,,ii #aah? ,,congress #b;d ,session ,s4 #ejaf ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,septemb] #aj1 #bjbd,mr4 ,casey introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,a ,,bill ,to combat ! economic aggression ( ! ,p's ,republic ( ,*9a1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,combat ,*9ese ,economic ,aggression ,act ( #bjbd4 #b4 ,review by ,committee on ,=eign ,inve/m5t 9 ! ,unit$ ,/ates ( inve/m5ts impact+ economic or te*nological competitiv5ess 7a7 ,9 g5]al ,subsection 7a77#d7 ( section #gba ( ! ,def5se ,production ,act ( #aiej 7#ej ,u4,s4,c4 #defe7 is am5d$-- 7#a7 9 subp>agraph 7,a7-- 7,a7 9 clause 7i71 by /rik+ 2 & & ins]t+ a semicolon2 7,b7 9 clause 7ii7-- 7i7 by /rik+ clauses 7ii7 ?r\gh 7v7 & ins]t+ any ( clauses 7ii7 ?r\gh 7iv7 or clause 7vii72 & 7ii7 by /rik+ ! p]iod at ! end & ins]t+ 2 &2 7,c7 by add+ at ! end ! foll[+3 7iii7 any transaction describ$ 9 clause 7v7 or 7vi7 ( subp>agraph 7,b7 propos$ or p5d+ aft] ! date ( ! enactm5t ( ?is clause4 2 & 7#b7 9 subp>agraph 7,b7-- 7,a7 by r$esignat+ clause 7v7 z clause 7vii72 & 7,b7 by ins]t+ aft] clause 7iv7 ! foll[+3 7v7 ,any o!r inve/m5t1 subject to regulations prescrib$ "u subp>agraph 7,d71 by a =eign p]son 9 a ,unit$ ,/ates bus9ess t c\ld support ! acquisition by a =eign c\ntry ( capabilities to atta9 te*nological self-suffici5cy or impair ! economic & te*nological competitiv5ess ( ! ,unit$ ,/ates1 includ+-- 7,i7 an inve/m5t 9 a ,unit$ ,/ates bus9ess t has receiv$ direct fund+ f1 or has be5 aw>d$ a contract by1 ! ,dep>tm5t ( ,def5se1 ! ,dep>tm5t ( ,comm]ce1 ! ,dep>tm5t ( ,en]gy1 or ano!r ,f$]al ag5cy2 or 7,,ii7 any o!r inve/m5t ! ,committee det]m9es1 by regulation1 may provide to ! =eign p]son access to exp]tise1 bus9ess networks1 or production me?ods critical to ma9ta9+ ! economic & te*nological competitiv5ess ( ! ,unit$ ,/ates4 7vi7 ,any o!r inve/m5t1 subject to regulations prescrib$ "u subp>agraph 7,d7-- 7,i7 9 a ,unit$ ,/ates bus9ess t produces1 designs1 te/s1 manufactures1 fabricates1 or develops "o or m critical te*nologies2 & 7,,ii7 by a =eign entity ( conc]n 7z def9$ 9 section #iija ( ! ,william ,m4 7,mac7 ,?ornb]ry ,national ,def5se ,au?orization ,act = ,fiscal ,ye> #bjba 7#ae ,u4,s4,c4 #dfea77 t is organiz$ "u ! laws ( or o!rwise subject to ! jurisdiction ( ! ,p's ,republic ( ,*9a4 4 7b7 ,m&atory decl>ations ,section #gba7;b77#a77;,c77v77,,iv7 ( ! ,def5se ,production ,act ( #aiej 7#ej ,u4,s4,c4 #defe7;b77#a77;,c77v77,,iv77 is am5d$ by add+ at ! end ! foll[+3 7hh7 ,requir$ decl>ations = c]ta9 transactions ,! p>ties to a cov]$ transaction %all submit a decl>ation describ$ 9 subclause 7,i7 ) respect to ! transaction if-- 7,,aa7 a =eign p]son t is a p>ty to ! transaction is a national ( ! ,p's ,republic ( ,*9a or an entity organiz$ "u ! laws ( or o!rwise subject to ! jurisdiction ( ! ,p's ,republic ( ,*9a2 or 7,,bb7 ! transaction is 9 ! metallurgy1 telecommunications1 en]gy1 indu/rial gas1 *emicals1 or petro*emicals sector or any o!r sector ! ,secret>y det]m9es appropriate = purposes ( ?is item4 4 7c7 ,analysis by ,int]national ,trade ,adm9i/ration ,section #gba7;b77#a7 ( ! ,def5se ,production ,act ( #aiej 7#ej ,u4,s4,c4 #defe7;b77#a77 is am5d$ by add+ at ! end ! foll[+3 7,i7 ,analysis by ,int]national ,trade ,adm9i/ration ) respect to c]ta9 transactions 7i7 ,9 g5]al ,9 ! case ( a review ( a cov]$ transaction describ$ 9 clause 7ii71 ! ,secret>y ( ,comm]ce1 9 consultation ) o!r memb]s ( ! ,committee z appropriate1 %all conduct an analysis (-- 7,i7 ! sector or indu/ry 9 :i* ! ,unit$ ,/ates bus9ess involv$ 9 ! transaction op]ates2 7,,ii7 ! cumulative control (1 or patt]n ( rec5t transactions by1 =eign p]sons1 includ+1 directly or indirectly1 =eign gov]nm5ts1 9 t sector or indu/ry2 & 7,,iii7 ! effect ( =eign inve/m5t 9 t sector or indu/ry on ! national security ( ! ,unit$ ,/ates4 7ii7 ,transactions describ$ ,a cov]$ transaction describ$ 9 ?is clause is a cov]$ transaction-- 7,i7 describ$ 9 clause 7vi7 or 7vii7 ( subsection 7a77#d77;,b72 & 7,,ii7 to :i* a =eign p]son t is a national ( ! ,p's ,republic ( ,*9a or an entity organiz$ "u ! laws ( or o!rwise subject to ! jurisdiction ( ! ,p's ,republic ( ,*9a is a p>ty4 4 7d7 ,au?orization ( appropriations ,!re are au?oriz$ to be appropriat$ = ! ,committee on ,=eign ,inve/m5t 9 ! ,unit$ ,/ates su* sums z may be necess>y to c>ry out ! am5dm5ts made by ?is section4 #c4 ,enhanc$ securities disclosure requirem5ts 7a7 ,def9itions ,9 ?is section3 7#a7 ,commission ,! t]m ,commission means ! ,securities & ,ex*ange ,commission4 7#b7 ,c\ntry ( conc]n ,! t]m c\ntry ( conc]n-- 7,a7 has ! mean+ giv5 ! t]m cov]$ nation 9 section #dhgb7;d7 ( title #aj1 ,unit$ ,/ates ,code2 & 7,b7 includes a jurisdiction t ! ,commission1 9 consultation ) ! ,secret>y ( ,/ate & ! ,secret>y ( ! ,treasury1 det]m9es to be subject to ! political & legal control ( a cov]$ nation1 z def9$ 9 section #dhgb7;d7 ( title #aj1 ,unit$ ,/ates ,code4 7#c7 ,cov]$ entity ,! t]m cov]$ entity means an entity or p]son t is requir$ to file ,=m ,,pf4 7#d7 ,exempt report+ advis] ,! t]m exempt report+ advis] means an inve/m5t advis] describ$ 9 section #bge4bjd-d7;a7 ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation4 7#e7 ,=m ,,adv ,! t]m ,=m ,,adv means ! =m describ$ 9 section #bgi4a ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation4 7#f7 ,=m ,,pf ,! t]m ,=m ,,pf means ! =m describ$ 9 section #bgi4i ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation4 7#g7 ,private fund ,! t]m private fund has ! mean+ giv5 ! t]m 9 section #bjb7;a7 ( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#b7;a774 7#h7 ,private fund assets ,! t]m private fund assets has ! mean+ giv5 ! t]m 9 section #bge4bjd7;b7-#a ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation4 7b7 ,enhanc$ disclosure requirem5ts = advis]s ( private funds 7#a7 ,requirem5ts 7,a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,commission %all am5d ,=m ,,pf & ,=m ,,adv1 & ! rules ( ! ,commission gov]n+ ! submission ( ,=m ,,pf & ,=m ,,adv1 to1 subject to subp>agraph 7,b71 require ea* cov]$ entity & ea* exempt report+ advis] to annually disclose :5 submitt+ ,=m ,,pf or ,=m ,,adv1 respectively1 ! total private fund assets 9 c\ntries ( conc]n attributable to ! private funds advis$ by ! cov]$ entity or exempt report+ advis]1 z applicable1 :i* %all be brok5 d[n by ! p]c5tage ( ^? assets 9 ea* c\ntry ( conc]n4 7,b7 ,application ,= ! purposes ( subp>agraph 7,a71 ! ,commission %all det]m9e :e!r a private fund asset is 9 a c\ntry ( conc]n bas$ on-- 7i7 ! am\nt ( capital t is inve/$ 9 an entity 7includ+ a subsidi>y ( an entity7-- 7,i7 t has a physical pres5ce or employees 9 t c\ntry ( conc]n2 or 7,,ii7 ! plurality ( ! sales ( :i* are f t c\ntry ( conc]n2 & 7ii7 ! proportion ( ! total assets & liabilities ( an entity describ$ 9 clause 7i7 t are locat$ 9 t c\ntry ( conc]n4 7#b7 ,report+ by ,commission 7,a7 ,publicly available reports 7i7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date on :i* ! ,commission makes ! am5dm5ts requir$ "u p>agraph 7#a71 & n less frequ5tly ?an annually !reaft]1 ! ,commission %all prep>e & make publicly available a report conta9+ a li/ ( cov]$ entities & exempt report+ advis]s t1 = ! p]iod cov]$ by ! report1 h disclos$ m ?an #j private fund assets "u ,=m ,,pf or ,=m ,,adv 7z am5d$ pursuant to t subsection7 9 at lea/ #a c\ntry ( conc]n1 :i* %all be aggregat$ by ! cov]$ entity or exempt report+ advis] mak+ t disclosure4 7ii7 ,additional requirem5ts ,ea* report prep>$ & made available by ! ,commission "u clause 7i7 %all-- 7,i7 be aggregat$ by cov]$ entity or exempt report+ advis]2 & 7,,ii7 include ! p]c5tage ( private fund assets disclos$ by a cov]$ entity or exempt report+ advis]1 z applicable4 7,b7 ,rule ( con/ruction ,no?+ 9 ?is p>agraph may be con/ru$ to p]mit ! ,commission to make available any in=mation t appe>s on ,=m ,,pf or ,=m ,,adv o!r ?an ! in=mation t is includ$ on ,=m ,,pf or ,=m ,,adv z a result ( ! requirem5ts "u p>agraph 7#a74 7c7 ,exempt$ transactions ,! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is am5d$ by ins]t+ aft] section #ac;,a 7#ae ,u4,s4,c4 #ghm-#a7 ! foll[+3 #ac;,b4 ,disclosure requirem5ts relat+ to c]ta9 exempt$ transactions 7a7 ,def9itions ,9 ?is section3 7#a7 ,b5eficial own] ,! t]m b5eficial own] means a p]son t is det]m9$ to be a b5eficial own] "u section #bdj4ac;d-#c ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation4 7#b7 ,c\ntry ( conc]n ,! t]m c\ntry ( conc]n-- 7,a7 has ! mean+ giv5 ! t]m cov]$ nation 9 section #dhgb7;d7 ( title #aj1 ,unit$ ,/ates ,code2 & 7,b7 includes a jurisdiction t ! ,commission1 9 consultation ) ! ,secret>y ( ,/ate & ! ,secret>y ( ! ,treasury1 det]m9es to be subject to ! political & legal control ( a cov]$ nation1 z def9$ 9 section #dhgb7;d7 ( title #aj1 ,unit$ ,/ates ,code4 7#c7 ,cov]$ exempt$ transaction ,! t]m cov]$ exempt$ transaction means an (f] or sale ( a security t is-- 7,a7 exempt f regi/ration "u section #e ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;e72 & 7,b7 /ructur$ or int5d$ to comply )-- 7i7 section #bcj4ejf7;b7 ( title #ag1 ,code ( ,f$]al regulations1 or any successor regulation2 7ii7 sections #bcj4ija1 #bcj4ijb1 & #bcj4ijc ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulations2 or 7iii7 section #bcj4add;,a ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation4 7b7 ,requirem5t 7#a7 ,9 g5]al ,not)/&+ any o!r provision ( law1 9 ! case ( an issu] t conducts a cov]$ exempt$ transaction describ$ 9 p>agraph 7#b71 t issu] %all provide to ! ,commission1 at su* "t & 9 su* mann] z ! ,commission may prescribe1 ! foll[+ in=mation3 7,a7 ,! id5tity ( ! issu]4 7,b7 ,! place ( incorporation ( ! issu]4 7,c7 ,:e!r ! issu] is associat$ ) at lea/ #a consolidat$ entity1 ! plurality ( ! assets ( :i* are 9 a c\ntry ( conc]n4 7,d7 ,:e!r ! issu] is associat$ ) at lea/ #a consolidat$ entity t is incorporat$ 9 a c\ntry ( conc]n4 7,e7 ,! am\nt ( securities sold pursuant to ! cov]$ exempt$ transaction & ! net proce$s to ! issu]4 7,f7 ,! b5eficial own]s ( ! issu]4 7,g7 ,! int5d$ use ( ! proce$s f ! cov]$ exempt$ transaction1 includ+ ea* c\ntry 9 :i* ! issu] int5ds to inve/ ^? proce$s1 :i* %all be brok5 d[n by ! p]c5tage ( net proce$s by indu/ry )9 ea* su* c\ntry4 7,h7 ,! exemption ! issu] relies on ) respect to ! cov]$ exempt$ transaction4 7#b7 ,p>ticul> cov]$ exempt$ transaction describ$ ,a cov]$ exempt$ transaction describ$ 9 ?is p>agraph is1 ) respect to ! issu] (f]+ or sell+ ! security t is ! subject ( ! cov]$ exempt$ transaction1 ei!r ( ! foll[+ in/ances3 7,a7 ,an (f] or sale ( securities 9 an am\nt t is n less ?an #be1jjj1jjj4 7,b7 ,an (f] or sale ( a security su* t ! (f] or sale1 toge!r ) all cov]$ exempt$ transactions by t issu] dur+ ! #a-ye> p]iod prec$+ ! date on :i* ! issu] (f]s or sells ! security1 con/itutes (f]s or sales 9 ! aggregate ( an am\nt t is n less ?an #ej1jjj1jjj4 7c7 ,au?ority ,to revise & promulgate rules1 regulations1 & =ms ,! ,commission %all1 = ! protection ( inve/ors & fair & ord]ly m>kets-- 7#a7 revise & issue su* rules1 regulations1 & =ms z may be necess>y to c>ry out ?is section2 & 7#b7 issue rules to set conditions t limit ! future use ( cov]$ exempt$ transactions = issu]s t d n comply ) ! disclosure requirem5ts ( ?is section4 7d7 ,applicability ,?is section %all apply ) respect to any cov]$ exempt$ transaction t occurs on or aft] ! date t is #a ye> aft] ! date ( enactm5t ( ?is section4 7e7 ,reports ,! ,commission %all1 on a qu>t]ly basis1 prep>e & make publicly available a report t includes all in=mation submitt$ by an issu] "u ?is section dur+ ! qu>t] cov]$ by ! report1 if t issu]-- 7#a7 is-- 7,a7 incorporat$ 9 a c\ntry ( conc]n2 or 7,b7 incorporat$ outside ( a c\ntry ( conc]n & is associat$ ) at lea/ #a consolidat$ entity-- 7i7 ! plurality ( ! assets ( :i* are 9 a c\ntry ( conc]n2 or 7ii7 t is incorporat$ 9 a c\ntry ( conc]n2 or 7#b7 discloses 9 a fil+ made pursuant to ?is section t ! issu] int5ds to inve/ ! proce$s f a cov]$ exempt$ transaction 9 a c\ntry ( conc]n4 4 #d4 ,protection ( cov]$ sectors ,! ,def5se ,production ,act ( #aiej 7#ej ,u4,s4,c4 #deja et seq47 is am5d$ by add+ at ! end ! foll[+3 ,,viii ,protection ( cov]$ sectors #hja4 ,def9itions ,9 ?is title3 7#a7 ,appropriate congressional committees ,! t]m appropriate congressional committees means-- 7,a7 ! ,committee on ,=eign ,affairs1 ! ,committee on ,f9ancial ,s]vices1 ! ,committee on ,ways & ,means1 ! ,committee on ,appropriations1 & ! ,p]man5t ,select ,committee on ,intellig5ce ( ! ,h\se ( ,repres5tatives2 & 7,b7 ! ,committee on ,=eign ,relations1 ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs1 ! ,committee on ,f9ance1 ! ,committee on ,appropriations1 & ! ,select ,committee on ,intellig5ce ( ! ,s5ate4 7#b7 ,c\ntry ( conc]n ,! t]m c\ntry ( conc]n includes-- 7,a7 ! ,democratic ,p's ,republic ( ,nor? ,korea2 7,b7 ! ,p's ,republic ( ,*9a1 includ+ ! ,hong ,kong ,special ,adm9i/rative ,region & ! ,macau ,special ,adm9i/rative ,region2 7,c7 ! ,russian ,f$]ation2 7,d7 ! ,islamic ,republic ( ,iran2 & 7,e7 any o!r c\ntry t ! ,presid5t has id5tifi$ z engag+ 9 a compreh5sive1 long-t]m /rategy t directs1 facilitates1 or o!rwise supports advancem5ts 9 s5sitive te*nologies & products t are critical to ! milit>y1 intellig5ce1 surveillance1 or cyb]-enabl$ capabilities ( ! c\ntry to c\nt] ,unit$ ,/ates capabilities 9 a way t ?reat5s ! national security ( ! ,unit$ ,/ates2 & 7,f7 any o!r c\ntry ! ,presid5t det]m9es necess>y to ensure a c\ntry describ$ 9 any ( subp>agraphs 7,a7 ?r\gh 7,e7 is unable to circumv5t ! provisions ( ?is title & ! regulations issu$ pursuant to ?is title4 7#c7 ,cov]$ activity 7,a7 ,9 g5]al ,subject to su* regulations z may be prescrib$ 9 accordance ) section #hjg1 & except z provid$ 9 subp>agraph 7,b71 ! t]m cov]$ activity means any activity engag$ 9 by a ,unit$ ,/ates p]son t involves-- 7i7 an acquisition by su* ,unit$ ,/ates p]son ( an equity int]e/ or cont+5t equity int]e/1 or monet>y capital contribution1 9 a cov]$ =eign entity1 directly or indirectly1 by contractual commitm5t or o!rwise2 7ii7 an arrangem5t = an int]e/ held by su* ,unit$ ,/ates p]son 9 ! %ort- or long-t]m debt obligations ( a cov]$ =eign entity t includes gov]nance rights t are *>act]i/ic ( an equity inve/m5t1 managem5t1 or o!r important rights2 7iii7 ! e/abli%m5t ( a :olly own$ subsidi>y 9 a c\ntry ( conc]n1 su* z a gre5field inve/m5t1 = ! purpose ( production1 design1 te/+1 manufactur+1 fabrication1 or developm5t relat$ to "o or m cov]$ sectors2 7iv7 ! e/abli%m5t by su* ,unit$ ,/ates p]son ( a jo9t v5ture 9 a c\ntry ( conc]n or ) a cov]$ =eign entity = ! purpose ( production1 design1 te/+1 manufactur+1 fabrication1 or rese>*1 or o!r contractual or o!r commitm5ts involv+ a cov]$ =eign entity to jo9tly rese>* & develop new innovation1 includ+ ?r\gh ! transf] ( capital or intellectual prop]ty or o!r bus9ess propriet>y in=mation2 or 7v7 ! acquisition by a ,unit$ ,/ates p]son ) a cov]$ =eign entity (-- 7,i7 op]ational coop]ation1 su* z ?r\gh supply or support arrangem5ts2 7,,ii7 ! "r to bo>d repres5tation 7z an obs]v]1 ev5 if limit$1 or z a memb]7 or an executive role 7z may be def9$ ?r\gh regulation7 9 a cov]$ =eign entity2 7,,iii7 ! ability to direct or influ5ce su* op]ational decisions z may be def9$ ?r\gh su* regulations2 7,,iv7 =mal gov]nance repres5tation 9 any op]at+ affiliate1 su* z a portfolio company1 ( a cov]$ =eign entity2 or 7,v7 a new relation%ip to %>e or provide bus9ess s]vices1 su* z f9ancial s]vices1 m>ket+ s]vices1 ma9t5ance1 or assembly functions2 or 7vi7 kn[+ly direct+ transactions by =eign p]sons t w\ld con/itute cov]$ activity if engag$ 9 by a ,unit$ ,/ates p]son4 7,b7 ,exceptions ,! t]m cov]$ activity does n include-- 7i7 any transaction ! value ( :i* ! ,presid5t det]m9es is de m9imis1 z def9$ 9 regulations prescrib$ 9 accordance ) section #hjg2 7ii7 any category ( transactions t ! ,presid5t det]m9es is 9 ! national int]e/ ( ! ,unit$ ,/ates1 z may be def9$ 9 regulations prescrib$ 9 accordance ) section #hjg2 7iii7 an inve/m5t 9-- 7,i7 a publicly trad$ security 7z su* t]m is def9$ 9 section #c7;a77#aj7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a77#aj7772 7,,ii7 an index fund1 mutual fund1 ex*ange-trad$ fund1 or a simil> in/rum5t 7includ+ associat$ d]ivatives7 (f]$ by an inve/m5t company 7z su* t]m is def9$ 9 section #c7;a77#a7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#c7;a77#a7771 or by a private inve/m5t fund2 or 7,,iii7 a v5ture capital fund1 private equity fund1 fund ( funds1 or o!r pool$ inve/m5t funds1 z ! limit$ p>tn]1 9 ea* case 9 :i* ! limit$ p>tn]'s contribution is solely capital 9 a limit$ p>tn]%ip /ructure &-- 7aa7 ! limit$ p>tn] _c make manag]ial decisions1 is n responsible = any debts beyond its inve/m5t1 & does n h ! ability 7=mally or in=mally7 to influ5ce or p>ticipate 9 ! fund's or a cov]$ =eign entity's decision mak+ or op]ations2 or 7bb7 ! inve/m5t is bel[ a de m9imis ?re%old to be det]m9$ by ! ,presid5t2 7iv7 ! acquisition ( ! equity or o!r int]e/ own$ or held by a cov]$ =eign entity 9 an entity or assets locat$ outside ( a c\ntry ( conc]n 9 :i* ! ,unit$ ,/ates p]son is acquir+ all int]e/s 9 ! entity or assets held by cov]$ =eign entity2 7v7 an intracompany transf] ( funds f a ,unit$ ,/ates p>5t company to a subsidi>y locat$ 9 a c\ntry ( conc]n1 z specifi$ 9 regulations prescrib$ 9 accordance ) section #hjg2 7vi7 a transaction made pursuant to a b9d+1 uncall$ capital commitm5t ent]$ into be=e ! date on :i* ! regulations prescrib$ 9 accordance ) section #hjg take effect2 or 7vii7 any ord9>y or adm9i/rative bus9ess transaction z may be def9$ 9 su* regulations4 7#d7 ,cov]$ =eign entity ,subject to regulations prescrib$ 9 accordance ) section #hjg1 ! t]m cov]$ =eign entity means ! foll[+3 7,a7 ,any entity t is incorporat$ 91 has a pr9cipal place ( bus9ess 91 or is organiz$ "u ! laws ( a c\ntry ( conc]n4 7,b7 ,any entity ! equity securities ( :i* are trad$ 9 ! ord9>y c\rse ( bus9ess on "o or m ex*anges 9 a c\ntry ( conc]n4 7,c7 ,any ag5cy or in/rum5tality ( ! gov]nm5t ( a c\ntry ( conc]n4 7,d7 ,any entity 9 :i* any