,,ii #aahth ,,congress #b;d ,session ,s4 #ejaf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #aj1 #bjbd,mr4 ,casey introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to combat the economic aggression of the ,people's ,republic of ,china1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,combat ,chinese ,economic ,aggression ,act of #bjbd4 #b4 ,review by ,committee on ,foreign ,investment in the ,united ,states of investments impacting economic or technological competitiveness 7a7 ,in general ,subsection 7a77#d7 of section #gba of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7 is amended-- 7#a7 in subparagraph 7,a7-- 7,a7 in clause 7i71 by striking 2 and and inserting a semicolon2 7,b7 in clause 7ii7-- 7i7 by striking clauses 7ii7 through 7v7 and inserting any of clauses 7ii7 through 7iv7 or clause 7vii72 and 7ii7 by striking the period at the end and inserting 2 and2 7,c7 by adding at the end the following3 7iii7 any transaction described in clause 7v7 or 7vi7 of subparagraph 7,b7 proposed or pending after the date of the enactment of this clause4 2 and 7#b7 in subparagraph 7,b7-- 7,a7 by redesignating clause 7v7 as clause 7vii72 and 7,b7 by inserting after clause 7iv7 the following3 7v7 ,any other investment1 subject to regulations prescribed under subparagraph 7,d71 by a foreign person in a ,united ,states business that could support the acquisition by a foreign country of capabilities to attain technological self-sufficiency or impair the economic and technological competitiveness of the ,united ,states1 including-- 7,i7 an investment in a ,united ,states business that has received direct funding from1 or has been awarded a contract by1 the ,department of ,defense1 the ,department of ,commerce1 the ,department of ,energy1 or another ,federal agency2 or 7,,ii7 any other investment the ,committee determines1 by regulation1 may provide to the foreign person access to expertise1 business networks1 or production methods critical to maintaining the economic and technological competitiveness of the ,united ,states4 7vi7 ,any other investment1 subject to regulations prescribed under subparagraph 7,d7-- 7,i7 in a ,united ,states business that produces1 designs1 tests1 manufactures1 fabricates1 or develops one or more critical technologies2 and 7,,ii7 by a foreign entity of concern 7as defined in section #iija of the ,william ,m4 7,mac7 ,thornberry ,national ,defense ,authorization ,act for ,fiscal ,year #bjba 7#ae ,u4,s4,c4 #dfea77 that is organized under the laws of or otherwise subject to the jurisdiction of the ,people's ,republic of ,china4 4 7b7 ,mandatory declarations ,section #gba7;b77#a77;,c77v77,,iv7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7;b77#a77;,c77v77,,iv77 is amended by adding at the end the following3 7hh7 ,required declarations for certain transactions ,the parties to a covered transaction shall submit a declaration described in subclause 7,i7 with respect to the transaction if-- 7,,aa7 a foreign person that is a party to the transaction is a national of the ,people's ,republic of ,china or an entity organized under the laws of or otherwise subject to the jurisdiction of the ,people's ,republic of ,china2 or 7,,bb7 the transaction is in the metallurgy1 telecommunications1 energy1 industrial gas1 chemicals1 or petrochemicals sector or any other sector the ,secretary determines appropriate for purposes of this item4 4 7c7 ,analysis by ,international ,trade ,administration ,section #gba7;b77#a7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7;b77#a77 is amended by adding at the end the following3 7,i7 ,analysis by ,international ,trade ,administration with respect to certain transactions 7i7 ,in general ,in the case of a review of a covered transaction described in clause 7ii71 the ,secretary of ,commerce1 in consultation with other members of the ,committee as appropriate1 shall conduct an analysis of-- 7,i7 the sector or industry in which the ,united ,states business involved in the transaction operates2 7,,ii7 the cumulative control of1 or pattern of recent transactions by1 foreign persons1 including1 directly or indirectly1 foreign governments1 in that sector or industry2 and 7,,iii7 the effect of foreign investment in that sector or industry on the national security of the ,united ,states4 7ii7 ,transactions described ,a covered transaction described in this clause is a covered transaction-- 7,i7 described in clause 7vi7 or 7vii7 of subsection 7a77#d77;,b72 and 7,,ii7 to which a foreign person that is a national of the ,people's ,republic of ,china or an entity organized under the laws of or otherwise subject to the jurisdiction of the ,people's ,republic of ,china is a party4 4 7d7 ,authorization of appropriations ,there are authorized to be appropriated for the ,committee on ,foreign ,investment in the ,united ,states such sums as may be necessary to carry out the amendments made by this section4 #c4 ,enhanced securities disclosure requirements 7a7 ,definitions ,in this section3 7#a7 ,commission ,the term ,commission means the ,securities and ,exchange ,commission4 7#b7 ,country of concern ,the term country of concern-- 7,a7 has the meaning given