,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #gjd  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,janu>y #bb1 #bjai    
,mr4 ,conaway 7= himself & ,mr4 ,ryan7  
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means1 & 9    
addition to ! ,committees on ,f9ancial  
,s]vices1 ! ,judici>y1 ,=eign ,affairs1 
& ,ov]sight & ,re=m1 = 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 safegu>d c]ta9  
te*nology & intellectual prop]ty 9 !    
,unit$ ,/ates f export to or influ5ce by
 ! ,p's ,republic ( ,*9a & to protect   
,unit$ ,/ates indu/ry f unfair          
competition by ! ,p's ,republic ( ,*9a1 
& = o!r purposes4  #a4 ,%ort title2     
table ( cont5ts  7a7 ,%ort title ,?is   
,act may be cit$ z ! ,fair ,trade ) ,*9a
 ,en=cem5t ,act4  7b7 ,table ( cont5ts  
,! table ( cont5ts = ?is ,act is z      
foll[s3  ,sec4 #a4 ,%ort title2 table ( 
cont5ts4 ,sec4 #b4 ,s5se ( ,congress4   

,sec4 #c4 ,/atem5t ( policy4 ,title     
,i--,safegu>ds aga9/ =eign influ5ce 9   
,unit$ ,/ates national & economic       
security by ! ,p's ,republic ( ,*9a     
,sec4 #aja4 ,e/abli%m5t ( li/ ( c]ta9   
products receiv+ support f ! ,gov]nm5t (
 ! ,p's ,republic ( ,*9a pursuant to !  
,made 9 ,*9a #bjbe policy4 ,sec4 #ajb4  
,prohibition on export to ! ,p's        
,republic ( ,*9a ( national security    
s5sitive te*nology & intellectual       
prop]ty4 ,sec4 #ajc4 ,imposition (      
%>ehold] cap on ,*9ese inve/ors 9 ,unit$
 ,/ates corporations4 ,sec4 #ajd4       
,prohibition on use ( c]ta9             
telecommunications s]vices or equipm5t4 
,title ,,ii--,fair trade en=cem5t       
actions ) respect to ! ,p's ,republic ( 
,*9a ,sec4 #bja4 ,c\nt]vail+ duties )   
respect to c]ta9 indu/ries 9 ! ,p's     
,republic ( ,*9a4 ,sec4 #bjb4 ,repeal ( 
r$uc$ )hold+ rates = resid5ts ( ,*9a4   
,sec4 #bjc4 ,taxation ( obligations ( ! 
,unit$ ,/ates held by ! ,gov]nm5t ( !   
,p's ,republic ( ,*9a4 ,sec4 #bjd4      

,surtax on c]ta9 income d]iv$ f ,*9a4   
,title ,,iii--,/opp+ ,=eign ,bus9esses  
,sanctu>y ,act ( #bjai ,sec4 #cja4 ,%ort
 title4 ,sec4 #cjb4 ,jurisdiction ov]   
c]ta9 =eign entities4 ,sec4 #cjc4       
,comm]cial activity ( affiliate         
entities4  #b4 ,s5se ( ,congress ,x is !
 s5se ( ,congress t-- 7#a7 s9ce jo9+ !  
,_w ,trade ,organization 9 #bjja1 ! ,p's
 ,republic ( ,*9a has (f]$ ! ,unit$     
,/ates a contradictory b>ga91 :i*       
promis$ op5ness 9 ! global trade ord]1 b
 ?r\gh /ate m]cantilism deliv]$ a       
sev]ely imbalanc$ trad+ relation%ip2    
7#b7 x 0 errone\s = ! ,unit$ ,/ates     
,gov]nm5t to h ignor$ ! contradictions &
 risks ( free trade ) ! ,p's ,republic (
 ,*9a on ! assumption t ! ,p's ,republic
 ( ,*9a w\ld lib]alize economically &   
politically2  7#c7 b5efitt+ enorm\sly f 
a m op5 global economy to drive its own 
indu/ries1 ! ,gov]nm5t ( ! ,p's         
,republic ( ,*9a & ! ,communi/ ,p>ty ( !
 ,p's ,republic ( ,*9a h only tight5$ _!
 grip on p[]1 brutally suppress+ diss5t 

