,,ii #aaith ,,congress #ast ,session ,s4 #ceee ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #ag1 #bjbe,mr4 ,cornyn 7for himself1 ,ms4 ,cortez ,masto1 ,mr4 ,scott of ,south ,carolina1 ,ms4 ,warren1 and ,mr4 ,sullivan7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to protect the national security of the ,united ,states by imposing sanctions with respect to certain persons of the ,people's ,republic of ,china and prohibiting and requiring notifications with respect to certain investments by ,united ,states persons in countries of concern4 #a4 ,short title2 ,table of contents 7a7 ,short title ,this ,act may be cited as the ,comprehensive ,outbound ,investment ,national ,security ,act of #bjbe4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 ,table of contents4,,title ,i--,general ,matters,sec4 #aja4 ,secretary defined4,sec4 #ajb4 ,severability4,sec4 #ajc4 ,authorization of appropriations4,sec4 #ajd4 ,sense of ,congress4,sec4 #aje4 ,termination4,,title ,,ii--,imposition of ,sanctions,sec4 #bja4 ,imposition of sanctions4,sec4 #bjb4 ,definitions4,sec4 #bjc4 ,exception relating to importation of goods4,,title ,,iii--,prohibition and notification on investments relating to covered national security transactions,sec4 #cja4 ,prohibition and notification on investments relating to covered national security transactions4,,title ,,iv--,securities and ,related ,matters,sec4 #dja4 ,requirements relating to the ,non-,,sdn ,chinese ,military-,industrial ,complex ,companies ,list4 ,i ,general ,matters #aja4 ,secretary defined ,except as otherwise provided1 in this ,act1 the term ,secretary means the ,secretary of the ,treasury4 #ajb4 ,severability ,if any provision of this ,act or any amendment made by this ,act1 or the application thereof1 is held invalid1 the validity of the remainder of this ,act or any amendment made by this ,act and the application of such provision to other persons and circumstances shall not be affected thereby4 #ajc4 ,authorization of appropriations 7a7 ,in general ,there is authorized to be appropriated #aej1jjj1jjj to the ,department of the ,treasury1 out of which amounts may be transferred to the ,department of ,commerce to jointly conduct outreach to industry and persons affected by this ,act or any amendment made by this ,act1 and to administer the provisions of this ,act or any amendment made by this ,act1 for each of the first two fiscal years beginning on or after the date of the enactment of this ,act1 to carry out this ,act or any amendment made by this ,act4 7b7 ,hiring authority 7#a7 ,by the ,president ,the ,president may appoint1 without regard to the provisions of sections #ccji through #ccah of title #e1 ,united ,states ,code1 not more than #ae individuals directly to positions in the competitive service 7as defined in section #bajb of that title7 to carry out this ,act or any amendment made by this ,act4 7#b7 ,by agencies ,the ,secretary and the ,secretary of ,commerce may appoint1 without regard to the provisions of sections #ccji through #ccah of title #e1 ,united ,states ,code1 individuals directly to positions in the competitive service 7as defined in section #bajb of that title7 of the ,department of the ,treasury and the ,department of ,commerce1 respectively1 to carry out this ,act or any amendment made by this ,act4 #ajd4 ,sense of ,congress ,it is the sense of ,congress that-- 7#a7 due to the fact that there are countless known and unknown entities in countries of concern1 to include the ,people's ,republic of ,china 7,,prc71 developing dual-use strategic technologies that benefit a foreign adversary's military modernization efforts1 surveillance states1 and human rights abuses1 restricting certain ,united ,states outbound investments into these technologies in countries of concern is necessary to prevent harm to ,united ,states national security and foreign policy interests2 and 7#b7 the ,president should therefore exercise the authorities granted in this ,act or any amendment made by this ,act to prevent countries of concern from exploiting ,united ,states capital to undermine ,united ,states national security and foreign policy interests4 #aje4 ,termination ,this ,act and any amendment made by this ,act shall cease to have any force or effect on the date that is seven years after the date of the enactment of this ,act4 ,,ii ,imposition of ,sanctions #bja4 ,imposition of sanctions 7a7 ,in general ,the ,president may impose the sanctions described in subsection 7b7 with respect to any foreign person determined to be a covered foreign person4 7b7 ,sanctions described ,the ,president may exercise all of the powers granted to the ,president under the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq47 to the extent necessary to prohibit any ,united ,states person from investing in or purchasing significant amounts of equity or debt instruments of a foreign person that is determined to be a covered foreign person pursuant to subsection 7a74 7c7 ,penalties ,the penalties provided for in subsections 7b7 and 7c7 of section #bjf of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agje7 shall apply to any person who violates1 attempts to violate1 conspires to violate1 or causes a violation of any prohibition of this section1 or an order or regulation prescribed under this section1 to the same extent that such penalties apply to a person that commits an unlawful act described in section #bjf7;a7 of such ,act 7#ej ,u4,s4,c4 #agje7;a774 7d7 ,exception for 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 activities of the ,united ,states4 7e7 ,exception for ,united ,states ,government activities ,nothing in this section shall prohibit transactions for the conduct of the official business of the ,federal ,government by employees1 grantees1 or contractors thereof4 7f7 ,report to ,congress 7#a7 ,in general ,not later than one year after the date of the enactment of this ,act1 and annually thereafter for seven years1 the ,president shall submit to the appropriate congressional committees a report that states whether any foreign person on the ,non-,,sdn ,chinese ,military-,industrial ,complex ,companies ,list is a covered foreign person4 7#b7 ,form ,the report required by paragraph 7#a7 shall be submitted in unclassified form1 but may include a classified annex4 7g7 ,administrative provisions ,the ,president may exercise all authorities provided under sections #bjc and #bje of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agjb and #agjd7 to carry out this section4 7h7 ,rule of construction ,nothing in this section may be construed to limit the authority of the ,president to designate foreign persons for the imposition of sanctions pursuant to any other provision of ,federal law1 including the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq474 #bjb4 ,definitions ,in this title3 7#a7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,financial ,services and the ,committee on ,foreign ,affairs of the ,house of ,representatives2 and 7,b7 the ,committee on ,banking1 ,housing1 and ,urban ,affairs and the ,committee on ,foreign ,relations of the ,senate4 7#b7 ,country of concern ,the term country of concern means the ,people's ,republic of ,china1 including the ,hong ,kong and ,macau ,special ,administrative ,regions4 7#c7 ,covered foreign person ,the term covered foreign person means a foreign person-- 7,a7 that is incorporated in1 has a principal place of business in1 or is organized under the laws of a country of concern2 7,b7 that is a member of the ,central ,committee of the ,chinese ,communist ,party or member of the political leadership of a country of concern2 7,c7 that is the state or the government of a country of concern1 as well as any political subdivision1 agency1 or instrumentality thereof2 7,d7 that is subject to the direction or control of any entity described in subparagraphs 7,a7 through 7,c72 or 7,e7 that is owned in the aggregate1 directly or indirectly1 #ej percent or more by an entity or a group of entities described in subparagraphs 7,a7 through 7,c72 and 7,f7 that knowingly engaged in significant operations in the defense and related materiel sector or the surveillance technology sector of the economy of a country of concern4 7#d7 ,foreign person ,the term foreign person means a person that is not a ,united ,states person4 7#e7 ,knowingly ,the term knowingly1 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 ,non-,,sdn ,chinese ,military-,industrial ,complex ,companies ,list ,the term ,non-,,sdn ,chinese ,military-,industrial ,complex ,companies ,list means the list maintained by the ,office of ,foreign ,assets ,control of the ,department of the ,treasury under ,executive ,order #aciei1 as amended by ,executive ,order #adjcb 7#ej ,u4,s4,c4 #agja note2 relating to addressing the threat from securities investments that finance certain companies of the ,people's ,republic of ,china71 or any successor order4 7#g7 ,person ,the term person means an individual or entity4 7#h7 ,united ,states person ,the term ,united ,states person means-- 7,a7 any ,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 ,states 7including any foreign branch of such an entity72 or 7,c7 any person in the ,united ,states4 #bjc4 ,exception relating to importation of goods 7a7 ,in general ,the authorities and requirements to impose sanctions authorized under this ,act shall not include the authority or requirement to impose sanctions on the importation of goods4 7b7 ,good defined ,in this section1 the term good means any article1 natural or