the term covered nation in section #dhgb7;d7 of title #aj1 ,united ,states ,code2 and 7,b7 includes a jurisdiction that the ,commission1 in consultation with the ,secretary of ,state and the ,secretary of the ,treasury1 determines to be subject to the political and legal control of a covered nation1 as defined in section #dhgb7;d7 of title #aj1 ,united ,states ,code4 7#c7 ,covered entity ,the term covered entity means an entity or person that is required to file ,form ,,pf4 7#d7 ,exempt reporting adviser ,the term exempt reporting adviser means an investment adviser described in section #bge4bjd-d7;a7 of title #ag1 ,code of ,federal ,regulations1 or any successor regulation4 7#e7 ,form ,,adv ,the term ,form ,,adv means the form described in section #bgi4a of title #ag1 ,code of ,federal ,regulations1 or any successor regulation4 7#f7 ,form ,,pf ,the term ,form ,,pf means the form described in section #bgi4i of title #ag1 ,code of ,federal ,regulations1 or any successor regulation4 7#g7 ,private fund ,the term private fund has the meaning given the term in section #bjb7;a7 of the ,investment ,advisers ,act of #aidj 7#ae ,u4,s4,c4 #hj;b-#b7;a774 7#h7 ,private fund assets ,the term private fund assets has the meaning given the term in section #bge4bjd7;b7-#a of title #ag1 ,code of ,federal ,regulations1 or any successor regulation4 7b7 ,enhanced disclosure requirements for advisers of private funds 7#a7 ,requirements 7,a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,commission shall amend ,form ,,pf and ,form ,,adv1 and the rules of the ,commission governing the submission of ,form ,,pf and ,form ,,adv1 to1 subject to subparagraph 7,b71 require each covered entity and each exempt reporting adviser to annually disclose when submitting ,form ,,pf or ,form ,,adv1 respectively1 the total private fund assets in countries of concern attributable to the private funds advised by the covered entity or exempt reporting adviser1 as applicable1 which shall be broken down by the percentage of those assets in each country of concern4 7,b7 ,application ,for the purposes of subparagraph 7,a71 the ,commission shall determine whether a private fund asset is in a country of concern based on-- 7i7 the amount of capital that is invested in an entity 7including a subsidiary of an entity7-- 7,i7 that has a physical presence or employees in that country of concern2 or 7,,ii7 the plurality of the sales of which are from that country of concern2 and 7ii7 the proportion of the total assets and liabilities of an entity described in clause 7i7 that are located in that country of concern4 7#b7 ,reporting by ,commission 7,a7 ,publicly available reports 7i7 ,in general ,not later than #a year after the date on which the ,commission makes the amendments required under paragraph 7#a71 and not less frequently than annually thereafter1 the ,commission shall prepare and make publicly available a report containing a list of covered entities and exempt reporting advisers that1 for the period covered by the report1 have disclosed more than #j private fund assets under ,form ,,pf or ,form ,,adv 7as amended pursuant to that subsection7 in at least #a country of concern1 which shall be aggregated by the covered entity or exempt reporting adviser making that disclosure4 7ii7 ,additional requirements ,each report prepared and made available by the ,commission under clause 7i7 shall-- 7,i7 be aggregated by covered entity or exempt reporting adviser2 and 7,,ii7 include the percentage of private fund assets disclosed by a covered entity or exempt reporting adviser1 as applicable4 7,b7 ,rule of construction ,nothing in this paragraph may be construed to permit the ,commission to make available any information that appears on ,form ,,pf or ,form ,,adv other than the information that is included on ,form ,,pf or ,form ,,adv as a result of the requirements under paragraph 7#a74 7c7 ,exempted transactions ,the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is amended by inserting after section #ac;,a 7#ae ,u4,s4,c4 #ghm-#a7 the following3 #ac;,b4 ,disclosure requirements relating to certain exempted transactions 7a7 ,definitions ,in this section3 7#a7 ,beneficial owner ,the term beneficial owner means a person that is determined to be a beneficial owner under section #bdj4ac;d-#c of title #ag1 ,code of ,federal ,regulations1 or any successor regulation4 7#b7 ,country of concern ,the term country of concern-- 7,a7 has the meaning given the term covered nation in section #dhgb7;d7 of title #aj1 ,united ,states ,code2 and 7,b7 includes a jurisdiction that the ,commission1 in consultation with the ,secretary of ,state and the ,secretary of the ,treasury1 determines to be subject to the political and legal control of a covered nation1 as defined in section #dhgb7;d7 of title #aj1 ,united ,states ,code4 7#c7 ,covered exempted transaction ,the term covered exempted transaction means an offer or sale of a security that is-- 7,a7 exempt from registration under section #e of the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #gg;e72 and 7,b7 structured or intended to comply with-- 7i7 section #bcj4ejf7;b7 of title #ag1 ,code of ,federal regulations1 