifies to the appropriate congressional committees that such waiver is vital to the national security interests of the United States.

The President may not exercise the authority described in paragraph (1) beginning on the date that is 4 years after the date of enactment of this section.

In this section, the term appropriate congressional committees means—

(1) the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives; and

(2) the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.

Not later than 180 days after the date of the enactment of this Act, the President shall determine whether reasonable grounds exist for concluding that the Government of the People’s Republic of China meets the criteria for engaging in an act or acts of gross negligence with respect to a chemical or biological program owned, controlled, or directed by, or subject to the jurisdiction of that government under section 506(a)(3) of the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991, as amended by section 3 of this Act.

Not later than 30 days after making a determination under subsection (a), the President shall submit to the appropriate congressional committees a report that includes the reasons for the determination.

A report required by paragraph (1) shall be submitted in unclassified form but may include a classified annex.

The President shall, not later than 180 days after the date of the enactment of this Act, prescribe regulations as necessary for the implementation of sections 212 and 213 of this Act and the amendments made by this Act.

Not later than 10 days before the prescription of regulations under subsection (a), the President shall notify the appropriate congressional committees regarding the proposed regulations and the provisions of this Act and the amendments made by this Act that the regulations are implementing.

In this Act, the term appropriate congressional committees means—

(1) the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives; and

(2) the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.

Notwithstanding any other provision of law, none of the activities authorized for the National Science Foundation and National Institutes of Health may include, conduct, or support any research—

(1) using fetal tissue obtained from an induced abortion or any derivatives thereof,

(2) in which a human embryo is created or destroyed, discarded, or put at risk of injury,

(3) in which an embryo-like entity is created wholly or in part from human cells or components,

(4) in which a human embryo is intentionally created or modified to include a heritable genetic modification, or

(5) using any stem cell the derivation of which would be inconsistent with the standards established herein.

Part I of title 18, United States Code, is amended by inserting after chapter 51 the following:

In this chapter the following definitions apply:

The term prohibited human-animal chimera means—

(A) a human embryo into which a nonhuman cell or cells (or the component parts thereof) have been introduced to render the embryo’s membership in the species Homo sapiens uncertain;

(B) a human-animal embryo produced by fertilizing a human egg with nonhuman sperm;

(C) a human-animal embryo produced by fertilizing a nonhuman egg with human sperm;

(D) an embryo produced by introducing a nonhuman nucleus into a human egg;

(E) an embryo produced by introducing a human nucleus into a nonhuman egg;

(F) an embryo containing at least haploid sets of chromosomes from both a human and a nonhuman life form;

(G) a nonhuman life form engineered such that human gametes develop within the body of a nonhuman life form;

(H) a nonhuman life form engineered such that it contains a human brain or a brain derived wholly or predominantly from human neural tissues;

(I) a nonhuman life form engineered such that it exhibits human facial features or other bodily morphologies to resemble human features; or

(J) an embryo produced by mixing human and nonhuman cells, such that—

(i) human gametes develop within the body of the resultant organism;

(ii) it contains a human brain or a brain derived wholly or predominantly from human neural tissues; or

(iii) it exhibits human facial features or other bodily morphologies to resemble human features.

The term human embryo means an organism of the species Homo sapiens during the earliest stages of development, from 1 cell up to 8 weeks.

It shall be unlawful for any person to knowingly, in or otherwise affecting interstate commerce—

(1) create or attempt to create a prohibited human-animal chimera;

(2) transfer or attempt to transfer a human embryo into a nonhuman womb;

(3) transfer or attempt to transfer a nonhuman embryo into a human womb; or

(4) transport or receive for any purpose a prohibited human-animal chimera.

Whoever violates subsection (a) shall be fined under this title, imprisoned not more than 10 years, or both.

Whoever violates subsection (a) and derives pecuniary gain from such violation shall be subject to a civil fine of the greater of $1,000,000 and an amount equal to the amount of the gross gain multiplied by 2.

This section does not prohibit research involving the use of transgenic animal models containing human genes or transplantation of human organs, tissues, or cells into recipient animals, if such activities are not prohibited under subsection (a).

The table of chapters for part I of title 18, United States Code, is amended by inserting after the item relating to chapter 51 the following:

The Foreign Agents Registration Act of 1938, as amended (22 U.S.C. 611 et seq.) is amended by inserting after section 3 the following:

Section 3(d)(1) shall not apply to an agent of a covered Chinese business organization.

Section 3(h) shall not apply to an agent of a covered Chinese business organization.

In the case of an agent of a covered Chinese business organization who has registered under the Lobbying Disclosure Act of 1995 (2 U.S.C. 1601 et seq.), after the agent files the first registration required under section 2(a) in connection with the agent’s representation of the covered Chinese business organization, the agent shall file all subsequent statements, information, or documents required under section 2 at the same time, and in the same frequency, as the reports filed with the Clerk of the House of Representatives or the Secretary of the Senate (as the case may be) under section 5 of the Lobbying Disclosure Act of 1995 (2 U.S.C. 1604) in connection with the agent’s representation of the covered Chinese business organization.

In this section, the term covered Chinese business organization means—

(1) an entity described in section 1(b)(3) which is organized under the laws of, or has its principal place of business in, the People’s Republic of China (including any subsidiary or affiliate of such an entity), except that such term does not include a subsidiary or affiliate of an entity which is organized under the laws of, and has its principal place of business in, a country other than the People’s Republic of China; or

(2) an entity designated by the Attorney General as subject to the extrajudicial direction of the Chinese Communist Party.

Section 3 of such Act (22 U.S.C. 613) is amended—

(A) in subsection (d)(1), by striking in private and inserting except as provided in section 3A(a), in private; and

(B) in subsection (h), by striking Any agent and inserting Except as provided in section 3A(b), any agent.

Section 2(b) of such Act (22 U.S.C. 612(b)) is amended in the first sentence by striking six months succeeding such filing and inserting six months succeeding such filing (except as provided in section 3A(b)(2)).

The amendments made by this Act shall take effect 180 days after the date of enactment of this Act.

This Act may be cited as the Protecting America’s Agricultural Land from Foreign Harm Act of 2023.

In this Act:

The term agricultural land has the meaning given the term in section 9 of the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3508).

The term agricultural land includes land described in section 9(1) of the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3508(1)) that is used for ranching purposes.

The term covered person has the meaning given the term person owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary in section 7.2 of title 15, Code of Federal Regulations (as in effect on the date of enactment of this Act), except that each reference to foreign adversary in that definition shall be deemed to be a reference to the Government of—

(i) Iran;

(ii) North Korea;

(iii) the People’s Republic of China; or

(iv) the Russian Federation.

The term covered person does not include a United States citizen or an alien lawfully admitted for permanent residence to the United States.

The term Secretary means the Secretary of Agriculture.

The term United States includes any State, territory, or possession of the United States.

Notwithstanding any other provision of law, the President shall take such actions as may be necessary to prohibit the purchase or lease by covered persons of—

(1) public agricultural land that is owned by the United States and administered by the head of any Federal department or agency, including the Secretary, the Secretary of the Interior, and the Secretary of Defense; or

(2) private agricultural land located in the United States.

The President may exercise all authorities provided under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out subsection (a).

A person that knowingly violates, attempts to violate, conspires to violate, or causes a violation of subsection (a) or any regulation, license, or order issued to carry out that subsection shall be subject to the penalties set forth in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) to the same extent as a person that commits an unlawful act described in subsection (a) of that section.

Nothing in this section may be construed—

(1) to prohibit or otherwise affect the purchase or lease of public or private agricultural land described in subsection (a) by any person other than a covered person;

(2) to prohibit or otherwise affect the use of public or private agricultural land described in subsection (a) that is transferred to or acquired by a person other than a covered person from a covered person; or

(3) to require a covered person that owns or leases public or private agricultural land described in subsection (a) as of the date of enactment of this Act to sell that land.

Except as provided in subsection (b), notwithstanding any other provision of the law, the President shall take such actions as may be necessary to prohibit participation in Department of Agriculture programs by covered persons that have full or partial ownership of agricultural land in the United States or lease agricultural land in the United States.

Subsection (a) shall not apply to participation in any program—

(1) relating to—

(A) food inspection or any other food safety regulatory requirements; or

(B) health and labor safety of individuals; or

(2) administered by the Farm Service Agency, with respect to the administration of this Act or the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3501 et seq.).

To participate in a Department of Agriculture program described in subsection (b) (except for a program under this Act or the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3501 et seq.)), a person described in subparagraph (A) of section 2(2) that is a person described in subparagraph (B) of that section shall submit to the Secretary proof that the person is described in subparagraph (B) of that section.

Section 9 of the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3508) is amended—

(A) by redesignating paragraphs (4) through (6) as paragraphs (5) through (7), respectively; and

(B) by inserting after paragraph (3) the following:

(4) the term interest includes—

(A) a security interest; and

(B) a lease, without regard to the duration of the lease;

Section 2 of the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3501) is amended by striking, other than a security interest, each place it appears.

Section 3 of the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3502) is amended—

(1) in subsection (b), by striking exceed 25 percent and inserting be less than 15 percent, or exceed 30 percent,; and

(2) by adding at the end the following:

On imposing a penalty under subsection (a), the Secretary shall ensure that a lien is placed on the agricultural land with respect to which the violation occurred, which shall be released only on payment of the penalty.

Section 7 of the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3506) is amended to read as follows:

Not later than 2 years after the date of enactment of the Consolidated Appropriations Act, 2023 (Public Law 117–328), the Secretary shall publish in the internet database established under section 773 of division A of that Act human-readable and machine-readable data sets that—

(1) contain all data that the Secretary possesses relating to reporting under this Act from each report submitted to the Secretary under section 2; and

(2) as soon as practicable, but not later than 30 days, after the date of receipt of any report under section 2, shall be updated with the data from that report.

The data sets established under subsection (a) shall include—

(1) a description of—

(A) the purchase price paid for, or any other consideration given for, each interest in agricultural land for which a report is submitted under section 2; and

(B) updated estimated values of each interest in agricultural land described in subparagraph (A), as that information is made available to the Secretary, based on the most recently assessed value of the agricultural land or another comparable method determined by the Secretary; and

(2) with respect to any agricultural land for which a report is submitted under section 2, updated descriptions of each foreign person who holds an interest in at least 1 percent of the agricultural land, as that information is made available to the Secretary, categorized as a majority owner or a minority owner that holds an interest in the agricultural land.

Section 773 of division A of the Consolidated Appropriations Act, 2023 (Public Law 117– 328), is amended, in the first proviso, by striking 3 years and inserting 2 years.

Section 9(3) of the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3508(3)) is amended—

(1) in subparagraph (C)(ii)(IV), by striking and at the end;

(2) in subparagraph (D), by inserting and after the semicolon; and

(3) by adding at the end the following:

(E) any person, other than an individual or a government, that issues equity securities that are primarily traded on a foreign securities exchange within—

(i) Iran;

(ii) North Korea;

(iii) the People’s Republic of China; or

(iv) the Russian Federation;

Not later than 1 year after the date of enactment of this Act, and once every 2 years thereafter, the Secretary shall submit to Congress a report describing—

(A) the risks and benefits, as determined by the Secretary, that are associated with foreign ownership or lease of agricultural land in rural areas (as defined in section 520 of the Housing Act of 1949 (42 U.S.C. 1490));

(B) the intended and unintended misrepresentation of foreign land ownership in the annual reports prepared by the Secretary describing foreign holdings of agricultural land due to inaccurate reporting of foreign holdings of agricultural land;

(C) the specific work that the Secretary has undertaken to monitor erroneous reporting required by the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3501 et seq.) that would result in a violation or civil penalty; and

(D) the role of State and local government authorities in tracking foreign ownership of agricultural land in the United States.

In carrying out paragraph (1), the Secretary shall establish a plan to ensure the protection of personally identifiable information.

Not later than 1 year after the date of enactment of this Act, and once every 2 years thereafter, the Director of National Intelligence shall submit to the congressional recipients described in paragraph (2) a report describing—

(A) an analysis of foreign malign influence (as defined in section 119C(e) of the National Security Act of 1947 (50 U.S.C. 3059(e))) by covered persons that have foreign ownership in the United States agriculture industry; and

(B) the primary motives, as determined by the Director of National Intelligence, of foreign investors to acquire agricultural land.

The report under paragraph (1) shall be submitted to—

(A) the Committee on Banking, Housing, and Urban Affairs of the Senate;

(B) the Committee on Agriculture, Nutrition, and Forestry of the Senate;

(C) the Select Committee on Intelligence of the Senate;

(D) the Committee on Foreign Relations of the Senate;

(E) the Committee on Financial Services of the House of Representatives;

(F) the Committee on Agriculture of the House of Representatives;

(G) the Permanent Select Committee on Intelligence of the House of Representatives;

(H) the Committee on Foreign Affairs of the House of Representatives;

(I) the majority leader of the Senate;

(J) the minority leader of the Senate;

(K) the Speaker of the House of Representatives; and

(L) the minority leader of the House of Representatives.

The report under paragraph (1) shall be submitted in an unclassified form, but may include a classified annex.

Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report describing—

(1) a review of resources, staffing, and expertise for carrying out the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3501 et seq.), and enforcement issues limiting the effectiveness of that Act; and

(2) any recommended necessary changes to that Act.

Not later than 180 days after the date of the enactment of this Act, the Secretary of Health and Human Services (in this section referred to as the Secretary), acting through the Commissioner of Food and Drugs, shall submit to Congress a report on barriers, including regulatory inefficiencies, to domestic manufacturing of active pharmaceutical ingredients, finished drug products, and devices that are—

(1) imported from outside of the United States; and

(2) critical to the public health during a public health emergency declared by the Secretary under section 319 of the Public Health Service Act (42 U.S.C. 247(d).

Such report shall—

(1) identify factors that limit the manufacturing of active pharmaceutical ingredients, finished drug products, and devices described in subsection (a); and

(2) recommend specific strategies to overcome the challenges identified under paragraph (1).

The Secretary may, to the extent appropriate, implement the strategies recommended under subsection (b)(2).

In this section, the term active pharmaceutical ingredient has the meaning given to such term in section 744A of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 379j–41).

Section 168 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

For purposes of this section, qualified nonresidential real property shall be treated as 20-year property.

For application of bonus depreciation to qualified nonresidential real property, see subsection (k).

For purposes of this subsection, the term qualified nonresidential real property means nonresidential real property placed in service in the United States by a qualified manufacturer if such property is acquired by such qualified manufacturer in connection with a qualified relocation of manufacturing.

For purposes of this subsection, the term qualified manufacturer means any person engaged in the trade or business of manufacturing any tangible personal property.

For purposes of this subsection—

The term qualified relocation of manufacturing means, with respect to any qualified manufacturer, the relocation of the manufacturing of any tangible personal property from a foreign country to the United States.

For purposes of subparagraph (A), manufacturing shall not fail to be treated as relocated merely because property used in such manufacturing was not relocated.

For purposes of subparagraph (A), manufacturing shall not be treated as relocated unless the property manufactured in the United States is substantially identical to the property previously manufactured in a foreign country and the increase in the units of production of such property in the United States by the qualified manufacturer is not less than the reduction in the units of production of such property in such foreign country by such qualified manufacturer.

For purposes of this subsection, the term United States includes any possession of the United States.

Part III of subchapter B of chapter 1 of such Code is amended by inserting after section 139I the following new section:

In the case of a qualified manufacturer, gross income shall not include gain from the sale or exchange of qualified relocation disposition property.

For purposes of this section, the term qualified relocation disposition property means any property which—

(1) is sold or exchanged by a qualified manufacturer in connection with a qualified relocation of manufacturing, and

(2) was used by such qualified manufacturer in the trade or business of manufacturing any tangible personal property in the foreign country from which such manufacturing is being relocated.

Terms used in this section which are also used in subsection (n) of section 168 shall have the same meaning when used in this section as when used in such subsection.

The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139I the following new item:

The amendment made by subsection (a) shall apply to property placed in service after the date of the enactment of this Act.

The amendments made by subsection (b) shall apply to sales and exchanges after the date of the enactment of this Act.

Paragraph (6) of section 168(k) of the Internal Revenue Code of 1986 is amended to read as follows:

For purposes of this subsection, the term applicable percentage means, in the case of property placed in service (or, in the case of a specified plant described in paragraph (5), a plant which is planted or grafted) after September 27, 2017, 100 percent.

(1) Section 168(k) of the Internal Revenue Code of 1986 is amended—

(A) in paragraph (2)—

(i) in subparagraph (A)—

(I) in clause (i)(V), by inserting and at the end;

(II) in clause (ii), by striking clause (ii) of subparagraph (E), and and inserting clause (i) of subparagraph (E).; and

(III) by striking clause (iii);

(ii) in subparagraph (B)—

(I) in clause (i)—

(aa) by striking subclauses (II) and (III); and

(bb) by redesignating subclauses (IV) through (VI) as subclauses (II) through (IV), respectively;

(II) by striking clause (ii); and

(III) by redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively;

(iii) in subparagraph (C)—

(I) in clause (i), by striking and subclauses (II) and (III) of subparagraph (B)(i); and

(II) in clause (ii), by striking subparagraph (B)(iii) and inserting subparagraph (B)(ii); and

(iv) in subparagraph (E)—

(I) by striking clause (i); and

(II) by redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively; and

(B) in paragraph (5)(A), by striking planted before January 1, 2027, or is grafted before such date to a plant that has already been planted, and inserting planted or grafted.

(2) Section 460(c)(6)(B) of such Code is amended by striking which and all that follows through the period and inserting which has a recovery period of 7 years or less..

The amendments made by this section shall take effect as if included in section 13201 of Public Law 115–97.

Section 102(b) of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (19 U.S.C. 4201(b)) is amended by adding at the end the following:

It is the objective of the United States to negotiate a plurilateral agreement among trusted allies relating to trade in covered pharmaceutical products to which section 103(b) will apply, for which the principal negotiating objectives of the United States are the following:

(i) To ensure that a party to the agreement adopts and maintains measures to eliminate the imposition or reimposition of tariffs on imports of such products, particularly in the event of a declared emergency.

(ii) To ensure that a party to the agreement—

(I) will reduce or eliminate regulatory and other technical barriers in the pharmaceutical sector;

(II) will promote expedited approval of facilities for the production of such products being built by business enterprises that operate one or more such facilities in the territory of the party;

(III) will promote the use of good regulatory practices and streamlined regulatory review and approval processes for the production of such products in the territory of the party;

(IV) will eliminate duplicated actions and other barriers to reduce the time for approvals of both facilities and such products; and

(V) will expand transparency and cooperation with other parties and their manufacturers, working collaboratively, to ensure regulatory processes are streamlined and harmonized among other parties to the maximum extent possible.

(iii) To prohibit export restraints against parties to the agreement, particularly in the event of a declared emergency.

(iv) With respect to use of subsidies—

(I) to encourage the coordinated provision of those types of subsidies that are classified under World Trade Organization rules as non-prohibited, such as subsidies that are not contingent on exports or import-substitution, to incentivize manufacturing of such products, including the provision of grants, loans, tax incentives, and guaranteed price and volume contracts;

(II) to explicitly permit, among parties to the agreement, the use of production subsidies to build pharmaceutical manufacturing capacity;

(III) to affirm that subsidies provided by parties are not intended to be used primarily for export or to distort trade;

(IV) to affirm parties’ commitments under the Antidumping Agreement and the Agreement on Subsidies and Countervailing Measures, including the recognition that ‘dumping, by which products of one country are introduced into the commerce of another country at less than the normal value of the products, is to be condemned if it causes or threatens material injury to an established industry in the territory of a contracting party or materially retards the establishment of a domestic industry’; and

(V) to encourage notification and consultation among parties as they are considering pharmaceutical manufacturing subsidies to increase coordination and avoid creating conditions such as oversupply or market inefficiencies among the parties.

(v) With respect to government procurement—

(I) to provide reciprocal access to government procurements for such products in parties to the agreement;

(II) to increase coordination between participant countries and facilitate the involvement of participant countries’ companies in bids to supply such products; and

(III) to ensure that any participant in the agreement that is not already so designated, becomes designated for purposes of section 301 of the Trade Agreements Act of 1979 (19 U.S.C. 2511).

(vi) With respect to trade in services—

(I) to obtain fair, open, and transparent access to supply chain services in the markets of parties to the agreement, such as distribution, logistics, and transportation services;

(II) to ensure any restrictions or regulatory requirements maintained on such services are adopted and maintained in a transparent and efficient manner; and

(III) to require parties to establish an internal process for identifying restrictions or regulatory requirements that could be waived in the event of a declared emergency.

(vii) With respect to transparency and trade facilitation—

(I) to obtain commitments among parties to the agreement to develop mechanisms for sharing information on pharmaceutical supply chain constraints and coordinate approaches with parties to minimize risks that could lead to supply chain failures; and

(II) to the extent they have not done so yet, to obtain commitments from parties that they will fully implement the obligations under the World Trade Organization’s Agreement on Trade Facilitation prior to the date the agreement enters into force.

(viii) With respect to enforcement—

(I) to ensure that benefits under the agreement can only be obtained by parties that are fully meeting their obligations under the agreement;

(II) to ensure that parties will not bring a dispute under another agreement for actions that are consistent with the agreement; and

(III) to provide a dispute settlement mechanism comparable to the dispute settlement provisions of the Agreement between the United States of America, the United Mexican States, and Canada.

(ix) To minimize the ability of parties to the agreement to undermine the effectiveness of the agreement by abusing exceptions in the agreement by including additional procedural requirements, such as notification of intent to rely on an exception at the time an inconsistent action is taken, and limiting the duration that participants may rely on an exception.

In this paragraph:

The term active pharmaceutical ingredient —

(I) means any component that is intended to furnish pharmacological activity or other direct effect in the diagnosis, cure, mitigation, treatment, or prevention of a disease, or to affect the structure or any function of the body of a human or animal; and

(II) does not include—

(aa) intermediates used in the synthesis of a drug product; or

(bb) components that may undergo chemical change in the manufacture of a drug product and be present in a drug product in a modified form that is intended to furnish such activity or effect.

The term Agreement on Subsidies and Countervailing Measures means the agreement referred to in section 101(d)(12) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(12)).

The term Antidumping Agreement means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 referred to in section 101(d)(7) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(7)).

The term biological product has the meaning given to such term in section 351(i) of the Public Health Service Act (42 U.S.C. 262(i)).

The term covered pharmaceutical product means—

(I) a drug (including a biological product); or

(II) an active pharmaceutical ingredient.

