,,ii #aah? ,,congress #b;d ,session ,s4 #eega ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,decemb] #ag 7legislative day1 ,decemb] #af71 #bjbd,mr4 ,scott ( ,florida introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,a ,,bill ,to impose sanctions ) respect to =eign p]sons t kn[+ly engage 9 significant op]ations 9 ! def5se & relat$ mat]iel sector or ! surveillance te*nology sector ( ! economy ( ! ,p's ,republic ( ,*9a1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,*9ese ,milit>y & ,surveillance ,company ,sanctions ,act ( #bjbd4 #b4 ,f9d+s & s5se ( ,congress 7a7 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,"u ,executive ,ord] #aciei ( ,novemb] #ag1 #bjbj1 ! ,presid5t f\nd t ! ,p's ,republic ( ,*9a increases ! size ( ! c\ntry's milit>y-indu/rial complex by compell+ civilian ,*9ese companies to support its milit>y & intellig5ce activities4 ,^? companies1 ?\gh rema9+ o/5sibly private & civilian1 directly support ! ,,prc's milit>y1 intellig5ce1 & security app>atuses & aid 9 _! developm5t & mod]nization44 ,! ,presid5t fur!r det]m9$ t ! ,,prc exploits ,unit$ ,/ates inve/ors to f9ance ! developm5t & mod]nization ( its milit>y44 ,z a result1 ,executive ,ord] #aciei re/rict$ transactions 9 publicly trad$ securities ( ,communi/ ,*9ese milit>y companies li/$ pursuant to section #abcg ( ! ,/rom ,?urmond ,national ,def5se ,au?orization ,act = ,fiscal ,ye> #aiii 7,public ,law #aje-bfa2 #ej ,u4,s4,c4 #agja note74 7#b7 ,al?\gh ,executive ,ord] #aciei t>gets transactions 9 "s public securities1 x does n fully address all public securities ( conc]n or address f9anc+ options = ,communi/ ,*9ese milit>y companies ?r\gh o!r =ms ( equity f9anc+ or debt f9anc+1 nor does x limit transactions ) ,unit$ ,/ates p]sons t may g5]ate e>n+s 9 a mann] t facilitates company gr[?4 7#c7 ,! ,(fice ( ,=eign ,assets ,control ( ! ,dep>tm5t ( ! ,treasury1 by block+ ! assets ( c]ta9 entities pursuant to c]ta9 specific delegat$ au?orities & includ+ ^? entities on ! li/ ( specially designat$ nationals & block$ p]sons 7commonly ref]r$ to z ! ,,sdn li/71 is able to =bid virtually any transaction betwe5 ,unit$ ,/ates p]sons & su* entities1 includ+ debt & equity f9anc+ & ! ex*ange ( goods & s]vices4 ,conv]sely1 re/rictions limit$ to publicly trad$ securities are less compreh5sive1 & 9 ! case ( c]ta9 ,*9ese companies ( conc]n1 may be ( limit$ impact if ! companies d n issue su* securities or ! full corporate family is n adequately cov]$4 7#d7 ,:ile ,executive ,ord] #aciei applies only to ! pur*ase or sale ( c]ta9 publicly trad$ securities by ,unit$ ,/ates p]sons1 ! ,(fice ( ,=eign ,assets ,control's inclusion ( a =eign entity on ! ,,sdn li/ imposes a broad] sanction by block+ ! prop]ty & int]e/ 9 prop]ty ( ! entity1 :i* may fur!r det] ?ird-c\ntry p]sons f deal+ ) x1 amplify+ ! effects ( ,unit$ ,/ates sanctions globally4 7#e7 ,! ,(fice ( ,=eign ,assets ,control has long devot$ significant res\rces to compil+ evid5ce 9 support ( its sanctions1 :i* enhances ! effectiv5ess ( ,unit$ ,/ates sanctions1 enc\rages allies to consid] comp>able measures1 & /r5g!ns national security4 7#f7 ,on ,june #c1 #bjba1 ! ,presid5t issu$ ,executive ,ord] #adjcb1 :i* am5d$ ,executive ,ord] #aciei by exclusively delegat+ au?ority = nam+ ,*9ese milit>y companies subject to inve/m5t re/rictions to ! ,secret>y ( ! ,treasury1 9 consultation ) ! ,secret>y ( ,/ate &1 