,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #bhda  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,may #bj1 #bjai,mr4   
,*abot introduc$ ! foll[+ bill2 :i* 0   
ref]r$ to ! ,committee on ! ,judici>y1 &
 9 addition to ! ,committee on ,=eign   
,affairs1 = a p]iod to be subsequ5tly   
det]m9$ by ! ,speak]1 9 ea* case =      
consid]ation ( su* provisions z fall )9 
! jurisdiction ( ! committee conc]n$  ,a
 ,,bill  ,to am5d title #ce1 ,unit$     
,/ates ,code1 ) respect to actions =    
pat5t infr+em5t1 & = o!r purposes4  #a4 
,%ort title ,?is ,act may be cit$ z !   
,z]o ,tol]ance = ,electronics ,!ft ,act 
or ! ,,zte ,!ft ,act4  #b4 ,f9d+s       
,congress f9ds ! foll[+3  7#a7 ,! ,f$]al
 ,bureau ( ,inve/igation 7,,fbi7 has    
det]m9$ t c]ta9 =eign actors pose a     
s]i\s ?reat to ! telecommunications     
supply *a94  7#b7 ,?r\gh cyb] espionage 
& o!r delib]ate acts1 billions ( doll>s 
9 trade secrets1 intellectual prop]ty1 &
 te*nology are /ol5 ea* ye> f ! ,f$]al  
,gov]nm5t1 corporations1 & academic     

in/itutions4  7#c7 ,! ,p's ,republic (  
,*9a 7,*9a7 is "o ( ! two l>ge/         
p>ticipants 9 cyb] espionage4  7#d7 ,a  
#bjab report by ! ,p]man5t ,select      
,committee on ,intellig5ce ( ! ,h\se (  
,repres5tatives f\nd t ,*9a ex]ts cyb]  
espionage capabilities ?r\gh            
telecommunications compon5ts & sy/ems   
m>ket$ directly to bus9esses & o!r      
entities 9 ! ,unit$ ,/ates4  7#e7 ,a    
#bjah report by ! ,(fice ( ! ,unit$     
,/ates ,trade ,repres5tative f\nd t     
,*9ese gov]nm5t-own$ entities 7         
responsible = a sub/antial numb] ( pat5t
 infr+em5ts4  7#f7 ,,zte ,corporation1  
bas$ 9 ,*9a1 demon/rates ! risks        
associat$ ) do+ bus9ess 9 c\ntries      
sanction$ by ! ,unit$ ,/ates & provides 
a model1 z well z advocates =1 ! use (  
%ell companies to subv]t ! export       
control laws ( ! ,unit$ ,/ates1         
explicitly /at+ t the bigge/ advantage (
 ?is model is t x is m effective1       
because x's h>d] = ! ,u4,s4 ,gov]nm5t to
 trace x or inve/igate ! real fl[ ( !   

controll$ commodities44  7#g7 ,unit$    
,/ates bus9esses provide an e/imat$ #be 
to #cj p]c5t ( ! compon5ts us$ 9        
products ( ,,zte ,corporation1 includ+  
sm>tphones4  7#h7 ,! ,,fbi det]m9$ t    
,,zte ,corporation sold bann$ te*nology 
to ,iran & us$ ! me?ods discuss$ 9      
p>agraph 7#f7 to mask its transaction   
hi/ory 9 an ef=t to und]m9e             
inve/igations ( ! ,dep>tm5t ( ,comm]ce4 
7#i7 ,s9ce #bjjh1 ,,zte ,corporation has
 be5 ! def5dant1 c\nt]claimant1 or      
respond5t 9 #gbb c\rt actions4  7#aj7   
,on ,m>* #bc1 #bjag1 ! ,dep>tm5t (      
,ju/ice /at$ t ,,zte ,corporation has   
agre$ to ent] a guilty plea & to pay a  
#dcj1dhh1gih p5alty to ! ,unit$ ,/ates =
 conspir+ to violate ! ,int]national    
,em]g5cy ,economic ,p[]s ,act by        
illegally %ipp+ ,u4,s4-orig9 items to   
,iran1 ob/ruct+ ju/ice & mak+ a mat]ial 
false /atem5t44  7#aa7 ,,zte            
,corporation has also previ\sly rea*$   
settlem5t agreem5ts ) ! ,bureau (       
,indu/ry & ,security ( ! ,dep>tm5t (    