Section 103 of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (19 U.S.C. 4202) is amended—

(1) in subsection (a)—

(A) by striking July 1, 2018 each place it appears and inserting July 1, 2023; and

(B) by striking July 1, 2021 each place it appears and inserting July 1, 2026;

(2) in subsection (b)—

(A) by striking July 1, 2018 each place it appears and inserting July 1, 2023; and

(B) by striking July 1, 2021 each place it appears and inserting July 1, 2026; and

(3) in subsection (c)—

(A) by striking July 1, 2018 each place it appears and inserting July 1, 2023;

(B) by striking June 30, 2018 and inserting June 30, 2023;

(C) in paragraph (1)(B), by striking July 1, 2021 and inserting July 1, 2026;

(D) in paragraph (2), by striking April 1, 2018 and inserting April 1, 2023; and

(E) in paragraph (3), by striking June 1, 2018 and inserting June 1, 2023.

Section 2(b) of the Defense Production Act of 1950 (50 U.S.C. 4502) is amended—

(1) by redesignating paragraphs (3) through (8) as paragraphs (4) through (9), respectively; and

(2) by inserting after paragraph (2) the following:

(3) authorities under this Act should be used when appropriate to ensure the availability of medical materials essential to national defense, including through measures designed to secure the drug supply chain, and taking into consideration the importance of United States competitiveness, scientific leadership and cooperation, and innovative capacity;

Section 107 of the Defense Production Act of 1950 (50 U.S.C. 4517) is amended—

(1) in subsection (a), by inserting (including medical materials) after materials; and

(2) in subsection (b)(1), by inserting (including medical materials such as drugs, devices, and biological products to diagnose, cure, mitigate, treat, or prevent disease that are essential to national defense) after essential materials.

Title I of the Defense Production Act of 1950 (50 U.S.C. 4511 et seq.) is amended by adding at the end the following:

Not later than 180 days after the date of the enactment of this section, the President, in consultation with the Secretary of Health and Human Services, the Secretary of Commerce, the Secretary of Homeland Security, and the Secretary of Defense, shall transmit a strategy to the appropriate Members of Congress that includes the following:

(1) A detailed plan to use the authorities under this title and title III, or any other provision of law, to ensure the supply of medical materials (including drugs, devices, and biological products (as that term is defined in section 351 of the Public Health Service Act (42 U.S.C. 262)) to diagnose, cure, mitigate, treat, or prevent disease) essential to national defense, to the extent necessary for the purposes of this Act.

(2) An analysis of vulnerabilities to existing supply chains for such medical materials, and recommendations to address the vulnerabilities.

(3) Measures to be undertaken by the President to diversify such supply chains, as appropriate and as required for national defense.

(4) A discussion of—

(A) any significant effects resulting from the plan and measures described in this subsection on the production, cost, or distribution of biological products (as that term is defined in section 351 of the Public Health Service Act (42 U.S.C. 262)) or any other devices or drugs (as defined under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.));

(B) a timeline to ensure that essential components of the supply chain for medical materials are not under the exclusive control of a foreign government in a manner that the President determines could threaten the national defense of the United States; and

(C) efforts to mitigate any risks resulting from the plan and measures described in this subsection to United States competitiveness, scientific leadership, and innovative capacity, including efforts to cooperate and proactively engage with United States allies.

Following submission of the strategy under subsection (a), the President shall submit to the appropriate Members of Congress an annual progress report until September 30, 2025, evaluating the implementation of the strategy, and may include updates to the strategy as appropriate. The strategy and progress reports shall be submitted in unclassified form but may contain a classified annex.

The term appropriate Members of Congress means the Speaker, majority leader, and minority leader of the House of Representatives, the majority leader and minority leader of the Senate, the Chairman and Ranking Member of the Committee on Financial Services of the House of Representatives, and the Chairman and Ranking Member of the Committee on Banking, Housing, and Urban Affairs of the Senate.

Section 303 of the Defense Production Act of 1950 (50 U.S.C. 4533) is amended by adding at the end the following:

In addition to other authorities in this title, the President may make available to an eligible entity described in paragraph (2) payments to increase the security of supply chains and supply chain activities, if the President certifies to Congress not less than 30 days before making such a payment that the payment is critical to meet national defense requirements of the United States.

An eligible entity described in this paragraph is an entity that—

(A) is organized under the laws of the United States or any jurisdiction within the United States; and

(B) produces—

(i) one or more critical components;

(ii) critical technology; or

(iii) one or more products or raw materials for the security of supply chains or supply chain activities.

In this subsection, the terms supply chain and supply chain activities have the meanings given those terms by the President by regulation.

Not later than 90 days after the date of the enactment of this Act, the President shall prescribe regulations setting forth definitions for the terms supply chain and supply chain activities for the purposes of section 303(h) of the Defense Production Act of 1950 (50 U.S.C. 4533(h)), as added by subsection (a).

The definitions required by paragraph (1)—

(A) shall encompass—

(i) the organization, people, activities, information, and resources involved in the delivery and operation of a product or service used by the Government; or

(ii) critical infrastructure as defined in Presidential Policy Directive 21 (February 12, 2013; relating to critical infrastructure security and resilience); and

(B) may include variations as determined necessary and appropriate by the President for purposes of national defense.

Section 41001(6)(A) of the FAST Act (42 U.S.C. 4370(m)(6)(A)) is amended—

(1) in clause (i)(III), by striking; or and inserting a semicolon;

(2) in clause (ii)(II), by striking the period and inserting; or; and

(3) by adding at the end the following:

(iii) is related to the extraction, recovery, or processing from coal, coal waste, coal processing waste, pre- or post-combustion coal byproducts, or acid mine drainage from coal mines of one of the following materials:

(I) Critical minerals (as such term is defined in section 7002 of the Energy Act of 2020).

(II) Rare earth elements.

(III) Microfine carbon or carbon from coal.

Not later than 6 months after the date of enactment of this Act, the Secretary of the Interior shall submit to the Committees on Energy and Natural Resources and Commerce, Science, and Transportation of the Senate and the Committees on Transportation and Infrastructure, Natural Resources, and Energy and Commerce of the House of Representatives a report evaluating the timeliness of implementation of reforms of the permitting process required as a result of the amendments made by this Act on the following:

(1) The economic and national security of the United States.

(2) Domestic production and supply of critical minerals, rare earths, and microfine carbon or carbon from coal.

Paragraph (6) of section 168(k) of the Internal Revenue Code of 1986 is amended to read as follows:

For purposes of this subsection, the term applicable percentage means, in the case of property placed in service (or, in the case of a specified plant described in paragraph (5), a plant which is planted or grafted) after September 27, 2017, 100 percent.

(1) Section 168(k) of the Internal Revenue Code of 1986 is amended—

(A) in paragraph (2)—

(i) in subparagraph (A)—

(I) in clause (i)(V), by inserting and at the end;

(II) in clause (ii), by striking clause (ii) of subparagraph (E), and and inserting clause (i) of subparagraph (E).; and

(III) by striking clause (iii);

(ii) in subparagraph (B)—

(I) in clause (i)—

(aa) by striking subclauses (II) and (III); and

(bb) by redesignating subclauses (IV) through (VI) as subclauses (II) through (IV), respectively;

(II) by striking clause (ii); and

(III) by redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively;

(iii) in subparagraph (C)—

(I) in clause (i), by striking and subclauses (II) and (III) of subparagraph (B)(i); and

(II) in clause (ii), by striking subparagraph (B)(iii) and inserting subparagraph (B)(ii); and

(iv) in subparagraph (E)—

(I) by striking clause (i); and

(II) by redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively; and

(B) in paragraph (5)(A), by striking planted before January 1, 2027, or is grafted before such date to a plant that has already been planted, and inserting planted or grafted.

(2) Section 460(c)(6)(B) of such Code is amended by striking which and all that follows through the period and inserting which has a recovery period of 7 years or less..

The amendments made by this section shall take effect as if included in section 13201 of Public Law 115–97.

Section 174 of the Internal Revenue Code of 1986 is amended to read as follows:

A taxpayer may treat research or experimental expenditures which are paid or incurred by him during the taxable year in connection with his trade or business as expenses which are not chargeable to capital account. The expenditures so treated shall be allowed as a deduction.

A taxpayer may, without the consent of the Secretary, adopt the method provided in this subsection for his first taxable year for which expenditures described in paragraph (1) are paid or incurred.

A taxpayer may, with the consent of the Secretary, adopt at any time the method provided in this subsection.

The method adopted under this subsection shall apply to all expenditures described in paragraph (1). The method adopted shall be adhered to in computing taxable income for the taxable year and for all subsequent taxable years unless, with the approval of the Secretary, a change to a different method is authorized with respect to part or all of such expenditures.

At the election of the taxpayer, made in accordance with regulations prescribed by the Secretary, research or experimental expenditures which are—

(A) paid or incurred by the taxpayer in connection with his trade or business,

(B) not treated as expenses under subsection (a), and

(C) chargeable to capital account but not chargeable to property of a character which is subject to the allowance under section 167 (relating to allowance for depreciation, etc.) or section 611 (relating to allowance for depletion),

may be treated as deferred expenses. In computing taxable income, such deferred expenses shall be allowed as a deduction ratably over such period of not less than 60 months as may be selected by the taxpayer (beginning with the month in which the taxpayer first realizes benefits from such expenditures). Such deferred expenses are expenditures properly chargeable to capital account for purposes of section 1016(a)(1) (relating to adjustments to basis of property).

The election provided by paragraph (1) may be made for any taxable year, but only if made not later than the time prescribed by law for filing the return for such taxable year (including extensions thereof). The method so elected, and the period selected by the taxpayer, shall be adhered to in computing taxable income for the taxable year for which the election is made and for all subsequent taxable years unless, with the approval of the Secretary, a change to a different method (or to a different period) is authorized with respect to part or all of such expenditures. The election shall not apply to any expenditure paid or incurred during any taxable year before the taxable year for which the taxpayer makes the election.

This section shall not apply to any expenditure for the acquisition or improvement of land, or for the acquisition or improvement of property to be used in connection with the research or experimentation and of a character which is subject to the allowance under section 167 (relating to allowance for depreciation, etc.) or section 611 (relating to allowance for depletion); but for purposes of this section allowances under section 167, and allowances under section 611, shall be considered as expenditures.

This section shall not apply to any expenditure paid or incurred for the purpose of ascertaining the existence, location, extent, or quality of any deposit of ore or other mineral (including oil and gas).

This section shall apply to a research or experimental expenditure only to the extent that the amount thereof is reasonable under the circumstances.

The table of sections for part VI of subchapter B of chapter 1 of such Code is amended by striking the item relating to section 174 and inserting the following new item:

(1) Section 41(d)(1)(A) of such Code is amended by striking specified research or experimental expenditures under section 174 and inserting expenses under section 174.

(2) Section 280C(c) of such Code is amended to read as follows:

No deduction shall be allowed for that portion of the qualified research expenses (as defined in section 41(b)) or basic research expenses (as defined in section 41(e)(2)) otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for such taxable year under section 41(a).

If— the amount chargeable to capital account for the taxable year for such expenses shall be reduced by the amount of such excess.

(A) the amount of the credit determined for the taxable year under section 41(a)(1), exceeds

(B) the amount allowable as a deduction for such taxable year for qualified research expenses or basic research expenses (determined without regard to paragraph (1)),

In the case of any taxable year for which an election is made under this paragraph—

(i) paragraphs (1) and (2) shall not apply, and

(ii) the amount of the credit under section 41(a) shall be the amount determined under subparagraph (B).

The amount of credit determined under this subparagraph for any taxable year shall be the amount equal to the excess of—

(i) the amount of credit determined under section 41(a) without regard to this paragraph, over

(ii) the product of—

(I) the amount described in clause (i), and

(II) the rate of tax under section 11(b).

An election under this paragraph for any taxable year shall be made not later than the time for filing the return of tax for such year (including extensions), shall be made on such return, and shall be made in such manner as the Secretary may prescribe. Such an election, once made, shall be irrevocable.

Paragraph (3) of subsection (b) shall apply for purposes of this subsection.

The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2021.

The Executive order relating to the revocation of certain Executive orders concerning Federal regulation, signed on January 20, 2021, is hereby rescinded.

The following Executive orders shall have the force and effect of law:

(1) Executive Order 13771 (82 Fed. Reg. 12866; relating to reducing regulation and controlling regulatory costs).

(2) Executive Order 13777 (82 Fed. Reg. 12285; relating to enforcing the regulatory reform agenda).

(3) Executive Order 13891 (84 Fed. Reg. 55235; relating to improving agency guidance documents).

(4) Executive Order 13892 (84 Fed. Reg. 55239; relating to transparency in administrative enforcement and adjudication).

(5) Executive Order 13893 (84 Fed. Reg. 55487; relating to accountability for administrative actions).

(a) Section 127(b)(2) of the Internal Revenue Code of 1986 is amended to read as follows:

If but for this paragraph, this section would exclude from gross income more than the maximum amount of educational assistance furnished to an individual during a calendar year, this section shall apply only to the maximum amount of such assistance so furnished.

For purposes of subparagraph (B), the term maximum amount means, for any calendar year, an amount equal to the applicable dollar amount for elective deferrals described in section 402(g)(1)(B) (as such amount is adjusted for inflation for such calendar year).

The amendment made by this section shall apply to educational assistance furnished in taxable years beginning after December 31, 2020.

Section 174 of the Internal Revenue Code of 1986 is amended to read as follows:

A taxpayer may treat research or experimental expenditures which are paid or incurred by him during the taxable year in connection with his trade or business as expenses which are not chargeable to capital account. The expenditures so treated shall be allowed as a deduction.

A taxpayer may, without the consent of the Secretary, adopt the method provided in this subsection for his first taxable year for which expenditures described in paragraph (1) are paid or incurred.

A taxpayer may, with the consent of the Secretary, adopt at any time the method provided in this subsection.

The method adopted under this subsection shall apply to all expenditures described in paragraph (1). The method adopted shall be adhered to in computing taxable income for the taxable year and for all subsequent taxable years unless, with the approval of the Secretary, a change to a different method is authorized with respect to part or all of such expenditures.

At the election of the taxpayer, made in accordance with regulations prescribed by the Secretary, research or experimental expenditures which are—

(A) paid or incurred by the taxpayer in connection with his trade or business,

(B) not treated as expenses under subsection (a), and

(C) chargeable to capital account but not chargeable to property of a character which is subject to the allowance under section 167 (relating to allowance for depreciation, etc.) or section 611 (relating to allowance for depletion),

may be treated as deferred expenses. In computing taxable income, such deferred expenses shall be allowed as a deduction ratably over such period of not less than 60 months as may be selected by the taxpayer (beginning with the month in which the taxpayer first realizes benefits from such expenditures). Such deferred expenses are expenditures properly chargeable to capital account for purposes of section 1016(a)(1) (relating to adjustments to basis of property).

The election provided by paragraph (1) may be made for any taxable year, but only if made not later than the time prescribed by law for filing the return for such taxable year (including extensions thereof). The method so elected, and the period selected by the taxpayer, shall be adhered to in computing taxable income for the taxable year for which the election is made and for all subsequent taxable years unless, with the approval of the Secretary, a change to a different method (or to a different period) is authorized with respect to part or all of such expenditures. The election shall not apply to any expenditure paid or incurred during any taxable year before the taxable year for which the taxpayer makes the election.

This section shall not apply to any expenditure for the acquisition or improvement of land, or for the acquisition or improvement of property to be used in connection with the research or experimentation and of a character which is subject to the allowance under section 167 (relating to allowance for depreciation, etc.) or section 611 (relating to allowance for depletion); but for purposes of this section allowances under section 167, and allowances under section 611, shall be considered as expenditures.

This section shall not apply to any expenditure paid or incurred for the purpose of ascertaining the existence, location, extent, or quality of any deposit of ore or other mineral (including oil and gas).

This section shall apply to a research or experimental expenditure only to the extent that the amount thereof is reasonable under the circumstances.

The table of sections for part VI of subchapter B of chapter 1 of such Code is amended by striking the item relating to section 174 and inserting the following new item:

(1) Section 41(d)(1)(A) of such Code is amended by striking specified research or experimental expenditures under section 174 and inserting expenses under section 174.

(2) Section 280C(c) of such Code is amended to read as follows:

No deduction shall be allowed for that portion of the qualified research expenses (as defined in section 41(b)) or basic research expenses (as defined in section 41(e)(2)) otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for such taxable year under section 41(a).

If— the amount chargeable to capital account for the taxable year for such expenses shall be reduced by the amount of such excess.

(A) the amount of the credit determined for the taxable year under section 41(a)(1), exceeds

(B) the amount allowable as a deduction for such taxable year for qualified research expenses or basic research expenses (determined without regard to paragraph (1)),

In the case of any taxable year for which an election is made under this paragraph—

(i) paragraphs (1) and (2) shall not apply, and

(ii) the amount of the credit under section 41(a) shall be the amount determined under subparagraph (B).

The amount of credit determined under this subparagraph for any taxable year shall be the amount equal to the excess of—

(i) the amount of credit determined under section 41(a) without regard to this paragraph, over

(ii) the product of—

(I) the amount described in clause (i), and

(II) the rate of tax under section 11(b).

An election under this paragraph for any taxable year shall be made not later than the time for filing the return of tax for such year (including extensions), shall be made on such return, and shall be made in such manner as the Secretary may prescribe. Such an election, once made, shall be irrevocable.

Paragraph (3) of subsection (b) shall apply for purposes of this subsection.

The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2021.

An institution of higher education or other post-secondary educational institution shall not be eligible to receive Federal funds (except funds under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) or other Department of Education funds that are provided directly to students) if such institution:

(1) has a contractual partnership in effect with an entity that is owned or controlled, directly or indirectly, by the Government of the People’s Republic of China;

(2) has a contractual partnership in effect with an entity that is organized under the laws of the People’s Republic of China; or

(3) employs a CCP-funded instructor.

An institution ineligible to receive Federal funds under subsection (a) may reestablish eligibility by—

(1) in the case of a contractual partnership with an entity described in subsection (a)(1) or (a)(2):

(A) disclosing to the Secretary of Education all contractual partnerships with the applicable entity from the previous 10 years; and

(B) providing to the Secretary of Education sufficient evidence that such partnerships have been terminated; or

(2) in the case of the employment of a CCP-funded instructor as described in subsection (a)(3), by demonstrating, to the satisfaction of the Secretary of Education, that the institution no longer employs a CCP-funded instructor.

In this section, the term CCP-funded instructor means a professor, teacher, or any other individual who—

(1) provides instruction directly to the students of an institution of higher education; and

(2) received funds, directly or indirectly, from the Chinese Communist Party while employed by such institution.

The restrictions under this section shall take effect 180 days after the date of the enactment of this Act.

Section 3(e) of the Foreign Agents Registration Act of 1938 (22 U.S.C. 613(e)) is amended by striking the semicolon at the end and inserting the following:, but only if the activities do not promote the political agenda of a government of a foreign country;.

The amendment made by subsection (a) shall apply with respect to activities carried out on or after the date of the enactment of this Act.

With respect to a principal nonimmigrant exchange visitor admitted into the United States in the J–1 classification under section 101(a)(15)(J) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(J)) in order to study, the Secretary of State shall take such action as may be necessary to ensure that the applicable program sponsor is required to use the Student and Exchange Visitor Information System to report any change to the nonimmigrant’s primary field of study. In carrying out this section, the Secretary of State shall take into account the record keeping and reporting requirements of the Secretary of Homeland Security with regard to nonimmigrants admitted into the United States in the F–1 and M–1 classifications under subparagraphs (F) and (M) of section 101(a)(15) of such Act (8 U.S.C. 1101(a)(15)).

With respect to a principal nonimmigrant admitted into the United States in the J–1 classification under section 101(a)(15)(J) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(J)), in the F–1 classification under section 101(a)(15)(F) of such Act, or in the M–1 classification under section 101(a)(15)(M) of such Act, the Secretary of State and the Secretary of Homeland Security shall take such action as may be necessary to ensure that the applicable program sponsor or academic or nonacademic institution is required to use the Student and Exchange Visitor Information System to report when the nonimmigrant is participating in a research program funded in whole or in part through a grant, contract, or other similar form of support provided by the Federal Government, as well as program identification information.

In the case of a nonimmigrant described in subsection (a), the Secretary of Homeland Security shall notify the appropriate program manager at an Executive agency (as defined in section 105 of title 5, United States Code) if and when the Secretary obtains information that the nonimmigrant is participating in a research program funded in whole or in part through a grant, contract, or other similar form of support provided by such agency prior to the commencement of that nonimmigrant’s participation and not later than 21 days after authorizing such participation.

In the case of a nonimmigrant described in subsection (a), the applicable program sponsor or academic or nonacademic institution shall notify the appropriate program manager at an Executive agency (as defined in section 105 of title 5, United States Code) if and when the sponsor or institution obtains information that the nonimmigrant is participating in a research program funded in whole or in part through a grant, contract, or other similar form of support provided by such agency prior to the commencement of that nonimmigrant’s participation and not later than 21 days after authorizing such participation.

The Secretary of Homeland Security shall have the authority to review and revoke a nonimmigrant visa granted under subparagraph (F), (J), or (M) of section 101(a)(15) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)) if, in consultation with the Attorney General, the Secretary finds that—

(1) the visa holder has misrepresented his or her intention to pursue a certain program or field of study;

(2) following a change to the nonimmigrant’s primary field of study as described under section 504, that the new primary field of study would have triggered a higher level of scrutiny during the visa application process, and that the visa holder poses a risk to the homeland security of the United States, the national security of the United States, or research integrity at their applicable program sponsor or institution;

(3) the visa holder’s enrollment in a research program funded in whole or in part through a grant, contract, or other similar form of support provided by the Federal Government poses a risk to the homeland security of the United States, the national security of the United States, or research integrity at their applicable program sponsor or institution; or

(4) the visa was granted to an alien who is a citizen of the People’s Republic of China if the Secretary of State determines that the alien seeks to enter the United States to participate in graduate-level or post-graduate-level coursework or academic research in a field of science, technology, engineering, or mathematics at an institution of higher education.

Thirty days before the commencement of a review under subsection (a), the Secretary of Homeland Security shall provide the applicable program sponsor or institution with a notice containing the specific basis of the forthcoming review. During this 30-day period, the program sponsor or institution may take corrective action to alleviate any concerns raised by the Secretary. At the conclusion of the 30-day period, the Secretary shall determine whether the program sponsor or institution has satisfactorily addressed the concerns or a review remains necessary.

There shall be no administrative or judicial review of a determination to revoke a visa under this section except in accordance with this subsection.

The Secretary of Homeland Security shall establish an appellate authority to provide for a single level of administrative appellate review of such a determination.

Such administrative appellate review shall be based solely upon the administrative record established at the time of the determination and upon such additional or newly discovered evidence as may not have been available at the time of the determination.

There shall be judicial review of a determination to revoke a visa under this section only in the judicial review of an order of removal under section 242 of the Immigration and Nationality Act (8 U.S.C. 1252).

Such judicial review shall be based solely upon the administrative record established at the time of the review by the appellate authority and the findings of fact and determinations contained in such record shall be conclusive unless the applicant can establish abuse of discretion or that the findings are directly contrary to clear and convincing facts contained in the record considered as a whole.

