,i #aah? ,,congress #a/ ,session ,h4 ,r4 #gfj ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,febru>y #b1 #bjbc,mr4 ,b>r introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,=eign ,affairs1 & 9 addition to ! ,committee on ,f9ancial ,s]vices1 = 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 impose sanctions ) respect to ,communi/ ,*9ese milit>y & surveillance companies4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,*9ese ,milit>y & ,surveillance ,company ,sanctions ,act ( #bjbc4 #b4 ,f9d+s & s5se ( ,congress 7a7 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,"u ,executive ,ord] #aciei 7#he ,f$4 ,reg4 #gcahe2 relat+ to address+ ! ?reat f securities inve/m5ts t f9ance ,communi/ ,*9ese milit>y companies7 ( ,novemb] #ag1 #bjbj1 ! ,presid5t f\nd t ! ,p's ,republic ( ,*9a increases ! size ( ! c\ntry's milit>y-indu/rial complex by compell+ civilian ,*9ese companies to support its milit>y & intellig5ce activities4 ,^? companies1 ?\gh rema9+ o/5sibly private & civilian1 directly support ! ,,prc's milit>y1 intellig5ce1 & security app>atuses & aid 9 _! developm5t & mod]nization44 ,! ,presid5t fur!r det]m9$ t ! ,,prc exploits ,unit$ ,/ates inve/ors to f9ance ! developm5t & mod]nization ( its milit>y44 ,z a result1 ,executive ,ord] #aciei re/rict$ transactions 9 publicly trad$ securities ( ,communi/ ,*9ese milit>y companies li/$ pursuant to section #abcg ( ! ,/rom ,?urmond ,national ,def5se ,au?orization ,act = ,fiscal ,ye> #aiii 7#ej ,u4,s4,c4 #agja note74 7#b7 ,al?\gh ,executive ,ord] #aciei t>gets transactions 9 public securities1 x does n address f9anc+ options = ,communi/ ,*9ese milit>y companies ?r\gh o!r =ms ( equity f9anc+ or debt f9anc+1 nor does x limit transactions ) ,unit$ ,/ates p]sons t may g5]ate e>n+s 9 a mann] t facilitates company gr[?4 7#c7 ,! ,(fice ( ,=eign ,assets ,control 7,,(ac7 ( ! ,dep>tm5t ( ! ,treasury1 by impos+ asset block+ ?r\gh ! ,specially ,designat$ ,nationals 7,,sdn7 ,li/1 is able to =bid virtually any transaction betwe5 ,unit$ ,/ates p]sons & a designat$ entity1 includ+ debt & equity f9anc+1 ! ex*ange ( goods & s]vices1 & ! provision ( mat]ial or te*nological support4 ,conv]sely1 re/rictions limit$ to publicly trad$ securities are less compreh5sive1 & 9 ! case ( c]ta9 ,*9ese companies ( conc]n1 may be irrelevant if ! companies d n issue su* securities4 7#d7 ,:ile re/rictions on public securities are re/rict$ to ! deal+s ( ,unit$ ,/ates p]sons1 ,,(ac's inclusion ( a =eign entity on ! ,,sdn li/ det]s ?ird-c\ntry p]sons f deal+ ) a designat$ entity1 amplify+ ! effects ( ,unit$ ,/ates sanctions globally4 7#e7 ,,(ac has long devot$ significant res\rces to compil+ evid5ce on ,s,d,ns t r\t9ely )/& *all5ges 9 c\rt1 :i* enhances ! effectiv5ess ( ,unit$ ,/ates sanctions1 enc\rages allies to consid] comp>able measures1 & /r5g!ns national security4 7#f7 ,on ,june #c1 #bjba1 ! ,presid5t issu$ ,executive ,ord] #adjcb1 :i* transf]r$ responsibility = nam+ ,*9ese milit>y companies subject to inve/m5t re/rictions to ! ,secret>y ( ! ,treasury1 & exp&$ re/rictions to entities op]at+ 9 ! surveillance te*nology sector ( ! ,*9ese economy4 7b7 ,s5se ( ,congress ,x is ! s5se ( ! ,congress t ! national em]g5cy decl>$ "u ,executive ,ord] #aciei calls = ! ,presid5t to-- 7#a7 m fully cut (f f9anc+ av5ues = ,communi/ ,*9ese milit>y & surveillance companies2 7#b7 prev5t adaptation by a company to p>tial re/rictions t limit !mselves to publicly trad$ securities2 7#c7 ensure t ! ,unit$ ,/ates assembles an appropriate evid5ti>y basis to support ! effectiv5ess ( sanctions2 7#d7 enhance ! impact ( economic sanctions by det]r+ ?ird-c\ntry p]sons f deal+ ) ! companies2 & 7#e7 l9k ! imposition ( sanctions to cle> objectives t s]ve to