z appropriate1 ! ,secret>y ( ,def5se1 & exp&$ re/rictions to entities t op]ate or h op]at$ 9 ! surveillance te*nology sector ( ! ,*9ese economy4 7b7 ,s5se ( ,congress ,x is ! s5se ( ,congress t-- 7#a7 x is 9 ! national int]e/ ( ! ,unit$ ,/ates to m fully address ! economic ?reat t ! ,*9ese ,communi/ ,p>ty poses to ,unit$ ,/ates fre$om & prosp]ity2 7#b7 ! ,unit$ ,/ates mu/ adopt policies t decl>e & def5d ! int]e/s ( ! ,unit$ ,/ates & det] ! aggression ( ! ,*9ese ,communi/ ,p>ty2 & 7#c7 ! national em]g5cy decl>$ "u ,executive ,ord] #aciei calls = ! ,unit$ ,/ates-- 7,a7 to m fully cut (f f9anc+ av5ues = ,communi/ ,*9ese milit>y & surveillance companies2 7,b7 to prev5t adaptation by a company to p>tial re/rictions t are limit$ to publicly trad$ securities2 7,c7 to ensure t ! ,unit$ ,/ates assembles an appropriate evid5ti>y basis to support ! effectiv5ess ( sanctions2 7,d7 to enhance ! impact ( economic sanctions by det]r+ ?ird-c\ntry p]sons f deal+ ) ! companies2 & 7,e7 to l9k ! imposition ( sanctions to cle> objectives t s]ve to resolve ! national em]g5cy4 #c4 ,sanctions ) respect to ,communi/ ,*9ese milit>y & surveillance companies 7a7 ,9 g5]al ,on & aft] ! date t is #ahj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,presid5t %all impose ! sanction describ$ 9 subsection 7c7 ) respect to any =eign p]son describ$ 9 subsection 7b74 7b7 ,=eign p]son describ$ ,a =eign p]son describ$ 9 ?is subsection is any =eign p]son ! ,presid5t det]m9es is kn[+ly op]at+ 9 ! def5se sector1 milit>y-civil fusion op]ations sector1 or surveillance te*nology sector ( ! economy ( ! ,p's ,republic ( ,*9a4 7c7 ,sanction describ$ ,! ,presid5t %all prohibit any transactions 9 =eign ex*ange t are subject to ! jurisdiction ( ! ,unit$ ,/ates & 9 :i* ! =eign p]son describ$ 9 subsection 7b7 has any int]e/4 7d7 ,additional measure relat+ to facilitation ( c]ta9 transactions ,! ,presid5t %all prohibit or impose /rict conditions on ! op5+ or ma9ta9+ 9 ! ,unit$ ,/ates ( a correspond5t acc\nt or payable-?r\gh acc\nt by a =eign f9ancial in/itution t ! ,presid5t det]m9es has1 on or aft] ! date t is #ahj days aft] ! date ( ! enactm5t ( ?is ,act1 kn[+ly conduct$ or facilitat$ a significant transaction or transactions on behalf ( a =eign p]son describ$ 9 subsection 7b74 7e7 ,congressional reque/s ,n lat] ?an #cj days aft] receiv+ a reque/ f ! *airman or rank+ memb] ( "o ( ! appropriate congressional committees ) respect to :e!r a p]son meets ! crit]ia = ! imposition ( sanctions "u subsection 7c7 or 7d71 ! ,presid5t %all-- 7#a7 det]m9e if ! p]son meets su* crit]ia2 & 7#b7 submit a report to ! *airman or rank+ memb]1 z ! case may be1 :o submitt$ ! reque/ ) respect to t det]m9ation t includes a /atem5t ( :e!r or n ! ,presid5t impos$ or int5ds to impose sanctions ) respect to ! p]son4 7f7 ,det]m9ations & reports 7#a7 ,9 g5]al ,n lat] ?an "o ye> aft] ! date ( ! enactm5t ( ?is ,act1 & annually !reaft]1 ! ,secret>y ( ! ,treasury1 9 consultation ) ! ,secret>y ( ,/ate1 ! ,secret>y ( ,comm]ce1 & ! ,secret>y ( ,def5se1 %all-- 7,a7 det]m9e :e!r ea* =eign p]son on a li/ specifi$ 9 p>agraph 7#b71 & ea* entity describ$ 9 p>agraph 7#c71 meets ! crit]ia = ! imposition ( sanctions "u subsection 7c7 or 7d72 & 7,b7 submit to ! appropriate congressional committees a report expla9+ ! results ( ea* su* det]m9ation4 7#b7 ,li/s specifi$ ,! li/s specifi$ 9 ?is p>agraph are ! foll[+3 