or any successor regulation2 7ii7 sections #bcj4ija1 #bcj4ijb1 and #bcj4ijc of title #ag1 ,code of ,federal ,regulations1 or any successor regulations2 or 7iii7 section #bcj4add;,a of title #ag1 ,code of ,federal ,regulations1 or any successor regulation4 7b7 ,requirement 7#a7 ,in general ,notwithstanding any other provision of law1 in the case of an issuer that conducts a covered exempted transaction described in paragraph 7#b71 that issuer shall provide to the ,commission1 at such time and in such manner as the ,commission may prescribe1 the following information3 7,a7 ,the identity of the issuer4 7,b7 ,the place of incorporation of the issuer4 7,c7 ,whether the issuer is associated with at least #a consolidated entity1 the plurality of the assets of which are in a country of concern4 7,d7 ,whether the issuer is associated with at least #a consolidated entity that is incorporated in a country of concern4 7,e7 ,the amount of securities sold pursuant to the covered exempted transaction and the net proceeds to the issuer4 7,f7 ,the beneficial owners of the issuer4 7,g7 ,the intended use of the proceeds from the covered exempted transaction1 including each country in which the issuer intends to invest those proceeds1 which shall be broken down by the percentage of net proceeds by industry within each such country4 7,h7 ,the exemption the issuer relies on with respect to the covered exempted transaction4 7#b7 ,particular covered exempted transaction described ,a covered exempted transaction described in this paragraph is1 with respect to the issuer offering or selling the security that is the subject of the covered exempted transaction1 either of the following instances3 7,a7 ,an offer or sale of securities in an amount that is not less than #be1jjj1jjj4 7,b7 ,an offer or sale of a security such that the offer or sale1 together with all covered exempted transactions by that issuer during the #a-year period preceding the date on which the issuer offers or sells the security1 constitutes offers or sales in the aggregate of an amount that is not less than #ej1jjj1jjj4 7c7 ,authority ,to revise and promulgate rules1 regulations1 and forms ,the ,commission shall1 for the protection of investors and fair and orderly markets-- 7#a7 revise and issue such rules1 regulations1 and forms as may be necessary to carry out this section2 and 7#b7 issue rules to set conditions that limit the future use of covered exempted transactions for issuers that do not comply with the disclosure requirements of this section4 7d7 ,applicability ,this section shall apply with respect to any covered exempted transaction that occurs on or after the date that is #a year after the date of enactment of this section4 7e7 ,reports ,the ,commission shall1 on a quarterly basis1 prepare and make publicly available a report that includes all information submitted by an issuer under this section during the quarter covered by the report1 if that issuer-- 7#a7 is-- 7,a7 incorporated in a country of concern2 or 7,b7 incorporated outside of a country of concern and is associated with at least #a consolidated entity-- 7i7 the plurality of the assets of which are in a country of concern2 or 7ii7 that is incorporated in a country of concern2 or 7#b7 discloses in a filing made pursuant to this section that the issuer intends to invest the proceeds from a covered exempted transaction in a country of concern4 4 #d4 ,protection of covered sectors ,the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #deja et seq47 is amended by adding at the end the following3 ,,viii ,protection of covered sectors #hja4 ,definitions ,in this title3 7#a7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,foreign ,affairs1 the ,committee on ,financial ,services1 the ,committee on ,ways and ,means1 the ,committee on ,appropriations1 and the ,permanent ,select ,committee on ,intelligence of the ,house of ,representatives2 and 7,b7 the ,committee on ,foreign ,relations1 the ,committee on ,banking1 ,housing1 and ,urban ,affairs1 the ,committee on ,finance1 the ,committee on ,appropriations1 and the ,select ,committee on ,intelligence of the ,senate4 7#b7 ,country of concern ,the term country of concern includes-- 7,a7 the ,democratic ,people's ,republic of ,north ,korea2 7,b7 the ,people's ,republic of ,china1 including the ,hong ,kong ,special ,administrative ,region and the ,macau ,special ,administrative ,region2 7,c7 the ,russian ,federation2 7,d7 the ,islamic ,republic of ,iran2 and 7,e7 any other country that the ,president has identified as engaging in a comprehensive1 long-term strategy that directs1 facilitates1 or otherwise supports advancements in sensitive technologies and products that are critical to the military1 intelligence1 surveillance1 or cyber-enabled capabilities of the country to counter ,united ,states capabilities in a way that threatens the national security of the ,united ,states2 and 7,f7 any other country the ,president determines necessary to ensure a country described in any of subparagraphs 7,a7 through 7,e7 is unable to circumvent the provisions of this title and the regulations issued pursuant to this title4 7#c7 ,covered activity 