at home & pursu+ policies abroad t are a
 f> cry f be+ a responsible global      
/akehold]2  7#d7 malevol5t economic     
behavior by p]sons 9 ! ,p's ,republic ( 
,*9a is made cle> by ! !ft (            
intellectual prop]ty f ! ,unit$ ,/ates1 
z ,*9ese !ft ( ,unit$ ,/ates            
intellectual prop]ty alone co/s ! ,unit$
 ,/ates ne>ly #fjj1jjj1jjj1jjj annually1
 accord+ to ! ,unit$ ,/ates ,trade      
,repres5tative2  7#e7 /eal+ ,unit$      
,/ates intellectual prop]ty advances !  
,made 9 ,*9a #bjbe initiative ( !       
,gov]nm5t ( ! ,p's ,republic ( ,*9a to  
ev5tually dom9ate global exports 9 #aj  
critical sectors1 namely artificial     
intellig5ce & next-g5]ation in=mation   
te*nology1 robotics1 new-en]gy vehicles1
 biote*nology1 en]gy & p[] g5]ation1    
a]ospace1 high-te* %ipp+1 advanc$       
railway1 new mat]ials1 & agricultural   
ma*9]y1 among o!rs2  7#f7 ! t>gets ( !  
,made 9 ,*9a #bjbe initiative reveal !  
goal ( ! ,p's ,republic ( ,*9a = !      
ne>-total displacem5t ( advanc$         

manufactur+ 9 ! ,unit$ ,/ates2 &  7#g7 !
 ,unit$ ,/ates ,gov]nm5t %\ld act to    
/r5g!n ! position ( ! ,unit$ ,/ates 9   
its policy t[>d ! ,p's ,republic ( ,*9a 
9 ord] to create a m balanc$ economic   
relation%ip by safegu>d+ /rategic assets
 f ,*9ese influ5ce1 r$uc+ ,*9ese        
involvem5t 9 ! ,unit$ ,/ates economy1 & 
enc\rag+ ,unit$ ,/ates companies to     
produce dome/ically1 in/ead ( 9 ! ,p's  
,republic ( ,*9a4  #c4 ,/atem5t ( policy
 ,x is ! policy ( ! ,unit$ ,/ates-- 7#a7
 to impose re/rictions on ,*9ese        
inve/m5t 9 ! ,unit$ ,/ates 9 /rategic   
indu/ries t>get$ by ! ,made 9 ,*9a #bjbe
 initiative set =? by ! ,gov]nm5t ( !   
,p's ,republic ( ,*9a2  7#b7 to tax     
,*9ese inve/m5t 9 ! ,unit$ ,/ates due to
 its negative effect on ! ,unit$ ,/ates 
trade deficit & wages ( work]s 9 !      
,unit$ ,/ates2  7#c7 to increase ! co/ (
 transnational production op]ations 9 ! 
,p's ,republic ( ,*9a 9 a mann] consi/5t
 ) ! economic co/ ( ! risk ( loss (     
unique access by ! ,unit$ ,/ates to     

intellectual prop]ty1 te*nology1 &      
indu/rial base2 &  7#d7 to support      
democratization 9 & ! human rights ( ! p
 ( ,hong ,kong1 includ+ ! f9d+s &       
decl>ations set =? "u section #b ( !    
,unit$ ,/ates-,hong ,kong ,policy ,act (
 #aiib 7#bb ,u4,s4,c4 #egja74  ,i       
,safegu>ds aga9/ =eign influ5ce 9 ,unit$
 ,/ates national & economic security by 
! ,p's ,republic ( ,*9a  #aja4          
,e/abli%m5t ( li/ ( c]ta9 products      
receiv+ support f ! ,gov]nm5t ( ! ,p's  
,republic ( ,*9a pursuant to ! ,made 9  
,*9a #bjbe policy  7a7 ,9 g5]al ,*apt]  
#h ( title ,i ( ! ,trade ,act ( #aigd   
7#ai ,u4,s4,c4 #bbda et seq47 is am5d$  
by add+ at ! end ! foll[+3  #ahc4 ,li/ (
 c]ta9 products receiv+ support f !     
,gov]nm5t ( ! ,p's ,republic ( ,*9a  7a7
 ,9 g5]al ,n lat] ?an #abj days aft] !  
date ( ! enactm5t ( ! ,fair ,trade )    
,*9a ,en=cem5t ,act1 & e ye> !reaft]1 ! 
,unit$ ,/ates ,trade ,repres5tative %all
 set =? a li/ ( products manufactur$ or 
produc$ 91 or export$ f1 ! ,p's         