,comm]ce & ! ,(fice ( ,=eign ,assets    
,control ( ! ,dep>tm5t ( ! ,treasury4   
7#ab7 ,! ,bureau ( ,indu/ry & ,security 
subsequ5tly f\nd ,,zte ,corporation 9   
violation ( ! settlem5t agreem5t ) !    
,bureau due to--  7,a7 falsification (  
reports & correspond5ce ) ! ,bureau2 &  
7,b7 failure to discipl9e all           
individuals nam$ 9 ! settlem5t agreem5t4
  7#ac7 ,on ,m>* #ac1 #bjah1 ! ,bureau (
 ,indu/ry & ,security notifi$ ,,zte     
,corporation t ! ag5cy w\ld activate a  
conditionally susp5d$ d5ial ord]1 due to
 ! det]m9ation by ! ag5cy t ,,zte       
,corporation _h cont9u\sly made false   
/atem5ts to ! ,unit$ ,/ates ,gov]nm5t4  
7#ad7 ,on ,june #g1 #bjah1 ,secret>y (  
,comm]ce ,wilbur ,ross ann\nc$ t ,,zte  
,corporation--  7,a7 agre$ to additional
 p5alties & compliance measures :i* w\ld
 supplant a prior ord] ( ! ,bureau2 &   
7,b7 w\ld be remov$ f ! ,dep>tm5t (     
,comm]ce's ,d5i$ ,p]sons ,li/1 a li/ (  
individuals & entities t h be5 d5i$     
export privileges4  #c4 ,s5se (         

,congress ,x is ! s5se ( ,congress t--  
7#a7 ,,zte ,corporation poses a         
significant risk to ! economy & national
 security ( ! ,unit$ ,/ates2 &  7#b7    
,,zte ,corporation engages & w cont9ue  
to engage 9 ! !ft ( intellectual prop]ty
 to ! detrim5t ( bus9esses 9 ! ,unit$   
,/ates4  #d4 ,injunction ,section #bhc (
 title #ce1 ,unit$ ,/ates ,code1 is     
am5d$--  7#a7 by /rik+ ,! sev]al c\rts &
 ins]t+ ! foll[+3  7a7 ,9 g5]al ,!      
sev]al c\rts  2 &  7#b7 by add+ at ! end
 ! foll[+3  7b7 ,special rule  7#a7     
,prelim9>y injunction 9 c]ta9 cases     
,not)/&+ any o!r provision ( law1 :5 a  
cov]$ entity is a p>ty to a civil action
 = pat5t infr+em5t br\ght "u ?is title1 
an oppos+ p>ty1 if seek+ a prelim9>y    
injunction aga9/ su* cov]$ entity1 ne$ n
 demon/rate t irrep>able h>m w\ld result
 f ! failure to grant su* injunction4   
7#b7 ,cov]$ entity def9$ ,9 ?is         
subsection1 ! t]m cov]$ entity means an 
entity 7or subsidi>y or affiliate !re(7 
t-- 7,a7 is provid+ or produc+          

telecommunications1 s(tw>e1 or          
electronics equipm5t2  7,b7 has a       
headqu>t]s or a pr9cipal place ( bus9ess
 locat$ 9 a region adm9i/]$ or gov]n$ by
 ! ,p's ,republic ( ,*9a 7exclud+       
,taiwan72  7,c7 01 on or aft] ,m>* #h1  
#bjaf1 d5i$ export privileges2 &  7,d7  
01 subsequ5t to su* d5ial1 remov$ by !  
,secret>y ( ,comm]ce f ! ,li/ ( ,d5i$   
,p]sons ma9ta9$ by ! ,bureau ( ,indu/ry 
& ,security ( ! ,dep>tm5t ( ,comm]ce ^u 
! re/oration ( su* privileges4  4  #e4  
,export privileges eligibility  7a7 ,9  
g5]al ,beg9n+ on & aft] ! date t is #ahj
 days aft] ! date ( enactm5t ( ?is ,act1
 a cov]$ entity may only be eligible =  
export privileges if su* cov]$ entity-- 
7#a7 c]tifies to ! ,attorney ,g5]al t   
su* cov]$ entity-- 7,a7 ) respect to    
pat5ts 9 use by ! cov]$ entity1 has     
ent]$ into lic5se agreem5ts ) ! ,unit$  
,/ates p]sons t own su* pat5ts2  7,b7 w 
abide by ! laws ( ! ,unit$ ,/ates2 &    
7,c7 w n engage 9 cyb] espionage1 or !  
!ft or misappropriation ( intellectual  