7,a7 ,in general ,subject to such regulations as may be prescribed in accordance with section #hjg1 and except as provided in subparagraph 7,b71 the term covered activity means any activity engaged in by a ,united ,states person that involves-- 7i7 an acquisition by such ,united ,states person of an equity interest or contingent equity interest1 or monetary capital contribution1 in a covered foreign entity1 directly or indirectly1 by contractual commitment or otherwise2 7ii7 an arrangement for an interest held by such ,united ,states person in the short- or long-term debt obligations of a covered foreign entity that includes governance rights that are characteristic of an equity investment1 management1 or other important rights2 7iii7 the establishment of a wholly owned subsidiary in a country of concern1 such as a greenfield investment1 for the purpose of production1 design1 testing1 manufacturing1 fabrication1 or development related to one or more covered sectors2 7iv7 the establishment by such ,united ,states person of a joint venture in a country of concern or with a covered foreign entity for the purpose of production1 design1 testing1 manufacturing1 fabrication1 or research1 or other contractual or other commitments involving a covered foreign entity to jointly research and develop new innovation1 including through the transfer of capital or intellectual property or other business proprietary information2 or 7v7 the acquisition by a ,united ,states person with a covered foreign entity of-- 7,i7 operational cooperation1 such as through supply or support arrangements2 7,,ii7 the right to board representation 7as an observer1 even if limited1 or as a member7 or an executive role 7as may be defined through regulation7 in a covered foreign entity2 7,,iii7 the ability to direct or influence such operational decisions as may be defined through such regulations2 7,,iv7 formal governance representation in any operating affiliate1 such as a portfolio company1 of a covered foreign entity2 or 7,v7 a new relationship to share or provide business services1 such as financial services1 marketing services1 maintenance1 or assembly functions2 or 7vi7 knowingly directing transactions by foreign persons that would constitute covered activity if engaged in by a ,united ,states person4 7,b7 ,exceptions ,the term covered activity does not include-- 7i7 any transaction the value of which the ,president determines is de minimis1 as defined in regulations prescribed in accordance with section #hjg2 7ii7 any category of transactions that the ,president determines is in the national interest of the ,united ,states1 as may be defined in regulations prescribed in accordance with section #hjg2 7iii7 an investment in-- 7,i7 a publicly traded security 7as such term is defined in section #c7;a77#aj7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a77#aj7772 7,,ii7 an index fund1 mutual fund1 exchange-traded fund1 or a similar instrument 7including associated derivatives7 offered by an investment company 7as such term is defined in section #c7;a77#a7 of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#c7;a77#a7771 or by a private investment fund2 or 7,,iii7 a venture capital fund1 private equity fund1 fund of funds1 or other pooled investment funds1 as the limited partner1 in each case in which the limited partner's contribution is solely capital in a limited partnership structure and-- 7aa7 the limited partner cannot make managerial decisions1 is not responsible for any debts beyond its investment1 and does not have the ability 7formally or informally7 to influence or participate in the fund's or a covered foreign entity's decision making or operations2 or 7bb7 the investment is below a de minimis threshold to be determined by the ,president2 7iv7 the acquisition of the equity or other interest owned or held by a covered foreign entity in an entity or assets located outside of a country of concern in which the ,united ,states person is acquiring all interests in the entity or assets held by covered foreign entity2 7v7 an intracompany transfer of funds from a ,united ,states parent company to a subsidiary located in a country of concern1 as specified in regulations prescribed in accordance with section #hjg2 7vi7 a transaction made pursuant to a binding1 uncalled capital commitment entered into before the date on which the regulations prescribed in accordance with section #hjg take effect2 or 7vii7 any ordinary or administrative business transaction as may be defined in such regulations4 7#d7 ,covered foreign entity ,subject to regulations prescribed in accordance with section #hjg1 the term covered foreign entity means the following3 7,a7 ,any entity that is incorporated in1 has a principal place of business in1 or is organized under the laws of a country of concern4 7,b7 ,any entity the equity securities of which are traded in the ordinary course of business on one or more exchanges in a country of concern4 7,c7 ,any agency or instrumentality of the government of a country of concern4 7,d7 ,any entity in which any entity described in subparagraph 7,a71 7,b71 or 7,c7 holds1 individually or in the aggregate1 directly or