The Secretary of Homeland Security shall require the Academic Institutions Subcommittee of the Homeland Security Advisory Council of the Department of Homeland Security to provide an annual report to the Committee on the Judiciary, the Committee on Homeland Security, and the Committee on Foreign Affairs of the House of Representatives, and the Committee on the Judiciary, the Committee on Homeland Security and Governmental Affairs, and the Committee on Foreign Relations of the Senate, on—

(1) the implementation and execution of any visa reviews and revocations undertaken under section 506;

(2) the number of alien students enrolled at academic or nonacademic institutions in the United States, disaggregated by—

(A) program of study;

(B) previous and current nationality; and

(C) participation in a research program (which may or may not be classified) funded in whole or in part through a grant, contract, or other similar form of support provided by the Federal Government, differentiated by agency, sub-agency, and program; and

(3) the number of alien students who have changed their field of study, including their original and subsequent field of study, disaggregated by the information described in subparagraphs (A), (B), and (C) of paragraph (2).

Each report under subsection (a) shall include an appendix containing any feedback provided on a voluntary basis by any program sponsor or institution affected by a visa review or revocation undertaken under section 506.

The Office of the Director of National Intelligence shall, in consultation with the National Security Advisor shall actively maintain a list of sensitive research projects. Such list shall—

(1) be referred to as the Sensitive Research Projects List; and

(2) for each project included on the list, indicate—

(A) the qualified funding agency that is funding the project;

(B) whether the project is open to student participation; and

(C) whether the project is related to—

(i) an item listed on the Commerce Control List (CCL) maintained by the Department of Commerce;

(ii) an item listed on the United States Munitions List maintained by the Department of State; or

(iii) technology designated by the Secretary of Defense as having a technology readiness level of 1, 2, or 3.

Not later than one year after the date of enactment of this Act, and every six months thereafter, the interagency working group described in section 1746 of the National Defense Authorization Act for Fiscal Year 2020 (42 U.S.C. 6601 note) shall provide a report to the Committee on Education and the Workforce, the Committee on Armed Services, and the Permanent Select Committee on Intelligence of the House of Representatives, and to the Committee on Health, Education, Labor, and Pensions, the Committee on Armed Services, and the Select Committee on Intelligence of the Senate, regarding the threat of espionage at institutions of higher education. In each such briefing, the interagency working group shall identify actions that may be taken to reduce espionage carried out through student participation in sensitive research projects. The interagency working group shall also include in this report an assessment of whether the current licensing regulations relating to the International Traffic in Arms Regulations and the Export Administration Regulations are sufficient to protect the security of the projects listed on the Sensitive Research Project List.

Beginning on the date that is one year after the date of enactment of this Act, for each project on the Sensitive Research Project List that is open to student participation, the head of such project at the institution of higher education at which the project is being carried out shall ensure that each student participating in such project shall be required to provide proof of citizenship before the student is permitted to participate in such project. A student who is a citizen of a country identified in subsection (b) shall be permitted to participate in such a project only if—

(1) the student applies for, and receives approval from, the Director of National Intelligence to participate in such project, based on a background check and any other information the Director determines to be appropriate; and

(2) in the case of such a project that is related to an item or technology described in subparagraph (C) of section 3(c)(2), the student applies for, and receives approval from, the head of the qualified funding agency, to participate in such project.

Approval under subsection (a) shall be required for any student who is a citizen of a country that is one of the following:

(1) The People’s Republic of China.

(2) The Democratic People’s Republic of Korea.

(3) The Russian Federation.

(4) The Islamic Republic of Iran.

(5) Any country identified by the head of the qualified funding agency as requiring approval for the purposes of this section.

Not later than one year after the date of the enactment of this Act, the Director of National Intelligence shall identify foreign entities, including governments, corporations, non-profit and for-profit organizations, and any subsidiary or affiliate of such an entity, that the Director determines pose a threat of espionage with respect to sensitive research projects, and shall develop and maintain a list of such entities. The Director may add or remove entities from such list at any time. The initial list developed by the Director shall include the following entities (including any subsidiary or affiliate):

(1) Huawei Technologies Company.

(2) ZTE Corporation.

(3) Hytera Communications Corporation.

(4) Hangzhou Hikvision Digital Technology Company.

(5) Dahua Technology Company.

(6) Kaspersky Lab.

(7) Any entity that is owned or controlled by, or otherwise has demonstrated financial ties to, the government of a country identified under section 4(b).

The Director of National Intelligence shall make the initial list required under subsection (a), and any changes to such list, available to the Secretary of Education, the interagency working group, and the head of each qualified funding agency as soon as practicable. The Secretary of Education shall provide such initial list and subsequent amendments to each institution of higher education at which a project on the Sensitive Research Project List is being carried out.

Beginning on the date that is one year after the date of the enactment of this Act, the head of each sensitive research project shall, as a condition of receipt of funds from a qualified funding agency, provide an assurance to such qualified funding agency that, beginning on the date that is two years after the date of the enactment of this Act, any technology developed by an entity included on the list maintained under subsection (a) shall not be utilized in carrying out the sensitive research project.

The head of each qualified funding agency shall take such steps as may be necessary to enforce the provisions of sections 510 and 511 of this Act. Upon determination that the head of a sensitive research project has failed to meet the requirements of either section 510 or section 511, the head of a qualified funding agency may determine the appropriate enforcement action, including—

(1) imposing a probationary period, not to exceed 6 months, on the head of such project, or on the project;

(2) reducing or otherwise limiting the funding for such project until the violation has been remedied;

(3) permanently cancelling the funding for such project; or

(4) any other action the head of the qualified funding agency determines to be appropriate.

In this subtitle:

The term citizen of a country, with respect to a student, includes all countries in which the student has held or holds citizenship or holds permanent residency.

The term institution of higher education means an institution described in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002) that receives Federal funds in any amount and for any purpose.

The term intelligence community has the meaning given that term in section 3 of the National Security Act of 1947 (50 U.S.C. 3003).

The term qualified funding agency, with respect to a sensitive research project, means—

(A) the Department of Defense, if the sensitive research project is funded in whole or in part by the Department of Defense;

(B) the Department of Energy, if the sensitive research project is funded in whole or in part by the Department of Energy; or

(C) an element of the intelligence community, if the sensitive research project is funded in whole or in part by the element of the intelligence community.

The term sensitive research project means a research project at an institution of higher education that is funded by a qualified funding agency, except that such term shall not include any research project that is classified or that requires the participants in such project to obtain a security clearance.

The term student participation shall not include student activity in—

(A) a research project that is required for completion of a course in which the student is enrolled at an institution of higher education; or

(B) a research project for which the student is conducting unpaid research.

Section 117 of the Higher Education Act of 1965 (20 U.S.C. 1011(f) is amended to read as follows:

An institution shall file a disclosure report in accordance with subsection (b)(1) with the Secretary on July 31 of the calendar year immediately following any calendar year in which—

(A) the institution receives a gift from, or enters into a contract with, a foreign source (other than a foreign country of concern or foreign entity of concern)—

(i) the value of which is $50,000 or more, considered alone or in combination with all other gifts from, or contracts with, that foreign source within the calendar year; or

(ii) the value of which is undetermined; or

(B) the institution receives a gift from a foreign country of concern or foreign entity of concern, or, upon receiving a waiver under section 117A to enter into a contract with such a country or entity, enters into such contract, without regard to the value of such gift or contract.

In the case of an institution that is substantially controlled (as described in section 668.174(c)(3) of title 34, Code of Federal Regulations) (or successor regulations) by a foreign source, the institution shall file a disclosure report in accordance with subsection (b)(2) with the Secretary on July 31 of each year.

For purposes of this section, any gift to, or contract with, an affiliated entity of an institution shall be considered a gift to or contract with, respectively, such institution.

Each report to the Secretary required under subsection (a)(1) shall contain the following:

(A) With respect to a gift received from, or a contract entered into with, any foreign source—

(i) the terms of such gift or contract, including—

(I) the name of the individual, department, or benefactor at the institution receiving the gift or carrying out the contract;

(II) the intended purpose of such gift or contract, as provided to the institution by such foreign source, or if no such purpose is provided by such foreign source, the intended use of such gift or contract, as provided by the institution; and

(III) in the case of a restricted or conditional gift or contract, a description of the restrictions or conditions of such gift or contract;

(ii) with respect to a gift—

(I) the total fair market dollar amount or dollar value of the gift, as of the date of submission of such report; and;

(II) the date on which the institution received such gift;

(iii) with respect to a contract—

(I) the date on which such contract commences;

(II) as applicable, the date on which such contract terminates; and

(III) an assurance that the institution will—

(aa) maintain an unredacted copy of the contract until the latest of—

(AA) the date that is 5 years after the date on which the contract commences;

(BB) the date on which the contract terminates; or

(CC) the last day of any period that applicable State law requires a copy of such contract to be maintained; and

(bb) upon request of the Secretary during an investigation under subsection section 117D(a)(1), produce such an unredacted copy of the contract; and

(iv) an assurance that in a case in which information is required to be disclosed under this section with respect to a gift or contract that is not in English, such information is translated into English in compliance with the requirements of subsection (c)(1).

(B) With respect to a gift received from, or a contract entered into with, a foreign source that is a foreign government (other than the government of a foreign country of concern)—

(i) the name of such foreign government;

(ii) the department, agency, office, or division of such foreign government that approved such gift or contract, as applicable; and

(iii) the physical mailing address of such department, agency, office, or division.

(C) With respect to a gift received from, or contract entered into with, a foreign source (other than a foreign government subject to the requirements of subparagraph (B))—

(i) the legal name of the foreign source, or, if such name is not available, a statement certified by the compliance officer in accordance with subsection (f)(2) that the institution has reasonably attempted to obtain such name;

(ii) in the case of a foreign source that is a natural person, the country of citizenship of such person, or, if such country is not known, the principal country of residence of such person;

(iii) in the case of a foreign source that is a legal entity, the country in which such entity is incorporated, or if such information is not available, the principal place of business of such entity;

(iv) the physical mailing address of such foreign source, or if such address is not available, a statement certified by the compliance officer in accordance with subsection (f)(2) that the institution has reasonably attempted to obtain such address; and

(v) any affiliation of the foreign source to an organization that is designated as a foreign terrorist organization pursuant to section 219 of the Immigration and Nationality Act (8 U.S.C. 1189).

(D) With respect to a contract entered into with a foreign source that is a foreign country of concern or a foreign entity of concern—

(i) a complete and unredacted text of the original contract, and if such original contract is not in English, a translated copy of the text into English;

(ii) a copy of the waiver received under section 117A for such contract; and

(iii) the statement submitted by the institution for purposes of receiving such a waiver under section 117A(b)(1).

Each report to the Secretary required under subsection (a)(2) shall contain—

(A) the legal name and address of the foreign source that owns or controls the institution;

(B) the date on which the foreign source assumed ownership or control; and

(C) any changes in program or structure resulting from the change in ownership or control.

Any information required to be disclosed under this section with respect to a gift or contract that is not in English shall be translated, for purposes of such disclosure, by a person that is not an affiliated entity or agent of the foreign source involved with such gift or contract.

Beginning not later than 60 days before the July 31 immediately following the date of the enactment of the DETERRENT Act, the Secretary shall—

(A) establish and maintain a searchable database on a website of the Department, under which all reports submitted under this section (including any report submitted under this section before the date of the enactment of the DETERRENT Act)—

(i) are made publicly available (in electronic and downloadable format), including any information provided in such reports (other than the information prohibited from being publicly disclosed pursuant to paragraph (2));

(ii) can be individually identified and compared; and

(iii) are searchable and sortable by—

(I) the date the institution filed such report;

(II) the date on which the institution received the gift, or entered into the contract, which is the subject of the report;

(III) the attributable country of such gift or contract; and

(IV) the name of the foreign source (other than a foreign source that is a natural person);

(B) not later than 30 days after receipt of a disclosure report under this section, include such report in such database;

(C) indicate, as part of the public record of a report included in such database, whether the report is with respect to a gift received from, or a contract entered into with—

(i) a foreign source that is a foreign government; or

(ii) a foreign source that is not a foreign government; and

(D) with respect to a disclosure report that does not include the name or address of a foreign source, indicate, as part of the public record of such report included in such database, that such report did not include such information.

The Secretary shall not disclose the name or address of a foreign source that is a natural person (other than the attributable country of such foreign source) included in a disclosure report—

(A) as part of the public record of such disclosure report described in paragraph (1); or

(B) in response to a request under section 552 of title 5, United States Code (commonly known as the Freedom of Information Act), pursuant to subsection (b)(3) of such section.

Not later than 30 days after receiving a disclosure report from an institution in compliance with this section, the Secretary shall transmit an unredacted copy of such report (that includes the name and address of a foreign source disclosed in such report) to the Director of the Federal Bureau of Investigation, the Director of National Intelligence, the Director of the Central Intelligence Agency, the Secretary of State, the Secretary of Defense, the Attorney General, the Secretary of Commerce, the Secretary of Homeland Security, the Secretary of Energy, the Director of the National Science Foundation, and the Director of the National Institutes of Health.

Any institution that is required to file a disclosure report under subsection (a) shall designate, before the filing deadline for such report, and maintain a compliance officer, who shall—

(1) be a current employee or legally authorized agent of such institution; and

(2) be responsible, on behalf of the institution, for personally certifying accurate compliance with the foreign gift reporting requirement under this section.

In this section:

The term affiliated entity, when used with respect to an institution, means an entity or organization that operates primarily for the benefit of, or under the auspices of, such institution, including a foundation of the institution or a related entity (such as any educational, cultural, or language entity).

The term attributable country means—

(A) the country of citizenship of a foreign source who is a natural person, or, if such country is unknown, the principal residence (as applicable) of such foreign source; or

(B) the country of incorporation of a foreign source that is a legal entity, or, if such country is unknown, the principal place of business (as applicable) of such foreign source.

The term contract —

(A) means—

(i) any agreement for the acquisition by purchase, lease, or barter of property or services by the foreign source;

(ii) any affiliation, agreement, or similar transaction with a foreign source that involves the use or exchange of an institution’s name, likeness, time, services, or resources; and

(iii) any agreement for the acquisition by purchase, lease, or barter, of property or services from a foreign source (other than an arms-length agreement for such acquisition from a foreign source that is not a foreign country of concern or a foreign entity of concern); and

(B) does not include an agreement made between an institution and a foreign source regarding any payment of one or more elements of a student’s cost of attendance (as such term is defined in section 472), unless such an agreement is made for more than 15 students or is made under a restricted or conditional contract.

The term foreign source means—

(A) a foreign government, including an agency of a foreign government;

(B) a legal entity, governmental or otherwise, created under the laws of a foreign state or states;

(C) a legal entity, governmental or otherwise, substantially controlled (as described in section 668.174(c)(3) of title 34, Code of Federal Regulations) (or successor regulations) by a foreign source;

(D) a natural person who is not a citizen or a national of the United States or a trust territory or protectorate thereof;

(E) an agent of a foreign source, including—

(i) a subsidiary or affiliate of a foreign legal entity, acting on behalf of a foreign source;

(ii) a person that operates primarily for the benefit of, or under the auspices of, a foreign source, including a foundation or a related entity (such as any educational, cultural, or language entity); and

(iii) a person who is an agent of a foreign principal (as such term is defined in section 1 of the Foreign Agents Registration Act of 1938 (22 U.S.C. 611)); and

(F) an international organization (as such term is defined in the International Organizations Immunities Act (22 U.S.C. 288)).

The term gift —

(A) means any gift of money, property, resources, staff, or services; and

(B) does not include—

(i) any payment of one or more elements of a student’s cost of attendance (as such term is defined in section 472) to an institution by, or scholarship from, a foreign source who is a natural person, acting in their individual capacity and not as an agent for, at the request or direction of, or on behalf of, any person or entity (except the student), made for not more than 15 students, and that is not made under a restricted or conditional contract with such foreign source;

(ii) assignment or license of registered industrial and intellectual property rights, such as patents, utility models, trademarks, or copyrights, or technical assistance, that are not associated with a category listed in the Commerce Control List maintained by the Bureau of Industry and Security of the Department of Commerce and set forth in Supplement No. 1 to part 774 of title 15, Code of Federal Regulations; or

(iii) decorations (as such term is defined in section 7342(a) of title 5, United States Code).

The term restricted or conditional gift or contract means any endowment, gift, grant, contract, award, present, or property of any kind which includes provisions regarding—

(A) the employment, assignment, or termination of faculty;

(B) the establishment of departments, centers, institutes, instructional programs, research or lecture programs, or new faculty positions;

(C) the selection, admission, or education of students;

(D) the award of grants, loans, scholarships, fellowships, or other forms of financial aid restricted to students of a specified country, religion, sex, ethnic origin, or political opinion; or

(E) any other restriction on the use of a gift or contract.

Part B of title I of the Higher Education Act of 1965 (20 U.S.C. 1011 et seq.) is amended by inserting after section 117 the following:

An institution shall not enter into a contract with a foreign country of concern or a foreign entity of concern.

An institution that desires to enter into a contract with a foreign entity of concern or a foreign country of concern may submit to the Secretary, not later than 120 days before the institution enters into such a contract, a request to waive the prohibition under subsection (a) with respect to such contract.

A waiver request submitted by an institution under clause (i) shall include—

(I) the complete and unredacted text of the proposed contract for which the waiver is being requested, and if such original contract is not in English, a translated copy of the text into English (in a manner that complies with section 117(c)); and

(II) a statement that—

(aa) is signed by the compliance officer of the institution designated in accordance with section 117(f); and

(bb) includes information that demonstrates that such contract is for the benefit of the institution’s mission and students and will promote the security, stability, and economic vitality of the United States.

An institution that has entered into a contract pursuant to a waiver issued under this section, the term of which is longer than the 1-year waiver period and the terms and conditions of which remain the same as the proposed contract submitted as part of the request for such waiver may submit, not later than 120 days before the expiration of such waiver period, a request for a renewal of such waiver for an additional 1-year period (which shall include any information requested by the Secretary).

If the institution fails to submit a request under clause (i) or is not granted a renewal under such clause, such institution shall terminate such contract on the last day of the original 1-year waiver period.

The Secretary—

(A) not later than 60 days before an institution enters into a contract pursuant to a waiver request under paragraph (1)(A), or before a contract described in paragraph (1)(B)(i) is renewed pursuant to a renewal request under such paragraph, shall notify the institution—

(i) if the waiver or renewal will be issued by the Secretary; and

(ii) in a case in which the waiver or renewal will be issued, the date on which the 1-year waiver period starts; and

(B) may only issue a waiver under this section to an institution if the Secretary determines, in consultation with the heads of each agency and department listed in section 117(e), that the contract for which the waiver is being requested is for the benefit of the institution’s mission and students and will promote the security, stability, and economic vitality of the United States.

Not less than 2 weeks prior to issuing a waiver under paragraph (2), the Secretary shall notify—

(A) the Committee on Education and the Workforce of the House of Representatives; and

(B) the Committee on Health, Education, Labor, and Pensions of the Senate,

of the intent to issue the waiver, including a justification for the waiver.

A waiver issued under this section to an institution with respect to a contract shall only—

(A) waive the prohibition under subsection (a) for a 1-year period; and

(B) apply to the terms and conditions of the proposed contract submitted as part of the request for such waiver.

In the case of an institution that enters into a contract with a foreign source that is not a foreign country of concern or a foreign entity of concern but which, during the term of such contract, is designated as a foreign country of concern or foreign entity of concern, such institution shall terminate such contract not later than 60 days after the Secretary notifies the institution of such designation.

In the case of an institution that has entered into a contract with a foreign country of concern or foreign entity of concern prior to the date of the enactment of the DETERRENT Act—

(A) the institution shall immediately submit to the Secretary a waiver request in accordance with subsection (b)(1)(A)(ii); and

(B) the Secretary shall, upon receipt of the request submitted under paragraph (1), immediately issue a waiver to the institution for a period beginning on the date on which the waiver is issued and ending on the sooner of—

(i) the date that is 1 year after the date of the enactment of the DETERRENT Act; or

(ii) the date on which the contract terminates.

An institution that has entered into a contract described in paragraph (1), the term of which is longer than the waiver period described in subparagraph (B) of such paragraph and the terms and conditions of which remain the same as the contract submitted as part of the request required under subparagraph (A) of such paragraph, may submit a request for renewal of the waiver issued under such paragraph in accordance with subsection (b)(1)(B).

The term contract has the meaning given such term in section 117(g).

Not later than 90 days after the date of enactment of this Act, the Secretary of Education shall transmit to the heads of each agency and department listed in section 117(e) of the Higher Education Act of 1965, as amended by this section—

(1) any report received by the Department of Education under section 117 of the Higher Education Act of 1965 (20 U.S.C. 1011f) prior to the date of the enactment of this Act; and

(2) any report, document, or other record generated by the Department of Education in the course of an investigation—

(A) of an institution with respect to the compliance of such institution with such section; and

(B) initiated prior to the date of the enactment of this Act.

Not later than one year after the date of enactment of the Act, the Attorney General, in consultation with the Secretary of the Treasury, the Secretary of Commerce, the Secretary of State, and the Director of National Intelligence, shall submit to the Committee on the Judiciary of the House of Representatives and the Committee on the Judiciary of the Senate a report on the extent to which China has benefitted from United States taxpayer-funded research.

The report under subsection (a) shall include the following:

(1) The extent to which United States taxpayer-funded research has benefitted China, including a list of United States Government-funded entities, such as research institutions, laboratories, and institutions of higher education, which have hired Chinese nationals or allowed Chinese nationals to conduct research, including an estimate in the number of nationals hired or involved in research projects.

(2) A list of United States Government programs, grants, and other forms of research funding in the fields of science, technology, engineering, and math (STEM) fields that have directly or indirectly cooperated or affiliated with research institutions in China or Chinese Communist Party entities.

(3) The extent to which China’s funding of United States taxpayer-funded research institutions has benefitted China.

(4) How the Government of China and the Chinese Communist Party have used United States taxpayer-funded research, including as part of China’s efforts to support civil-military fusion and human rights abuses.

In this section, the term United States taypayer-funded research means research—

(1) funded by a grant from the Federal Government or a State government; or

(2) conducted at an institution that receives funding from the Federal Government or a State government.

As a condition of receiving a Federal research and development grant in a field of science, technology, engineering, or mathematics, a grant recipient shall certify that the recipient—

(1) is not—

(A) a citizen of the People’s Republic of China; or

(B) a participant in a foreign talent recruitment program of the People’s Republic of China listed by the Secretary of State in accordance with section 521; and

(2) will not knowingly employ to carry out activities funded by the Federal research and development grant—

(A) a citizen of the People’s Republic of China; or

(B) a participant in a foreign talent recruitment program of the People’s Republic of China listed by the Secretary of State in accordance with section 521.