,republic ( ,*9a t are det]m9$ by !     
,trade ,repres5tative to receive support
 f ! ,gov]nm5t ( ! ,p's ,republic ( ,*9a
 pursuant to ! ,made 9 ,*9a #bjbe       
indu/rial policy ( t ,gov]nm5t4  7b7    
,crit]ia = li/  7#a7 ,9 g5]al ,! ,trade 
,repres5tative %all include 9 ! li/     
requir$ by subsection 7a7 ! foll[+      
products3  7,a7 ,any product specifi$ 9 
! foll[+ docum5ts set =? by ! ,gov]nm5t 
( ! ,p's ,republic ( ,*9a3 7i7 ,notice  
on ,issu+ ,made 9 ,*9a #bjbe4  7ii7 ,*9a
 ,manufactur+ #bjbe4  7iii7 ,notice on  
,issu+ ! #ac? ,five-,ye> ,national      
,/rategic ,em]g+ ,indu/ries ,developm5t 
,plan4  7iv7 ,guid+ ,op9ion on ,promot+ 
,int]national ,indu/rial ,capacity &    
,equipm5t ,manufactur+ ,coop]ation4  7v7
 ,any o!r docum5t t expresses a national
 /rategy or /at$ goal 9 connection ) !  
,made 9 ,*9a #bjbe indu/rial policy set 
=? by ! ,gov]nm5t ( ! ,p's ,republic (  
,*9a1 ! ,communi/ ,p>ty ( ,*9a1 or ano!r
 entity or individual capable ( impact+ 
! national /rategy ( ! ,p's ,republic ( 

,*9a4  7,b7 ,any product receiv+ support
 f ! ,gov]nm5t ( ! ,p's ,republic ( ,*9a
 t has or w 9 ! future displace net     
exports ( l products by ! ,unit$ ,/ates1
 z det]m9$ by ! ,trade ,repres5tative4  
7#b7 ,includ$ products ,9 addition to   
su* products z ! ,trade ,repres5tative  
%all include pursuant to p>agraph 7#a7 9
 ! li/ requir$ by subsection 7a71 !     
,trade ,repres5tative %all include      
products 9 ! foll[+ indu/ries3  7,a7    
,civil aircraft4  7,b7 ,motor c> &      
vehicle4  7,c7 ,advanc$ m$ical equipm5t4
  7,d7 ,advanc$ con/ruction equipm5t4   
7,e7 ,agricultural ma*9]y4  7,f7        
,railway equipm5t4  7,g7 ,diesel        
locomotive4  7,h7 ,mov+ freight4  7,i7  
,semiconductor4  7,j7 ,li?ium batt]y    
manufactur+4  7,k7 ,artificial          
intellig5ce4  7,l7 ,high-capacity       
comput+4  7,m7 ,quantum comput+4  7,n7  
,robotics4  7,o7 ,biote*nology4  4  7b7 
,cl]ical am5dm5t ,! table ( cont5ts = ! 
,trade ,act ( #aigd is am5d$ by ins]t+  
aft] ! item relat+ to section #ahb !    

foll[+3  ,sec4 #ahc4 ,li/ ( c]ta9       
products receiv+ support f ! ,gov]nm5t (
 ! ,p's ,republic ( ,*9a4  4  #ajb4     
,prohibition on export to ! ,p's        
,republic ( ,*9a ( national security    
s5sitive te*nology & intellectual       
prop]ty  7a7 ,9 g5]al ,! ,secret>y (    
,comm]ce %all prohibit ! export to !    
,p's ,republic ( ,*9a ( any national    
security s5sitive te*nology or          
intellectual prop]ty subject to !       
jurisdiction ( ! ,unit$ ,/ates or       
export$ by any p]son subject to !       
jurisdiction ( ! ,unit$ ,/ates4  7b7    
,def9itions ,9 ?is section3  7#a7       
,intellectual prop]ty ,! t]m            
intellectual prop]ty includes pat5ts1   
copyrights1 tradem>ks1 or trade secrets4
  7#b7 ,national security s5sitive      
te*nology or intellectual prop]ty ,! t]m
 national security s5sitive te*nology or
 intellectual prop]ty includes ! foll[+3
  7,a7 ,te*nology or intellectual       
prop]ty t w\ld make a significant       
contribution to ! milit>y pot5tial ( !  