indirectly1 an ownership interest of greater than #ej percent4 7,e7 ,any other entity that is not a ,united ,states person and that meets such criteria as may be specified by the ,president in such regulations prescribed in accordance with section #hjg4 7#e7 ,covered sectors ,subject to regulations prescribed in accordance with section #hjg1 the term covered sectors includes sectors within the following areas3 7,a7 ,semiconductors and microelectronics4 7,b7 ,artificial intelligence4 7,c7 ,quantum information science and technology4 7,d7 ,hypersonics4 7,e7 ,satellite-based communications4 7,f7 ,networked laser scanning systems with both military and civilian applications4 7#f7 ,lead agency ,the term lead agency means the ,federal agency to which the ,president delegates1 pursuant to section #hjb1 the authorities provided under this title4 7#g7 ,party ,the term party1 with respect to an activity1 has the meaning given that term in regulations prescribed in accordance with section #hjg4 7#h7 ,united ,states person ,the term ,united ,states person means-- 7,a7 an individual who is a ,united ,states citizen or an alien lawfully admitted for permanent residence to the ,united ,states2 or 7,b7 an entity organized under the laws of the ,united ,states or of any jurisdiction within the ,united ,states1 including any foreign branch of such an entity4 #hjb4 ,delegation of authorities ,except as provided by section #hjh1 the ,president may delegate the authorities provided under this title to the head of any ,federal agency the ,president determines appropriate in order to carry out the provisions of this title4 #hjc4 ,identification of categories of technologies and products in covered sectors that may pose threats to ,united ,states national security 7a7 ,in general ,not later than one year after the date of the enactment of this title1 the ,president shall-- 7#a7 identify categories of technologies and products in covered sectors that may pose an acute threat to the national security of the ,united ,states if developed or acquired by a country of concern2 and 7#b7 publish a list of the categories of technologies and products identified under paragraph 7#a7 in the ,federal ,register4 7b7 ,annual updates ,not later than one year after the publication of the initial list required by subsection 7a77#b71 the ,president shall-- 7#a7 review the categories of technologies and products on that list2 and 7#b7 publish an updated list of the categories of technologies and products in the ,federal ,register if the list has changed4 #hjd4 ,prohibition on covered activities 7a7 ,in general ,the ,president may1 on or after the date on which the initial list of categories of technologies and products is published in the ,federal ,register under section #hjc7;a71 prescribe1 subject to public notice and comment1 regulations to prohibit a ,united ,states person from engaging1 directly or indirectly1 in a covered activity involving a category of technologies and products on the list4 7b7 ,elements ,regulations prescribed under subsection 7a7 may-- 7#a7 require that a ,united ,states person take all reasonable steps to prohibit and prevent any transaction by a foreign entity under the control of the ,united ,states person that would be a prohibited transaction if engaged in by a ,united ,states person2 and 7#b7 exclude any transaction consisting of the acquisition of an equity or other interest in an entity located outside a country of concern1 if the ,president has determined that the government of the country in which that entity is established or has its principal place of business has in place a program for the restriction of certain activities involving countries of concern that is comparable to the provisions provided for in this title1 after consideration of other relevant factors4 #hje4 ,mandatory notification of covered activities 7a7 ,mandatory notification 7#a7 ,in general ,beginning on the date that is #ij days after the date on which the initial list of categories of technologies and products is published in the ,federal ,register under section #hjc7;a71 a ,united ,states person engaging in a covered activity described in paragraph 7#b71 or that controls a foreign entity engaging in an activity that would be a covered activity described in paragraph 7#b7 if engaged in by a ,united ,states person1 shall submit to the ,president a complete written notification of the activity not later than #ad days after the completion date of the activity4 7#b7 ,covered activities described ,a covered activity described in this paragraph is a covered activity-- 7,a7 involving a category of technologies and products on the list published under section #hjc2 and 7,b7 that is not prohibited pursuant to section #hjd4 7#c7 ,circulation of notification 7,a7 ,in general ,the ,president shall1 upon receipt of a notification under paragraph 7#a71 promptly inspect the notification for completeness4 7,b7 ,incomplete notification ,if a notification submitted under paragraph 7#a7 is incomplete1 the ,president shall promptly inform the ,united ,states person that submits the notification that the notification is not complete and provide an explanation