entity describ$ 9 subp>agraph 7,a71 7,b71 or 7,c7 holds1 individually or 9 ! aggregate1 directly or indirectly1 an own]%ip int]e/ ( great] ?an #ej p]c5t4 7,e7 ,any o!r entity t is n a ,unit$ ,/ates p]son & t meets su* crit]ia z may be specifi$ by ! ,presid5t 9 su* regulations prescrib$ 9 accordance ) section #hjg4 7#e7 ,cov]$ sectors ,subject to regulations prescrib$ 9 accordance ) section #hjg1 ! t]m cov]$ sectors includes sectors )9 ! foll[+ areas3 7,a7 ,semiconductors & microelectronics4 7,b7 ,artificial intellig5ce4 7,c7 ,quantum in=mation sci5ce & te*nology4 7,d7 ,hyp]sonics4 7,e7 ,satellite-bas$ communications4 7,f7 ,network$ las] scann+ sy/ems ) bo? milit>y & civilian applications4 7#f7 ,lead ag5cy ,! t]m lead ag5cy means ! ,f$]al ag5cy to :i* ! ,presid5t delegates1 pursuant to section #hjb1 ! au?orities provid$ "u ?is title4 7#g7 ,p>ty ,! t]m p>ty1 ) respect to an activity1 has ! mean+ giv5 t t]m 9 regulations prescrib$ 9 accordance ) section #hjg4 7#h7 ,unit$ ,/ates p]son ,! t]m ,unit$ ,/ates p]son means-- 7,a7 an individual :o is a ,unit$ ,/ates citiz5 or an ali5 lawfully admitt$ = p]man5t resid5ce to ! ,unit$ ,/ates2 or 7,b7 an entity organiz$ "u ! laws ( ! ,unit$ ,/ates or ( any jurisdiction )9 ! ,unit$ ,/ates1 includ+ any =eign bran* ( su* an entity4 #hjb4 ,delegation ( au?orities ,except z provid$ by section #hjh1 ! ,presid5t may delegate ! au?orities provid$ "u ?is title to ! head ( any ,f$]al ag5cy ! ,presid5t det]m9es appropriate 9 ord] to c>ry out ! provisions ( ?is title4 #hjc4 ,id5tification ( categories ( te*nologies & products 9 cov]$ sectors t may pose ?reats to ,unit$ ,/ates national security 7a7 ,9 g5]al ,n lat] ?an "o ye> aft] ! date ( ! enactm5t ( ?is title1 ! ,presid5t %all-- 7#a7 id5tify categories ( te*nologies & products 9 cov]$ sectors t may pose an acute ?reat to ! national security ( ! ,unit$ ,/ates if develop$ or acquir$ by a c\ntry ( conc]n2 & 7#b7 publi% a li/ ( ! categories ( te*nologies & products id5tifi$ "u p>agraph 7#a7 9 ! ,f$]al ,regi/]4 7b7 ,annual updates ,n lat] ?an "o ye> aft] ! publication ( ! initial li/ requir$ by subsection 7a77#b71 ! ,presid5t %all-- 7#a7 review ! categories ( te*nologies & products on t li/2 & 7#b7 publi% an updat$ li/ ( ! categories ( te*nologies & products 9 ! ,f$]al ,regi/] if ! li/ has *ang$4 #hjd4 ,prohibition on cov]$ activities 7a7 ,9 g5]al ,! ,presid5t may1 on or aft] ! date on :i* ! initial li/ ( categories ( te*nologies & products is publi%$ 9 ! ,f$]al ,regi/] "u section #hjc7;a71 prescribe1 subject to public notice & comm5t1 regulations to prohibit a ,unit$ ,/ates p]son f engag+1 directly or indirectly1 9 a cov]$ activity involv+ a category ( te*nologies & products on ! li/4 7b7 ,elem5ts ,regulations prescrib$ "u subsection 7a7 may-- 7#a7 require t a ,unit$ ,/ates p]son take all reasonable /eps to prohibit & prev5t any transaction by a =eign entity "u ! control ( ! ,unit$ ,/ates p]son t w\ld be a prohibit$ transaction if engag$ 9 by a ,unit$ ,/ates p]son2 & 7#b7 exclude any transaction consi/+ ( ! acquisition ( an equity or o!r int]e/ 9 an entity locat$ outside a c\ntry ( conc]n1 if ! ,presid5t has det]m9$ t ! gov]nm5t ( ! c\ntry 9 :i* t entity is e/abli%$ or has its pr9cipal place ( bus9ess has 9 place a program = ! re/riction ( c]ta9 activities involv+ c\ntries ( conc]n t is comp>able to ! provisions provid$ = 9 ?is title1 aft] consid]ation ( o!r relevant factors4 #hje4 ,m&atory notification ( cov]$ activities 7a7 ,m&atory notification 7#a7 ,9 g5]al ,beg9n+ on ! date t is #ij days aft] ! date on :i* ! initial li/ ( categories ( te*nologies & products is publi%$ 9 ! ,f$]al ,regi/] "u section #hjc7;a71 a ,unit$ ,/ates p]son engag+ 9 a cov]$ activity describ$ 9 p>agraph 7#b71 or t controls a =eign entity engag+ 9 an activity t w\ld be a cov]$ activity describ$ 9 p>agraph 7#b7 if engag$ 9 by a ,unit$ ,/ates p]son1 %all submit to ! ,presid5t a complete writt5 notification ( ! activity n lat] ?an #ad days aft] ! completion date ( ! activity4 7#b7 ,cov]$ activities describ$ ,a cov]$ activity describ$ 9 ?is p>agraph is a cov]$ activity-- 7,a7 involv+ a category ( te*nologies & products on ! li/ publi%$ "u section #hjc2 & 7,b7 t is n prohibit$ pursuant to section #hjd4 7#c7 ,circulation ( notification 7,a7 ,9 g5]al ,! ,presid5t %all1 ^u receipt ( a notification "u p>agraph 7#a71 promptly inspect ! notification = complet5ess4 7,b7 ,incomplete notification ,if a notification submitt$ "u p>agraph 7#a7 is incomplete1 ! ,presid5t %all promptly in=m ! ,unit$ ,/ates