,p's ,republic ( ,*9a t w\ld prove      
detrim5tal to ! national security ( !   
,unit$ ,/ates4  7,b7 ,te*nology or      
intellectual prop]ty necess>y to protect
 ! economy ( ! ,unit$ ,/ates f !        
excessive dra9 ( sc>ce mat]ials & to    
r$uce ! s]i\s inflation>y impact ( dem& 
f ! ,p's ,republic ( ,*9a4  7,c7        
,te*nology or intellectual prop]ty t is 
a compon5t ( ! production ( products    
includ$ 9 ! mo/ rec5t li/ requir$ "u    
section #ahc ( ! ,trade ,act ( #aigd1 z 
add$ by section #aja7;a71 det]m9$ 9     
consultation ) ! ,unit$ ,/ates ,trade   
,repres5tative4  7#c7 ,te*nology ,! t]m 
te*nology includes goods or s]vices     
relat+ to in=mation sy/ems1 int]net-bas$
 s]vices1 production-enhanc+ logi/ics1  
robotics1 artificial intellig5ce1       
biote*nology1 or comput+4  #ajc4        
,imposition ( %>ehold] cap on ,*9ese    
inve/ors 9 ,unit$ ,/ates corporations   
,section #ac7;d7 ( ! ,securities        
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#ghm7d77 is am5d$ by add+ at ! end !    

foll[+3  7#g7 7,a7 ,9 ?is p>agraph1 !   
t]m cov]$ issu] means any issu] t       
produces compon5ts t may be us$ 9 !     
production ( goods manufactur$ or       
produc$ 91 or export$ f1 ! ,p's         
,republic ( ,*9a & includ$ 9 ! mo/ rec5t
 li/ requir$ "u section #ahc ( ! ,trade 
,act ( #aigd1 det]m9$ 9 consultation ) !
 ,unit$ ,/ates ,trade ,repres5tative4   
7,b7 ,no cov]$ issu] t is incorporat$ "u
 ! laws ( a ,/ate1 or ^: pr9cipal place 
( bus9ess is )9 a ,/ate1 may be         
majority-own$ by a p]son ^: pr9cipal    
place ( bus9ess is 9 ! ,p's ,republic ( 
,*9a4  7,c7 ,! prohibition 9 subp>agraph
 7,b7 %all apply to any acquisition on  
or aft] ! date ( enactm5t ( ?is         
p>agraph4  4  #ajd4 ,prohibition on use 
( c]ta9 telecommunications s]vices or   
equipm5t  7a7 ,f9d+s ,congress makes !  
foll[+ f9d+s3 7#a7 ,9 its #bjaa ,annual 
,report to ,congress on ,milit>y &      
,security ,developm5ts ,involv+ ! ,p's  
,republic ( ,*9a1 ! ,dep>tm5t ( ,def5se 
/at$1 ,*9a's def5se indu/ry has b5efit$ 

f integration ) a rapidly exp&+ civilian
 economy & sci5ce & te*nology sector1   
p>ticul>ly elem5ts t h access to =eign  
te*nology4 ,progress )9 individual      
def5se sectors appe>s l9k$ to ! relative
 integration ( ea*1 ?r\gh ,*9a's        
civilian economy1 into ! global         
production & ,r,d *a9 ''' ,in=mation    
te*nology companies 9 p>ticul>1 includ+ 
,huawei1 ,datang1 & ,zhongx+1 ma9ta9    
close ties to ! ,,pla44  7#b7 ,9 a #bjaa
 report titl$ ,! ,national ,security    
,implications ( ,inve/m5ts & ,products f
 ! ,p's ,republic ( ,*9a 9 !            
,telecommunications ,sector1 ! ,unit$   
,/ates ,*9a ,economic & ,security       
,review ,commission /at$ t national     
security conc]ns h accompani$ ! dramatic
 gr[? ( ,*9a's telecom sector4 '''      
,additionally1 l>ge ,*9ese              
companies--p>ticul>ly ^? national       
*ampions prom95t 9 ,*9a's go+ out       
/rategy ( ov]seas expansion--are        
directly subject to direction by !      
,*9ese ,communi/ ,p>ty1 to include      

support = ,,prc /ate policies & goals44 
7#c7 ,! ,commission fur!r /at$ 9 its    
report t from ?is po9t ( view1 ! cle>   
economic b5efits ( =eign inve/m5t 9 !   
,u4,s4 mu/ be weigh$ aga9/ ! pot5tial   
security conc]ns relat$ to infra/ructure
 compon5ts com+ "u ! control ( =eign    
entities4 ,?is seems p>ticul>ly         
applicable 9 ! telecommunications       
indu/ry1 z ,*9ese companies cont9ue     
sy/ematically to acquire significant    
hold+s 9 prom95t global & ,u4,s4        
telecommunications & in=mation te*nology
 companies44  7#d7 ,9 its #bjaa ,annual 
,report to ,congress1 ! ,unit$ ,/ates   
,*9a ,economic & ,security ,review      
,commission /at$ t the ext5t ( ! /ate's 
control ( ! ,*9ese economy is difficult 
to quantify ''' ,!re is also a category 
( companies t1 ?\gh claim+ to be        
private1 are subject to /ate influ5ce4  
,su* companies are (t5 9 new m>kets ) no
 e/abli%$ ,,soe lead]s & enjoy favorable
 gov]nm5t policies t support _!         
developm5t :ile pos+ ob/acles to =eign  