for relevant material with respect to which the notification is not complete4 7#d7 ,identification of non-notified activity ,the ,president shall establish a process to identify a covered activity described in paragraph 7#b7 for which-- 7,a7 a notification is not submitted to the ,president under paragraph 7#a72 and 7,b7 information is reasonably available4 7b7 ,confidentiality of information 7#a7 ,in general ,except as provided in paragraph 7#b71 any information or documentary material filed with the ,president or the ,president's designee pursuant to this section shall be exempt from disclosure under section #eeb7;b77#c7 of title #e1 ,united ,states ,code1 and no such information or documentary material may be made public4 7#b7 ,exceptions ,subject to appropriate confidentiality and classification requirements1 the exemption from disclosure provided by paragraph 7#a7 shall not prevent the disclosure of the following3 7,a7 ,information relevant to any administrative or judicial action or proceeding4 7,b7 ,information to ,congress or any of the appropriate committees or subcommittees of ,congress4 7,c7 ,information important to national security analysis or actions of the ,president to any domestic governmental entity1 or to any foreign governmental entity of an ally or partner of the ,united ,states1 under the exclusive direction and authorization of the ,president or the ,president's designee1 only to the extent necessary for national security purposes1 and subject to appropriate confidentiality and classification requirements4 7,d7 ,information that the parties have consented to be disclosed to third parties4 7#c7 ,applicability to ,congress ,members of ,congress1 and staff of either ,house of ,congress or any committee of ,congress1 are subject to the limitations on disclosure of information and documentary material that are applicable under this subsection4 #hjf4 ,reporting requirements 7a7 ,in general ,not later than one year after the date on which the regulations prescribed under section #hjg take effect1 and not less frequently than annually thereafter1 the ,president shall submit to the appropriate congressional committees a report that-- 7#a7 lists all notifications submitted under section #hje during the year preceding submission of the report1 disaggregated by-- 7,a7 sector2 7,b7 covered activity2 7,c7 covered foreign entity2 and 7,d7 country of concern2 7#b7 includes an assessment of whether to amend the regulations1 including whether to amend the definition of covered sectors to enhance national security2 7#c7 provides additional context and information regarding trends in the sectors1 the types of covered activity1 and the countries involved in those notifications1 including-- 7,a7 the locations of the relevant covered foreign entities2 and 7,b7 the countries in which the ,united ,states persons1 or foreign entities controlled by a ,united ,states person1 involved in relevant covered activities are located2 7#d7 includes an assessment of the effectiveness of measures imposed under this title1 including actions taken by the ,president as a result of the insight gained from the information contained in notifications submitted under section #hje2 and 7#e7 makes recommendations for-- 7,a7 expanding existing ,federal programs to support the production or supply of technologies and products in covered sectors in the ,united ,states1 including the potential of existing authorities to address any related national security concerns2 and 7,b7 the continuation1 expansion1 or modification of the implementation and administration of this title4 7b7 ,form ,each report required by this section shall be submitted in unclassified form1 but may include a classified annex4 7c7 ,prohibition on disclosure ,information contained in a report required by this section may be withheld from disclosure only to the extent otherwise permitted by statute1 except that all information included pursuant to subsection 7a77#a7 shall be withheld from public disclosure4 #hjg4 ,requirement for regulations 7a7 ,in general ,not later than #ahj days after the date on which the initial list of categories of technologies and products is published in the ,federal ,register pursuant to section #hjc7;a71 the ,president shall prescribe regulations to carry out this title in accordance with subchapter ,,ii of chapter #e and chapter #g of title #e 7commonly known as the ,administrative ,procedure ,act74 7b7 ,elements ,regulations prescribed to carry out this title shall-- 7#a7 specify the types of activities that will be considered to be covered activities1 other than types of activities described in section #hja7c72 7#b7 specify the technologies and products in covered sectors with respect to which covered activities are prohibited under section #hjd or require a notification under section #hje1 other than covered sectors specified in section #hja7e72 7#c7 provide for a process by which parties can ask questions and get timely guidance as to whether a covered activity is prohibited under section #hjd or requires a notification under section #hje2 and 7#d7 clarify the terms used in this title1 to maximize the effectiveness of