Notwithstanding any other provision of law, the head of each Federal agency shall ensure that any institution of higher education, laboratory, or research institute receiving Federal assistance agrees, as a condition of such assistance, to not knowingly employ any individual who is a participant in a foreign talent recruitment program of the People’s Republic of China.

Section 487(a) of the Higher Education Act of 1965 (20 U.S.C. 1094(a)) is amended by adding at the end the following:

(30) The institution will not knowingly employ any individual who is a participant in a foreign talent recruitment program of the People’s Republic of China listed by the Secretary of State in accordance with section 7 of the SECURE CAMPUS Act of 2021.

Notwithstanding section 3 of the Foreign Agents Registration Act of 1938 (22 U.S.C. 613), any individual in the United States who is associated with a foreign talent recruitment program of the People’s Republic of China, either as a recruiter or as a recruit—

(1) shall be deemed to be an agent of a foreign principal (as defined in section 1(c) of such Act (22 U.S.C. 611(c))); and

(2) shall comply with the registration requirements set forth in section 2 of such Act (22 U.S.C. 612) not later than 30 days after the later of—

(A) the date of the enactment of this Act; or

(B) the date on which the individual entered the United States.

Section 1839(1) of title 18, United States Code, is amended—

(1) by inserting education, research, after commercial,; and

(2) by inserting or otherwise incorporated or substantially located in or composed of citizens of countries subject to compulsory political or governmental representation within corporate leadership after foreign government.

Not later than 180 days after the date of the enactment of this Act, the Secretary of State, in consultation with the Attorney General, the Secretary of Defense, and the Director of National Intelligence, shall compile and publish in the Federal Register a list of foreign talent recruitment programs of the People’s Republic of China.

Not less frequently than annually, the Secretary of State shall—

(1) review and revise the list compiled under subsection (a); and

(2) publish the revised list in the Federal Register.

For purposes of sections 521 through 526:

The term foreign talent recruitment program of the People’s Republic of China means any effort organized, managed, funded, or otherwise controlled by the Government of the People’s Republic of China or the Chinese Communist Party to employ, contract, or otherwise compensate 1 or more individuals to conduct research, development, testing, or any other science or technology activity for the direct or indirect benefit of the People’s Republic of China.

The term institution of higher education has the meaning given the term in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)).

Not later than 180 days after the date of the enactment of this Act, the Secretary of Homeland Security shall update Form I–20, or a successor form with respect to eligibility for nonimmigrant student status, to require an alien submitting such form to report—

(1) whether the alien has received or plans to receive certain funds;

(2) the amount of any certain funds received by the alien; and

(3) a description of the entity providing any certain funds to the alien.

Not later than 180 days after the date of the enactment of this Act, the Secretary of State shall update Form DS– 2019, or a successor form with respect to eligibility for a exchange visitor status, to require an alien submitting such form to report—

(1) whether the alien has received or plans to receive certain funds;

(2) the amount of any certain funds received by the alien; and

(3) a description of the entity providing any certain funds to the alien.

An alien who receives certain funds after receiving a visa under subparagraph (F), (J), or (M) of section 101(a)(15) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)) shall report to the Secretary of Homeland Security and the Secretary of State the receipt of such funds not more than 90 days after the date on which such funds are received.

An alien who receives certain funds and does not report such receipt pursuant to paragraph (1) is subject to revocation of any visa or other entry documentation regardless of when the visa or other entry documentation was issued.

The disclosure requirements under subsections (a) through (c) shall apply to an alien spouse or any minor children applying for or receiving a visa under subparagraph (F), (J), or (M) of section 101(a)(15) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)).

Not later than 180 days after the date of the enactment of this Act, an alien, alien spouse, or any minor children who have a valid visa under subparagraph (F), (J), or (M) of section 101(a)(15) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)) on the date of the enactment of this Act, shall report to the Secretary of Homeland Security—

(1) whether such alien has received or plans to receive certain funds;

(2) the amount of any certain funds received by the alien; and

(3) a description of the entity providing any certain funds to the alien.

In this section, the term certain funds includes any amount of money provided to an alien from—

(1) the Government of the People’s Republic of China;

(2) the Chinese Communist Party; or

(3) any entity owned or controlled by the Government of the People’s Republic of China or the Chinese Communist Party.

Subsection (a)(4) of section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565) is amended—

(A) in subparagraph (A)—

(i) in clause (i), by striking; and and inserting a semicolon;

(ii) in clause (ii), by striking the period at the end and inserting; and; and

(iii) by adding at the end the following:

(iii) any transaction described in subparagraph (B)(vi) proposed or pending after the date of the enactment of the China Strategic Competition Act of 2021.

(B) in subparagraph (B), by adding at the end the following:; and

(vi) Any gift to an institution of higher education from a foreign person, or the entry into a contract by such an institution with a foreign person, if—

(aa) the value of the gift or contract equals or exceeds $1,000,000; or

(bb) the institution receives, directly or indirectly, more than one gift from or enters into more than one contract, directly or indirectly, with the same foreign person for the same purpose the aggregate value of which, during the period of 2 consecutive calendar years, equals or exceeds $1,000,000; and

(II) the gift or contract—

(aa) relates to research, development, or production of critical technologies and provides the foreign person potential access to any material nonpublic technical information (as defined in subparagraph (D)(ii)) in the possession of the institution; or

(bb) is a restricted or conditional gift or contract (as defined in section 117(h) of the Higher Education Act of (20 U.S.C. 1011f(h))) that establishes control. and

(C) by adding at the end the following:

For purposes of subparagraph (B)(vi):

The term contract means any agreement for the acquisition by purchase, lease, or barter of property or services by a foreign person, for the direct benefit or use of either of the parties.

The term gift means any gift of money or property.

The term institution of higher education means any institution, public or private, or, if a multicampus institution, any single campus of such institution, in any State—

(I) that is legally authorized within such State to provide a program of education beyond secondary school;

(II) that provides a program for which the institution awards a bachelor’s degree (or provides not less than a 2-year program which is acceptable for full credit toward such a degree) or a more advanced degree;

(III) that is accredited by a nationally recognized accrediting agency or association; and

(IV) to which the Federal Government extends Federal financial assistance (directly or indirectly through another entity or person), or that receives support from the extension of Federal financial assistance to any of the institution’s subunits.

Subsection (b)(1)(C)(v)(IV)(aa) of such section is amended by adding at the end the following: Such regulations shall require a declaration under this subclause with respect to a covered transaction described in subsection (a)(4)(B)(vi)(II)(aa)..

Subsection (f) of such section is amended—

(A) in paragraph (10), by striking; and and inserting a semicolon;

(B) by redesignating paragraph (11) as paragraph (12); and

(C) by inserting after paragraph (10) the following:

(11) as appropriate, and particularly with respect to covered transactions described in subsection (a)(4)(B)(vi), the importance of academic freedom at institutions of higher education in the United States; and

Subsection (k) of such section is amended—

(A) in paragraph (2)—

(i) by redesignating subparagraphs (H), (I), and (J) as subparagraphs (I), (J), and (K), respectively; and

(ii) by inserting after subparagraph (G) the following:; and

(H) In the case of a covered transaction involving an institution of higher education (as defined in subsection (a)(4)(G)), the Secretary of Education.

(B) by adding at the end the following:

In considering including on the Committee under paragraph (2)(K) the heads of other executive departments, agencies, or offices, the President shall give due consideration to the heads of relevant research and science agencies, departments, and offices, including the Secretary of Health and Human Services, the Director of the National Institutes of Health, and the Director of the National Science Foundation.

Subsection (m)(3) of such section is amended—

(A) in subparagraph (B), by striking; and and inserting a semicolon;

(B) in subparagraph (C), by striking the period at the end and inserting a semicolon; and

(C) by adding at the end the following:

(D) an evaluation of whether there are foreign malign influence or espionage activities directed or directly assisted by foreign governments against institutions of higher education (as defined in subsection (a)(4)(G)) aimed at obtaining research and development methods or secrets related to critical technologies; and

(E) an evaluation of, and recommendation for any changes to, reviews conducted under this section that relate to institutions of higher education, based on an analysis of disclosure reports submitted to the chairperson under section 117(a) of the Higher Education Act of 1965 (20 U.S.C. 1011f(a)).

The amendments made by subsection (a) shall—

(1) take effect on the date of the enactment of this Act, subject to the requirements of subsections (d) and (e); and

(2) apply with respect to any covered transaction the review or investigation of which is initiated under section 721 of the Defense Production Act of 1950 on or after the date that is 30 days after the publication in the Federal Register of the notice required under subsection (e)(2).

The Committee on Foreign Investment in the United States (in this section referred to as the Committee), which shall include the Secretary of Education for purposes of this subsection, shall prescribe regulations as necessary and appropriate to implement the amendments made by subsection (a).

The regulations prescribed under paragraph (1) shall include—

(A) regulations accounting for the burden on institutions of higher education likely to result from compliance with the amendments made by subsection (a), including structuring penalties and filing fees to reduce such burdens, shortening timelines for reviews and investigations, allowing for simplified and streamlined declaration and notice requirements, and implementing any procedures necessary to protect academic freedom; and

(B) guidance with respect to—

(i) which gifts and contracts described in clause (vi)(II)(aa) of subsection (a)(4)(B) of section 721 of the Defense Production Act of 1950, as added by subsection (a)(1), would be subject to filing mandatory declarations under subsection (b)(1)(C)(v)(IV) of that section; and

(ii) the meaning of control, as defined in subsection (a) of that section, as that term applies to covered transactions described in clause (vi) of paragraph (4)(B) of that section, as added by subsection (a)(1).

The Committee shall issue a final rule to carry out the amendments made by subsection (a) after assessing the findings of the pilot program required by subsection (e).

Beginning on the date that is 30 days after the publication in the Federal Register of the matter required by paragraph (2) and ending on the date that is 570 days thereafter, the Committee shall conduct a pilot program to assess methods for implementing the review of covered transactions described in clause (vi) of section 721(a)(4)(B) of the Defense Production Act of 1950, as added by subsection (a)(1).

Not later than 270 days after the date of the enactment of this Act, the Committee shall, in consultation with the Secretary of Education, publish in the Federal Register—

(A) a proposed determination of the scope of and procedures for the pilot program required by paragraph (1);

(B) an assessment of the burden on institutions of higher education likely to result from compliance with the pilot program;

(C) recommendations for addressing any such burdens, including shortening timelines for reviews and investigations, structuring penalties and filing fees, and simplifying and streamlining declaration and notice requirements to reduce such burdens; and

(D) any procedures necessary to ensure that the pilot program does not infringe upon academic freedom.

Upon conclusion of the pilot program required by paragraph (1), the Committee shall submit to Congress a report on the findings of that pilot program that includes—

(A) a summary of the reviews conducted by the Committee under the pilot program and the outcome of such reviews;

(B) an assessment of any additional resources required by the Committee to carry out this section or the amendments made by subsection (a);

(C) findings regarding the additional burden on institutions of higher education likely to result from compliance with the amendments made by subsection (a) and any additional recommended steps to reduce those burdens; and

(D) any recommendations for Congress to consider regarding the scope or procedures described in this section or the amendments made by subsection (a).

Section 117 of the Higher Education Act of 1965 (20 U.S.C. 1011f) is amended to read as follows:

An institution shall file a disclosure report described in subsection (b) with the Secretary and the Secretary of the Treasury (in the capacity of the Secretary as the chairperson of the Committee on Foreign Investment in the United States under section 721(k)(3) of the Defense Production Act of 1950 (50 U.S.C. 4565(k)(3))) not later than March 31 immediately following any calendar year in which the institution receives a gift from, or enters into a contract with, a foreign source, the value of which is $50,000 or more, considered alone or in combination with all other gifts from, or contracts with, that foreign source within the calendar year.

An institution shall file a disclosure report described in subsection (b) with the Secretary and the Secretary of the Treasury (in the capacity of the Secretary as the chairperson of the Committee on Foreign Investment in the United States under section 721(k)(3) of the Defense Production Act of 1950 (50 U.S.C. 4565(k)(3))) not later than March 31 immediately following any calendar year in which the institution enters into a contract with a foreign source that has an undetermined monetary value.

In the case of an institution that is owned or controlled by a foreign source, the institution shall file a disclosure report described in subsection (b) with the Secretary and the Secretary of the Treasury (in the capacity of the Secretary as the chairperson of the Committee on Foreign Investment in the United States under section 721(k)(3) of the Defense Production Act of 1950 (50 U.S.C. 4565(k)(3))) not later than March 31 of every year.

Each report to the Secretary required by subsection (a) shall contain the following:

(A) In the case of an institution required to file a report under paragraph (1) or (2) of subsection (a)—

(i) for gifts received from or contracts entered into with a foreign government, the aggregate amount of such gifts and contracts received from each foreign government, including the content of each such contract; and

(ii) for gifts received from or contracts entered into with a foreign source other than a foreign government, the aggregate dollar amount of such gifts and contracts attributable to a particular country and the legal or formal name of the foreign source, and the content of each such contract.

(B) For purposes of this paragraph, the country to which a gift is attributable is—

(i) the country of citizenship, or if unknown, the principal residence, for a foreign source who is a natural person; or

(ii) the country of incorporation, or if unknown, the principal place of business, for a foreign source which is a legal entity.

(2) In the case of an institution required to file a report under subsection (a)(3)—

(A) the information described in paragraph (1)(A) (without regard to any gift or contract threshold described in subsection (a)(1));

(B) the identity of the foreign source that owns or controls the institution;

(C) the date on which the foreign source assumed ownership or control; and

(D) any changes in program or structure resulting from the change in ownership or control.

(3) An assurance that the institution will maintain a true copy of each gift or contract agreement subject to the disclosure requirements under this section, until the latest of—

(A) the date that is 4 years after the date of the agreement;

(B) the date on which the agreement terminates; or

(C) the last day of any period that applicable State public record law requires a true copy of such agreement to be maintained.

(4) An assurance that the institution will produce true copies of gift and contract agreements subject to the disclosure requirements under this section upon request of the Secretary during a compliance audit or other institutional investigation and shall ensure all gifts and contracts from the foreign source are translated into English by a third party unaffiliated with the foreign source or institution for this purpose.

Notwithstanding the provisions of subsection (b), whenever any institution receives a restricted or conditional gift or contract from a foreign source, the institution shall disclose the following to the Department translated into English by a third party unaffiliated with the foreign source or institution:

(1) For such gifts received from or contracts entered into with a foreign source other than a foreign government, the amount, the date, and a description of such conditions or restrictions. The report shall also disclose the country of citizenship, or if unknown, the principal residence for a foreign source which is a natural person, and the country of incorporation, or if unknown, the principal place of business for a foreign source which is a legal entity.

(2) For gifts received from or contracts entered into with a foreign government, the amount, the date, a description of such conditions or restrictions, and the name of the foreign government.

If an institution that is required to file a disclosure report under subsection (a) is within a State which has enacted requirements for public disclosure of gifts from or contracts with a foreign source that includes all information required under this section for the same or an equivalent time period, a copy of the disclosure report filed with the State may be filed with the Secretary and the Secretary of the Treasury in lieu of the report required under such subsection. The State in which the institution is located shall provide to the Secretaries such assurances as the Secretaries may require to establish that the institution has met the requirements for public disclosure under State law if the State report is filed.

If an institution receives a gift from, or enters into a contract with, a foreign source, where any other department, agency, or bureau of the executive branch requires a report containing all the information required under this section for the same or an equivalent time period, a copy of the report may be filed with the Secretary and the Secretary of the Treasury in lieu of a report required under subsection (a).

In this subsection, the term Confucius Institute means a cultural institute directly or indirectly funded by the Government of the People’s Republic of China.

Any institution that has entered into an agreement with a Confucius Institute shall immediately make the full text of such agreement available—

(A) on the publicly accessible website of the institution;

(B) to the Department of Education;

(C) to the Committee on Health, Education, Labor, and Pensions of the Senate; and

(D) to the Committee on Education and the Workforce of the House of Representatives.

(3) In subsection (i), as redesignated—

(A) in paragraph (2), by amending subparagraph (A) to read as follows:; and

(A) a foreign government, including—

(i) any agency of a foreign government, and any other unit of foreign governmental authority, including any foreign national, State, local, and municipal government;

(ii) any international or multinational organization whose membership is composed of any unit of foreign government described in clause (i); and

(iii) any agent or representative of any such unit or such organization, while acting as such;

(B) in paragraph (3), by inserting before the semicolon at the end the following:, or the fair market value of an in-kind gift.

Not later than 30 days after receiving a disclosure report under this section, the Secretary shall make such report electronically available to the public for downloading on a searchable database under which institutions can be individually identified and compared.

The Secretary shall incorporate a process permitting institutions to revise and update previously filed disclosure reports under this section to ensure accuracy, compliance, and ability to cure.

As a sanction for noncompliance with the requirements under this section, the Secretary may impose a fine on an institution that in any year knowingly or willfully violates this section, that is—

(A) in the case of a failure to disclose a gift or contract with a foreign source as required under this section or to comply with the requirements of subsection (b)(4), in an amount that is not less than $250 but not more than the amount of the gift or contract with the foreign source; or

(B) in the case of any violation of the requirements of subsection (a)(3), in an amount that is not more than 25 percent of the total amount of funding received by the institution under this Act.

In addition to a fine for a violation in any year in accordance with paragraph (1) and subject to subsection (e)(2), the Secretary shall impose a fine on an institution that knowingly and willfully fails in 3 consecutive years to comply with the requirements of this section, that is—

(i) in the case of a failure to disclose a gift or contract with a foreign source as required under this section or to comply with the requirements of subsection (b)(4), in an amount that is not less than $100,000 but not more than twice the amount of the gift or contract with the foreign source; or

(ii) in the case of any violation of the requirements of subsection (a)(3), in an amount that is not more than 25 percent of the total amount of funding received by the institution under this Act.

The Secretary shall impose a fine on an institution that fails to comply with the requirements of this section in 3 consecutive years, in an amount that is not less than $250 but not more than the amount of the gift or contract with the foreign source.

An institution that fails to file a disclosure report for a receipt of a gift from or contract with a foreign source in 2 consecutive years, shall be required to submit a compliance plan to the Secretary.

Any institution that is required to report a gift or contract under this section shall designate and maintain a compliance officer who—

(1) shall be a current employee or legally authorized agent of such institution; and

(2) shall be responsible, on behalf of the institution, for compliance with the foreign gift reporting requirement under this section and section 124, if applicable.

The Secretary shall maintain a single point of contact to—

(1) receive and respond to inquiries and requests for technical assistance from institutions of higher education regarding compliance with the requirements of this section; and

(2) coordinate the disclosure of information on the searchable database, and process for modifications of disclosures and ability to cure, as described in subsection (e).

The following shall not be considered a gift from a foreign source under this section:

(A) Any payment of one or more elements of a student’s cost of attendance (as defined in section 472) to an institution by, or scholarship from, a foreign source who is a natural person, acting in their individual capacity and not as an agent for, at the request or direction of, or on behalf of, any person or entity (except the student), made on behalf of no more than 15 students that is not made under contract with such foreign source, except for the agreement between the institution and such student covering one or more elements of such student’s cost of attendance.

(B) Assignment or license of registered industrial and intellectual property rights, such as patents, utility models, trademarks, or copyrights, or technical assistance, that are not identified as being associated with a national security risk or concern by the Federal Research Security Council as described under section 7902 of title 31, United States Code, as added by section 4493 of the Securing America’s Future Act.

Any gift to, or contract with, an entity or organization, such as a research foundation, that operates substantially for the benefit or under the auspices of an institution shall be considered a gift to or with respectively, such institution.

In this section—

(1) the term contract —

(A) means any—

(i) agreement for the acquisition by purchase, lease, or barter of property or services by the foreign source, for the direct benefit or use of either of the parties, except as provided in subparagraph (B); or

(ii) affiliation, agreement, or similar transaction with a foreign source and is based on the use or exchange of an institution’s name, likeness, time, services, or resources, except as provided in subparagraph (B); and

(B) does not include any agreement made by an institution located in the United States for the acquisition, by purchase, lease, or barter, of property or services from a foreign source;

(2) the term foreign source means—

(A) a foreign government, including an agency of a foreign government;

(B) a legal entity, governmental or otherwise, created under the laws of a foreign state or states;

(C) an individual who is not a citizen or a national of the United States or a trust territory or protectorate thereof; and

(D) an agent, including a subsidiary or affiliate of a foreign legal entity, acting on behalf of a foreign source;

(3) the term gift means any gift of money, property, resources, staff, or services;

(4) the term institution means an institution of higher education, as defined in section 102, or, if a multicampus institution, any single campus of such institution, in any State; and

(5) the term restricted or conditional gift or contract means any endowment, gift, grant, contract, award, present, or property of any kind which includes provisions regarding—

(A) the employment, assignment, or termination of faculty;

(B) the establishment of departments, centers, institutes, instructional programs, research or lecture programs, or new faculty positions;

(C) the selection or admission of students; or

(D) the award of grants, loans, scholarships, fellowships, or other forms of financial aid restricted to students of a specified country, religion, sex, ethnic origin, or political opinion.

Part B of title I of the Higher Education Act of 1965 (20 U.S.C. 1011 et seq.) is amended by adding at the end the following:

Each institution of higher education described in subsection (b) shall—

(1) maintain a policy requiring faculty, professional staff, and other staff engaged in research and development (as determined by the institution) employed at such institution to disclose to such institution any gifts received from, or contracts entered into with, a foreign source;

(2) maintain a searchable database of information disclosed in paragraph (1) for the previous five years, except an institution shall not be required to include in the database gifts or contracts received or entered into before the date of enactment of the Securing America’s Future Act; and

(3) maintain a plan to effectively identify and manage potential information gathering by foreign sources through espionage targeting faculty, professional staff, and other staff engaged in research and development (as determined by the institution) that may arise from gifts received from, or contracts entered into with, a foreign source, including through the use of periodic communications and enforcement of the policy described in paragraph (1).

An institution of higher education shall be subject to the requirements of this section if such institution—

(1) is an institution of higher education as defined under section 102; and

(2) had more than $5,000,000 in research and development expenditures in any of the previous five years.

As a sanction for noncompliance with the requirements under this section, the Secretary may impose a fine on an institution that in any year knowingly or willfully violates this section, in an amount that is not less than $250 but not more than $1,000.

In addition to a fine for a violation in accordance with paragraph (1), the Secretary shall impose a fine on an institution that knowingly, willfully, and repeatedly fails to comply with the requirements of this section in a second consecutive year in an amount that is not less than $1,000 but not more than $25,000.

In addition to a fine for a violation in accordance with paragraph (1) or (2), the Secretary shall impose a fine on an institution that knowingly, willfully, and repeatedly fails to comply with the requirements of this section in a third consecutive year, or any consecutive year thereafter, in an amount that is not less than $25,000 but not more than $50,000.

The Secretary shall impose a fine on an institution that fails in 3 consecutive years to comply with the requirements of this section in an amount that is not less than $250 but not more than $25,000.