manmade substance1 material1 supply or manufactured product1 including inspection and test equipment1 and excluding technical data4 ,,iii ,prohibition and notification on investments relating to covered national security transactions #cja4 ,prohibition and notification on investments relating to covered national security transactions ,the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #deja et seq47 is amended by adding at the end the following3 ,,viii ,prohibition and notification on investments relating to covered national security transactions #hja4 ,prohibition on investments 7a7 ,in general ,the ,secretary may prohibit1 in accordance with regulations issued under subsection 7e71 a ,united ,states person1 including its controlled foreign entities1 from knowingly engaging in a covered national security transaction in any prohibited technology4 7b7 ,evasion ,any action that evades or avoids1 has the purpose of evading or avoiding1 causes a violation of1 or attempts to violate the prohibition set forth in subsection 7a7 is prohibited4 7c7 ,exemptions 7#a7 ,national interest exemption ,subject to subsection 7d71 the ,secretary is authorized to exempt from the prohibition set forth in subsection 7a7 any activity determined by the ,president1 in consultation with the ,secretary1 or delegated to the ,secretary1 in coordination with the ,secretary of ,commerce1 the ,secretary of ,state1 and1 as appropriate1 the heads of other relevant ,federal departments and agencies1 to be in the national interest of the ,united ,states4 7#b7 ,intelligence exemption ,regulations issued under subsection 7e7 shall not apply to any authorized intelligence activities of the ,united ,states4 7d7 ,congressional notification ,the ,secretary shall-- 7#a7 notify the appropriate congressional committees not later than five business days after issuing an exemption under subsection 7c72 and 7#b7 include in such notification an identification of the national interest justifying the use of the exemption1 subject to appropriate confidentiality and classification requirements4 7e7 ,regulations 7#a7 ,in general ,the ,secretary1 in consultation with the ,secretary of ,commerce1 the ,secretary of ,state and1 as appropriate1 the heads of other relevant ,federal departments and agencies1 may issue or update existing regulations to carry out this section subject to public notice and comment in accordance with subchapter ,,ii of chapter #e and chapter #g of title #e1 ,united ,states ,code1 and not subject to the requirements of section #gji4 ,the regulations issued pursuant to this paragraph shall1 as necessary1 amend1 terminate1 supersede1 revoke1 or streamline existing requirements in part #hej of title #ca1 ,code of ,federal ,regulations 7the ,outbound ,investment ,rule7 and shall provide a reasonable timeframe for compliance4 7#b7 ,non-binding feedback 7,a7 ,in general ,the regulations issued under paragraph 7#a7 shall include a process under which a person can request to receive non-binding feedback on a confidential basis1 or as anonymized guidance to the public1 as to whether a transaction would constitute a covered national security transaction in a prohibited technology4 7,b7 ,authority to limit frivolous feedback requests ,in establishing the process required by subparagraph 7,a71 the ,secretary may prescribe limitations on requests for feedback identified as frivolous for purposes of this subsection4 7#c7 ,notice2 opportunity to cure 7,a7 ,in general ,the regulations issued under paragraph 7#a7 shall account for whether a ,united ,states person has self-identified and self-disclosed a violation of the prohibition set forth in subsection 7a7 in determining the legal consequences of that violation4 7,b7 ,self-disclosure letters ,the regulations issued under paragraph 7#a7 shall dictate the form and content of a letter of self-disclosure1 which shall include relevant facts about the violation1 why the ,united ,states person believes its activity to have violated the prohibition set forth in subsection 7a71 and a proposal for mitigation of the harm of such action4 7#d7 ,low-burden regulations ,in issuing regulations under paragraph 7#a71 the ,secretary should balance the priority of protecting the national security interest of the ,united ,states while1 to the extent practicable-- 7,a7 minimizing the cost and complexity of compliance for affected parties1 including the duplication of reporting requirements under current regulations2 7,b7 adopting the least burdensome alternative that achieves regulatory objectives2 and 7,c7 prioritizing transparency and stakeholder involvement in the process of issuing the rules4 7#e7 ,burden of proof ,in accordance with section #eef7;d7 of title #e1 ,united ,states ,code1 in an enforcement action