this title4 7c7 ,public notice and comment ,regulations issued pursuant to subsection 7a7 shall be subject to public notice and comment4 7d7 ,low-,burden regulations ,in prescribing regulations under this section1 the ,president shall1 to the extent practicable1 structure the regulations-- 7#a7 to minimize the cost and complexity of compliance for affected parties2 7#b7 to ensure the benefits of the regulations outweigh their costs2 7#c7 to adopt the least burdensome alternative that achieves regulatory objectives2 7#d7 to prioritize transparency and stakeholder involvement in the process of prescribing the regulations2 and 7#e7 to provide for regular review and streamlining of regulations prescribed pursuant to this title to reduce redundancy and complexity4 #hjh4 ,multilateral engagement and coordination 7a7 ,in general ,the ,secretary of ,state and the head of the lead agency1 in coordination with the ,secretary of ,commerce1 the ,united ,states ,trade ,representative1 the ,director of ,national ,intelligence1 and the heads of other relevant ,federal agencies1 as appropriate1 should-- 7#a7 conduct bilateral and multilateral engagement with the governments of countries that are allies and partners of the ,united ,states to promote and increase coordination of protocols and procedures to facilitate the effective implementation of1 and appropriate compliance with1 the prohibitions and notifications pursuant to this title2 7#b7 upon adoption of protocols and procedures described in paragraph 7#a71 work with those governments to establish mechanisms for sharing information1 including trends1 with respect to such activities2 and 7#c7 work with and encourage the governments of certain countries that are allies and partners of the ,united ,states to develop similar mechanisms of their own4 7b7 ,strategy for multilateral engagement and coordination ,not later than #ahj days after the date of the enactment of this title1 the ,secretary of ,state and the head of the lead agency1 in coordination with the heads of other relevant ,federal agencies1 should-- 7#a7 develop a strategy to work with the governments of countries that are allies and partners of the ,united ,states to develop mechanisms that are comparable to the prohibitions and notifications pursuant to this title2 and 7#b7 assess opportunities to provide technical assistance to those countries with respect to the development of those mechanisms4 7c7 ,report ,not later than one year after the date of the enactment of this title1 and annually thereafter for #d years1 the ,secretary of ,state shall submit to the appropriate congressional committees a report that includes-- 7#a7 a discussion of any strategy developed pursuant to subsection 7b77#a71 including key tools and objectives for the development of comparable mechanisms by the governments of countries that are allies and partners of the ,united ,states2 7#b7 a list of countries that are allies and partners of the ,united ,states to target for cooperation in developing their own screening programs2 7#c7 the status of the implementation and outcomes of the strategy2 and 7#d7 a description of impediments to the establishment of comparable mechanisms by governments of countries that are allies and partners of the ,united ,states4 #hji4 ,authorization of appropriations ,there are authorized to be appropriated1 for each of the first #b fiscal years beginning on or after the date of the enactment of this title1 such sums as may be necessary to carry out this title1 including to provide outreach to industry and persons affected by this title4 ,such amounts shall be derived from amounts otherwise authorized to be appropriated to the ,president4 #haj4 ,hiring authority 7a7 ,in general ,the head of lead agency may appoint1 without regard to the provisions of sections #ccji through #ccah of title #e1 ,united ,states ,code1 not more than #be candidates directly to positions in the competitive service 7as defined in section #bajb of that title7 in that agency4 7b7 ,primary responsibility ,the primary responsibility of individuals in positions authorized under subsection 7a7 shall be to administer this title4 #haa4 ,penalties and enforcement 7a7 ,unlawful acts ,it shall be unlawful for a ,united ,states person to violate1 attempt to violate1 conspire to violate1 or cause a violation of any license1 order1 regulation1 or prohibition issued under this title4 7b7 ,civil penalties 7#a7 ,penalties ,a civil penalty may be imposed on any person who commits an unlawful act described in subsection 7a7 in an amount not to exceed the greater of-- 7,a7 #e1jjj1jjj2 or 7,b7 an amount that is twice the amount of the covered activity that is the basis of the violation with respect to which the penalty is imposed4 7c7 ,criminal penalties ,a person who willfully commits1 willfully attempts to commit1 or willfully conspires to commit1 or aids or abets in the commission of1 an unlawful act described in subsection 7a7 shall1 upon conviction1 be fined not more than #a1jjj1jjj1 or if an individual1 may be imprisoned for not more than #bj years1 or both4 7d7 ,enforcement ,the ,attorney ,general may seek appropriate relief1 including a