An institution that fails to comply with the requirements under this section for 2 consecutive years shall be required to submit a compliance plan to the Secretary.

In this section—

(1) the terms foreign source and gift have the meaning given the terms in section 117;

(2) the term contract means any—

(A) agreement for the acquisition by purchase, lease, or barter of property or services by the foreign source, for the direct benefit or use of either of the parties; or

(B) affiliation, agreement, or similar transaction with a foreign source based on the use or exchange of the name, likeness, time, services, or resources of faculty, professional staff, and other staff engaged in research and development (as determined by the institution); and

(3) the term professional staff means professional employees, as defined in section 3 of the Fair Labor Standards Act of 1938 (29 U.S.C. 203).

Not later than 1 year after the date of enactment of this Act, the Secretary of Education shall begin the negotiated rulemaking process under section 492 of the Higher Education Act of 1965 (20 U.S.C. 1098a) to carry out the amendments made by subsections (a) and (b).

Regulations issued pursuant to paragraph (1) to carry out the amendment made by subsection (a) shall, at a minimum, address the following issues:

(A) Instructions on reporting structured gifts and contracts.

(B) The inclusion in institutional reports of gifts received from, and contracts entered into with, foreign sources by entities and organizations, such as research foundations, that operate substantially for the benefit or under the auspices of the institution.

(C) Procedures to protect confidential or proprietary information included in gifts and contracts.

(D) The alignment of such regulations with the reporting and disclosure of foreign gifts or contracts required by other Federal agencies.

(E) The treatment of foreign gifts or contracts involving research or technologies identified as being associated with a national security risk or concern by the Federal Research Security Council as described under section 7902 of title 31, United States Code, as added by section 4493 of this Act.

There is established an interagency group, which shall be led by the Director of National Intelligence, to be responsible for creating and maintaining a public database assisting United States persons, including companies, universities, and individuals, in conducting due diligence on potential business or academic partners in China. Such database should contain information enabling users to identify the manner and extent to which the military, United Front Work Department, intelligence agencies, or security agencies of the Government of the People’s Republic of China may be linked to Chinese companies, investment firms, other financial institutions, research institutes, and universities.

This section may be cited as the Dump Investments in Troublesome Communist Holdings Act or as the DITCH Act.

Section 501 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

An organization shall not be treated as described in subsection (c) or (d) or section 401(a) for any taxable year if such organization—

(A) holds any interest in a disqualified Chinese company at any time during such taxable year, or

(B) fails to timely transmit the annual report described in paragraph (5) for such taxable year.

For purposes of this subsection—

The term disqualified Chinese company means any corporation—

(i) that is incorporated in China, or

(ii) more than 10 percent of the stock of which (determined by vote or value) is held (directly or indirectly through any chain of ownership) by any of the following (or combination thereof):

(I) 1 or more corporations described in clause (i).

(II) China or any governmental agency thereof.

(III) Provincial, regional, municipal, Special Administrative Regions, prefecture, county, township, village, or any other Chinese sub-national governmental entity or agency.

(IV) Any entity controlled (directly or indirectly) by the Chinese Communist Party or any Chinese Communist Party organ.

(V) Any Chinese national.

In the case of any business organization which is not a corporation, subparagraph (A) shall apply to such organization in the same manner as though such organization were a corporation.

For purposes of this subsection, an organization shall be treated as holding an interest in a disqualified Chinese company if such organization—

(i) holds such interest (or any instrument described in subparagraph (A)) directly or indirectly through any chain of ownership, or

(ii) holds any derivative financial instrument or other contractual arrangement with respect to such interest or company (including any financial instrument or other contract which seeks to replicate any financial return with respect to such interest or such company).

The Secretary shall, not later than 120 days after the date of the enactment of this subsection, establish a process for the periodic publishing of a list of certified pooled investments, including exchange traded funds and mutual funds, that do not have exposure to disqualified Chinese companies.

Paragraph (1) shall not apply with respect to any interest in a disqualified Chinese company held by any organization during any taxable year if the Secretary issues a waiver to such organization with respect to such interest for such taxable year under this paragraph. Any waiver issued under this paragraph shall be subject to renewal or expiration on a biannual basis.

Not later than 60 days after the date of the enactment of this subsection, the Secretary shall establish a process under which an organization may submit a written application for a waiver under this paragraph. Such application shall be made publicly available and shall include the following:

(I) An explanation of the need for such waiver and the reasons that the need for such waiver outweigh the threat posed to the United States by China and the lack of separation between China and the disqualified Chinese company involved.

(II) The type (including sector of the economy), amount, and duration of the investment in the disqualified Chinese company.

(III) The relationship between the disqualified Chinese company and China.

(IV) The extenuating circumstances justifying the applicant’s need to invest in the disqualified Chinese company.

The Secretary shall provide a written response to each completed application under clause (i) not later than 60 days after receipt of such application. Such written response shall be made publicly available and shall include the following:

(I) A statement of whether the waiver has been provided or withheld.

(II) The reasons for providing or withholding the waiver.

(III) The identification of any future investments with respect to which such waiver applies.

(IV) The date on which such waiver expires (which may not be later than the earlier of the termination of the extenuating circumstances referred to in clause (i)(IV) or the end of the biannual period referred to in subparagraph (A)).

The Secretary may provide a waiver under this paragraph only if the Secretary independently determines that— For purposes of this subparagraph, the Secretary shall not consider the past or future financial returns of any investment in any disqualified Chinese company, or any other justification based on the applicant’s own financial needs, as an extenuating circumstance justifying such an investment.

(i) the need for such waiver, and the reasons for the need for such waiver, outweigh the threat posed to the United States by China and the lack of separation between China and the disqualified Chinese company involved, and

(ii) extenuating circumstances justify the applicant’s need to invest in the disqualified Chinese company.

With respect to each calendar quarter, the Secretary shall publish and make publicly available a list of the waivers provided by the Secretary under this paragraph during such quarter.

For purposes of this section, the term China means the People’s Republic of China and includes any subordinate Special Administrative Regions thereof.

Each organization described in paragraph (1) with respect to each taxable year shall, not later than the due date for the return of tax for such taxable year, transmit to the Secretary a written report including—

(A) a description of each interest in a disqualified Chinese company held by such organization during such taxable year,

(B) the period during which such interest was so held, and

(C) whether such organization has a waiver under paragraph (3) to hold such interest during such period.

The amendment made by this section shall apply to taxable years ending after the date of the enactment of this Act, except that only periods after the date that is 270 days after the date of the enactment of this Act shall be taken into account in determining whether the requirement of section 501(s) of the Internal Revenue Code of 1986 (as added by paragraph (1)) is met with respect to any taxable year.

In the case of organization that, after intensive due diligence, is unaware of the failure to satisfy the requirement of such section 501(s), subparagraph (A) shall be applied by substituting 1 year for 270 days.

Not later than 360 days after the date of the enactment of this Act, and annually thereafter, the Secretary of the Treasury (or the Secretary’s delegate) shall publicly release a report describing the patterns of United States outbound investment in China, including such investment by organizations described in section 501(s)(1) of the Internal Revenue Code of 1986 (as added by paragraph (1)). Such report shall detail the sectoral breakdown of such investments.

It is the policy of the United States to support a free and democratic China which respects the human rights and civil liberties of the people of China.

The position of Director of the American Institute in Taiwan’s Taipei office shall be subject to the advice and consent of the Senate, and effective upon enactment of this Act shall have the title of Representative.

Congress finds that the efforts by the Government of the People’s Republic of China (PRC) and the Chinese Communist Party to compel private United States businesses, corporations, and nongovernmental entities to use PRC-mandated language to describe the relationship between Taiwan and China are an intolerable attempt to enforce political censorship globally and should be considered an attack on the fundamental underpinnings of all democratic and free societies, including the constitutionally protected right to freedom of speech.

It is the sense of Congress that the United States Government, in coordination with United States businesses and nongovernmental entities, should formulate a code of conduct for interacting with the Government of the People’s Republic of China and the Chinese Communist Party and affiliated entities, the aim of which is—

(1) to counter PRC sharp power operations, which threaten free speech, academic freedom, and the normal operations of United States businesses and nongovernmental entities; and

(2) to counter PRC efforts to censor the way the world refers to issues deemed sensitive to the Government of the People’s Republic of China and Chinese Communist Party leaders, including issues related to Taiwan, Tibet, the Tiananmen Square Massacre, and the mass internment of Uyghurs and other Turkic Muslims, among many other issues.

It is the sense of Congress that—

(A) issues related to the sovereignty of Taiwan are for the people of Taiwan to decide through the democratic process they have established;

(B) the dispute between the People’s Republic of China and Taiwan must be resolved peacefully and with the assent of the people of Taiwan;

(C) the primary obstacle to peaceful resolution is the authoritarian nature of the PRC political system under one-party rule of the Chinese Communist Party, which is fundamentally incompatible with Taiwan’s democracy; and

(D) any attempt to coerce the people of Taiwan to accept a political arrangement that would subject them to direct or indirect rule by the PRC, including a one country, two systems framework, would constitute a grave challenge to United States security interests in the region.

It is the policy of the United States to oppose any attempt by the PRC authorities to unilaterally impose a timetable or deadline for unification on Taiwan.

No department or agency of the United States Government may formally or informally recognize PRC claims to sovereignty over Taiwan without the assent of the people of Taiwan, as expressed directly through the democratic process.

The Department of State and other United States Government agencies shall treat the democratically elected government of Taiwan as the legitimate representative of the people of Taiwan and end the outdated practice of referring to the government in Taiwan as the authorities. Notwithstanding the continued supporting role of the American Institute in Taiwan in carrying out United States foreign policy and protecting United States interests in Taiwan, the United States Government shall not place any restrictions on the ability of officials of the Department of State and other United States Government agencies from interacting directly and routinely with counterparts in the Taiwan government.

Not later than 90 days after the date of the enactment of this Act, the Secretary of State, in consultation with the Secretary of Commerce, the Secretary of the Treasury, and the heads of other relevant Federal agencies, shall submit an unclassified report, with a classified annex if necessary, to protect United States businesses and nongovernmental entities from sharp power operations, including coercion and threats that lead to censorship or self-censorship, or which compel compliance with political or foreign policy positions of the Government of the People’s Republic of China and the Chinese Communist Party. The strategy shall include the following elements:

(1) Information on efforts by the Government of the People’s Republic of China to censor the websites of United States airlines, hotels, and other businesses regarding the relationship between Taiwan and the People’s Republic of China.

(2) Information on efforts by the Government of the People’s Republic of China to target United States nongovernmental entities through sharp power operations intended to weaken support for Taiwan.

(3) Information on United States Government efforts to counter the threats posed by Chinese state-sponsored propaganda and disinformation, including information on best practices, current successes, and existing barriers to responding to this threat.

(4) Details of any actions undertaken to create a code of conduct pursuant to subsection (b) and a timetable for implementation.

Subject to section 605, the President is authorized to enter into an agreement with Taiwan consistent with the policy described in section 603, and the provisions of section 151(c) of the Trade Act of 1974 (19 U.S.C. 2191(c)) shall apply with respect to a bill to implement such agreement.

Whenever the President submits to Congress a bill to implement a trade agreement described in section 604, the bill shall be introduced (by request) in the House of Representatives and in the Senate as described in section 151(c) of the Trade Act of 1974 (19 U.S.C. 2191(c)).

A bill to implement a trade agreement described in section 604 shall contain provisions that are necessary to implement the trade agreement, and shall include trade-related labor and environmental protection standards, but may not include amendments to title VII of the Tariff Act of 1930, title II of the Trade Act of 1974, or any antitrust law of the United States.

Section 151 of the Trade Act of 1974 (19 U.S.C. 2191) is amended—

(1) in subsection (b)(1), by inserting section 604 of the Countering Communist China Act, after section 282 of the Uruguay Round Agreements Act,; and

(2) in subsection (c)(1), by inserting section 604 of the Countering Communist China Act, after the Uruguay Round Agreements Act,.

Not later than 60 days after the date of the enactment of this Act, the President shall submit to the appropriate congressional committees a report that includes a strategy specifically describing—

(1) the steps already taken to tangibly address atrocity crimes occurring in the Xinjiang Uyghur Autonomous Region, especially during the period following the January 19, 2021, determination that genocide and crimes against humanity were occurring in the Xinjiang Uyghur Autonomous Region; and

(2) a strategy for ending the atrocity crimes occurring in the Xinjiang Uyghur Autonomous Region, including by—

(A) holding accountable persons or entities responsible for committing such atrocity crimes by addressing, through existing or new export controls or import restrictions, the issues of mass biometric surveillance and forced labor programs in China;

(B) gaining access for United Nations, United States, and other diplomats and foreign journalists to the Xinjiang Uyghur Autonomous Region; and

(C) protecting Uyghurs, Kazakhs, Kyrgyz, and other ethnic minorities affected by the atrocities committed by the Government of the People’s Republic of China.

The report required under subsection (b) shall be submitted in unclassified form and shall be made publicly available, but may include a classified annex.

In this section, the term appropriate congressional committees means—

(1) The Committee on Foreign Affairs, the Committee on Armed Services, and the Committee on Appropriations of the House of Representatives.

(2) The Committee on Foreign Relations, the Committee on Armed Services, and the Committee on Appropriations of the Senate.

It is the policy of the United States to consider any foreign person or entity responsible for, complicit in, or having directly or indirectly engaged in forced sterilizations, forced abortions, or other sexual violence targeting any individual in the Xinjiang Uyghur Autonomous Region as having committed gross violations of internationally recognized human rights for purposes of imposing the sanctions detailed in the Global Magnitsky Human Rights Accountability Act (22 U.S.C. 2656 note).

Section 801 of the Admiral James W. Nance and Meg Donovan Foreign Relations Authorization Act, Fiscal Years 2000 and 2001 (Public Law 106–113; 8 U.S.C. 1182e) is amended—

(1) in subsection (b), by striking minister. and inserting minister, unless—;

(1) the Secretary of State makes a public determination that the forced sterilizations, forced abortions, or other coercive population control policies were being committed or enforced with the intent to destroy, in whole or in part, a national, ethnic, racial or religious group and therefore constitute genocide or crimes against humanity; or

(2) the Secretary of State finds that such coercive population control policies were targeting Uyghurs, Kazakhs, Tibetan or other ethnic minorities or individuals peacefully expressing internationally recognized human rights in the People’s Republic of China.

(2) in subsection (c), by striking national interest and inserting national security interest; and

(3) by adding at the end the following new subsections:

The Secretary of State shall make a public announcement each time sanctions are imposed under this section as a result of a determination or finding described in subsection (b)(1) or (b)(2), respectively.

The Secretary of State shall, upon request of a Member of Congress—

(1) provide information about the use of the sanctions described in this section, including the number of times imposed, disaggregated by country and by year; or

(2) provide a classified briefing that includes information about the individuals or entities sanctioned pursuant to this section and any other Act authorizing sanctions with respect to the conduct of such individuals or entities.

Chapter 3 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2221 et seq.) is amended by adding at the end the following:

Funds made available to carry out this part for the United Nations Population Fund (UNFPA) that are not made available for UNFPA because of the operation of any provision of law shall be transferred to the Global Health Programs account and shall be made available for family planning, maternal, and reproductive health activities.

The President shall notify the appropriate congressional committees of any transfer of funds under this subsection not later than 10 days after the date on which funds are so transferred.

None of the funds made available to carry out this part may be used by UNFPA for a country program in the People’s Republic of China.

Funds made available to carry out this part for UNFPA may not be made available unless—

(1) UNFPA maintains funds made available to carry out this part in an account separate from other accounts of UNFPA and does not commingle such funds with other sums; and

(2) UNFPA does not fund abortions.

Not later than 4 months after the start of each fiscal year, the Secretary of State shall submit to the appropriate congressional committees a report indicating the amount of funds that UNFPA is budgeting for the year in which the report is submitted for a country program in the People’s Republic of China.

If a report under paragraph (1) indicates that UNFPA plans to spend funds for a country program in the People’s Republic of China in the year covered by the report, then an amount of funds equal to the amount of funds UNFPA plans to spend in the People’s Republic of China shall be deducted from the funds made available to UNFPA after March 1 for obligation for the remainder of the fiscal year in which the report is submitted.

In this section, the term appropriate congressional committees means—

(1) the Committee on Appropriations and the Committee on Foreign Affairs of the House of Representatives; and

(2) the Committee on Appropriations and the Committee on Foreign Relations of the Senate.

Section 104(f) of the Foreign Assistance Act of 1961 (22 U.S.C. 2151b(f)) is amended by adding at the end the following:

(4) None of the funds made available to carry out this Act nor any unobligated balances from prior appropriations Acts may be made available to any organization or program which supports or participates in the management of a program of coercive abortion or involuntary sterilization.

Notwithstanding any other provision of law, no funding made available to the United States Agency for Global Media (USAGM) may be used to provide an open platform for representatives of the People’s Republic of China (PRC), members of the Chinese Communist Party (CCP), or any entity owned or controlled by the PRC or CCP.

Not later than 180 days after the date of the enactment of this Act, the USAGM shall submit to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate a report describing whether or not any of its broadcast entities, including its grantee organizations, has provided at any time during the five-year period immediately preceding such report an open platform for representatives of the PRC, members of the CCP, or any entity owned or controlled by the PRC or CCP. Such report shall be made available on a publicly available website by the Federal Government.

The Chief Executive Officer of the United States Agency for Global Media (USAGM) shall establish new platforms in the Mandarin Chinese language, including new social media accounts, an internet website hosting radio channels and video and audio podcasts, and an interactive website and mobile application, for the following purposes:

(1) Exposing the corruption and human rights abuses of the Chinese Communist Party.

(2) Supporting the right for the people of the People’s Republic of China to live in democracy.

(3) Explaining the failures of Communism.

(4) Explaining to a Chinese audience the concepts of rule of law, constitutionalism, limited government, separation of powers, democracy, and human rights.

(5) Highlighting the voices of Chinese civil society, democracy activists, and opposition movements advocating for a free and democratic China.

In carrying out subsection (a), the Chief Executive Officer of USAGM shall develop a strategy for—

(1) bypassing the firewall and internet censorship of the People’s Republic of China; and

(2) supporting programs for bypassing such firewall and internet censorship in order to reach the people of China.

The Speaker of the House of Representatives and the President pro tempore of the Senate shall each appoint members to serve on an interparliamentary group which will meet annually with representatives of the Legislative Yuan of Taiwan to discuss areas of mutual interest between the United States and Taiwan, including—

(1) deterring military aggression by the People’s Republic of China and countering the malign influence of the Chinese Communist Party in both the United States and Taiwan;

(2) strengthening security cooperation between the United States and Taiwan; and

(3) enhancing bilateral trade between the United States and Taiwan.

The Speaker of the House of Representatives shall appoint 6 Members of the House to serve on the group under this section, based on recommendations made by the majority leader and the minority leader of the House, and shall designate one of the Members as the co-chair of the group.

The President pro tempore of the Senate shall appoint 6 Senators to serve on the group under this section, based on recommendations made by the majority leader and the minority leader of the Senate, and shall designate one of the Senators as the co-chair of the group.

Of the amounts obligated and expended to carry out this section—

(1) 50 percent shall be derived from the applicable accounts of the House of Representatives; and

(2) 50 percent shall be derived form the contingent fund of the Senate.

Section 153 of the Miscellaneous Appropriations and Offsets Act, 2004 (22 U.S.C. 276n) is hereby repealed.

Except as provided in subsection (b), all goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region of China, or by persons working with the Xinjiang Uyghur Autonomous Region government for purposes of the poverty alleviation program or the pairing-assistance program which subsidizes the establishment of manufacturing facilities in the Xinjiang Uyghur Autonomous Region, shall be deemed to be goods, wares, articles, and merchandise described in section 307 of the Tariff Act of 1930 (19 U.S.C. 1307) and shall not be entitled to entry at any of the ports of the United States.

The prohibition described in subsection (a) shall not apply if the Commissioner of U.S. Customs and Border Protection—

(1) determines, by clear and convincing evidence, that any specific goods, wares, articles, or merchandise described in subsection (a) were not produced wholly or in part by convict labor, forced labor, or indentured labor under penal sanctions; and

(2) submits to the appropriate congressional committees and makes available to the public a report that contains such determination.

This section shall take effect on the date that is 120 days after the date of the enactment of this Act.

It shall be the policy of the United States, consistent with the Taiwan Relations Act (Public Law 96–8; 22 U.S.C. 3301 et seq.) and the Six Assurances—

(1) to provide the people of Taiwan with de facto diplomatic treatment equivalent to foreign countries, nations, states, governments, or similar entities; and

(2) to rename the Taipei Economic and Cultural Representative Office in the United States as the Taiwan Representative Office.

The Secretary of State shall seek to enter into negotiations with the Taipei Economic and Cultural Representative Office to rename its office in Washington, DC, the Taiwan Representative Office.

If the negotiations under subsection (b) results in the renaming of the Taipei Economic and Cultural Representative Office as the Taiwan Representative Office, any reference in a law, map, regulation, document, paper, or other record of the United States Government to the Taipei Economic and Cultural Representative Office shall be deemed to be a reference to the Taiwan Representative Office, including for all official purposes of the United States Government, all courts of the United States, and any proceedings by such Government or in such courts.

This section may be cited as the Deterring America’s Technological Adversaries Act or the DATA Act.

Congress finds the following:

(1) On December 2, 2022, the Director of the Federal Bureau of Investigation, Christopher Wray, stated, We … do have national security concerns about the app TikTok. Its parent company is controlled by the Chinese government. And it gives them the potential to leverage the app in ways that I think should concern us … One, it gives them the ability to control the recommendation algorithm which allows them to manipulate content and if they want to, to use it for influence operations which are a lot more worrisome in the hands of the Chinese Communist Party than whether or not you’re steering somebody as an influencer to one product or another. They also have the ability to collect data through it on users which can be used for traditional espionage operations, for example. They also have the ability on it to get access, they have essentially access to the software to devices. So you’re talking about millions of devices and that gives them the ability to engage in different kinds of malicious cyber activity through that. And so all of these things are in the hands of a government that doesn’t share our values and that has a mission that’s very much at odds with what’s in the best interest of the United States that that should concern us..

(2) On December 3, 2022, the Director of National Intelligence, Avril Haines, It is extraordinary the degree to which China, in particular, but they’re not the only ones, obviously, are developing just frameworks for collecting foreign data and pulling it in and their capacity to then turn that around and use it to target audiences for information campaigns or for other things, but also to have it for the future so that they can use it for a variety of means that they’re interested in..

(3) On December 16, 2022, the Director of Central Intelligence, Bill Burns, stated, I think it’s a genuine concern … for the U.S. government, in the sense that, because the parent company of TikTok is a Chinese company, the Chinese government is able to insist upon extracting the private data of a lot of TikTok users in this country, and also to shape the content of what goes on to TikTok as well to suit the interests of the Chinese leadership … What I would underscore, though, is that it’s genuinely troubling to see what the Chinese government could do to manipulate TikTok..