p]son t submits ! notification t ! notification is n complete & provide an explanation = relevant mat]ial ) respect to :i* ! notification is n complete4 7#d7 ,id5tification ( non-notifi$ activity ,! ,presid5t %all e/abli% a process to id5tify a cov]$ activity describ$ 9 p>agraph 7#b7 = :i*-- 7,a7 a notification is n submitt$ to ! ,presid5t "u p>agraph 7#a72 & 7,b7 in=mation is reasonably available4 7b7 ,confid5tiality ( in=mation 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 any in=mation or docum5t>y mat]ial fil$ ) ! ,presid5t or ! ,presid5t's designee pursuant to ?is section %all be exempt f disclosure "u section #eeb7;b77#c7 ( title #e1 ,unit$ ,/ates ,code1 & no su* in=mation or docum5t>y mat]ial may be made public4 7#b7 ,exceptions ,subject to appropriate confid5tiality & classification requirem5ts1 ! exemption f disclosure provid$ by p>agraph 7#a7 %all n prev5t ! disclosure ( ! foll[+3 7,a7 ,in=mation relevant to any adm9i/rative or judicial action or proce$+4 7,b7 ,in=mation to ,congress or any ( ! appropriate committees or subcommittees ( ,congress4 7,c7 ,in=mation important to national security analysis or actions ( ! ,presid5t to any dome/ic gov]nm5tal entity1 or to any =eign gov]nm5tal entity ( an ally or p>tn] ( ! ,unit$ ,/ates1 "u ! exclusive direction & au?orization ( ! ,presid5t or ! ,presid5t's designee1 only to ! ext5t necess>y = national security purposes1 & subject to appropriate confid5tiality & classification requirem5ts4 7,d7 ,in=mation t ! p>ties h cons5t$ to be disclos$ to ?ird p>ties4 7#c7 ,applicability to ,congress ,memb]s ( ,congress1 & /aff ( ei!r ,h\se ( ,congress or any committee ( ,congress1 are subject to ! limitations on disclosure ( in=mation & docum5t>y mat]ial t are applicable "u ?is subsection4 #hjf4 ,report+ requirem5ts 7a7 ,9 g5]al ,n lat] ?an "o ye> aft] ! date on :i* ! regulations prescrib$ "u section #hjg take effect1 & n less frequ5tly ?an annually !reaft]1 ! ,presid5t %all submit to ! appropriate congressional committees a report t-- 7#a7 li/s all notifications submitt$ "u section #hje dur+ ! ye> prec$+ submission ( ! report1 disaggregat$ by-- 7,a7 sector2 7,b7 cov]$ activity2 7,c7 cov]$ =eign entity2 & 7,d7 c\ntry ( conc]n2 7#b7 includes an assessm5t ( :e!r to am5d ! regulations1 includ+ :e!r to am5d ! def9ition ( cov]$ sectors to enhance national security2 7#c7 provides additional context & in=mation reg>d+ tr5ds 9 ! sectors1 ! types ( cov]$ activity1 & ! c\ntries involv$ 9 ^? notifications1 includ+-- 7,a7 ! locations ( ! relevant cov]$ =eign entities2 & 7,b7 ! c\ntries 9 :i* ! ,unit$ ,/ates p]sons1 or =eign entities controll$ by a ,unit$ ,/ates p]son1 involv$ 9 relevant cov]$ activities are locat$2 7#d7 includes an assessm5t ( ! effectiv5ess ( measures impos$ "u ?is title1 includ+ actions tak5 by ! ,presid5t z a result ( ! insight ga9$ f ! in=mation conta9$ 9 notifications submitt$ "u section #hje2 & 7#e7 makes recomm5dations =-- 7,a7 exp&+ exi/+ ,f$]al programs to support ! production or supply ( te*nologies & products 9 cov]$ sectors 9 ! ,unit$ ,/ates1 includ+ ! pot5tial ( exi/+ au?orities to address any relat$ national security conc]ns2 & 7,b7 ! cont9uation1 expansion1 or modification ( ! implem5tation & adm9i/ration ( ?is title4 7b7 ,=m ,ea* report requir$ by ?is section %all be submitt$ 9 unclassifi$ =m1 b may include a classifi$ annex4 7c7 ,prohibition on disclosure ,in=mation conta9$ 9 a report requir$ by ?is section may be )held f disclosure only to ! ext5t o!rwise p]mitt$ by /atute1 except t all in=mation includ$ pursuant to subsection 7a77#a7 %all be )held f public disclosure4 #hjg4 ,requirem5t = regulations 7a7 ,9 g5]al ,n lat] ?an #ahj days aft] ! date on :i* ! initial li/ ( categories ( te*nologies & products is publi%$ 9 ! ,f$]al ,regi/] pursuant to section #hjc7;a71 ! ,presid5t %all prescribe regulations to c>ry out ?is title 9 accordance ) sub*apt] ,,ii ( *apt] #e & *apt] #g ( title #e 7commonly kn[n z ! ,adm9i/rative ,proc$ure ,act74 7b7 ,elem5ts ,regulations prescrib$ to c>ry out ?is title %all-- 7#a7 specify ! types ( activities t w be consid]$ to be cov]$ activities1 o!r ?an types ( activities describ$ 9 section #hja7c72 7#b7 specify ! te*nologies & products 9 cov]$ sectors ) respect to :i* cov]$ activities are prohibit$ "u section #hjd or require a notification "u section #hje1 o!r ?an cov]$ sectors specifi$ 9 section #hja7e72 7#c7 provide = a process by :i* p>ties c ask que/ions & get timely guidance z to :e!r a cov]$ activity is prohibit$ "u section #hjd