7,a7 ,! ,consolidat$ ,scre5+ ,li/ ( ! ,f$]al ,gov]nm5t4 7,b7 ,! li/ ( ,*9ese milit>y companies op]at+ directly or indirectly 9 ! ,unit$ ,/ates ma9ta9$ by ! ,secret>y ( ,def5se "u section #abfj;,h7b7 ( ! ,william ,m4 7,mac7 ,?ornb]ry ,national ,def5se ,au?orization ,act = ,fiscal ,ye> #bjba 7,public ,law #aaf-bhc2 #aj ,u4,s4,c4 #aac note74 7,c7 ,a li/ ma9ta9$ "u clause 7i71 7ii71 7iv71 or 7v7 ( section #b7;d77#b77;,b7 ( ! ,act entitl$ ,an ,act to ensure t goods made ) =c$ labor 9 ! ,x9jiang ,autonom\s ,region ( ! ,p's ,republic ( ,*9a d n ent] ! ,unit$ ,/ates m>ket1 & = o!r purposes1 approv$ ,decemb] #bc1 #bjba 7,public ,law #aag-gh2 #bb ,u4,s4,c4 #fija note7 7commonly ref]r$ to z ! ,uyghur ,=c$ ,labor ,prev5tion ,act74 7#c7 ,entities describ$ ,an entity is describ$ 9 ?is p>agraph if ! entity produces equipm5t or s]vices on ! li/ ( communications equipm5t & s]vices t pose an unacceptable risk to ! national security ( ! ,unit$ ,/ates or ! security & safety ( ,unit$ ,/ates p]sons ma9ta9$ by ! ,f$]al ,communications ,commission "u section #b ( ! ,secure & ,tru/$ ,communications ,networks ,act ( #bjai 7#dg ,u4,s4,c4 #afja74 7g7 ,consid]ation ( c]ta9 activities ,9 mak+ det]m9ations ) respect to ! imposition ( sanctions "u subsection 7c7 or 7d71 ! ,secret>y ( ! ,treasury may1 if practicable1 focus p>ticul> att5tion on =eign p]sons engag$ 9 any ( ! foll[+3 7#a7 ,artificial intellig5ce1 ma*9e le>n+1 autonomy1 & relat$ advances4 7#b7 ,high-p]=mance comput+1 semiconductors1 & advanc$ comput] h>dw>e & s(tw>e4 7#c7 ,quantum in=mation sci5ce & te*nology4 7#d7 ,robotics1 automation1 & advanc$ manufactur+4 7#e7 ,advanc$ communications te*nology & imm]sive te*nology4 7#f7 ,biote*nology1 m$ical te*nology1 g5omics1 & syn!tic biology4 7#g7 ,data /orage1 data managem5t1 & cyb]security1 includ+ biometrics4 7#h7 ,advanc$ mat]ials sci5ce1 includ+ composites & #b dim5sional mat]ials4 7#i7 ,hyp]sonic flight te*nologies = glide or any o!r purposes4 7#aj7 ,space-relat$ te*nologies1 includ+ satellite communications4 7#aa7 ,aviation & a]ospace te*nologies4 7#ab7 ,any o!r area on ! ,critical & ,em]g+ ,te*nologies ,li/ ( ! ,national ,sci5ce & ,te*nology ,c\ncil4 7h7 ,implem5tation2 p5alties 7#a7 ,implem5tation ,! ,presid5t may ex]cise ! au?orities provid$ "u sections #bjc & #bje ( ! ,int]national ,em]g5cy ,economic ,p[]s ,act 7#ej ,u4,s4,c4 #agjb & #agjd7 to ! ext5t necess>y to c>ry out ?is section4 7#b7 ,p5alties ,a p]son t violates1 attempts to violate1 conspires to violate1 or causes a violation ( ?is section or any regulation1 lic5se1 or ord] issu$ to c>ry out ?is section %all be subject to ! p5alties set =? 9 subsections 7b7 & 7c7 ( section #bjf ( ! ,int]national ,em]g5cy ,economic ,p[]s ,act 7#ej ,u4,s4,c4 #agje7 to ! same ext5t z a p]son t commits an unlawful act describ$ 9 subsection 7a7 ( t section4 7i7 ,waiv] 7#a7 ,9 g5]al ,! ,presid5t may1 = r5ewable p]iods ( n to exce$ #ahj days1 waive ! application ( ?is section ) respect to a =eign p]son if ! ,presid5t c]tifies to ! appropriate congressional committees t su* a waiv] is 9 ! national security int]e/s ( ! ,unit$ ,/ates4 7#b7 ,brief+ ,n lat] ?an #ij days aft] ! issuance ( a waiv] "u p>agraph 7#a71 & e #ahj days !reaft] :ile ! waiv] rema9s 9 effect1 ! ,presid5t %all brief ! appropriate congressional committees on ! reasons = ! waiv]4 7j7 ,exceptions 7#a7 ,intellig5ce & law en=cem5t