(4) On December 23, 2022, both chambers of Congress passed a bipartisan spending bill that included a ban on using TikTok from Government devices.

No additional amounts are authorized to be made available to carry out this section.

If any provision of this section or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this section that can be given effect without the invalid provision or application, and to this end the provisions of this section are severable.

In this section:

The term agency or instrumentality of a foreign state has the meaning given such term under section 1603(b) of title 28, United States Code.

The term appropriate congressional committees means—

(A) the Committee on Foreign Affairs, Committee on Ways and Means, and the Committee on Financial Services of the House of Representatives; and

(B) the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.

The term China means—

(A) when used in the geographic sense, the country of the People’s Republic of China; and

(B) otherwise, the Government of the country of the People’s Republic of China, including any entity acting on behalf of, or the benefit of—

(i) the country of the People’s Republic of China; or

(ii) the Government of the country of the People’s Republic of China.

The term connected software application has the meaning given such term in Executive Order 14034 (86 Fed. Reg. 31423; relating to protecting Americans’ sensitive data from foreign adversaries).

The term election interference in or against a foreign country that is a treaty ally of the United States or a democratic or emerging democratic partner of the United States means actions to engage in, directly or indirectly, activities originating from, or directed by, persons located, in whole or in substantial part, outside the territory of a treaty ally of the United States or a democratic or emerging democratic partner of the United States that have the purpose or effect of tampering with, altering, unlawfully accessing, or causing a misappropriation of information with the purpose or effect of interfering with or undermining election processes or institutions.

The term election interference in or against the United States includes actions to engage in, directly or indirectly, activities originating from, or directed by persons located, in whole or in substantial part, outside the United States that—

(A) have the purpose or effect of tampering with, altering, unlawfully accessing, or causing a misappropriation of information with the purpose or effect of undermining election processes or institutions;

(B) deny access, block, degrade, or alter election and campaign infrastructure, or related systems or data related to political parties, candidates in elections for public office, the administration of elections for public office, or any public election activity; or

(C) consist of the making of contributions or donations, or any other activity prohibited under section 319 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30121), with the purpose or effect of undermining election processes or institutions.

The term foreign person —

(A) means a person that is not a United States person; and

(B) includes a nonresident alien individual, foreign corporation, foreign partnership, foreign trust, or foreign estate.

The term knowingly, with respect to conduct, a circumstance, or a result, means that a person has actual knowledge, or should have known, of the conduct, the circumstance, or the result.

The term sensitive personal data has the meaning given such term in section 7.2 of title 15, Code of Federal Regulations (or any successor regulation).

The term treaty ally of the United States means a foreign country that is a party to any of the following:

(A) The North Atlantic Treaty, signed at Washington, April 4, 1949.

(B) The Security Treaty Between Australia, New Zealand, and the United States of America, signed at San Francisco, September 1, 1951.

(C) The Mutual Defense Treaty Between the United States of America and the Republic of the Philippines, signed at Washington, August 30, 1951.

(D) The Southeast Asia Collective Defense Treaty, signed at Manila, September 8, 1954.

(E) The Treaty of Mutual Cooperation and Security Between the United States of America and Japan, signed at Washington, January 19, 1960.

(F) The Mutual Defense Treaty Between the United States of America and the Republic of Korea, signed at Washington, October 1, 1953.

The term United States person means—

(A) a United States citizen;

(B) a permanent resident alien;

(C) an entity organized under the laws of the United States (including foreign branches); or

(D) any person in the United States.

The importation to a country, or the exportation from a country, of sensitive personal data shall not constitute the importation from a country, or the exportation to a country, of information or informational materials for purposes of paragraph (1) or (3) of section 203(b) of the International Emergency Economic Powers Act (50 U.S.C. 1702(b)).

Nothing in paragraph (1), and nothing in the International Emergency Economic Powers Act, may be construed to provide for the application of paragraph (1) or (3) of section 203(b) of the International Emergency Economic Powers Act (50 U.S.C. 1702(b)) to the importation to China, or the exportation from China, directly or indirectly, of sensitive personal data.

Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury shall issue a directive prohibiting United States persons from engaging in any transaction with a person that the Secretary of the Treasury determines knowingly provides or may transfer sensitive personal data of persons subject to United States jurisdiction to any foreign person that—

(A) is subject to the jurisdiction or direction of, or directly or indirectly operating on behalf of, China; or

(B) is owned by, directly or indirectly controlled by, or is otherwise subject to the influence of China.

The President shall impose the sanction described in paragraph (2) with respect to any foreign person that, on or after the date of the enactment of this Act, knowingly—

(i) operates, directs, or otherwise deals in a connected software application that—

(I) is subject to the jurisdiction or direction of, or directly or indirectly operating on behalf of China, or is owned by, directly or indirectly controlled by, or otherwise subject to the influence of China; and

(II) is reasonably believed to have facilitated or may be facilitating or contributing to China’s—

(aa) military, intelligence, espionage, or weapons proliferation activities;

(bb) censorship activities;

(cc) surveillance activities;

(dd) control or use of recommendation algorithms that are capable of manipulating content;

(ee) malicious cyber activities; or

(ff) use of data to target audiences for information campaigns;

(ii) directly or indirectly orders, controls, directs, engages in, or otherwise facilitates an act of election interference against the United States;

(iii) directly or indirectly orders, controls, directs, engages in, or otherwise facilitates an act of election interference in or against a foreign country that is—

(I) a treaty ally of the United States; or

(II) a democratic or emerging democratic partner of the United States;

(iv) directly or indirectly orders, controls, directs, engages in, or otherwise facilitates an act of steering United States policy and regulatory decisions in favor of China’s strategic objectives, to the detriment of the economic or national security of the United States;

(v) knowingly facilitates a transaction or transactions for or on behalf of a person described, or a person that has engaged in the activity described, as the case may be, in clause (i), (ii), (iii), (iv);

(vi) knowingly assists, sponsors, or provides financial, material, or technological support for a person described, or a person that has engaged in the activity described, as the case may be, in clause (i), (ii), (iii), (iv);

(vii) is owned or controlled by, or has acted for or on behalf of, directly or indirectly, a person described, or a person that has engaged in the activity described, as the case may be, in clause (i), (ii), (iii), (iv).

Not later than 90 days after the date of the enactment of this Act, the President shall submit to the appropriate congressional committees—

(I) a definition of the term democratic or emerging democratic partner of the United States; and

(II) a list of foreign countries that are designated as a democratic or emerging democratic partner of the United States for purposes of subparagraph (A)(iii) that includes the countries listed in clause (ii).

Sweden, Switzerland, Israel, India, and Taiwan shall be deemed to have been so designated as a democratic or emerging democratic partner of the United States for purposes of subparagraph (A)(iii).

The President shall submit to the appropriate congressional committees an updated list under subclause (I) on a periodic basis.

The sanction described in this paragraph is the exercise of all powers granted to the President by the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (except that the requirements of section 202 of such Act (50 U.S.C. 1701) shall not apply) to the extent necessary to block and prohibit all transactions in all property and interests in property of any foreign person or an agency or instrumentality of a foreign state, as the case may be, if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.

The President may exercise all authorities provided under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this section.

The President shall prescribe such regulations as may be necessary for the implementation of this section.

Not later than 10 days before the prescription of regulations under clause (i), the President shall brief the appropriate congressional committees regarding the proposed regulations and the provisions of this section that such regulations are implementing.

A person that violates, attempts to violate, or causes a violation of any sanction authorized by this section, or any regulation, license, or order issued to carry out such sanctions, shall be subject to the penalties set forth in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) to the same extent as a person that commits an unlawful act described in subsection (a) of that section.

The following activities shall not be subject to the imposition of sanctions under this section:

(i) Any authorized intelligence, law enforcement, or national security activities of the United States.

(ii) Any transaction necessary to comply with United States obligations under the Agreement between the United Nations and the United States of America regarding the Headquarters of the United States, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, or the Convention on Consular Relations, done at Vienna April 24, 1963, and entered into force March 19, 1967, or any other United States international agreement.

The President may, on a case-by-case basis and for periods not to exceed 180 days each, waive the application of sanctions imposed with respect to a foreign person under this section if the President certifies to the appropriate congressional committees, not later than 15 days before such waiver is to take effect, that the waiver is vital to the national security interests of the United States.

This section, and the authorities provided by this section, shall terminate on the date that is 5 years after the date of the enactment of this Act.

Not later than 90 days after the date of the enactment of this Act, and every 180 days thereafter for 3 years, the President shall transmit to the appropriate congressional committees a determination of whether reasonable grounds exist for concluding that any of the entities described in subparagraph (B)—

(i) meets the criteria described in subparagraph (A) or (B) of subsection (f)(2) for purposes of applying a directive described in such section with respect to the entity; or

(ii) have engaged in any conduct described in subsection (g)(1).

The entities described in this subsection are—

(i) Bytedance, Ltd.;

(ii) TikTok;

(iii) any subsidiary of or a successor to an entity described in clause (i) or (ii); and

(iv) any entity owned or controlled directly or indirectly by an entity described in clause (i), (ii), or (iii).

The determination described in subparagraph (A) shall be transmitted in unclassified form, and any supporting documentation may be transmitted in a classified annex.

If the President makes an affirmative decision under subparagraph (A) with respect to any entity described in subparagraph (B), the President shall impose the sanction described in subsection (g)(2) with respect to the entity, as appropriate.

Not later than 120 days after receiving a request from the chairperson or ranking member of one or more of the appropriate congressional committees with respect to whether a foreign person meets the criteria described in subparagraph (A) or of subsection (f)(2) for purposes of applying a directive described in such section with respect to the person, or have engaged in any conduct described in section 201 for the imposition of the sanction described in subsection (g)(2), the President shall—

(i) determine if that person meets the requirements described in the applicable section; and

(ii) submit to the chairperson and ranking member of the committee or committees a report that includes—

(I) a statement of whether or not the President imposed or intends to impose such sanction with respect to the person; and

(II) if applicable, a description of the sanction so imposed or intended to be imposed.

Any information obtained at any time with respect to the President making a determination with respect to a foreign person under subparagraph (A), or under any review of the foreign person through other United States Government national security review processes, shall be made available to a committee or subcommittee of Congress of appropriate jurisdiction, upon the request of the chairman or ranking minority member of such committee or subcommittee.

No such committee or subcommittee, or member thereof, may disclose any information made available under clause (i), that is submitted on a confidential basis unless the full committee determines that the withholding of that information is contrary to the national interest.

Each determination described in subparagraph (A)(i), and each report under subparagraph (A)(ii), may be submitted in classified or unclassified form, and any supporting documentation to such determination or report may contain a classified annex.

This section may be cited as the Sanctioning Supporters of Slave Labor Act.

Section 6 of the Uyghur Human Rights Policy Act of 2020 (Public Law 116–145; 22 U.S.C. 6901 note) is amended—

(A) in subsection (a)—

(i) by redesignating paragraph (2) as paragraph (3); and

(ii) by inserting after paragraph (1) the following:; and

The President shall include in the report required by paragraph (1) an identification of—

(A) each foreign person that knowingly provides significant goods, services, or technology to or for a person identified in such report; and

(B) each foreign person that knowingly engages in a significant transaction relating to any of the acts described in subparagraphs (A) through (F) of paragraph (1).

(B) in subsection (b), by striking subsection (a)(1) and inserting subsection (a).

The amendments made by subsection (a)—

(A) take effect on the date of the enactment of this Act; and

(B) apply with respect to each report required by section 6(a) of the Uyghur Human Rights Policy Act of 2020 submitted before, on, or after such date of enactment.

This section may be cited as the Countering Atrocities through Currency Accountability Act of 2024.

Congress finds the following:

(1) The United States dollar composes nearly two-thirds of the world’s currency reserves, with more than one trillion dollars being owned by the Government of China as of October 2020.

(2) It is the policy of the United States to advance freedom and human rights globally, a policy that is incompatible with egregious human rights violations, and as such has a responsibility to ensure that the United States currency market does not complicitly support perpetrators of these abuses.

(3) In regions of the world where political, governmental, or other realities preclude humanitarian due diligence practices from ensuring the currency market of the United States is not interwoven with entities’ egregious human rights violations, additional measures must be taken to separate the economy of the United States from these violations, as well as to apply pressure on relevant actors to uphold their humanitarian responsibilities.

Chapter 53 of title 31, United States Code, is amended by inserting after section 5318A the following:

The Secretary of the Treasury shall require domestic financial institutions and domestic financial agencies to take 1 or more of the special measures described in subsection (b) if the Secretary finds that reasonable grounds exist for concluding that a jurisdiction outside of the United States, 1 or more financial institutions operating outside of the United States, 1 or more classes of transactions within, or involving, a jurisdiction outside of the United States, or 1 or more types of accounts is of primary humanitarian concern, in accordance with subsection (c).

The special measures described in—

(A) subsection (b) shall be imposed in such sequence or combination as the Secretary shall determine; and

(B) paragraphs (1) through (5) of subsection (b) shall be imposed by regulation, order, or otherwise as permitted by law.

Any order by which a special measure described in paragraphs (1) through (5) of subsection (b) is imposed—

(A) shall be issued together with a notice of proposed rulemaking relating to the imposition of such special measure; and

(B) may not be terminated unless the Secretary—

(i) certifies to Congress that the applicable jurisdiction, financial institution, class of transaction, or type of account is no longer of primary humanitarian concern; and

(ii) not more than 30 days before the date of such termination, notifies, in writing, the Committees on Financial Services and Foreign Affairs of the House of Representatives and the Committees on Banking, Housing, and Urban Affairs and Foreign Relations of the Senate of such termination.

The Secretary shall waive the application of any special measure required by the Secretary under paragraph (1) with respect to a transaction related to the production, manufacture, or commerce related to rare earth minerals if the Secretary determines such waiver is necessary on national security grounds.

A waiver issued under subparagraph (A) may not be for longer than one year, but such a waiver may be renewed.

If the Secretary issues (or renews) a waiver under this paragraph, the Secretary shall provide the Committees on Financial Services and Foreign Affairs of the House of Representatives and the Committees on Banking, Housing, and Urban Affairs and Foreign Relations of the Senate with a written justification for such waiver. Such justification shall be submitted in unclassified form, but may include a classified annex.

If the Secretary issues a waiver under this paragraph, the Secretary, in consultation with the Secretary of Commerce and the Secretary of the Interior, shall provide the following information to the public, including on the website of the Department of the Treasury:

(i) Opportunities for public-private partnerships to increase domestic production of rare earth elements and intermediate and finished products containing rare earth elements, including permanent magnets.

(ii) Information regarding the relationship between the reason the applicable jurisdiction, financial institution, class of transaction, or type of account was found to be of primary humanitarian concern and the production, manufacture, or commerce related to rare earth minerals.

This section shall not be construed as superseding or otherwise restricting any other authority granted to the Secretary, or to any other agency, by this subchapter or otherwise.

The special measures referred to in subsection (a), with respect to a jurisdiction outside of the United States, financial institution operating outside of the United States, class of transaction within, or involving, a jurisdiction outside of the United States, or 1 or more types of accounts are as follows:

The Secretary of the Treasury may require any domestic financial institution or domestic financial agency to maintain records, file reports, or both, concerning the aggregate amount of transactions, or concerning each transaction, with respect to a jurisdiction outside of the United States, 1 or more financial institutions operating outside of the United States, 1 or more classes of transactions within, or involving, a jurisdiction outside of the United States, or 1 or more types of accounts if the Secretary finds any such jurisdiction, institution, class of transactions, or type of account to be of primary humanitarian concern.

Such records and reports shall be made and retained at such time, in such manner, and for such period of time, as the Secretary shall determine, and shall include such information as the Secretary may determine, including—

(i) the identity and address of the participants in a transaction or relationship, including the identity of the originator of any funds transfer;

(ii) the legal capacity in which a participant in any transaction is acting;

(iii) the identity of the beneficial owner of the funds involved in any transaction, in accordance with such procedures as the Secretary determines to be reasonable and practicable to obtain and retain the information; and

(iv) a description of any transaction.

In addition to any other requirement under any other provision of law, the Secretary shall require any domestic financial institution or domestic financial agency to take such steps as the Secretary may determine to be reasonable and practicable to obtain and retain information concerning the beneficial ownership of any account opened or maintained in the United States by a foreign person, or a representative of such a foreign person, that involves a jurisdiction outside of the United States, 1 or more financial institutions operating outside of the United States, 1 or more classes of transactions within, or involving, a jurisdiction outside of the United States, or 1 or more types of accounts if the Secretary finds any such jurisdiction, institution, or transaction or type of account to be of primary humanitarian concern.

If the Secretary finds a jurisdiction outside of the United States, 1 or more financial institutions operating outside of the United States, or 1 or more classes of transactions within, or involving, a jurisdiction outside of the United States to be of primary humanitarian concern, the Secretary shall require any domestic financial institution or domestic financial agency that opens or maintains a payable-through account in the United States for a foreign financial institution involving any such jurisdiction or any such financial institution operating outside of the United States, or a payable through account through which any such transaction may be conducted, as a condition of opening or maintaining such account—

(A) to identify each customer (and representative of such customer) of such financial institution who is permitted to use, or whose transactions are routed through, such payable-through account; and

(B) to obtain, with respect to each such customer (and each such representative), information that is substantially comparable to that which the depository institution obtains in the ordinary course of business with respect to its customers residing in the United States.

If the Secretary finds a jurisdiction outside of the United States, 1 or more financial institutions operating outside of the United States, or 1 or more classes of transactions within, or involving, a jurisdiction outside of the United States to be of primary humanitarian concern, the Secretary shall require any domestic financial institution or domestic financial agency that opens or maintains a correspondent account in the United States for a foreign financial institution involving any such jurisdiction or any such financial institution operating outside of the United States, or a correspondent account through which any such transaction may be conducted, as a condition of opening or maintaining such account—

(A) to identify each customer (and representative of such customer) of any such financial institution who is permitted to use, or whose transactions are routed through, such correspondent account; and

(B) to obtain, with respect to each such customer (and each such representative), information that is substantially comparable to that which the depository institution obtains in the ordinary course of business with respect to its customers residing in the United States.

If the Secretary finds a jurisdiction outside of the United States, 1 or more financial institutions operating outside of the United States, or 1 or more classes of transactions within, or involving, a jurisdiction outside of the United States to be of primary humanitarian concern, the Secretary, in consultation with the Secretary of State, the Attorney General, and the Chairman of the Board of Governors of the Federal Reserve System, shall prohibit, or impose conditions upon, the opening or maintaining in the United States of a correspondent account or payable-through account by any domestic financial institution or domestic financial agency, if such correspondent account or payable-through account involves any such jurisdiction or institution, or if any such transaction may be conducted through such correspondent account or payable-through account.

In making a finding that reasonable grounds exist for concluding that a jurisdiction outside of the United States, 1 or more financial institutions operating outside of the United States, 1 or more classes of transactions within, or involving, a jurisdiction outside of the United States, or 1 or more types of accounts is of primary humanitarian concern so as to authorize the Secretary of the Treasury to take 1 or more of the special measures described in subsection (b), the Secretary shall consult with the Secretary of State, the Attorney General, and the Secretary of Commerce.

In making a finding described in paragraph (1), the Secretary shall consider in addition such information as the Secretary determines to be relevant, including the following potentially relevant factors:

In the case of a particular jurisdiction—

(i) covered human rights violations have been or are being committed by an individual, group of individuals, corporation, organization, government, or other state or non-state actor, and that they have transacted business in that jurisdiction;

(ii) the extent to which covered human rights violations in that jurisdiction enable, support, or are connected to transacted business therein;

(iii) the substance and quality of administration of the human rights laws of that jurisdiction pertaining to covered human rights violations;

(iv) the jurisdiction is characterized as committing covered human rights violations by credible international organizations or multilateral expert groups;

(v) the jurisdiction is characterized by a disregard for human rights; or

(vi) whether the United States has issued or maintained formal genocide or crimes against humanity determinations covering that jurisdiction within the previous 5 years.

In the case of a decision to apply 1 or more of the special measures described in subsection (b) only to a financial institution or institutions, or to a transaction or class of transactions, or to a type of account, or to all 3, within or involving a particular jurisdiction—

(i) such financial institutions, classes of transactions, or types of accounts are used to facilitate or promote covered human rights violations in or through the jurisdiction; and

(ii) whether such action is sufficient to ensure, with respect to transactions involving the jurisdiction and institutions operating in the jurisdiction, that the purposes of this subchapter continue to be fulfilled, and to guard against covered human rights violations.

Not later than 10 days after the date of any action taken by the Secretary of the Treasury under subsection (a)(1), the Secretary shall notify, in writing, the Committee on Financial Services of the House of Representatives, the Committee on Foreign Affairs of the House of Representatives, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Committee on Foreign Relations of the Senate of any such action.

Each financial institution that establishes, maintains, administers, or manages a private banking account or a correspondent account in the United States for a non-United States person, including a foreign individual visiting the United States, or a representative of a non-United States person shall establish appropriate, specific, and, where necessary, enhanced, due diligence policies, procedures, and controls that are reasonably designed to detect and report instances of covered human rights violations through those accounts.

Subparagraph (B) shall apply if a correspondent account is requested or maintained by, or on behalf of, a foreign bank operating—

(i) under an offshore banking license; or

(ii) under a banking license issued by a foreign country that has been designated—

(I) as noncooperative with international human rights principles or procedures by the United States or an intergovernmental group or organization of which the United States is a member, with which designation the United States representative to the group or organization concurs; or

(II) by the Secretary as warranting special measures due to concerns with covered human rights violations.

The enhanced due diligence policies, procedures, and controls required under paragraph (1) shall, at a minimum, ensure that the financial institution in the United States takes reasonable steps—

(i) to ascertain for any such foreign bank, the shares of which are not publicly traded, the identity of each of the owners of the foreign bank, and the nature and extent of the ownership interest of each such owner;

(ii) to conduct enhanced scrutiny of such account to ensure the account is not associated with covered human rights violations and report any suspicious transactions under section 5318(g); and

(iii) to ascertain whether such foreign bank provides correspondent accounts to other foreign banks and, if so, the identity of those foreign banks and related due diligence information, as appropriate under paragraph (1).

If a private banking account is requested or maintained by, or on behalf of, a non-United States person, then the due diligence policies, procedures, and controls required under paragraph (1) shall, at a minimum, ensure that the financial institution takes reasonable steps—

(A) to ascertain the identity of the nominal and beneficial owners of, and the source of funds deposited into, such account as needed to guard against supporting covered human rights violations and report any suspicious transactions under section 5318(g); and

(B) to conduct enhanced scrutiny of any such account that is requested or maintained by, or on behalf of, a senior foreign political figure, or any immediate family member or close associate of a senior foreign political figure, that is reasonably designed to detect and report transactions that may involve the proceeds of covered human rights violations.