for a violation of the prohibition set forth in subsection 7a71 the burden of proof shall be upon the ,secretary4 #hjb4 ,notification on investments 7a7 ,mandatory notification ,not later than #dej days after the date of the enactment of this title1 the ,secretary shall issue regulations prescribed in accordance with subsection 7b71 to require a ,united ,states person that itself or whose controlled foreign entity knowingly engages in a covered national security transaction in a prohibited technology 7unless the ,secretary has exercised the authority provided by section #hja7;a7 to prohibit knowingly engaging in such covered national security transaction7 or a notifiable technology to submit to the ,secretary a written notification of the transaction not later than #cj days after the completion date of the transaction4 7b7 ,regulations 7#a7 ,in general ,not later than #dej days after the date of the enactment of this title1 the ,secretary1 in consultation with the ,secretary of ,commerce1 the ,secretary of ,state1 and1 as appropriate1 the heads of other relevant ,federal departments and agencies1 shall issue regulations to carry out this section subject to public notice and comment in accordance with subchapter ,,ii of chapter #e and chapter #g of title #e1 ,united ,states ,code1 and not subject to the requirements of section #gji4 ,the regulations issued pursuant to this paragraph shall as necessary1 amend1 terminate1 supersede1 revoke1 or streamline existing requirements in part #hej of title #ca1 ,code of ,federal ,regulations 7the ,outbound ,investment ,rule7 and shall provide a reasonable timeframe for compliance4 7#b7 ,low-burden regulations ,in issuing regulations under paragraph 7#a71 the ,secretary should balance the priority of protecting the national security interest of the ,united ,states while1 to the extent practicable-- 7,a7 minimizing the cost and complexity of compliance for affected parties1 including the duplication of reporting requirements under current regulation2 7,b7 adopting the least burdensome alternative that achieves regulatory objectives2 and 7,c7 prioritizing transparency and stakeholder involvement in the process of issuing the rules4 7#c7 ,burden of proof ,in accordance with section #eef7;d7 of title #e1 ,united ,states ,code1 in an enforcement action for a violation of the prohibition set forth in subsection 7a71 the burden of proof shall be upon the ,secretary4 7#d7 ,completeness of notification 7,a7 ,in general ,the ,secretary shall1 upon receipt of a notification under subsection 7a71 promptly inspect the notification for completeness4 7,b7 ,incomplete notifications ,if a notification submitted under subsection 7a7 is incomplete1 the ,secretary shall promptly inform the ,united ,states person that submits the notification that the notification is not complete and provide an explanation of relevant material respects in which the notification is not complete4 7#e7 ,identification of non-notified activity ,the ,secretary shall establish a process to identify covered national security transactions in a prohibited technology or a notifiable technology for which-- 7,a7 a notification is not submitted to the ,secretary under subsection 7a72 and 7,b7 information is reasonably available4 7c7 ,inapplicability ,if the ,secretary prohibits a covered national security transaction in a prohibited technology under section #hja1 the requirements of this section shall not apply with respect to the covered national security transaction4 #hjc4 ,report 7a7 ,in general ,not later than #ah months after the date of enactment of this title1 and not less frequently than annually thereafter1 the ,secretary1 in consultation with the ,secretary of ,commerce and1 as appropriate1 the heads of other relevant ,federal departments and agencies1 shall submit to the appropriate congressional committees a report1 subject to appropriate confidentiality and classification requirements1 that-- 7#a7 lists all enforcement actions taken subject to the existing regulations and regulations issued under section #hja7;e7 and #hjb7;b7 during the year preceding submission of the report1 which includes1 with respect to each such action1 a description of-- 7,a7 the prohibited technology or notifiable technology2 7,b7 the covered national security transaction2 7,c7 the covered foreign person2 and 7,d7 the relevant ,united ,states person2 7#b7 provides an assessment of the definition of the term prohibited technology under existing regulations or regulations issued under section #hja7;e7 or #hjb7;b7 by-- 7,a7 identifying additional technologies that the ,secretary1 in consultation with the ,secretary of ,commerce and1 as applicable1 the ,secretary of ,defense1 the ,secretary of ,state1 the ,secretary of ,energy1 