competition4 ,examples include ,*9ese   
telecoms giant ,huawei & su* automotive 
companies z batt]y mak] ,,byd & vehicle 
manufactur]s ,geely & ,*]y44  7#e7 ,9 ! 
bip>tisan ,inve/igative ,report on !    
,unit$ ,/ates ,national ,security       
,issues ,pos$ by ,*9ese                 
,telecommunication ,companies ,huawei & 
,,zte releas$ 9 #bjab by ! ,p]man5t     
,select ,committee on ,intellig5ce ( !  
,h\se ( ,repres5tatives1 x 0 recomm5d$ t
 ,u4,s4 gov]nm5t sy/ems1 p>ticul>ly     
s5sitive sy/ems1 %\ld n include ,huawei 
or ,,zte equipm5t1 includ+ 9 compon5t   
p>ts4 ,simil>ly1 gov]nm5t               
contractors--p>ticul>ly ^? work+ on     
contracts = s5sitive ,u4,s4             
programs--%\ld exclude ,,zte or ,huawei 
equipm5t 9 _! sy/ems44  7#f7 ,g5]al     
,mi*ael ,hayd51 :o s]v$ z ,director ( ! 
,c5tral ,intellig5ce ,ag5cy & ,director 
( ! ,national ,security ,ag5cy1 /at$ 9  
,july #bjac t ,huawei _h %>$ ) ! ,*9ese 
/ate intimate & ext5sive k ( =eign      
telecommunications sy/ems x is involv$  

)4  7#g7 ,! ,f$]al ,bureau (            
,inve/igation1 9 a ,febru>y #bjae       
,c\nt]9tellig5ce ,/rategy ,p>tn]%ip     
,intellig5ce ,note /at$ t1 wi? ! exp&$  
use ( ,huawei ,te*nologies ,inc4        
equipm5t & s]vices 9 ,u4,s4             
telecommunications s]vice provid]       
networks1 ! ,*9ese ,gov]nm5t's pot5tial 
access to ,u4,s4 bus9ess communications 
is dramatically increas+4 ,*9ese        
,gov]nm5t-support$ telecommunications   
equipm5t on ,u4,s4 networks may be      
exploit$ ?r\gh ,*9ese cyb] activity1 )  
,*9a's intellig5ce s]vices op]at+ z an  
advanc$ p]si/5t ?reat to ,u4,s4         
networks44  7#h7 ,! ,f$]al ,bureau (    
,inve/igation fur!r /at$ 9 its ,febru>y 
#bjae c\nt]9tellig5ce note t ,*9a makes 
no secret t its cyb] w>f>e /rategy is   
pr$icat$ on controll+ global            
communications network infra/ructure4   
7#i7 ,at a he>+ be=e ! ,committee on    
,arm$ ,s]vices ( ! ,h\se (              
,repres5tatives on ,septemb] #cj1 #bjae1
 ,deputy ,secret>y ( ,def5se ,rob]t ,"w1

 respond+ to a "q ab\t ! use ( ,huawei  
telecommunications equipm5t1 /at$1 ,9 ! 
,(fice ( ! ,secret>y ( ,def5se1         
absolutely n4 ,& ,i "k ( no o!r--,i     
don't believe we op]ate 9 ! ,p5tagon1   
any ,huawei sy/ems 9 ! ,p5tagon44  7#aj7
 ,at t he>+1 ! ,comm&] ( ! ,unit$ ,/ates
 ,cyb] ,comm&1 ,admiral ,mike ,rog]s1   
respond+ to a "q ab\t :y su* ,huawei    
telecommunications equipm5t is n us$1   
/at$1 ,z we look at supply *a9 & we look
 at pot5tial vuln]abilities )9 ! sy/em1 
t x is a risk we felt 0 unacceptable44  
7#aa7 ,9 ,m>* #bjag1 ,,zte ,corporation 
pl$ guilty to conspir+ to violate !     
,int]national ,em]g5cy ,economic ,p[]s  
,act by illegally %ipp+ ,unit$          
,/ates-orig9 items to ,iran1 pay+ !     
,unit$ ,/ates ,gov]nm5t a p5alty (      
#hib1cfj1jfd = activity betwe5 ,janu>y  
#bjaj & ,janu>y #bjaf4  7#ab7 ,! ,(fice 
( ,=eign ,assets ,control ( ! ,dep>tm5t 
( ! ,treasury issu$ a subpo5a to ,huawei
 z "p ( a ,f$]al inve/igation ( alleg$  
violations ( trade re/rictions on ,cuba1