temporary or permanent injunction1 restraining order1 divestment relief1 or other such other order as the ,attorney ,general may determine to be proper1 in the district courts of the ,united ,states in order to implement and enforce this title and any regulation thereunder4 #hab4 ,rule of construction ,nothing in this title may be construed to-- 7#a7 restrain or deter ,united ,states activities abroad if such activities do not pose a risk to the national security of the ,united ,states2 or 7#b7 alter or negate the authority of the ,president under any authority1 process1 regulation1 investigation1 enforcement measure1 or review provided by or established under any other provision of ,federal law1 or any other authority of the ,president or ,congress under the ,constitution of the ,united ,states4 #hac4 ,national interest waiver 7a7 ,in general ,subject to subsection 7b71 the ,president is authorized to exempt from any applicable prohibition or notification requirement under this title any activity determined by the ,president1 in consultation with the heads of relevant ,federal agencies1 as appropriate1 to be in the national interest of the ,united ,states4 7b7 ,congressional notification ,the ,president shall-- 7#a7 notify the appropriate congressional committees not later than #dh hours after issuing a waiver under subsection 7a72 and 7#b7 include in such notification an identification of the national interest justifying the use of the waiver4 4 #e4 ,limitation on trade authorities procedures relating to requirements on content of goods from nonmarket economy countries ,section #ajf7;b7 of the ,bipartisan ,congressional ,trade ,priorities and ,accountability ,act of #bjae 7#ai ,u4,s4,c4 #dbje7;b77 is amended by adding at the end the following3 7#g7 ,limitations on procedures relating to origination of content of goods from nonmarket economy countries 7,a7 ,in general ,the trade authorities procedures shall not apply to an implementing bill submitted with respect to a trade agreement or trade agreements entered into under section #ajc7;b7 unless the rules of origin requirements under such agreement or agreements-- 7i7 with respect to rules of origin based on value content of a good1 require that1 of the content of a good qualifying for preferential treatment under the agreement or agreements that does not originate 7as specified in those rules7 in a country that is party to the agreement or agreements-- 7,i7 during the #e-year period following the entry into force of the agreement or agreements1 not more than #bj percent of that content may originate in a nonmarket economy country2 and 7,,ii7 after the period specified in subclause 7,i71 not more than #aj percent of that content may originate in a nonmarket economy country2 and 7ii7 with respect to rules of origin that are not based on value content of a good1 are consistent with the requirements under clause 7i7 based on processing requirements or tariff shifts as opposed to value content4 7,b7 ,nonmarket economy country defined ,in this paragraph1 the term nonmarket economy country has the meaning given that term in section #gga7ah7 of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #afgg7ah774 4 #f4 ,strategy and outreach on risks posed by ,people's ,republic of ,china smartport technology 7a7 ,strategy and outreach required ,the ,director of the ,national ,counterintelligence and ,security ,center shall develop a strategy and conduct outreach to ,united ,states industry1 including shipping companies1 port operators1 and logistics firms1 on the risks of smartport technology of the ,people's ,republic of ,china and other related risks posed by entities of the ,people's ,republic of ,china1 including ,,logink1 ,china ,ocean ,shipping ,company1 ,limited 7,,cosco71 ,china ,communications ,construction ,company1 ,limited 7,,cccc71 ,china ,media ,group 7,,cmg71 and ,shanghai ,zhenhua ,heavy ,industries ,company ,limited 7,,zpmc71 to the national security of the ,united ,states1 the security of ,united ,states supply chains1 and commercial activity1 including with respect to delays1 interruption1 and lockout of access to systems and technologies that enable the free flow of commerce4 7b7 ,consistency with ,executive ,orders and other statutory authorities ,the ,director shall carry out subsection 7a7 in a manner that is consistent with the following3 7#a7 ,part #f of title #cc1 ,code of ,federal ,regulations1 as amended by ,executive ,order #adaaf 7#hi ,fed4 ,reg4 #aciga2 relating to amending regulations relating to the safeguarding of vessels1 harbors1 ports1 and waterfront facilities of the ,united ,states74 7#b7 ,executive ,order #adjag 7#hf ,fed4 ,reg4 #aahdi2 relating to ,america's supply chains71 or successor order4 7#c7 ,section #hbe of the ,national ,defense ,authorization ,act for ,fiscal ,year #bjbd 7,public ,law #aah-ca74 7c7 ,coordination ,the ,director shall carry out subsection 7a7 in coordination with the ,commandant of the ,u4,s4 ,coast ,guard1 the ,director of the ,federal ,bureau of ,investigation1 the ,commander of the ,office of ,naval ,intelligence1 and such other heads of ,federal agencies as the ,director considers appropriate4