the ,director of ,national ,intelligence1 and the heads of any other relevant ,federal agencies1 determined under existing regulations or regulations issued pursuant to #hja7;e7 may pose an acute threat to the national security of the ,united ,states if developed or acquired by a country of concern2 7,b7 explaining why each technology identified in subparagraph 7,a7 may pose an acute threat to the national security of the ,united ,states if developed or acquired by a country of concern2 and 7,c7 describing any removal of technologies from the category of prohibited technology under existing regulations or regulations issued under section #hja7;e7 during the reporting period to the extent that the technologies no longer pose an acute threat to the national security of the ,united ,states if developed or acquired by a country of concern2 7#c7 lists all notifications submitted under existing regulations or regulations issued section #hjb during the year preceding submission of the report and includes1 with respect to each such notification-- 7,a7 basic information on each party to the covered national security transaction with respect to which the notification was submitted2 and 7,b7 the nature of the covered national security transaction that was the subject of the notification1 including the elements of the covered national security transaction that necessitated a notification2 7#d7 includes a summary of those notifications1 disaggregated by prohibited technology1 by notifiable technology1 by covered national security transaction1 and by country of concern2 7#e7 provides additional context and information regarding trends in the prohibited technology1 notifiable technology1 the types of covered national security transaction1 and the countries involved in those notifications2 and 7#f7 assesses the overall impact of those notifications1 including recommendations for-- 7,a7 expanding existing ,federal programs to support the production or supply of prohibited technologies or notifiable technologies in the ,united ,states1 including the potential of existing authorities to address any related national security concerns2 7,b7 investments needed to enhance prohibited technologies or notifiable technologies and reduce ,united ,states dependence on countries of concern regarding those technologies2 and 7,c7 the continuation1 expansion1 or modification of the implementation and administration of this title4 7b7 ,consideration of certain information ,in preparing the report pursuant to subsection 7a71 the ,secretary-- 7#a7 shall consider information provided jointly by the chairperson and ranking member of any of the appropriate congressional committees2 7#b7 may consider credible information obtained by other countries and nongovernmental organizations that monitor the military1 surveillance1 intelligence1 or technology capabilities of a country of concern2 and 7#c7 may consider any other information that the ,secretary deems relevant4 7c7 ,form of report ,each report required by this section shall be submitted in unclassified form1 but may include a classified annex4 7d7 ,testimony required ,not later than one year after the date of the enactment of this title1 and annually thereafter for five years1 the ,secretary and the ,secretary of ,commerce1 or their designee1 shall each provide to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committees on ,foreign ,affairs and ,financial ,services of the ,house of ,representatives testimony with respect to the national security threats relating to investments by ,united ,states persons in countries of concern and broader international capital flows4 7e7 ,requests by appropriate congressional committees 7#a7 ,in general ,after receiving a request that meets the requirements of paragraph 7#b7 with respect to whether a technology should be included in the amendments as described in subsection 7a77#b71 the ,secretary shall1 in preparing the report pursuant to subsection 7a7-- 7,a7 determine if that technology 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 include in the report pursuant to subsection 7a7 an explanation with respect to that determination that includes-- 7i7 a statement of whether or not the technology1 as determined by the ,secretary1 may pose an acute threat to the national security of the ,united ,states if developed or acquired by a country of concern2 and 7ii7 if the ,secretary determines that-- 7,i7 the technology may pose an acute threat to the national security of the ,united ,states if developed or acquired by a country of concern1 an explanation for such determination and a recommendation whether that technology should be named a prohibited technology or a notifiable technology2 and 7,,ii7 the technology would not pose an acute threat