In this subsection:

The term offshore banking license means a license to conduct banking activities which, as a condition of the license, prohibits the licensed entity from conducting banking activities with the citizens of, or with the local currency of, the country which issued the license.

The term private banking account means an account (or any combination of accounts) that—

(i) requires a minimum aggregate deposit of funds or other assets of not less than $500,000;

(ii) is established on behalf of 1 or more individuals who have a direct or beneficial ownership interest in the account; and

(iii) is assigned to, or is administered or managed by, in whole or in part, an officer, employee, or agent of a financial institution acting as a liaison between the financial institution and the direct or beneficial owner of the account.

In this section:

The term covered human rights violation means—

(A) an offense described under chapter 50A of title 18, United States Code; and

(B) crimes against humanity.

The term Xinjiang means the Xinjiang Uyghur Autonomous Region, People’s Republic of China.

The definitions under section 5318A(e) shall apply to this section.

The table of contents for chapter 53 of title 31, United States Code, is amended by inserting after the item relating to section 5318A the following:

Not later than 180 days after the date of enactment of this Act, the Secretary of the Treasury, in consultation with the Secretary of State and the Secretary of Commerce, shall determine whether reasonable grounds exist to determine that Xinjiang Uyghur Autonomous Region, People’s Republic of China, is a jurisdiction of primary humanitarian concern under section 5318B of title 31, United States Code.

As soon as practicable after the determination required under paragraph (1), the Secretary of the Treasury shall issue a report to the Congress containing the following:

(A) Whether the Secretary determines that reasonable grounds exist to determine that Xinjiang is a jurisdiction of primary humanitarian concern.

(B) If so, which special measures described under subsection (b) of such section 5318B, if any, the Secretary of the Treasury shall require domestic financial institutions and domestic financial agencies to take with respect to Xinjiang.

(C) If not, a detailed explanation of the Secretary’s reasoning in making such determination and evidence supporting that determination.

The report submitted pursuant to paragraph (1) shall be submitted in unclassified form, but may include a classified annex.

Not later than 120 days after the date of enactment of this Act, the Secretary of State shall issue a report to the Congress containing a description of the following:

(1) Polysilicate production in Xinjiang.

(2) The use of forced labor in polysilicate production and trade.

(3) The role of the Chinese Government and its affiliated actors, including the Xinjiang Production and Construction Corps, in polysilicate production and trade.

(4) The impacts of Chinese polysilicate production on international markets and ethical implications thereof.

Section 1237(a)(1) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (50 U.S.C. 1701 note) is amended—

(1) by striking may exercise and inserting shall exercise;

(2) by striking clause (ii);

(3) in the matter preceding clause (i), by striking that— and inserting that is engaged in providing commercial services, manufacturing, producing, or exporting and—;

(4) in clause (i), by striking; and and inserting; or; and

(5) by adding at the end the following new clause:

(I) is owned or controlled by, or affiliated with, the Chinese Communist Party or any person who has ever been a delegate of a National People’s Congress of the Chinese Communist Party; and

(II) is engaged in significant investment in the sectors of fifth-generation wireless communications, artificial intelligence, advanced computing, big data analytics, autonomy, robotics, directed energy, hypersonics, or biotechnology.

Notwithstanding section 1061(i)(6) of the National Defense Authorization Act for Fiscal Year 2017 (10 U.S.C. 111 note), the submission required by subsection (b) of section 1237 of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999—

(1) shall not terminate on December 31, 2021; and

(2) shall continue in effect until December 31, 2026.

None of the funds authorized to be appropriated or otherwise made available for fiscal year 2020 and available for obligation as of the date of the enactment of this Act, or authorized to be appropriated or otherwise made available for fiscal year 2021 or any fiscal year thereafter, may be obligated or expended to purchase goods or services from a person on the list required by section 1237(b) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (Public Law 105–261; 50 U.S.C. 1701 note).

The prohibition under subsection (a) includes a prohibition on the obligation or expenditure of funds described in that subsection for the purchase of goods or services from persons described in that subsection by a private entity or a State or local government that received such funds through a grant or any other means.

On and after the date of the enactment of this Act, the head of an executive agency shall ensure that funds described in subsection (a) are not provided to a private entity or a State or local government unless the entity or government certifies that the entity or government, as the case may be, is not purchasing goods or services from a person described in subsection (a).

The head of an executive agency shall conduct a review of the use of funds described in subsection (a) that are provided to a private entity or a State or local government to ensure compliance with the requirements of subparagraph (A).

In this section, the term executive agency has the meaning given that term in section 133 of title 41, United States Code.

The provisions of Executive Order 13959 (85 Fed. Reg. 73185; relating to addressing the threat from securities investments that finance Communist Chinese military companies (November 12, 2020)), as in effect on January 14, 2021, are enacted into law.

In publishing this Act in slip form and in the United States Statutes at Large pursuant to section 112 of title 1, United States Code, the Archivist of the United States shall include after the date of approval at the end an appendix setting forth the text of the Executive order referred to in subsection (a), as in effect on January 14, 2021.

Notwithstanding any other provision of a law, an entity described in subsection (b) shall be deemed to be included on the Annex to Executive Order 13959, as in effect on January 14, 2021, and enacted into law by section 1(a) for purposes of carrying out the provisions of such Executive order.

An entity described in this subsection is an entity that—

(1) is organized under the laws of the People’s Republic of China or otherwise subject to the jurisdiction of the Government of the People’s Republic of China; and

(2) is included on the list maintained and set forth in Supplement No. 4 to part 744 of the Export Administration Regulations.

In this section, the term Export Administration Regulations means the regulations set forth in subchapter C of chapter VII of title 15, Code of Federal Regulations, or successor regulations.

Section 3 of the Arms Export Control Act (22 U.S.C. 2753) is amended—

(1) in subsection (b)(2), by striking or the Government of New Zealand and inserting the Government of New Zealand, or the Government of India; and

(2) in subsection (d), by striking or New Zealand each place it appears and inserting New Zealand, or India.

Section 21 of the Arms Export Control Act (22 U.S.C. 2761) is amended—

(1) in subsection (e)(2)(A), by striking or New Zealand and inserting New Zealand, or India; and

(2) in subsection (h), by striking or Israel each place it appears and inserting Israel, or India.

Section 36 of the Arms Export Control Act (22 U.S.C. 2776) is amended by striking or New Zealand each place it appears and inserting New Zealand, or India.

Section 62(c)(1) of the Arms Export Control Act (22 U.S.C. 2796a) is amended by striking or New Zealand and inserting New Zealand, or India.

Section 63(a)(2) of the Arms Export Control Act (22 U.S.C. 2796b) is amended by striking or New Zealand and inserting New Zealand, or India.

The President shall impose the sanctions described in subsection (b) with respect to each person described in subsection (c) the President determines, on or after the date of enactment of this Act, operates in a sector of China’s economy wherein persons have engaged in a pattern of significant theft of the intellectual property of a United States person, or received the intellectual property of a United States person obtained through a pattern of significant theft.

The sanctions described in this subsection are the following:

The exercise of all powers granted to the President by the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all transactions in all property and interests in property of a person described in subsection (a) if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.

An alien described in subsection (a) is—

(i) inadmissible to the United States;

(ii) ineligible to receive a visa or other documentation to enter the United States; and

(iii) otherwise ineligible to be admitted or paroled into the United States or to receive any other benefit under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.).

The issuing consular officer, the Secretary of State, or the Secretary of Homeland Security (or a designee of one of such Secretaries) shall, in accordance with section 221(i) of the Immigration and Nationality Act (8 U.S.C. 1201(i)), revoke any visa or other entry documentation issued to an alien who the Secretary of State or the Secretary of Homeland Security (or a designee of one of such Secretaries) determines is described in subsection (a), regardless of when the visa or other documentation is issued.

A revocation under clause (i) shall take effect immediately and shall automatically cancel any other valid visa or entry documentation that is in the alien’s possession.

The authority to impose the sanctions described in paragraph (2)(B) shall not apply to an alien if admitting the alien into the United States is necessary to permit the United States to comply with the Agreement regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, between the United Nations and the United States, or other applicable international obligations.

A person described in this section is one of the following:

(1) An individual who—

(A) is a national of the People’s Republic of China or acting at the direction of a national or entity of the People’s Republic of China; and

(B) is not a United States person.

(2) An entity that is—

(A) organized under the laws of the People’s Republic of China or of any jurisdiction within the People’s Republic of China;

(B) owned or controlled by individuals who are nationals of the People’s Republic of China; or

(C) owned or controlled by an entity described in subparagraph (A) and is not a United States person.

A person that violates, attempts to violate, conspires to violate, or causes a violation of subsection (a) or any regulation, license, or order issued to carry out subsection (a) shall be subject to the penalties set forth in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) to the same extent as a person that commits an unlawful act described in subsection (a) of that section.

The President may exercise all authorities provided to the President under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) for purposes of carrying out this section.

Not later than 180 days after the date of the enactment of this Act, the President shall submit to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate a report that specifies each person the President determines meets the criteria described in subsection (a) for the imposition of sanctions.

The President may terminate sanctions imposed under subsection (a) with respect to a person if the President certifies to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate that such person is no longer engaging in efforts to steal United States intellectual property.

The President may waive the imposition of sanctions under subsection (a) on a case-by-case basis with respect to a person if the President—

(1) certifies to the Committee on Foreign Affairs and the Committee on the Judiciary of the House of Representatives and the Committee on Foreign Relations and the Committee on the Judiciary of the Senate that such waiver is in the national security interests of the United States; and

(2) includes a justification for such certification.

In this Act:

The terms admitted and alien have the meanings given those terms in section 101 of the Immigration and Nationality Act (8 U.S.C. 1101).

The term United States person means—

(A) an individual who is a United States citizen or an alien lawfully admitted for permanent residence to the United States; or

(B) an entity organized under the laws of the United States or of any jurisdiction within the United States.

None of the funds authorized to be appropriated or otherwise made available to the United States Trade Representative may be used to support, allow, or facilitate the negotiation or approval of—

(1) the Waiver from Certain Provisions of the TRIPS Agreement for the Prevention, Containment, and Treatment of COVID–19 put forth by India and South Africa; or

(2) any other measure at the World Trade Organization to waive intellectual property rights.

Section 3002 of the Intelligence Reform and Terrorism Prevention Act of 2004 (50 U.S.C. 3343) is amended by adding at the end the following new subsection:

A covered person may not be employed by, contract with, or otherwise receive funding from, any covered entity during the following periods:

(A) A period in which the person holds a security clearance.

(B) The 5-year period beginning on the date that the security clearance of a person becomes inactive.

Any person who knowingly violates the prohibition in paragraph (1) shall be fined under title 18, United States Code, or imprisoned for not more than 5 years, or both.

A person who holds a security clearance shall be notified of the prohibition in paragraph (1), including a list of the covered entities, as follows:

(A) At the time at which the person is issued the security clearance.

(B) At the time at which the security clearance of the person is renewed.

(C) At the time at which the security clearance of the person becomes inactive.

Subject to subparagraph (B), in this subsection, the term covered entity means any of the following entities (including any subsidiary or affiliate of such entities):

(i) Huawei Technologies Company.

(ii) ZTE Corporation.

(iii) Hytera Communications Corporation.

(iv) Hangzhou Hikvision Digital Technology Company.

(v) Dahua Technology Company.

(vi) Kaspersky Lab.

The Director of National Intelligence, in consultation with the Secretary of Defense or the Director of the Federal Bureau of Investigation, may add or remove entities to the list of covered entities in subparagraph (A) based on whether the Director determines there is reasonable belief that the entity is owned or controlled by, or otherwise connected to or receiving financial support from, the government of the People’s Republic of China, the government of the Russian Federation, the government of the Islamic Republic of Iran, or the government of the Democratic People’s Republic of Korea.

Subsection (e) of section 3002 of the Intelligence Reform and Terrorism Prevention Act of 2004 (50 U.S.C. 3343) shall apply with respect to an individual who is employed by, contracts with, or otherwise receives funding from, any covered entity under such subsection on or after the date of the enactment of this Act.

Not later than 30 days after the date of the enactment of this Act, each person who holds a security clearance as of such date shall be notified of the prohibition in such subsection (e), including a list of the covered entities under such subsection.

The Secretary of State may not issue a visa to, and the Secretary of Homeland Security shall deny entry to the United States of, each of the following:

(1) Senior officials in the Chinese Communist Party, including the Politburo, the Central Committee, and each delegate to the 19th National Congress of the Chinese Communist Party.

(2) The spouses and children of the senior officials described in paragraph (1).

(3) Members of the cabinet of the Government of the People’s Republic of China.

(4) Active duty members of the People’s Liberation Army of China.

The restriction under subsection (a) shall not apply for any year in which the Director of National Intelligence certifies to the Committees on the Judiciary of the House of Representatives and the Senate that the Government of the People’s Republic of China has ceased sponsoring, funding, facilitating, and actively working to support efforts to infringe on the intellectual property rights of citizens and companies of the United States.

Section 316(a) of title 35, United States Code, is amended—

(1) in paragraph (9), by inserting after substitute claims, the following: including the standard for how substitute claims should be construed,;

(2) in paragraph (12), by striking; and and inserting a semicolon;

(3) in paragraph (13), by striking the period at the end and inserting; and; and

(4) by adding at the end the following new paragraph:

(14) providing that for all purposes under this chapter—

(A) each challenged claim of a patent, or claim proposed in a motion to amend, shall be construed as the claim would be construed under section 282(b) in an action to invalidate a patent, including by construing each such claim in accordance with—

(i) the ordinary and customary meaning of the claim as understood by a person having ordinary skill in the art to which the claimed invention pertains; and

(ii) the prosecution history pertaining to the patent; and

(B) if a court has previously construed a challenged claim of a patent or a challenged claim term in a civil action to which the patent owner was a party, the Office shall consider that claim construction.

Section 316(e) of title 35, United States Code, is amended to read as follows:

The presumption of validity under section 282(a) shall apply to a previously issued claim that is challenged during an inter partes review under this chapter.

In an inter partes review instituted under this chapter, the petitioner shall have the burden of proving a proposition of unpatentability of a previously issued claim by clear and convincing evidence.

Section 311 of title 35, United States Code, is amended by adding at the end the following new subsection:

In this subsection, the term charged with infringement means a real and substantial controversy regarding infringement of a patent exists such that the petitioner would have standing to bring a declaratory judgment action in Federal court.

A person may not file with the Office a petition to institute an inter partes review of a patent unless the person, or a real party in interest or privy of the person, has been—

(A) sued for infringement of the patent; or

(B) charged with infringement under the patent.

Section 314(a) of title 35, United States Code, is amended to read as follows:

Subject to paragraph (2), the Director may not authorize an inter partes review to be instituted unless the Director determines that the information presented in the petition filed under section 311 and any response filed under section 313 show that there is a reasonable likelihood that the petitioner would prevail with respect to at least one of the claims challenged in the petition.

The Director may not authorize an inter partes review to be instituted on a claim challenged in a petition if the Director has previously instituted an inter partes review or post-grant review with respect to that claim.

Section 314 of title 35, United States Code, is amended by striking subsection (d) and inserting the following:

A determination by the Director on the reasonable likelihood that the petitioner will prevail under subsection (a)(1) shall be final and nonappealable.

A determination by the Director not to institute an inter partes review under this section shall be final and nonappealable.

Any aspect of a determination by the Director to institute an inter partes review under this section, other than a determination described in paragraph (1)(A), may be reviewed during an appeal of a final written decision issued under section 318(a).

Section 315(e) of title 35, United States Code, is amended to read as follows:

A person petitioning for an inter partes review of a claim in a patent under this chapter, or the real party in interest or privy of the petitioner, may not petition for a subsequent inter partes review before the Office with respect to that patent on any ground that the petitioner raised or reasonably could have raised in the initial petition, unless, after the filing of the initial petition, the petitioner, or the real party in interest or privy of the petitioner, is charged with infringement of additional claims of the patent.

A person petitioning for an inter partes review of a claim in a patent under this chapter that results in an institution decision under section 314, or the real party in interest or privy of the petitioner, may not assert either in a civil action arising in whole or in part under section 1338 of title 28 or in a proceeding before the International Trade Commission under section 337 of the Tariff Act of 1930 (19 U.S.C. 1337) that the claim is invalid based on section 102 or 103 of this title, unless the invalidity argument is based on allegations that the claimed invention was in public use, on sale, or otherwise available to the public before the effective filing date of the claimed invention.

Section 315 of title 35, United States Code, is amended by adding at the end the following new subsection:

For purposes of this chapter, a person that directly or through an affiliate, subsidiary, or proxy makes a financial contribution to the preparation for, or conduct during, an inter partes review on behalf of the petitioner shall be considered a real party in interest of the petitioner.

Section 316(a)(5) of title 35, United States Code, is amended to read as follows:

(5) setting forth standards and procedures for discovery of relevant evidence, including that such discovery shall be limited to—

(A) the deposition of witnesses submitting affidavits or declarations;

(B) evidence identifying the petitioner’s real parties in interest; and

(C) what is otherwise necessary in the interest of justice;

Section 315 of title 35, United States Code, as amended by subsections (f) and (g), is further amended—

(A) by redesignating subsections (c) through (f) as sections (d) through (g), respectively; and

(B) by inserting after subsection (b) the following new subsection:

An inter partes review of a patent claim may not be instituted if, in a civil action arising in whole or in part under section 1338 of title 28 or in a proceeding before the International Trade Commission under section 337 of the Tariff Act of 1930 (19 U.S.C. 1337), a court has entered a final judgment—

(A) that decides the validity of the patent claim with respect to section 102 or 103; and

(B) from which an appeal under section 1295 of title 28 may be taken, or from which an appeal under section 1295 of title 28 was previously available but is no longer available.

If, in a civil action arising in whole or in part under section 1338 of title 28 or in a proceeding before the International Trade Commission under section 337 of the Tariff Act of 1930 (19 U.S.C. 1337), a court has entered a final judgment that decides the validity of a patent claim with respect to section 102 or 103 and from which an appeal under section 1295 of title 28 may be taken, the Patent Trial and Appeal Board shall stay any ongoing inter partes review of that patent claim pending a final decision.

If the validity of a patent claim described in subparagraph (A) is finally upheld by a court or the International Trade Commission, as applicable, the Patent Trial and Appeal Board shall terminate the inter partes review.

Chapter 31 of title 35, United States Code, is amended—

(A) in section 315(b), by striking subsection (c) and inserting subsection (d);

(B) in section 316(a)—

(i) in paragraph (11), by striking section 315(c) and inserting section 315(d); and

(ii) in paragraph (12), by striking section 315(c) and inserting section 315(d); and

(C) in section 317(a), by striking section 315(e) and inserting section 315(f).

Section 326(a) of title 35, United States Code, is amended—

(1) in paragraph (9), by inserting after substitute claims, the following: including the standard for how substitute claims should be construed,;

(2) in paragraph (11), by striking; and and inserting a semicolon;

(3) in paragraph (12), by striking the period at the end and inserting; and; and

(4) by adding at the end the following new paragraph:

(13) providing that for all purposes under this chapter—

(A) each challenged claim of a patent shall be construed as the claim would be construed under section 282(b) in an action to invalidate a patent, including by construing each challenged claim of the patent in accordance with—

(i) the ordinary and customary meaning of the claim as understood by a person having ordinary skill in the art to which the claimed invention pertains; and

(ii) the prosecution history pertaining to the patent; and

(B) if a court has previously construed a challenged claim of a patent or a challenged claim term in a civil action to which the patent owner was a party, the Office shall consider that claim construction.

Section 326(e) of title 35, United States Code, is amended to read as follows:

The presumption of validity under section 282(a) shall apply to a previously issued claim that is challenged during a proceeding under this chapter.

In a post-grant review instituted under this chapter, the petitioner shall have the burden of proving a proposition of unpatentability of a previously issued claim by clear and convincing evidence.

Section 321 of title 35, United States Code, is amended by adding at the end the following new subsection:

In this subsection, the term charged with infringement means a real and substantial controversy regarding infringement of a patent exists such that the petitioner would have standing to bring a declaratory judgment action in Federal court.

A person may not file with the Office a petition to institute a post-grant review of a patent unless the person, or a real party in interest or privy of the person, demonstrates—

(A) a reasonable possibility of being—

(i) sued for infringement of the patent; or

(ii) charged with infringement under the patent; or

(B) a competitive harm related to the validity of the patent.

Section 324(a) of title 35, United States Code, is amended to read as follows:

Subject to paragraph (2), the Director may not authorize a post-grant review to be instituted unless the Director determines that the information presented in the petition filed under section 321, if such information is not rebutted, would demonstrate that it is more likely than not that at least one of the claims challenged in the petition is unpatentable.

The Director may not authorize a post-grant review to be instituted on a claim challenged in a petition if the Director has previously instituted an inter partes review or post-grant review with respect to that claim.

Section 324 of title 35, United States Code, is amended by striking subsection (e) and inserting the following:

A determination by the Director on the likelihood that the petitioner will prevail under subsection (a)(1) shall be final and nonappealable.

A determination by the Director not to institute a post-grant review under this section shall be final and nonappealable.

Any aspect of a determination by the Director to institute a post-grant review under this section, other than a determination described in paragraph (1)(A), may be reviewed during an appeal of a final written decision issued under section 328(a).

Section 325(e)(1) of title 35, United States Code, is amended to read as follows:

A person petitioning for a post-grant review of a claim in a patent under this chapter, or the real party in interest or privy of the petitioner, may not petition for a subsequent post-grant review before the Office with respect to that patent on any ground that the petitioner raised or reasonably could have raised in the initial petition, unless, after the filing of the initial petition, the petitioner, or the real party in interest or privy of the petitioner, is charged with infringement of additional claims of the patent.

Section 325 of title 35, United States Code, is amended by adding at the end the following new subsection:

For purposes of this chapter, a person that directly or through an affiliate, subsidiary, or proxy, makes a financial contribution to the preparation for, or conduct during, a post-grant review on behalf of the petitioner shall be considered a real party in interest of the petitioner.

Section 326(a)(5) of title 35, United States Code, is amended to read as follows:

(5) setting forth standards and procedures for discovery of relevant evidence, including that such discovery shall be limited to—

(A) the deposition of witnesses submitting affidavits or declarations;

(B) evidence identifying the petitioner’s real parties in interest; and

(C) what is otherwise necessary in the interest of justice;

Section 325 of title 35, United States Code, as amended by subsections (f) and (g), is further amended—

(A) by redesignating subsections (c) through (g) as sections (d) through (h), respectively; and

(B) by inserting after subsection (b) the following new subsection:

A post-grant review of a patent claim may not be instituted if, in a civil action arising in whole or in part under section 1338 of title 28 or in a proceeding before the International Trade Commission under section 337 of the Tariff Act of 1930 (19 U.S.C. 1337), a court has entered a final judgment—

(A) that decides the validity of the patent claim with respect to section 102 or 103; and

(B) from which an appeal under section 1295 of title 28 may be taken, or from which an appeal under section 1295 of title 28 was previously available but is no longer available.

