,,ii #aahth ,,congress #b;d ,session ,s4 #eega ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #ag 7legislative day1 ,december #af71 #bjbd,mr4 ,scott of ,florida introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to impose sanctions with respect to foreign persons that knowingly engage in significant operations in the defense and related materiel sector or the surveillance technology sector of the economy of the ,people's ,republic of ,china1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,chinese ,military and ,surveillance ,company ,sanctions ,act of #bjbd4 #b4 ,findings and sense of ,congress 7a7 ,findings ,congress finds the following3 7#a7 ,under ,executive ,order #aciei 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,public ,law #aje-bfa2 #ej ,u4,s4,c4 #agja note74 7#b7 ,although ,executive ,order #aciei targets transactions in some public securities1 it does not fully address all public securities of concern or 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 of the ,department of the ,treasury1 by blocking the assets of certain entities pursuant to certain specific delegated authorities and including those entities on the list of specially designated nationals and blocked persons 7commonly referred to as the ,,sdn list71 is able to forbid virtually any transaction between ,united ,states persons and such entities1 including debt and equity financing and the exchange of goods and services4 ,conversely1 restrictions limited to publicly traded securities are less comprehensive1 and in the case of certain ,chinese companies of concern1 may be of limited impact if the companies do not issue such securities or the full corporate family is not adequately covered4 7#d7 ,while ,executive ,order #aciei applies only to the purchase or sale of certain publicly traded securities by ,united ,states persons1 the ,office of ,foreign ,assets ,control's inclusion of a foreign entity on the ,,sdn list imposes a broader sanction by blocking the property and interest in property of the entity1 which may further deter third-country persons from dealing with it1 amplifying the effects of ,united ,states sanctions globally4 7#e7 ,the ,office of ,foreign ,assets ,control has long devoted significant resources to compiling evidence in support of its sanctions1 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 amended ,executive ,order #aciei by exclusively delegating authority for naming ,chinese military companies subject to investment restrictions to the ,secretary of the ,treasury1 in consultation with the ,secretary of ,state and1 as appropriate1 the ,secretary of ,defense1 and expanded restrictions to entities that operate or have operated in the surveillance technology sector of the ,chinese economy4 7b7 ,sense of ,congress ,it is the sense of ,congress that-- 7#a7 it is in the national interest of the ,united ,states to more fully address the economic threat that the ,chinese ,communist ,party poses to ,united ,states freedom and prosperity2 7#b7 the ,united ,states must adopt policies that declare and defend the interests of the ,united ,states and deter the aggression of the ,chinese ,communist ,party2 and 7#c7 the national emergency declared under ,executive ,order #aciei calls for the ,united ,states-- 7,a7 to more fully cut off financing avenues for ,communist ,chinese military and surveillance companies2 7,b7 to prevent adaptation by a company to partial restrictions that are limited to publicly traded securities2 7,c7 to ensure that the ,united ,states assembles an appropriate evidentiary basis to support the effectiveness of sanctions2 7,d7 to enhance the impact of economic sanctions by deterring third-country persons from dealing with the companies2 and 7,e7 to 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 ,on and after the date that is #ahj days after the date of the enactment of this ,act1 the ,president shall impose the sanction described in subsection 7c7 with respect to any foreign person described in subsection 7b74 7b7 ,foreign person described ,a foreign person described in this subsection is any foreign person the ,president determines is knowingly operating in the defense sector1 military-civil fusion operations sector1 or surveillance technology sector of the economy of the ,people's ,republic of ,china4 7c7 ,sanction described ,the ,president shall prohibit any transactions in foreign exchange that are subject to the jurisdiction of the ,united ,states and in which the foreign person described in subsection 7b7 has any interest4 7d7 ,additional measure relating to facilitation of certain transactions ,the ,president shall prohibit or impose