activities ,sanctions "u ?is section %all n apply ) respect to-- 7,a7 any activity subject to ! report+ requirem5ts "u title ,v ( ! ,national ,security ,act ( #aidg 7#ej ,u4,s4,c4 #cjia et seq472 or 7,b7 any au?oriz$ intellig5ce or law en=cem5t activities ( ! ,unit$ ,/ates4 7#b7 ,humanit>ian activities ,! ,presid5t may n impose sanctions "u ?is section ) respect to any p]son = conduct+ or facilitat+ a transaction = ! sale ( agricultural commodities1 food1 m$ic9e1 or m$ical devices or = ! provision ( humanit>ian assi/ance4 7k7 ,regulatory requirem5ts 7#a7 ,9 g5]al ,! ,presid5t %all1 n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is ,act1 prescribe su* regulations z are necess>y = ! implem5tation ( ?is section4 7#b7 ,notification to ,congress ,n lat] ?an #aj days be=e prescrib+ regulations "u p>agraph 7#a71 ! ,presid5t %all notify ! appropriate congressional committees reg>d+ ! propos$ regulations & ! provisions ( ?is section t ! regulations are implem5t+4 7l7 ,sunset ,! au?ority to impose sanctions "u ?is section %all t]m9ate on ! date t is #g ye>s aft] ! date ( ! enactm5t ( ?is ,act4 7m7 ,def9itions ,9 ?is section3 7#a7 ,acc\nt2 correspond5t acc\nt2 payable-?r\gh acc\nt ,! t]ms acc\nt1 correspond5t acc\nt1 & payable-?r\gh acc\nt h ! mean+s giv5 ^? t]ms 9 section #ecah;,a ( title #ca1 ,unit$ ,/ates ,code4 7#b7 ,appropriate congressional committees ,! t]m appropriate congressional committees means-- 7,a7 ! ,committee on ,arm$ ,s]vices1 ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs1 ! ,committee on ,=eign ,relations1 & ! ,committee on ,homel& ,security & ,gov]nm5tal ,affairs2 & 7,b7 ! ,committee on ,arm$ ,s]vices1 ! ,committee on ,f9ancial ,s]vices1 ! ,committee on ,=eign ,affairs1 & ! ,committee on ,homel& ,security ( ! ,h\se ( ,repres5tatives4 7#c7 ,executive ,ord] #aciei ,! t]m ,executive ,ord] #aciei means ,executive ,ord] #aciei 7#ej ,u4,s4,c4 #agja note2 relat+ to address+ ! ?reat f securities inve/m5ts t f9ance ,communi/ ,*9ese milit>y companies71 z 9 effect on ! date ( ! enactm5t ( ?is ,act1 includ+ z mo/ rec5tly am5d$ be=e su* date ( enactm5t by ,executive ,ord] #adjcb 7#hf ,f$4 ,reg4 #cjade74 7#d7 ,=eign p]son ,! t]m =eign p]son means an individual or entity t is n a ,unit$ ,/ates p]son4 7#e7 ,kn[+ly ,! t]m kn[+ly ) respect to conduct1 a circum/ance1 or a result1 means t a p]son has actual k1 or %\ld h kn[n1 ( ! conduct1 ! circum/ance1 or ! result4 7#f7 ,unit$ ,/ates p]son ,! t]m ,unit$ ,/ates p]son means-- 7,a7 a ,unit$ ,/ates citiz5 or an ali5 lawfully admitt$ = p]man5t resid5ce to ! ,unit$ ,/ates2 7,b7 an entity organiz$ "u ! laws ( ! ,unit$ ,/ates or ( any jurisdiction )9 ! ,unit$ ,/ates1 includ+ a =eign bran* ( su* an entity2 or 7,c7 a p]son 9 ! ,unit$ ,/ates4 #d4 ,codification ( ,executive ,ord] #aciei 7a7 ,9 g5]al ,executive ,ord] #aciei 7#ej ,u4,s4,c4 #agja note2 relat+ to address+ ! ?reat f securities inve/m5ts t f9ance ,communi/ ,*9ese milit>y companies71 z 9 effect on ! date ( ! enactm5t ( ?is ,act1 & sanctions impos$ pursuant to t ,executive ,ord]1 %all rema9 9 effect until t]m9at$ by an ,act ( ,congress4 7b7 ,annex ,n less frequ5tly ?an annually1 ! ,presid5t %all-- 7#a7 update ! ,annex to ,executive ,ord] #aciei2 & 7#b7 include1 ) respect to ea* entity includ$ 9 t ,annex1 any subsidi>y or affiliate ( ! entity t engages 9 activities relat+ to ! reason ! entity is includ$ 9 ! ,annex4