or requires a notification "u section #hje2 & 7#d7 cl>ify ! t]ms us$ 9 ?is title1 to maximize ! effectiv5ess ( ?is title4 7c7 ,public notice & comm5t ,regulations issu$ pursuant to subsection 7a7 %all be subject to public notice & comm5t4 7d7 ,l[-,burd5 regulations ,9 prescrib+ regulations "u ?is section1 ! ,presid5t %all1 to ! ext5t practicable1 /ructure ! regulations-- 7#a7 to m9imize ! co/ & complexity ( compliance = affect$ p>ties2 7#b7 to ensure ! b5efits ( ! regulations outweigh _! co/s2 7#c7 to adopt ! lea/ burd5some alt]native t a*ieves regulatory objectives2 7#d7 to prioritize transp>5cy & /akehold] involvem5t 9 ! process ( prescrib+ ! regulations2 & 7#e7 to provide = regul> review & /reaml9+ ( regulations prescrib$ pursuant to ?is title to r$uce r$undancy & complexity4 #hjh4 ,multilat]al engagem5t & coord9ation 7a7 ,9 g5]al ,! ,secret>y ( ,/ate & ! head ( ! lead ag5cy1 9 coord9ation ) ! ,secret>y ( ,comm]ce1 ! ,unit$ ,/ates ,trade ,repres5tative1 ! ,director ( ,national ,intellig5ce1 & ! heads ( o!r relevant ,f$]al ag5cies1 z appropriate1 %\ld-- 7#a7 conduct bilat]al & multilat]al engagem5t ) ! gov]nm5ts ( c\ntries t are allies & p>tn]s ( ! ,unit$ ,/ates to promote & increase coord9ation ( protocols & proc$ures to facilitate ! effective implem5tation (1 & appropriate compliance )1 ! prohibitions & notifications pursuant to ?is title2 7#b7 ^u adoption ( protocols & proc$ures describ$ 9 p>agraph 7#a71 "w ) ^? gov]nm5ts to e/abli% me*anisms = %>+ in=mation1 includ+ tr5ds1 ) respect to su* activities2 & 7#c7 "w ) & enc\rage ! gov]nm5ts ( c]ta9 c\ntries t are allies & p>tn]s ( ! ,unit$ ,/ates to develop simil> me*anisms ( _! own4 7b7 ,/rategy = multilat]al engagem5t & coord9ation ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is title1 ! ,secret>y ( ,/ate & ! head ( ! lead ag5cy1 9 coord9ation ) ! heads ( o!r relevant ,f$]al ag5cies1 %\ld-- 7#a7 develop a /rategy to "w ) ! gov]nm5ts ( c\ntries t are allies & p>tn]s ( ! ,unit$ ,/ates to develop me*anisms t are comp>able to ! prohibitions & notifications pursuant to ?is title2 & 7#b7 assess opportunities to provide te*nical assi/ance to ^? c\ntries ) respect to ! developm5t ( ^? me*anisms4 7c7 ,report ,n lat] ?an "o ye> aft] ! date ( ! enactm5t ( ?is title1 & annually !reaft] = #d ye>s1 ! ,secret>y ( ,/ate %all submit to ! appropriate congressional committees a report t includes-- 7#a7 a discussion ( any /rategy develop$ pursuant to subsection 7b77#a71 includ+ key tools & objectives = ! developm5t ( comp>able me*anisms by ! gov]nm5ts ( c\ntries t are allies & p>tn]s ( ! ,unit$ ,/ates2 7#b7 a li/ ( c\ntries t are allies & p>tn]s ( ! ,unit$ ,/ates to t>get = coop]ation 9 develop+ _! own scre5+ programs2 7#c7 ! /atus ( ! implem5tation & outcomes ( ! /rategy2 & 7#d7 a description ( imp$im5ts to ! e/abli%m5t ( comp>able me*anisms by gov]nm5ts ( c\ntries t are allies & p>tn]s ( ! ,unit$ ,/ates4 #hji4 ,au?orization ( appropriations ,!re are au?oriz$ to be appropriat$1 = ea* ( ! fir/ #b fiscal ye>s beg9n+ on or aft] ! date ( ! enactm5t ( ?is title1 su* sums z may be necess>y to c>ry out ?is title1 includ+ to provide outrea* to indu/ry & p]sons affect$ by ?is title4 ,su* am\nts %all be d]iv$ f am\nts o!rwise au?oriz$ to be appropriat$ to ! ,presid5t4 #haj4 ,hir+ au?ority 7a7 ,9 g5]al ,! head ( lead ag5cy may appo9t1 )\t reg>d to ! provisions ( sections #ccji ?r\gh #ccah ( title #e1 ,unit$ ,/ates ,code1 n m ?an #be c&idates directly to positions 9 ! competitive s]vice 7z def9$ 9 section #bajb ( t title7 9 t ag5cy4 7b7 ,prim>y responsibility ,! prim>y responsibility ( individuals 9 positions au?oriz$ "u subsection 7a7 %all be to adm9i/] ?is title4 #haa4 ,p5alties & en=cem5t 7a7 ,unlawful acts ,x %all be unlawful = a ,unit$ ,/ates p]son to violate1 attempt to violate1 conspire to violate1 or cause a violation ( any lic5se1 ord]1 regulation1 or prohibition issu$ "u ?is title4 7b7 ,civil p5alties 7#a7 ,p5alties ,a civil p5alty may be impos$ on any p]son :o commits an unlawful act describ$ 9 subsection 7a7 9 an am\nt n to exce$ ! great] (-- 7,a7 #e1jjj1jjj2 or 7,b7 an am\nt t is twice ! am\nt ( ! cov]$ activity t is ! basis ( ! violation ) respect to :i* ! p5alty is impos$4 7c7 ,crim9al p5alties ,a p]son :o willfully commits1 willfully attempts to commit1 or willfully conspires to commit1 or aids or abets 9 ! commission (1 an unlawful act describ$ 9 subsection 7a7 %all1 ^u conviction1 be f9$ n m ?an #a1jjj1jjj1 or if an individual1 may be imprison$ = n m ?an #bj ye>s1 or bo?4 7d7 ,en=cem5t ,! ,attorney ,g5]al may seek appropriate relief1 includ+ a tempor>y or p]man5t injunction1 re/ra9+ ord]1 dive/m5t relief1 or o!r su* o!r ord] z ! ,attorney ,g5]al may det]m9e to be prop]1 9 ! di/rict c\rts ( ! ,unit$ ,/ates 9 ord] to implem5t & en=ce ?is title & any regulation !reund]4 #hab4 ,rule ( con/ruction ,no?