strict conditions on the opening or maintaining in the ,united ,states of a correspondent account or payable-through account by a foreign financial institution that the ,president determines has1 on or after the date that is #ahj days after the date of the enactment of this ,act1 knowingly conducted or facilitated a significant transaction or transactions on behalf of a foreign person described in subsection 7b74 7e7 ,congressional requests ,not later than #cj days after receiving a request from the chairman or ranking member of one of the appropriate congressional committees with respect to whether a person meets the criteria for the imposition of sanctions under subsection 7c7 or 7d71 the ,president shall-- 7#a7 determine if the person meets such criteria2 and 7#b7 submit a report to the chairman or ranking member1 as the case may be1 who submitted the request with respect to that determination that includes a statement of whether or not the ,president imposed or intends to impose sanctions with respect to the person4 7f7 ,determinations and reports 7#a7 ,in general ,not later than one year after the date of the enactment of this ,act1 and annually thereafter1 the ,secretary of the ,treasury1 in consultation with the ,secretary of ,state1 the ,secretary of ,commerce1 and the ,secretary of ,defense1 shall-- 7,a7 determine whether each foreign person on a list specified in paragraph 7#b71 and each entity described in paragraph 7#c71 meets the criteria for the imposition of sanctions under subsection 7c7 or 7d72 and 7,b7 submit to the appropriate congressional committees a report explaining the results of each such determination4 7#b7 ,lists specified ,the lists specified in this paragraph are the following3 7,a7 ,the ,consolidated ,screening ,list of the ,federal ,government4 7,b7 ,the list of ,chinese military companies operating directly or indirectly in the ,united ,states maintained by the ,secretary of ,defense under section #abfj;,h7b7 of the ,william ,m4 7,mac7 ,thornberry ,national ,defense ,authorization ,act for ,fiscal ,year #bjba 7,public ,law #aaf-bhc2 #aj ,u4,s4,c4 #aac note74 7,c7 ,a list maintained under clause 7i71 7ii71 7iv71 or 7v7 of section #b7;d77#b77;,b7 of the ,act entitled ,an ,act to ensure that goods made with forced labor in the ,xinjiang ,autonomous ,region of the ,people's ,republic of ,china do not enter the ,united ,states market1 and for other purposes1 approved ,december #bc1 #bjba 7,public ,law #aag-gh2 #bb ,u4,s4,c4 #fija note7 7commonly referred to as the ,uyghur ,forced ,labor ,prevention ,act74 7#c7 ,entities described ,an entity is described in this paragraph if the entity produces equipment or services on the list of communications equipment and services that pose an unacceptable risk to the national security of the ,united ,states or the security and safety of ,united ,states persons maintained by the ,federal ,communications ,commission under section #b of the ,secure and ,trusted ,communications ,networks ,act of #bjai 7#dg ,u4,s4,c4 #afja74 7g7 ,consideration of certain activities ,in making determinations with respect to the imposition of sanctions under subsection 7c7 or 7d71 the ,secretary of the ,treasury may1 if practicable1 focus particular attention on foreign persons engaged in any of the following3 7#a7 ,artificial intelligence1 machine learning1 autonomy1 and related advances4 7#b7 ,high-performance computing1 semiconductors1 and advanced computer hardware and software4 7#c7 ,quantum information science and technology4 7#d7 ,robotics1 automation1 and advanced manufacturing4 7#e7 ,advanced communications technology and immersive technology4 7#f7 ,biotechnology1 medical technology1 genomics1 and synthetic biology4 7#g7 ,data storage1 data management1 and cybersecurity1 including biometrics4 7#h7 ,advanced materials science1 including composites and #b dimensional materials4 7#i7 ,hypersonic flight technologies for glide or any other purposes4 7#aj7 ,space-related technologies1 including satellite communications4 7#aa7 ,aviation and aerospace technologies4 7#ab7 ,any other area on the ,critical and ,emerging ,technologies ,list of the ,national ,science and ,technology ,council4 7h7 ,implementation2 penalties 7#a7 ,implementation ,the ,president may exercise the authorities provided under sections #bjc and #bje of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agjb and #agjd7 to the extent necessary to carry out this section4 7#b7 ,penalties ,a person that violates1 attempts to violate1 conspires to violate1 or causes a violation of this section or any regulation1 license1 or order issued to carry out this section shall be subject to