resolve ! national em]g5cy4 #c4 ,sanctions ) respect to ,communi/ ,*9ese milit>y & surveillance companies 7a7 ,9 g5]al ,n lat] ?an #ahj days aft] ! date on :i* ! fir/ updat$ li/ is submitt$ "u section #abfj;,h ( ! ,william ,m4 7,mac7 ,?ornb]ry ,national ,def5se ,au?orization ,act = ,fiscal ,ye> #bjba 7#aj ,u4,s4,c4 #aac note7 on or aft] ! date ( ! enactm5t ( ?is ,act1 ! ,presid5t %all impose ! sanctions describ$ 9 subsection 7b7 ) respect to-- 7#a7 ea* p]son t is on su* updat$ li/1 & 7#b7 ea* =eign p]son li/$ 9 ! ,annex to ,executive ,ord] #adjcb 7#hf ,f$4 ,reg4 #cjade2 relat+ to address+ ! ?reat f securities inve/m5ts t f9ance c]ta9 companies ( ! ,p's ,republic ( ,*9a7 ( ,june #c1 #bjba1 or det]m9$ by ! ,secret>y ( ! ,treasury1 9 consultation ) ! ,secret>y ( ,/ate1 &1 z ! ,secret>y ( ! ,treasury det]m9es appropriate1 ! ,secret>y ( ,def5se1 to engage 9 ! activities describ$ "u section #a7;a77i7 or #a7;a77ii7 ( su* ,executive ,ord] #adjcb1 if ! ,presid5t det]m9es t ! imposition ( su* sanctions meets appropriate evid5ti>y /&>ds & advances ! objective ( resolv+ ! national em]g5cy describ$ 9 ,executive ,ord] #adjcb 7#hf ,f$4 ,reg4 #cjade2 relat+ to address+ ! ?reat f securities inve/m5ts t f9ance c]ta9 companies ( ! ,p's ,republic ( ,*9a7 ( ,june #c1 #bjba4 7b7 ,sanctions describ$ ,! ,presid5t %all ex]cise all ( ! p[]s grant$ to ! ,presid5t "u ! ,int]national ,em]g5cy ,economic ,p[]s ,act 7#ej ,u4,s4,c4 #agja et seq47 to ! ext5t necess>y to block & prohibit all transactions 9 prop]ty & int]e/s 9 prop]ty ( a p]son if su* prop]ty & int]e/s 9 prop]ty-- 7#a7 are 9 ! ,unit$ ,/ates2 7#b7 come )9 ! ,unit$ ,/ates2 or 7#c7 come )9 ! possession or control ( a ,unit$ ,/ates p]son4 7c7 ,p5alties ,! p5alties set =? 9 section #bjf ( ! ,int]national ,em]g5cy ,economic ,p[]s ,act 7#ej ,u4,s4,c4 #agje7 apply to violations ( any lic5se1 ord]1 or regulation issu$ "u ?is section4 7d7 ,waiv] ,! ,presid5t may waive ! application ( sanctions "u ?is section if ! ,presid5t c]tifies 9 writ+ to ! appropriate congressional committees t ! waiv] is 9 ! national int]e/ ( ! ,unit$ ,/ates1 ) an explanation ( ! reasons !re=4 7e7 ,exception = intellig5ce activities ,sanctions "u ?is section %all n apply to any activity subject to ! report+ requirem5ts "u title ,v ( ! ,national ,security ,act ( #aidg 7#ej ,u4,s4,c4 #cjia et seq47 or any au?oriz$ intellig5ce activities ( ! ,unit$ ,/ates4 7f7 ,exception relat+ to importation ( goods 7#a7 ,9 g5]al ,! au?orities & requirem5ts to impose sanctions au?oriz$ "u ?is section %all n include ! au?ority or requirem5t to impose sanctions on ! importation ( goods4 7#b7 ,good def9$ ,9 ?is subsection1 ! t]m good means any article1 natural or manmade sub/ance1 mat]ial1 supply1 or manufactur$ product1 includ+ inspection & te/ equipm5t1 & exclud+ te*nical data4 7g7 ,con=m+ requirem5t ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,presid5t %all revoke ! prohibitions describ$ 9 section #a7;a7 ( ,executive ,ord] #adjcb t are duplicative (1 less re/rictive ?an1 or are o!rwise made r$undant by1 ! sanctions describ$ 9 ?is section4 7h7 ,appropriate congressional committees def9$ ,9 ?is section1 ! t]m appropriate congressional committees means-- 7#a7 ! ,committee on ,=eign ,affairs & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives2 & 7#b7 ! ,committee on ,=eign ,relations & ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate4 7i7 ,sunset ,! au?ority to impose sanctions "u ?is section1 & any sanctions impos$ "u ?is section1 %all t]m9ate on ! e>li] (-- 7#a7 ! date t is #cj days aft] ! date on :i* ! ,presid5t repeals ! national em]g5cy decl>$ "u ,executive ,ord] #aciei 7#he ,f$4 ,reg4 #gcahe72 or 7#b7 ! date t is #g ye>s aft] ! date ( ! enactm5t ( ?is ,act4