,i #aahth ,,congress #ast ,session ,h4 ,r4 #gfj ,,in ,,the ,,house ,,of ,,representatives ,february #b1 #bjbc,mr4 ,barr introduced the following bill2 which was referred to the ,committee on ,foreign ,affairs1 and in addition to the ,committee on ,financial ,services1 for a period to be subsequently determined by the ,speaker1 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 companies4 #a4 ,short title ,this ,act may be cited as the ,chinese ,military and ,surveillance ,company ,sanctions ,act of #bjbc4 #b4 ,findings and sense of ,congress 7a7 ,findings ,congress finds the following3 7#a7 ,under ,executive ,order #aciei 7#he ,fed4 ,reg4 #gcahe2 relating to addressing the threat from securities investments that finance ,communist ,chinese military companies7 of ,november #ag1 #bjbj1 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 activities4 ,those companies1 though remaining ostensibly private and civilian1 directly support the ,,prc's military1 intelligence1 and security apparatuses and aid in their development and modernization44 ,the ,president further determined that the ,,prc exploits ,united ,states investors to finance the development and modernization of its military44 ,as a result1 ,executive ,order #aciei restricted transactions in publicly traded securities of ,communist ,chinese military companies listed pursuant to section #abcg of the ,strom ,thurmond ,national ,defense ,authorization ,act for ,fiscal ,year #aiii 7#ej ,u4,s4,c4 #agja note74 7#b7 ,although ,executive ,order #aciei targets transactions in public securities1 it does not address financing options for ,communist ,chinese military companies through other forms of equity financing or debt financing1 nor does it limit transactions with ,united ,states persons that may generate earnings in a manner that facilitates company growth4 7#c7 ,the ,office of ,foreign ,assets ,control 7,,ofac7 of the ,department of the ,treasury1 by imposing asset blocking through the ,specially ,designated ,nationals 7,,sdn7 ,list1 is able to forbid virtually any transaction between ,united ,states persons and a designated entity1 including debt and equity financing1 the exchange of goods and services1 and the provision of material or technological support4 ,conversely1 restrictions limited to publicly traded securities are less comprehensive1 and in the case of certain ,chinese companies of concern1 may be irrelevant if the companies do not issue such securities4 7#d7 ,while restrictions on public securities are restricted to the dealings of ,united ,states persons1 ,,ofac's inclusion of a foreign entity on the ,,sdn list deters third-country persons from dealing with a designated entity1 amplifying the effects of ,united ,states sanctions globally4 7#e7 ,,ofac has long devoted significant resources to compiling evidence on ,s,d,ns that routinely withstand challenges in court1 which enhances the effectiveness of ,united ,states sanctions1 encourages allies to consider comparable measures1 and strengthens national security4 7#f7 ,on ,june #c1 #bjba1 the ,president issued ,executive ,order #adjcb1 which transferred responsibility for naming ,chinese military companies subject to investment restrictions to the ,secretary of the ,treasury1 and expanded restrictions to entities operating in the surveillance technology sector of the ,chinese economy4 7b7 ,sense of ,congress ,it is the sense of the ,congress that the national emergency declared under ,executive ,order #aciei calls for the ,president to-- 7#a7 more fully cut off financing avenues for ,communist ,chinese military and surveillance companies2 7#b7 prevent adaptation by a company to partial restrictions that limit themselves to publicly traded securities2 7#c7 ensure that the ,united ,states assembles an appropriate evidentiary basis to support the effectiveness of sanctions2 7#d7 enhance the impact of economic sanctions by deterring third-country persons from dealing with the companies2 and 7#e7 link the imposition of sanctions to clear objectives that serve to resolve the national emergency4 #c4 ,sanctions with respect to ,communist ,chinese military and surveillance companies 7a7 ,in general ,not later than #ahj days after the date on which the first updated list is submitted under section #abfj;,h of the ,william ,m4 7,mac7 ,thornberry ,national ,defense ,authorization ,act for ,fiscal ,year #bjba 7#aj ,u4,s4,c4 #aac note7 on or after the date of the enactment of this ,act1 the ,president shall impose the sanctions described in subsection 7b7 with respect to-- 7#a7 each person that is on such updated list1 and 7#b7 each foreign person listed in the ,annex to ,executive ,order #adjcb 7#hf ,fed4 ,reg4 #cjade2 relating to addressing the threat from securities investments that finance certain companies of the ,people's ,republic of ,china7 of ,june #c1 #bjba1 or determined by the ,secretary of the ,treasury1 in consultation with the ,secretary of ,state1 and1 as the ,secretary of the ,treasury determines appropriate1 the ,secretary of ,defense1 to engage in the activities described under section #a7;a77i7 or #a7;a77ii7 of such ,executive ,order #adjcb1 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 #adjcb 7#hf ,fed4 ,reg4 #cjade2 relating to addressing the threat from securities investments that finance certain companies of the ,people's ,republic of ,china7 of ,june #c1 #bjba4 7b7 ,sanctions described ,the ,president shall exercise all of the powers granted to the ,president under the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq47 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-- 7#a7 are in the ,united ,states2 7#b7 come within the ,united ,states2 or 7#c7 come within the possession or control of a ,united ,states person4 7c7 ,penalties ,the penalties set forth in section #bjf of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agje7 apply to violations of any license1 order1 or regulation issued under this section4 7d7 ,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 ,states1 with an explanation of the reasons therefor4 7e7 ,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 #aidg 7#ej ,u4,s4,c4 #cjia et seq47 or any authorized intelligence activities of the ,united ,states4 7f7 ,exception relating to importation of goods 7#a7 ,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 goods4 7#b7 ,good defined ,in this subsection1 the term good means any article1 natural or manmade substance1 material1 supply1 or manufactured product1 including inspection and test equipment1 and excluding technical data4 7g7 ,conforming requirement ,not later than #ahj days after the date of the enactment of this ,act1 the ,president shall revoke the prohibitions described in section #a7;a7 of ,executive ,order #adjcb that are duplicative of1 less restrictive than1 or are otherwise made redundant by1 the sanctions described in this section4 7h7 ,appropriate congressional committees defined ,in this section1 the term appropriate congressional committees means-- 7#a7 the ,committee on ,foreign ,affairs and the ,committee on ,financial ,services of the ,house of ,representatives2 and 7#b7 the ,committee on ,foreign ,relations and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate4 7i7 ,sunset ,the authority to impose sanctions under this section1 and any sanctions imposed under this section1 shall terminate on the earlier of-- 7#a7 the date that is #cj days after the date on which the ,president repeals the national emergency declared under ,executive ,order #aciei 7#he ,fed4 ,reg4 #gcahe72 or 7#b7 the date that is #g years after the date of the enactment of this ,act4