to the national security of the ,united ,states if developed or acquired by a country of concern1 an explanation for such determination4 7#b7 ,requirements ,a request under paragraph 7#a7 with respect to whether a technology may pose an acute threat to the national security of the ,united ,states if developed or acquired by a country of concern shall be submitted to the ,secretary in writing jointly by the chairperson and ranking member of #a or more of the appropriate congressional committees4 #hjd4 ,multilateral engagement and coordination 7a7 ,authorities ,the ,secretary1 in coordination with the ,secretary of ,state1 the ,secretary of ,commerce1 and the heads of other relevant ,federal agencies1 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 of and appropriate compliance with the prohibitions and notification requirement 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 countries that are allies and partners of the ,united ,states to develop similar mechanisms of their own1 for the exclusive purpose of preventing the development of prohibited technologies by a country of concern4 7b7 ,strategy for multilateral engagement and coordination ,not later than #ahj days after the date of the regulations implementing enactment of this title1 the ,secretary1 in coordination with the ,secretary of ,state1 the ,secretary of ,commerce1 and 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 notification requirements pursuant to this title1 for the exclusive purpose of preventing the development of prohibited technologies by a country of concern2 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 regulations implementing enactment of this title1 and annually thereafter for four years1 the ,secretary shall submit to the appropriate congressional committees a report1 subject to the appropriate confidentiality and classification requirements1 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 allies and partners of the ,united ,states2 7#b7 a list of partner and allied countries to target for cooperation in developing their own prohibitions2 7#c7 the status of the strategy's implementation and outcomes2 and 7#d7 a description of impediments to the establishment of comparable mechanisms by governments of allies and partners of the ,united ,states4 7d7 ,appropriate congressional committees defined ,in this section1 the term appropriate congressional committees means-- 7#a7 the ,committee on ,foreign ,relations and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate2 and 7#b7 the ,committee on ,foreign ,affairs and the ,committee on ,financial ,services of the ,house of ,representatives4 #hje4 ,public database of covered foreign persons 7a7 ,in general ,the ,secretary1 in consultation with the ,secretary of ,commerce1 may establish a publicly accessible1 non-exhaustive database that identifies covered foreign persons that are either engaged in a prohibited technology or a notifiable technology pursuant to this title4 7b7 ,modification process ,the ,secretary1 in consultation with the ,secretary of ,commerce1 is authorized to establish a mechanism for a covered foreign person to petition for their removal from or inclusion in the publicly accessible1 non-exhaustive database described in 7a74 7c7 ,confidentiality of evidence ,the ,secretary shall establish a mechanism for the public1 including ,congress1 stakeholders1 investors1 and nongovernmental organizations1 to submit evidence on a confidential basis regarding whether a foreign person is a covered foreign person in a prohibited technology or notifiable technology and should be included in the database described in subsection 7a71 if any4 7d7 ,rule of construction ,the database described in subsection 7a71 if any1 shall not be considered to be an exhaustive or comprehensive list of covered foreign persons for the purposes of this title4 #hjf4 ,rule of construction ,nothing in this title may be construed to 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 including the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq471 or any other authority of the ,president or the ,congress under the ,constitution of the ,united ,states4 #hjg4 ,penalties 7a7 ,in general ,the regulations issued under section #hja or #hjb shall provide for the imposition of civil penalties described in subsection 7b74 7b7 ,penalties described 7#a7 ,unlawful acts ,it shall be unlawful for a person to violate1 attempt to violate1 conspire to violate1 or cause a violation of any order1 regulation1 notification requirement1 or prohibition issued under this title4 7#b7 ,civil penalty ,the ,secretary may impose civil penalties on any person who commits an unlawful act described in paragraph 7#a7 in amounts equivalent to amounts provided for under section #bjf7;b7 