 ,iran1 & ,sudan4  7b7 ,prohibition on  
ag5cy use or procurem5t ,! head ( an    
ag5cy may n procure or obta91 may n     
ext5d or r5ew a contract to procure or  
obta91 & may n ent] into a contract 7or 
ext5d or r5ew a contract7 ) an entity t 
uses1 or contracts ) any o!r entity t   
uses1 any equipm5t1 sy/em1 or s]vice t  
uses cov]$ telecommunications equipm5t  
or s]vices z a sub/antial or ess5tial   
compon5t ( any sy/em1 or z critical     
te*nology z "p ( any sy/em4  7c7 ,report
 ,n lat] ?an "o ye> aft] ! date ( !     
enactm5t ( ?is ,act1 & annually !reaft]1
 ! ,secret>y ( ,comm]ce1 9 consultation 
) ! ,secret>y ( ,def5se & ! ,unit$      
,/ates ,trade ,repres5tative1 %all      
submit to ,congress a report on sales by
 ! ,gov]nm5t ( ! ,p's ,republic ( ,*9a (
 cov]$ telecommunications equipm5t or   
s]vices ?r\gh p>tial own]%ip or any o!r 
me?ods4  7d7 ,def9itions ,9 ?is section3
  7#a7 ,ag5cy ,! t]m ag5cy has ! mean+  
giv5 t t]m 9 section #eea ( title #e1   
,unit$ ,/ates ,code4  7#b7 ,cov]$       

telecommunications equipm5t or s]vices  
,! t]m cov]$ telecommunications equipm5t
 or s]vices means any ( ! foll[+3  7,a7 
,telecommunications equipm5t produc$ by 
,huawei ,te*nologies ,company1 ,,zte    
,corporation1 or any o!r ,*9ese telecom 
entity id5tifi$ by ! ,director (        
,national ,intellig5ce1 ! ,secret>y (   
,def5se1 or ! ,director ( ! ,f$]al      
,bureau ( ,inve/igation z a security    
conc]n 7or any subsidi>y or affiliate ( 
any su* entity74  7,b7                  
,telecommunications s]vices provid$ by  
su* entities or us+ su* equipm5t4  7,c7 
,telecommunications equipm5t or s]vices 
produc$ or provid$ by an entity t ! head
 ( ! relevant ag5cy reasonably believes 
to be an entity own$ or controll$ by1 or
 o!rwise connect$ to1 ! ,gov]nm5t ( !   
,p's ,republic ( ,*9a4  ,,ii ,fair trade
 en=cem5t actions ) respect to ! ,p's   
,republic ( ,*9a  #bja4 ,c\nt]vail+     
duties ) respect to c]ta9 indu/ries 9 ! 
,p's ,republic ( ,*9a  7a7 ,policy ,x is
 ! policy ( ! ,unit$ ,/ates--  7#a7 to  

r$uce ! import ( f9i%$ goods f ! ,p's   
,republic ( ,*9a relat+ to ! ,made 9    
,*9a #bjbe plan set =? by ! ,gov]nm5t ( 
! ,p's ,republic ( ,*9a2 &  7#b7 to     
enc\rage allies ( ! ,unit$ ,/ates to    
r$uce ! import ( f9i%$ goods f ! ,p's   
,republic ( ,*9a relat+ to ! ,made 9    
,*9a #bjbe plan4  7b7 ,inclusion ( ,made
 9 ,*9a #bjbe products 9 def9ition (    
c\nt]vailable subsidy ,p>agraph 7#e7 (  
section #gga ( ! ,t>iff ,act ( #aicj    
7#ai ,u4,s4,c4 #afgg7 is am5d$ by add+  
at ! end ! foll[+3  7,g7 ,treatm5t (    
c]ta9 ,*9ese m]*&ise ,not)/&+ any o!r   
provision ( ?is title1 if a p]son       
pres5ts evid5ce 9 a petition fil$ "u    
section #gjb7;b7 t m]*&ise cov]$ by !   
petition is manufactur$ or produc$ 91 or
 export$ f1 ! ,p's ,republic ( ,*9a &   
includ$ 9 ! mo/ rec5t li/ requir$ "u    
section #ahc ( ! ,trade ,act ( #aigd1   
det]m9$ 9 consultation ) ! ,unit$ ,/ates
 ,trade ,repres5tative1 ! adm9i/rat+    
au?ority %all det]m9e t a c\nt]vailable 
subsidy is be+ provid$ ) respect to t   

