[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 760 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 760
To impose sanctions with respect to Communist Chinese military and
surveillance companies.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 2, 2023
Mr. Barr introduced the following bill; which was referred to the
Committee on Foreign Affairs, and in addition to the Committee on
Financial Services, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To impose sanctions with respect to Communist Chinese military and
surveillance companies.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Chinese Military and Surveillance
Company Sanctions Act of 2023''.
SEC. 2. FINDINGS AND SENSE OF CONGRESS.
(a) Findings.--Congress finds the following:
(1) Under Executive Order 13959 (85 Fed. Reg. 73185;
relating to addressing the threat from securities investments
that finance Communist Chinese military companies) of November
17, 2020, the President found that the People's Republic of
China ``increases the size of the country's military-industrial
complex by compelling civilian Chinese companies to support its
military and intelligence activities. Those companies, though
remaining ostensibly private and civilian, directly support the
PRC's military, intelligence, and security apparatuses and aid
in their development and modernization.''. The President
further determined that ``the PRC exploits United States
investors to finance the development and modernization of its
military.''. As a result, Executive Order 13959 restricted
transactions in publicly traded securities of Communist Chinese
military companies listed pursuant to section 1237 of the Strom
Thurmond National Defense Authorization Act for Fiscal Year
1999 (50 U.S.C. 1701 note).
(2) Although Executive Order 13959 targets transactions in
public securities, it does not address financing options for
Communist Chinese military companies through other forms of
equity financing or debt financing, nor does it limit
transactions with United States persons that may generate
earnings in a manner that facilitates company growth.
(3) The Office of Foreign Assets Control (OFAC) of the
Department of the Treasury, by imposing asset blocking through
the Specially Designated Nationals (SDN) List, is able to
forbid virtually any transaction between United States persons
and a designated entity, including debt and equity financing,
the exchange of goods and services, and the provision of
material or technological support. Conversely, restrictions
limited to publicly traded securities are less comprehensive,
and in the case of certain Chinese companies of concern, may be
irrelevant if the companies do not issue such securities.
(4) While restrictions on public securities are restricted
to the dealings of United States persons, OFAC's inclusion of a
foreign entity on the SDN list deters third-country persons
from dealing with a designated entity, amplifying the effects
of United States sanctions globally.
(5) OFAC has long devoted significant resources to
compiling evidence on SDNs that routinely withstand challenges
in court, which enhances the effectiveness of United States
sanctions, encourages allies to consider comparable measures,
and strengthens national security.
(6) On June 3, 2021, the President issued Executive Order
14032, which transferred responsibility for naming Chinese
military companies subject to investment restrictions to the
Secretary of the Treasury, and expanded restrictions to
entities operating in the surveillance technology sector of the
Chinese economy.
(b) Sense of Congress.--It is the sense of the Congress that the
national emergency declared under Executive Order 13959 calls for the
President to--
(1) more fully cut off financing avenues for Communist
Chinese military and surveillance companies;
(2) prevent adaptation by a company to partial restrictions
that limit themselves to publicly traded securities;
(3) ensure that the United States assembles an appropriate
evidentiary basis to support the effectiveness of sanctions;
(4) enhance the impact of economic sanctions by deterring
third-country persons from dealing with the companies; and
(5) link the imposition of sanctions to clear objectives
that serve to resolve the national emergency.
SEC. 3. SANCTIONS WITH RESPECT TO COMMUNIST CHINESE MILITARY AND
SURVEILLANCE COMPANIES.
(a) In General.--Not later than 180 days after the date on which
the first updated list is submitted under section 1260H of the William
M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year
2021 (10 U.S.C. 113 note) on or after the date of the enactment of this
Act, the President shall impose the sanctions described in subsection
(b) with respect to--
(1) each person that is on such updated list, and
(2) each foreign person listed in the Annex to Executive
Order 14032 (86 Fed. Reg. 30145; relating to addressing the
threat from securities investments that finance certain
companies of the People's Republic of China) of June 3, 2021,
or 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
engage in the activities described under section 1(a)(i) or
1(a)(ii) of such Executive Order 14032,
if the President determines that the imposition of such sanctions meets
appropriate evidentiary standards and advances the objective of
resolving the national emergency described in Executive Order 14032 (86
Fed. Reg. 30145; relating to addressing the threat from securities
investments that finance certain companies of the People's Republic of
China) of June 3, 2021.
(b) Sanctions Described.--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 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.
(c) Penalties.--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.
(d) Waiver.--The President may waive the application of sanctions
under this section 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.
(e) Exception for Intelligence Activities.--Sanctions under this
section shall not apply to 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 any authorized intelligence activities of the
United States.
(f) Exception Relating to Importation of Goods.--
(1) In general.--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.
(2) Good defined.--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.
(g) Conforming Requirement.--Not later than 180 days after the date
of the enactment of this Act, the President shall revoke the
prohibitions described in section 1(a) of Executive Order 14032 that
are duplicative of, less restrictive than, or are otherwise made
redundant by, the sanctions described in this section.
(h) Appropriate Congressional Committees Defined.--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.
(i) Sunset.--The authority to impose sanctions under this section,
and any sanctions imposed under this section, shall terminate on the
earlier of--
(1) the date that is 30 days after the date on which the
President repeals the national emergency declared under
Executive Order 13959 (85 Fed. Reg. 73185); or
(2) the date that is 7 years after the date of the
enactment of this Act.
<all>