If, in a civil action arising in whole or in part under section 1338 of title 28 or in a proceeding before the International Trade Commission under section 337 of the Tariff Act of 1930 (19 U.S.C. 1337), a court has entered a final judgment that decides the validity of a patent claim with respect to section 102 or 103 and from which an appeal under section 1295 of title 28 may be taken, the Patent Trial and Appeal Board shall stay any ongoing post-grant review of that patent claim pending a final decision.

If the validity of a patent claim described in subparagraph (A) is finally upheld by a court or the International Trade Commission, as applicable, the Patent Trial and Appeal Board shall terminate the post-grant review.

Chapter 32 of title 35, United States Code, is amended—

(A) in section 326(a)(11), by striking section 325(c) and inserting section 325(d); and

(B) in section 327(a), by striking section 325(e) and inserting section 325(f).

Section 6(c) of title 35, United States Code, is amended to read as follows:

Each appeal, derivation proceeding, post-grant review, and inter partes review shall be heard by at least 3 members of the Patent Trial and Appeal Board, who shall be designated by the Director.

A member of the Patent Trial and Appeal Board who participates in the decision to institute a post-grant review or an inter partes review of a patent shall be ineligible to hear the review.

Only the Patent Trial and Appeal Board may grant rehearings.

Section 302 of title 35, United States Code, is amended to read as follows:

Any person at any time may file a request for reexamination by the Office of any claim of a patent on the basis of any prior art cited under the provisions of section 301. The request must be in writing and must be accompanied by payment of a reexamination fee established by the Director pursuant to the provisions of section 41. The request must identify all real parties in interest and certify that reexamination is not barred under section 303(d). The request must set forth the pertinency and manner of applying cited prior art to every claim for which reexamination is requested. Unless the requesting person is the owner of the patent, the Director promptly will send a copy of the request to the owner of record of the patent.

Section 303 of title 35, United States Code, is amended by adding at the end the following new subsection:

(d) An ex parte reexamination may not be instituted if the request for reexamination is filed more than 1 year after the date on which the requester or a real party in interest or privy of the requester is served with a complaint alleging infringement of the patent.

Section 283 of title 35, United States Code, is amended—

(1) by striking The several courts and inserting the following:; and

The several courts

(2) by adding at the end the following:

Upon a finding by a court of infringement of a patent not proven invalid or unenforceable, the court shall presume that—

(1) further infringement of the patent would cause irreparable injury; and

(2) remedies available at law are inadequate to compensate for that injury.

Chapter 32 of title 35, United States Code, is amended by adding at the end the following new section:

The United States Patent and Trademark Office shall not undertake a proceeding to reexamine, review, or otherwise make a determination about the validity of an inventor-owned patent without the consent of the patentee.

Any civil action for infringement of an inventor-owned patent or any action for a declaratory judgment that an inventor-owned patent is invalid or not infringed may be brought in a judicial district—

(1) in accordance with section 1400(b) of title 28;

(2) where the defendant has agreed or consented to be sued in the instant action;

(3) where an inventor named on the patent in suit conducted research or development that led to the application for the patent in suit;

(4) where a party has a regular and established physical facility that such party controls and operates, not primarily for the purpose of creating venue, and has—

(A) engaged in management of significant research and development of an invention claimed in a patent in suit prior to the effective filing date of the patent;

(B) manufactured a tangible good that is alleged to embody an invention claimed in a patent in suit; or

(C) implemented a manufacturing process for a tangible good in which the process is alleged to embody an invention claimed in a patent in suit; or

(5) in the case of a foreign defendant that does not meet the requirements of section 1400(b) of title 28, in accordance with section 1391(c)(3) of such title.

Chapter 190 of title 28, United States Code, is amended by adding at the end the following new section:

A covered entity conducting business in the United States shall register with the Department of Commerce not less than one agent residing in the United States if the covered entity—

(1) is owned by officers, members, or affiliates of the Chinese Communist Party, the People’s Liberation Army of China, or any governmental organ of the People’s Republic of China, including regional and local governments;

(2) is traded in shares and such shares are held in majority by any individual or group of individuals who are officers, members, or affiliates of the Chinese Communist Party, the People’s Liberation Army of China, or any governmental organ of the People’s Republic of China, including regional and local governments;

(3) is owned by individuals or other entities who reside or are headquartered outside of the United States and the majority of business earnings of the covered entity are derived from commerce with entities owned by officers, members, or affiliates of the Chinese Communist Party, the People’s Liberation Army of China, or any governmental organ of the People’s Republic of China, including regional and local governments of the Chinese Communist Party, of the People’s Liberation Army of China, or in the People’s Republic of China; or

(4) is organized under the laws of, or has its principal place of business in, the People’s Republic of China.

A registration required under subsection (a) shall be filed with the Department of Commerce not later than 30 days after—

(1) the date of enactment of this Act, or

(2) the departure of the previously registered agent from employment or contract with the covered entity.

A covered entity shall ensure that not less than one registered agent on whom process may be served is available at the business address of the registered agent each day from 9 a.m. to 5 p.m. in the time zone of the business address, excluding Saturdays, Sundays, and Federal holidays.

The registered agent shall be required to be available to accept service of process on behalf of the covered entity under which the agent is registered by the means of any communication included in the registration submitted to the Department of Commerce.

A registered agent shall cooperate in good faith with the United States Government and representatives of other individuals and entities.

The registration submitted to the Department of Commerce shall include the following information:

(1) The name of the covered entity registering an agent under this section.

(2) The name of the Chief Executive Officer, President, Partner, Chairman, or other controlling individual of the covered entity.

(3) The name of the individual who is being registered as the agent for the service of process.

(4) The business address of the covered entity registering an agent under this section.

(5) The business address of the individual who is being registered as the agent for the service of process.

(6) Contact information, including an email address and phone number for the individual who is being registered as the agent for the service of process.

(7) The date on which the agent shall begin to accept service of process under this section.

The information submitted to the Department of Commerce pursuant to this section shall be made available on a publicly accessible database on the website of the Department of Commerce.

A covered entity that registers an agent under this section thereby consents to the personal jurisdiction of the State or Federal courts of the State in which the registered agent is located for the purpose of any regulatory proceeding or civil action relating to such covered entity.

In this section:

The term covered entity means—

(A) a corporation, partnership, association, organization, or other combination of persons established for the purpose of commercial activities; or

(B) a trust or a fund established for the purpose of commercial activities.

The term Department of Commerce means the United States Department of Commerce.

The table of sections for chapter 190 of title 28, United States Code, is amended by adding at the end the following:

Section 1603(b)(2) of title 28, United States Code, is amended by inserting except the People’s Republic of China, after owned by a foreign state,.

Section 1836 of title 18, United States Code, is amended by adding at the end the following new subsection:

Notwithstanding any other provision of law, this section shall apply to conduct occurring outside the United States and impacting United States commerce, including conduct by an offender who is—

(1) not a United States person or an alien lawfully admitted for permanent residence into the United States; or

(2) an organization which is created or organized under the laws of a foreign government or which has its principal place of business located outside of the United States.

Notwithstanding any other provision of law, the head of each Federal department or agency may not provide grants, awards, or other forms of assistance, that is currently authorized in law, to a United States business to improve the resilience or competitiveness of a business unless such business agrees that it—

(A) will not engage in expanded cooperation activities with any Chinese entity; and

(B) will not expand its own activities within the People’s Republic of China (including Hong Kong and Macau).

If a United States business that has received a grant or other form of assistance described in paragraph (1) engages in expanded cooperation activities with any Chinese entity, or expands its own activities within the People’s Republic of China, such business—

(A) shall provide reimbursement to the Federal Government in an amount equal to the amount of the grant or other form of assistance; and

(B) shall be ineligible for any other grants or other forms of assistance described in paragraph (1) from any Federal department or agency.

The Secretary of the Treasury shall submit to Congress on an annual basis a report on investments made by United States businesses that receive grants or other forms of assistance described in subsection (a) in—

(1) production in the People’s Republic of China; and

(2) production elsewhere by any Chinese entity.

In this section:

The term Chinese entity means any entity organized under the laws of the People’s Republic of China or otherwise subject to the jurisdiction of the Government of the People’s Republic of China, and any entity owned or controlled by the Government of the People’s Republic of China, or an entity subject to the jurisdiction of the Government of the People’s Republic of China.

The term expanded cooperation activities, with respect to a Chinese entity, means investments in, exports of technology to, any activity that provides capital, technology, or expertise to the entity, or any other form of cooperation with, the entity.

Nothing in this section shall be construed to authorize a new Federal grant or award program.

Notwithstanding any other provision of law, the Director of the National Science Foundation may not provide grants or other forms of assistance to any individual or entity that is affiliated or otherwise has a relationship, including but not limited to a research partnership, joint venture, or contract with—

(1) an entity included on the list maintained and set forth in Supplement No. 4 to part 744 of the Export Administration Regulations;

(2) a company on the list required by section 1237 of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (Public Law 105–261; 50 U.S.C. 1701 note), or required by section 1260H of the Mac Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283), or on the Non-SDN Chinese Military-Industrial Complex Companies List (NS–CMIC List) or any successor list; or

(3) any parent, subsidiary, affiliate of, or entity owned by or controlled by, an entity described in (a)(1) and (a)(2).

In this section, the term Export Administration Regulations means the regulations set forth in subchapter C of chapter VII of title 15, Code of Federal Regulations, or successor regulations.

Section 212(a)(3)(A) of the Immigration and Nationality Act (8 U.S.C. 1182(a)(3)(A)) is amended to read as follows:

Any alien is inadmissible if a consular officer, an immigration officer, the Secretary of Homeland Security, or the Attorney General knows, or has reasonable ground to believe, that the alien—

(i) engages, has engaged, or will engage in any activity—

(I) in violation of any law of the United States relating to espionage or sabotage; or

(II) that would violate any law of the United States relating to espionage or sabotage if the activity occurred in the United States;

(ii) engages, has engaged, or will engage in any activity in violation or evasion of any law prohibiting the export from the United States of goods, technology, or sensitive information;

(iii) seeks to enter the United States to engage solely, principally, or incidentally in any other unlawful activity;

(iv) seeks to enter the United States to engage solely, principally, or incidentally in any activity a purpose of which is the opposition to, or the control or overthrow of, the Government of the United States by force, violence, or other unlawful means; or

(v) is the spouse or child of an alien who is inadmissible under this subparagraph, if the activity causing the alien to be found inadmissible occurred within the last 5 years.

Section 212(d)(3)(A) of the Immigration and Nationality Act (8 U.S.C. 1182(d)(3)(A)) is amended by striking (other than paragraphs (3)(A)(i)(I), (3)(A)(ii), (3)(A)(iii), (3)(C), and clauses (i) and (ii) of paragraph (3)(E) of such subsection) each place such phrase appears and inserting (other than subparagraphs (A)(i)(I), (A)(ii), (A)(iii), (A)(iv), (C), (E)(i), and (E)(ii) of paragraph (3) of such subsection).

(1) The Secretary of the Treasury shall instruct the United States Governor of, and the United States Executive Director at, the International Monetary Fund to use the voice and vote of the United States to oppose any increase in the weight of the Chinese renminbi in the basket of currencies used to determine the value of Special Drawing Rights, unless the Secretary of the Treasury has submitted to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a written report which includes a certification that—

(A) the People’s Republic of China is in compliance with all its obligations under Article VIII of the 19 Articles of Agreement of the Fund;

(B) in the preceding 12 months, there has not been a report submitted under section 3005 of the Omnibus Trade and Competitiveness Act of 1988 or section 701 of the Trade Facilitation and Trade Enforcement Act of 2015 in which the People’s Republic of China has been found to have manipulated its currency;

(C) the People’s Republic of China has instituted and is implementing the policies and practices necessary to ensure that the renminbi is freely usable (within the meaning of Article XXX(f) of the Articles of Agreement of the Fund); and

(D) the People’s Republic of China adheres to the rules and principles of the Paris Club and the OECD Arrangement on Officially Supported Export Credits.

Section 901 shall have no force or effect beginning 10 years after the date of the enactment of this Act.

Section 6 of the Special Drawing Rights Act (22 U.S.C. 286q) is amended—

(1) in subsection (a)—

(A) by striking each basic period and inserting any 10-year period; and

(B) by inserting 25 percent of before the United States quota; and

(2) in subsection (b)—

(A) by inserting, or consent to or acquiesce in such an allocation, before without consultations;

(B) by striking 90 and inserting 180; and

(C) by inserting Chairman and ranking minority members of before the appropriate subcommittees.

Section 6(b) of the Special Drawing Rights Act (22 U.S.C. 286q(b)) is amended by adding at the end the following:

(3) Unless Congress by law authorizes such action, neither the President nor any person or agency shall on behalf of the United States vote to allocate Special Drawing Rights under article XVIII, sections 2 and 3, of the Articles of Agreement of the Fund to a member country of the Fund, if the President of the United States has found that the government of the member country—

(A) has committed genocide at any time during the 10-year period ending with the date of the vote; or

(B) has repeatedly provided support for acts of international terrorism.

The Bretton Woods Agreements Act (22 U.S.C. 286–286zz) is amended—

(1) by redesignating the second section 73 (as added by section 1901 of division P of Public Law 116–94) as section 74; and

(2) by adding at the end the following:

Not less than 7 days before consideration of any proposal to increase the quota of a foreign member of the Fund that is one of the 10 largest shareholders in the Fund, the Secretary of the Treasury shall submit a report to the Committee on Financial Services of the House and the Committee on Foreign Relations of the Senate that determines whether the foreign member meets the following criteria:

(1) The member is in compliance with all obligations set forth in Article VIII of the Articles of Agreement of the Fund.

(2) The member, in the preceding 12 months, was not found to have manipulated its currency, as determined in a report required by section 3005 of the Omnibus Trade and Competitiveness Act of 1988 or section 701 of the Trade Facilitation and Trade Enforcement Act of 2015.

(3) In the case of a member whose currency is included in the Special Drawing Rights basket of the Fund, the currency of the member is freely usable (within the meaning of Article XXX(f) of the Articles of Agreement of the Fund) and the Secretary concurs with the determinations of the Fund described in that Article, and, in the preceding 12 months, the member has demonstrated its commitment to ensuring that its currency is widely used and traded internationally.

(4) The member is committed to the rules and principles of the Paris Club.

On determining that a member of the Fund has failed to meet any of the criteria set forth in subsection (a), the Secretary shall instruct the Governor of the Fund to use the voice and vote of the United States to oppose the proposal to increase the quota of the member in the Fund.

The President may waive subsection (b) with respect to a member of the Fund on reporting to the Committee on Financial Services of the House of Representatives and the Committee on Foreign Relations of the Senate that—

(1) the waiver is important to the national interest of the United States, with an explanation of the reasons therefor; or

(2) the member is attempting to rectify the failure, with a description of the actions the member is taking to fulfill any unmet criteria.

Notwithstanding subsection (c), the Governor of the Fund may not use the voice or vote of the United States to support a proposal to increase the quota of a member in the Fund if the President of the United States determines that the government of the member interfered in a United States election for Federal office (as defined in section 301 of the Federal Election Campaign Act of 1971) in the 4 years preceding consideration of the proposal.

For the purposes of this section, consideration of a proposal to increase the quota of a foreign member of the Fund does not include consent to an amendment to the Articles of Agreement of the Fund that has been authorized by law.

This section shall cease to have force or effect 10 years after the date of the enactment of this Act.

Section 68(a) of the Bretton Woods Agreements Act (22 U.S.C. 286tt(a)) is amended—

(1) in paragraph (2), by inserting after the comma the following: or a staff analytical report of the Fund states that there is not a high probability that the public debt of the country is sustainable in the medium term,; and

(2) by adding at the end the following:

The Secretary of the Treasury may waive paragraph (2) on a case-by-case basis if the Secretary provides a written certification to the Committee on Financial Services of the House of Representatives and the Committee on Foreign Relations of the Senate that the waiver is important to the national interest of the United States, and includes with the certification a written statement of the reasons therefor.

This section shall cease to have force or effect 10 years after the date of the enactment of this Act.

The Bretton Woods Agreements Act (22 U.S.C. 286–286zz), as amended by section 2 of this Act, is amended by adding at the end the following:

The United States Executive Director at the International Monetary Fund may not support any proposal that would alter the criteria used by the Fund for exceptional access lending if the proposal would permit a country that is ineligible, before the proposed alteration, to receive exceptional access lending, unless, not later than 15 days before consideration of the proposal by the Board of Executive Directors of the Fund, the Secretary of the Treasury has submitted to the Committee on Financial Services of the House of Representatives and the Committee on Foreign Relations of the Senate a report on the justification for the proposal and the effects of the proposed alteration on moral hazard and repayment risk at the Fund.

The President may reduce the applicable notice period required under subsection (a) to not less than 7 days on reporting to the Committee on Financial Services of the House of Representatives and Committee on Foreign Relations of the Senate that the reduction is important to the national interest of the United States, with an explanation of the reasons therefor.

This section shall cease to have force or effect 10 years after the date of the enactment of this Act.

The United States Governor of the International Monetary Fund (in this section referred to as the Fund) shall use the voice and vote of the United States to oppose, and may not consent to, an increase in the quota of the People’s Republic of China in the Fund, unless the Secretary of the Treasury reports to the Congress that—

(1) the Board of Governors of the Fund is considering admission of Taiwan as a member of the Fund, pursuant to the recommendation of the Board of Executive Directors of the Fund; or

(2) Taiwan enjoys meaningful participation in the Fund, including through—

(A) participation in regular surveillance activities of the Fund with respect to the economic and financial policies of Taiwan, consistent with Article IV consultation procedures of the Fund;

(B) employment opportunities for Taiwan nationals, without regard to any consideration that, in the determination of the Secretary, does not generally restrict the employment of nationals of member countries of the Fund; and

(C) the ability to receive appropriate technical assistance and training by the Fund.

The Secretary of the Treasury may waive subsection (a) of this section with respect to a proposal on reporting to the Congress that providing the waiver will substantially promote the objective of securing more equitable treatment of Taiwan at each international financial institution (as defined in section 1701(c)(2) of the International Financial Institutions Act).

This section shall have no force or effect beginning with the date that is 7 years after the date of the enactment of this Act.

The Secretary shall instruct the United States Executive Director at each international financial institution to use the voice and vote of the United States to ensure that the travel policies and procedures of the respective institution with respect to Taiwan as a destination or transit point do not impose any administrative conditions, including through restrictions on logistical arrangements or meeting participants, that do not generally apply to a member country of the institution as a destination or transit point, except as required temporarily for reasons of public safety or public health.

In this section:

The term international financial institution has the meaning given the term in section 1701(c)(2) of the International Financial Institutions Act.

The term Secretary means the Secretary of the Treasury.

The Secretary may waive subsection (a) with respect to an international financial institution for up to 1 year at a time on reporting to the Congress that providing the waiver—

(1) will substantially promote the objective of securing more equitable treatment of Taiwan at the international financial institution; or

(2) is in the national interest of the United States, with a detailed explanation of the reasons therefor.

The Chairman of the National Advisory Council on International Monetary and Financial Policies shall submit to the Congress an annual report that describes the progress made in advancing the travel policies and procedures described in subsection (a), and may consolidate that report with the annual report required by section 1701 of the International Financial Institutions Act or any other report required to be submitted to the Secretary.

This section shall have no force or effect beginning with the earlier of—

(1) the date that is 7 years after the date of the enactment of this Act; or

(2) the date on which the Secretary reports to the Congress that each international financial institution has adopted the travel policies and procedures described in subsection (a).

In each of the next 7 years in which the Secretary of the Treasury is required by section 1705(b) of the International Financial Institutions Act to present testimony, the Secretary shall include in the testimony a description of the efforts of the United States to support the greatest participation practicable by Taiwan at each international financial institution (as defined in section 1701(c)(2) of such Act).

It is the policy of the United States to facilitate the position of the dollar as the primary global reserve currency, including through vigorous support of—

(1) deep, open, and transparent financial markets;

(2) continuous improvements to domestic and international payment methods that facilitate dollar transactions;

(3) sound macroeconomic governance and a rules-based system of international trade; and

(4) clear and realistic objectives in the deployment of financial restrictions arising from national security considerations.

The Secretary of the Treasury (in this section referred to as the Secretary) shall establish a strategy that implements the policy described in section 2.

The Secretary shall, as appropriate, consult with the Board of Governors of the Federal Reserve System when establishing the strategy pursuant to subsection (a).

Not later than 180 days after the date of the enactment of this section, the Secretary shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report that describes—

(1) the strategy established by the Secretary pursuant to subsection (a);

(2) key measures taken by the Secretary to implement the strategy;

(3) any legislative recommendations that would strengthen the ability of the United States to advance the policy described in section 2;

(4) a description of efforts by major foreign central banks, including the People’s Bank of China, to create an official digital currency, as well as any risks to the national interest of the United States posed by such efforts;

(5) the status of efforts to assess or develop an official United States digital currency by the Board of Governors of the Federal Reserve System; and

(6) any implications for the strategy established by the Secretary pursuant to subsection (a) arising from the relative state of development of an official digital currency by the United States and other nations, including the People’s Republic of China.

The report described in subsection (c) shall—

(1) evaluate the role of the renminbi in international payments and foreign exchange reserves;

(2) assess currency-related policies in China, including—

(A) the provision of Chinese government-backed assets;

(B) the extension of credit abroad by the Chinese government; and

(C) the development of cross-border payment systems as tools to advance strategic objectives of the government of the People’s Republic of China; and

(3) recommend policy options aimed at mitigating medium-term and long-term risks to the national interest of the United States that may arise as a result of the internationalization of the renminbi.

After submitting an initial report in accordance with subsection (c), the Secretary shall submit, to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, an updated version of such report each year.

Section 912 shall have no force or effect after the date that is 7 years after the date of the enactment of this Act.

Notwithstanding any other provision of law, the total amount of unobligated funds available under any of sections 601 through 603 of title VI of the Social Security Act are hereby permanently rescinded.

The Secretary of the Treasury, acting through the Director of the Office of Foreign Assets Control, is authorized to hire an additional 10 full-time employees to carry out activities of the Office associated with the People’s Republic of China.

The Director of the Office of Trade is authorized to hire an additional 28 full-time employees for carrying out section 307 of the Tariff Act of 1930 (19 U.S.C. 1307).

Not later than 90 days after the date of the enactment of this section, the Attorney General shall establish an initiative to be known as the China Initiative, which shall be carried out by Assistant Attorney General for National Security (hereinafter in this Act referred to as the AAGNS) to counter and deter the wide range of national security threats posed by the policies and practices of the People’s Republic of China (PRC) government.

The Assistant Attorney General for National Security is authorized to direct employees assigned to the National Security Division of the Department of Justice to assist with the China Initiative and shall hire an additional 10 full-time employees to carry out activities of the China Initiative.