m]*&ise4  4  7c7 ,inclusion ( ,made 9   
,*9a #bjbe products 9 def9ition (       
mat]ial injury ,p>agraph 7#g77;,f7 ( su*
 section is am5d$ by add+ at ! end !    
foll[+3  7iv7 ,treatm5t ( c]ta9 ,*9ese  
m]*&ise ,not)/&+ any o!r provision ( ?is
 title1 if a petition fil$ "u section   
#gjb7;b7 alleges t an indu/ry 9 ! ,unit$
 ,/ates is mat]ially injur$ or ?reat5$ )
 mat]ial injury or t ! e/abli%m5t ( an  
indu/ry 9 ! ,unit$ ,/ates is mat]ially  
ret>d$ by reason ( imports ( m]*&ise    
manufactur$ or produc$ 91 or export$ f1 
! ,p's ,republic ( ,*9a & includ$ 9 !   
mo/ rec5t li/ requir$ "u section #ahc ( 
! ,trade ,act ( #aigd1 det]m9$ 9        
consultation ) ! ,unit$ ,/ates ,trade   
,repres5tative1 ! ,commission %all      
det]m9e t mat]ial injury or su* a ?reat 
exi/s4  4  #bjb4 ,repeal ( r$uc$ )hold+ 
rates = resid5ts ( ,*9a  7a7 ,9 g5]al   
,section #hid ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$-- 7#a7 by /rik+ ,!    
provisions ( 9 subsection 7a7 & ins]t+  
,except z o!rwise provid$ 9 ?is section1

 ! provisions (1 &  7#b7 by add+ at !   
end ! foll[+ new subsection3  7d7       
,exception = ,p's ,republic ( ,*9a  7#a7
 ,9 g5]al ,! rates ( tax impos$ "u      
sections #hga & #hha1 & ! rates ( )hold+
 tax impos$ "u *apt] #c1 ) respect to   
any resid5t ( ! ,p's ,republic ( ,*9a   
%all be det]m9$ )\t reg>d to any        
provision ( ! ,agreem5t betwe5 !        
,gov]nm5t ( ! ,unit$ ,/ates ( ,am]ica & 
! ,gov]nm5t ( ! ,p's ,republic ( ,*9a = 
! ,avoidance ( ,d\ble ,taxation & !     
,prev5tion ( ,tax ,evasion ) ,respect to
 ,taxes on ,income1 sign$ at ,beij+ on  
,april #cj1 #aihd4  7#b7 ,regulations ,!
 ,secret>y %all promulgate regulations  
to prev5t ! avoidance ( ! purposes ( ?is
 subsection ?r\gh ! use ( =eign         
entities4  4  7b7 ,effective date ,!    
am5dm5ts made by ?is section %all apply 
to income receiv$ aft] ! date ( !       
enactm5t ( ?is ,act4  #bjc4 ,taxation ( 
obligations ( ! ,unit$ ,/ates held by ! 
,gov]nm5t ( ! ,p's ,republic ( ,*9a  7a7
 ,9 g5]al ,section #hib ( ! ,int]nal    

,rev5ue ,code ( #aihf is am5d$ by       
r$esignat+ subsection 7c7 z subsection  
7d7 & by ins]t+ aft] subsection 7b7 !   
foll[+ new subsection3  7c7 ,exception  
,?is section %all n apply to ! ,gov]nm5t
 ( ! ,p's ,republic ( ,*9a4  4  7b7     
,c5tral bank ,section #hie ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$-- 7#a7 by
 /rik+ ,income & ins]t+ ! foll[+3  7a7  
,9 g5]al ,income  2 &  7#b7 by add+ at !
 end ! foll[+ new subsection3  7b7      
,exception ,?is section %all n apply to 
! any c5tral bank ( ! ,p's ,republic (  
,*9a4  4  7c7 ,effective date ,!        
am5dm5ts made by ?is section %all apply 
to income receiv$ or d]iv$ aft] ! date (
 ! enactm5t ( ?is ,act4  #bjd4 ,surtax  
on c]ta9 income d]iv$ f ,*9a  7a7 ,9    
g5]al ,subp>t ,d ( "p ,,ii ( sub*apt] ,n
 ( *apt] #a ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by add+ at ! end !      
foll[+ new section3  #hii4 ,imposition (
 surtax on c]ta9 income f ,*9a  7a7 ,9  
g5]al ,9 addition to o!r taxes1 !re is  
impos$ on ! ,*9a s\rce income ( any     