+ 9 ?is title may be con/ru$ to-- 7#a7 re/ra9 or det] ,unit$ ,/ates activities abroad if su* activities d n pose a risk to ! national security ( ! ,unit$ ,/ates2 or 7#b7 alt] or negate ! au?ority ( ! ,presid5t "u any au?ority1 process1 regulation1 inve/igation1 en=cem5t measure1 or review provid$ by or e/abli%$ "u any o!r provision ( ,f$]al law1 or any o!r au?ority ( ! ,presid5t or ,congress "u ! ,con/itution ( ! ,unit$ ,/ates4 #hac4 ,national int]e/ waiv] 7a7 ,9 g5]al ,subject to subsection 7b71 ! ,presid5t is au?oriz$ to exempt f any applicable prohibition or notification requirem5t "u ?is title any activity det]m9$ by ! ,presid5t1 9 consultation ) ! heads ( relevant ,f$]al ag5cies1 z appropriate1 to be 9 ! national int]e/ ( ! ,unit$ ,/ates4 7b7 ,congressional notification ,! ,presid5t %all-- 7#a7 notify ! appropriate congressional committees n lat] ?an #dh h\rs aft] issu+ a waiv] "u subsection 7a72 & 7#b7 include 9 su* notification an id5tification ( ! national int]e/ ju/ify+ ! use ( ! waiv]4 4 #e4 ,limitation on trade au?orities proc$ures relat+ to requirem5ts on cont5t ( goods f nonm>ket economy c\ntries ,section #ajf7;b7 ( ! ,bip>tisan ,congressional ,trade ,priorities & ,acc\ntability ,act ( #bjae 7#ai ,u4,s4,c4 #dbje7;b77 is am5d$ by add+ at ! end ! foll[+3 7#g7 ,limitations on proc$ures relat+ to orig9ation ( cont5t ( goods f nonm>ket economy c\ntries 7,a7 ,9 g5]al ,! trade au?orities proc$ures %all n apply to an implem5t+ bill submitt$ ) respect to a trade agreem5t or trade agreem5ts ent]$ into "u section #ajc7;b7 unless ! rules ( orig9 requirem5ts "u su* agreem5t or agreem5ts-- 7i7 ) respect to rules ( orig9 bas$ on value cont5t ( a good1 require t1 ( ! cont5t ( a good qualify+ = pref]5tial treatm5t "u ! agreem5t or agreem5ts t does n orig9ate 7z specifi$ 9 ^? rules7 9 a c\ntry t is p>ty to ! agreem5t or agreem5ts-- 7,i7 dur+ ! #e-ye> p]iod foll[+ ! entry into =ce ( ! agreem5t or agreem5ts1 n m ?an #bj p]c5t ( t cont5t may orig9ate 9 a nonm>ket economy c\ntry2 & 7,,ii7 aft] ! p]iod specifi$ 9 subclause 7,i71 n m ?an #aj p]c5t ( t cont5t may orig9ate 9 a nonm>ket economy c\ntry2 & 7ii7 ) respect to rules ( orig9 t are n bas$ on value cont5t ( a good1 are consi/5t ) ! requirem5ts "u clause 7i7 bas$ on process+ requirem5ts or t>iff %ifts z oppos$ to value cont5t4 7,b7 ,nonm>ket economy c\ntry def9$ ,9 ?is p>agraph1 ! t]m nonm>ket economy c\ntry has ! mean+ giv5 t t]m 9 section #gga7ah7 ( ! ,t>iff ,act ( #aicj 7#ai ,u4,s4,c4 #afgg7ah774 4 #f4 ,/rategy & outrea* on risks pos$ by ,p's ,republic ( ,*9a sm>tport te*nology 7a7 ,/rategy & outrea* requir$ ,! ,director ( ! ,national ,c\nt]9tellig5ce & ,security ,c5t] %all develop a /rategy & conduct outrea* to ,unit$ ,/ates indu/ry1 includ+ %ipp+ companies1 port op]ators1 & logi/ics firms1 on ! risks ( sm>tport te*nology ( ! ,p's ,republic ( ,*9a & o!r relat$ risks pos$ by entities ( ! ,p's ,republic ( ,*9a1 includ+ ,,log9k1 ,*9a ,ocean ,%ipp+ ,company1 ,limit$ 7,,cosco71 ,*9a ,communications ,con/ruction ,company1 ,limit$ 7,,cccc71 ,*9a ,m$ia ,gr\p 7,,cmg71 & ,%anghai ,zh5hua ,heavy ,indu/ries ,company ,limit$ 7,,zpmc71 to ! national security ( ! ,unit$ ,/ates1 ! security ( ,unit$ ,/ates supply *a9s1 & comm]cial activity1 includ+ ) respect to delays1 int]ruption1 & lock\t ( access to sy/ems & te*nologies t enable ! free fl[ ( comm]ce4 7b7 ,consi/5cy ) ,executive ,ord]s & o!r /atutory au?orities ,! ,director %all c>ry out subsection 7a7 9 a mann] t is consi/5t ) ! foll[+3 7#a7 ,"p #f ( title #cc1 ,code ( ,f$]al ,regulations1 z am5d$ by ,executive ,ord] #adaaf 7#hi ,f$4 ,reg4 #aciga2 relat+ to am5d+ regulations relat+ to ! safegu>d+ ( vessels1 h>bors1 ports1 & wat]front facilities ( ! ,unit$ ,/ates74 7#b7 ,executive ,ord] #adjag 7#hf ,f$4 ,reg4 #aahdi2 relat+ to ,am]ica's supply *a9s71 or successor ord]4 7#c7 ,section #hbe ( ! ,national ,def5se ,au?orization ,act = ,fiscal ,ye> #bjbd 7,public ,law #aah-ca74 7c7 ,coord9ation ,! ,director %all c>ry out subsection 7a7 9 coord9ation ) ! ,comm&ant ( ! ,u4,s4 ,coa/ ,gu>d1 ! ,director ( ! ,f$]al ,bureau ( ,inve/igation1 ! ,comm&] ( ! ,(fice ( ,naval ,intellig5ce1 & su* o!r heads ( ,f$]al ag5cies z ! ,director consid]s appropriate4