the penalties set forth in subsections 7b7 and 7c7 of section #bjf of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agje7 to the same extent as a person that commits an unlawful act described in subsection 7a7 of that section4 7i7 ,waiver 7#a7 ,in general ,the ,president may1 for renewable periods of not to exceed #ahj days1 waive the application of this section with respect to a foreign person if the ,president certifies to the appropriate congressional committees that such a waiver is in the national security interests of the ,united ,states4 7#b7 ,briefing ,not later than #ij days after the issuance of a waiver under paragraph 7#a71 and every #ahj days thereafter while the waiver remains in effect1 the ,president shall brief the appropriate congressional committees on the reasons for the waiver4 7j7 ,exceptions 7#a7 ,intelligence and law enforcement activities ,sanctions under this section shall not apply with respect to-- 7,a7 any activity subject to the reporting requirements under title ,v of the ,national ,security ,act of #aidg 7#ej ,u4,s4,c4 #cjia et seq472 or 7,b7 any authorized intelligence or law enforcement activities of the ,united ,states4 7#b7 ,humanitarian activities ,the ,president may not impose sanctions under this section with respect to any person for conducting or facilitating a transaction for the sale of agricultural commodities1 food1 medicine1 or medical devices or for the provision of humanitarian assistance4 7k7 ,regulatory requirements 7#a7 ,in general ,the ,president shall1 not later than #ahj days after the date of the enactment of this ,act1 prescribe such regulations as are necessary for the implementation of this section4 7#b7 ,notification to ,congress ,not later than #aj days before prescribing regulations under paragraph 7#a71 the ,president shall notify the appropriate congressional committees regarding the proposed regulations and the provisions of this section that the regulations are implementing4 7l7 ,sunset ,the authority to impose sanctions under this section shall terminate on the date that is #g years after the date of the enactment of this ,act4 7m7 ,definitions ,in this section3 7#a7 ,account2 correspondent account2 payable-through account ,the terms account1 correspondent account1 and payable-through account have the meanings given those terms in section #ecah;,a of title #ca1 ,united ,states ,code4 7#b7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,armed ,services1 the ,committee on ,banking1 ,housing1 and ,urban ,affairs1 the ,committee on ,foreign ,relations1 and the ,committee on ,homeland ,security and ,governmental ,affairs2 and 7,b7 the ,committee on ,armed ,services1 the ,committee on ,financial ,services1 the ,committee on ,foreign ,affairs1 and the ,committee on ,homeland ,security of the ,house of ,representatives4 7#c7 ,executive ,order #aciei ,the term ,executive ,order #aciei means ,executive ,order #aciei 7#ej ,u4,s4,c4 #agja note2 relating to addressing the threat from securities investments that finance ,communist ,chinese military companies71 as in effect on the date of the enactment of this ,act1 including as most recently amended before such date of enactment by ,executive ,order #adjcb 7#hf ,fed4 ,reg4 #cjade74 7#d7 ,foreign person ,the term foreign person means an individual or entity that is not a ,united ,states person4 7#e7 ,knowingly ,the term knowingly with respect to conduct1 a circumstance1 or a result1 means that a person has actual knowledge1 or should have known1 of the conduct1 the circumstance1 or the result4 7#f7 ,united ,states person ,the term ,united ,states person means-- 7,a7 a ,united ,states citizen or an alien lawfully admitted for permanent residence to the ,united ,states2 7,b7 an entity organized under the laws of the ,united ,states or of any jurisdiction within the ,united ,states1 including a foreign branch of such an entity2 or 7,c7 a person in the ,united ,states4 #d4 ,codification of ,executive ,order #aciei 7a7 ,in general ,executive ,order #aciei 7#ej ,u4,s4,c4 #agja note2 relating to addressing the threat from securities investments that finance ,communist ,chinese military companies71 as in effect on the date of the enactment of this ,act1 and sanctions imposed pursuant to that ,executive ,order1 shall remain in effect until terminated by an ,act of ,congress4 7b7 ,annex ,not less frequently than annually1 the ,president shall-- 7#a7 update the ,annex to ,executive ,order #aciei2 and 7#b7 include1 with respect to each entity included in that ,annex1 any subsidiary or affiliate of the entity that engages in activities relating to the reason the entity is included in the ,annex4