applicable ,unit$ ,/ates p]son a tax    
equal to #b p]c5t ( su* income4  7b7    
,applicable ,unit$ ,/ates p]son ,=      
purposes ( ?is subsection1 ! t]m        
applicable ,unit$ ,/ates p]son means any
 ,unit$ ,/ates p]son :o-- 7#a7 holds an 
inve/m5t ?r\gh a p>tn]%ip ) a resid5t ( 
! ,p's ,republic ( ,*9a1 or  7#b7       
p>ticipates 9 a jo9t %>ehold+ v5ture ) a
 resid5t ( ! ,p's ,republic ( ,*9a4  7c7
 ,*9a s\rce income ,= purposes ( ?is    
section1 ! t]m ,*9a s\rce income means  
any am\nt receiv$ f s\rces )9 ! ,p's    
,republic ( ,*9a :i* is attributable to 
an inve/m5t describ$ 9 subsection       
7b77#a7 or a v5ture describ$ 9          
subsection 7b77#b74 ,su* am\nt %all be  
r$uc$ s z to take into acc\nt d$uctions 
7includ+ taxes7 prop]ly allocable to su*
 income "u rules simil> to ! rules (    
section #ied7;b77#e74  4  7b7 ,tax n    
treat$ z "p ( regul> tax liability      
,section #bf7;b77#b7 ( su* ,code is     
am5d$ by /rik+ & at ! end ( subp>agraph 
7,x71 by /rik+ ! p]iod at ! end (       

subp>agraph 7,y7 & ins]t+ 1 &1 & by add+
 at ! end ! foll[+ new subp>agraph3     
7,z7 section #hii 7relat+ to surtax on  
c]ta9 income f ,*9a74  4  7c7 ,cl]ical  
am5dm5t ,! table ( sections = subp>t ,d 
( "p ,,ii ( sub*apt] ,n ( *apt] #a ( su*
 ,code is am5d$ by add+ at ! end !      
foll[+ new item3  ,sec4 #hii4           
,imposition ( surtax on c]ta9 income f  
,*9a4  4  7d7 ,effective date ,!        
am5dm5ts made by ?is section %all apply 
to income receiv$ aft] ! date ( !       
enactm5t ( ?is ,act4  ,,iii ,/opp+      
,=eign ,bus9esses ,sanctu>y ,act ( #bjai
  #cja4 ,%ort title ,?is title may be   
cit$ z ! ,/opp+ ,=eign ,bus9esses       
,sanctu>y ,act ( #bjai4  #cjb4          
,jurisdiction ov] c]ta9 =eign entities  
,section #afje ( title #bh1 ,unit$      
,/ates ,code1 is am5d$ by ins]t+ aft]   
subsection 7d7 ! foll[+3  7e7 ,not)/&+  
any o!r provision ( law1 an entity is n 
immune f ! jurisdiction ( ! c\rts ( !   
,unit$ ,/ates or ( ! ,/ates if !        
entity-- 7#a7 is incorporat$ 9 a =eign  

/ate 9 :i* /ate-own$ or /ate-controll$  
entities commonly engage 9 comm]cial    
activity2 &  7#b7 conducts comm]cial    
activity 9 ! ,unit$ ,/ates4  4  #cjc4   
,comm]cial activity ( affiliate entities
 ,section #afjc7;d7 ( title #bh1 ,unit$ 
,/ates ,code1 is am5d$--  7#a7 by ins]t+
 7#a7 be=e ,a2 &  7#b7 by add+ at ! end 
! foll[+3  7#b7 ,= purposes ( ?is *apt]1
 a comm]cial activity ( an ag5cy or     
in/rum5tality ( a =eign /ate1 or ( an   
entity describ$ 9 section #afje7;e71    
%all be attributable to any corporate   
affiliate ( ! ag5cy1 in/rum5tality1 or  
entity t-- 7,a7 directly or indirectly  
owns a majority ( %>es ( ! ag5cy1       
in/rum5tality1 or entity2 &  7,b7 is    
also an ag5cy or in/rum5tality ( a =eign
 /ate1 or an entity describ$ 9 section  
#afje7;e74  4