prop]ty or trade secrets1 on behalf (   
!mselves or a /ate actor2 &  7#b7       
ma9ta9s an export eligibility acc\nt 9  
accordance ) subsection 7b74  7b7       
,export eligibility acc\nts  7#a7       
,e/abli%m5t ,! ,secret>y ( ! ,treasury1 
at ! reque/ ( a cov]$ entity1 %all      
e/abli% & manage an export eligibility  
acc\nt = ! cov]$ entity 9 accordance )  
?is subsection4  7#b7 ,acc\nt balance   
,to e/abli% eligibility = export        
privileges "u subsection 7a71 an acc\nt 
e/abli%$ "u p>agraph 7#a7 %all-- 7,a7 at
 ! "t su* acc\nt is e/abli%$1 include an
 am\nt equal to #b1ejj1jjj1jjj provid$  
by ! cov]$ entity2  7,b7 h a balance    
accessible only-- 7i7 by ! ,secret>y ( !
 ,treasury = paym5ts describ$ 9 p>agraph
 7#c72 &  7ii7 by ! cov]$ entity-- 7,i7 
^u closure ( ! acc\nt2 &  7,,ii7 =      
purposes ( mak+ deposits to ma9ta9 !    
acc\nt 9 accordance ) subp>agraph 7,c72 
&  7,c7 at all times aft] e/abli%m5t1   
include a m9imum ( #fjj1jjj1jjj4  7#c7  
,use ( acc\nt ,am\nts 9 an acc\nt       

e/abli%$ "u p>agraph 7#a7 may be us$ by 
! ,secret>y ( ! ,treasury = paym5ts--   
7,a7 made to a ,unit$ ,/ates p]son2 &   
7,b7 t-- 7i7 relate to f9al judgm5ts 9 a
 pat5t infr+em5t action aga9/ !         
applicable cov]$ entity 7includ+ int]e/1
 attorney's fees1 & any o!r co/s        
specifi$ 9 su* judgm5ts72 &  7ii7 !     
cov]$ entity fail$ to make4  7#d7       
,c]tification ,! ,attorney ,g5]al1 9    
consultation ) ! ,secret>y ( ! ,treasury
 & ! ,secret>y ( ,comm]ce1 %all review &
 c]tify ! acc\nt /atus ( cov]$ entities 
= purposes ( eligibility = export       
privileges at lea/ once e #g ye>s4  7#e7
 ,notification ,! ,attorney ,g5]al %all 
notify ,unit$ ,/ates ,cu/oms & ,bord]   
,protection & ! ,bureau ( ,indu/ry &    
,security ( ! ,dep>tm5t ( ,comm]ce ( !  
id5tities ( cov]$ entities )\t an acc\nt
 provid+ eligibility = export           
privileges4  7c7 ,def9itions ,9 ?is     
section3  7#a7 ,cov]$ entity ,! t]m     
cov]$ entity means an entity 7or        
subsidi>y or affiliate !re(7 t-- 7,a7 is

 provid+ or produc+ telecommunications1 
s(tw>e1 or electronics equipm5t2  7,b7  
has a headqu>t]s or a pr9cipal place (  
bus9ess locat$ 9 a region adm9i/]$ or   
gov]n$ by ! ,p's ,republic ( ,*9a       
7exclud+ ,taiwan72  7,c7 01 on or aft]  
,m>* #h1 #bjaf1 d5i$ export privileges2 
&  7,d7 01 subsequ5t to su* d5ial1      
remov$ by ! ,secret>y ( ,comm]ce f !    
,li/ ( ,d5i$ ,p]sons ma9ta9$ by !       
,bureau ( ,indu/ry & ,security ( !      
,dep>tm5t ( ,comm]ce ^u ! re/oration (  
su* privileges4  7#b7 ,export privileges
 ,! t]m export privileges means1 )      
respect to items subject to ! ,export   
,adm9i/ration ,regulations 7z codifi$ 9 
sub*apt] ,c ( *apt] ,,vii ( title #ae1  
,code ( ,f$]al ,regulations1 or any     
successor regulations7--  7,a7 ! ability
 to engage 9 export & reexport          
transactions involv+ su* items2 &  7,b7 
! access to su* items4  7#c7 ,unit$     
,/ates p]son ,! t]m ,unit$ ,/ates p]son 
means-- 7,a7 a ,unit$ ,/ates citiz5 or  
national2  7,b7 an ali5 lawfully pres5t 

9 ! ,unit$ ,/ates :o has lawful /atus "u
 ! immigration laws 7z su* t]m is def9$ 
9 section #aja7;a7 ( ! ,immigration &   
,nationality ,act72  7,c7 a p>tn]%ip1   
corporation1 or o!r legal entity        
organiz$ "u ! laws ( ! ,unit$ ,/ates2 or
  7,d7 a p>tn]%ip1 corporation1 or o!r  
legal entity t is organiz$ "u ! laws ( a
 =eign c\ntry & is controll$ by entities
 describ$ 9 subp>agraph 7,c7 or a ,unit$
 ,/ates citiz54