of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agje7;b77 for violations under that ,act4 7#c7 ,divestment ,the ,secretary may compel the divestment of a covered national security transaction in a prohibited technology determined to be in violation of section #hja7;a7 or regulations issued thereunder4 7#d7 ,relief ,the ,president may direct the ,attorney ,general of the ,united ,states to seek appropriate relief1 including divestment relief for violations of the prohibition set forth in subsection #hja7;a71 in the district courts of the ,united ,states1 in order to implement and enforce this title4 #hjh4 ,exemption from disclosure 7a7 ,in general ,except as provided in subsection 7b71 any information or documentary material filed with the ,secretary or the ,secretary's designee pursuant to this title 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 7b7 ,exceptions ,subsection 7a7 shall not prohibit the disclosure of the following1 subject to appropriate confidentiality and classification requirements3 7#a7 ,information relevant to any administrative or judicial action or proceeding4 7#b7 ,information to ,congress or any duly authorized committee or subcommittee of ,congress4 7#c7 ,information important to the national security analysis or actions of the ,secretary to any domestic governmental entity1 or to any foreign governmental entity of a ,united ,states ally or partner1 under the exclusive direction and authorization of the ,secretary1 only to the extent necessary for national security purposes1 and subject to appropriate confidentiality and classification requirements4 7#d7 ,identity of a covered foreign person in the public database described in section #hje4 7#e7 ,information that the parties have consented to be disclosed to third parties4 7#f7 ,information gathered by the ,secretary or the ,secretary's designee where the disclosure is determined to be in the national security interest1 which may include publication of anonymized data4 #hji4 ,definitions ,in this title3 7#a7 ,appropriate congressional committees ,except as provided in section #hjd7;d71 the term appropriate congressional committees means-- 7,a7 the ,committee on ,financial ,services1 the ,committee on ,foreign ,affairs1 and the ,committee on ,appropriations of the ,house of ,representatives2 and 7,b7 the ,committee on ,banking1 ,housing1 and ,urban ,affairs and the ,committee on ,appropriations of the ,senate4 7#b7 ,country of concern ,the term country of concern means-- 7,a7 the ,people's ,republic of ,china1 including the ,hong ,kong and ,macau ,special ,administrative ,regions2 7,b7 the ,republic of ,cuba2 7,c7 the ,islamic ,republic of ,iran2 7,d7 the ,democratic ,people's ,republic of ,korea2 7,e7 the ,russian ,federation2 and 7,f7 the ,bolivarian ,republic of ,venezuela under the regime of ,nicolas ,maduro ,moros4 7#c7 ,covered foreign person ,subject to regulations prescribed in accordance with this title1 the term covered foreign person means a foreign person that-- 7,a7 is incorporated in1 has a principal place of business in1 or is organized under the laws of a country of concern2 7,b7 is a member of the ,central ,committee of the ,chinese ,communist ,party or is a member of the political leadership of a country of concern2 7,c7 is subject to the direction or control of a country of concern1 as defined by regulation1 an entity described in subparagraph 7,a7 or 7,b71 or the state or the government of a country of concern 7including any political subdivision1 agency1 or instrumentality thereof72 or 7,d7 is owned in the aggregate1 directly or indirectly1 #ej percent or more by a country of concern1 an entity described in subparagraph 7,a7 or 7,b71 or the state or the government of a country of concern 7including any political subdivision1 agency1 or instrumentality thereof74 7#d7 ,covered national security transaction 7,a7 ,in general ,subject to such regulations as may be issued in accordance with this title1 the term covered national security transaction means a ,united ,states person's direct or indirect-- 7i7 acquisition of an equity interest or contingent equity interest in a covered foreign person that the ,united ,states person knows at the time of the acquisition is a covered foreign person2 7ii7 provision of a loan or similar debt financing arrangement to a covered foreign person that the ,united ,states person knows at the time of the provision is a covered foreign person1 where such debt financing affords or will afford the ,united ,states person an interest in profits of the covered foreign person1 the right to appoint members of the board of directors 7or equivalent7 of the covered foreign person1 or other comparable financial or governance rights characteristic of an equity investment but not typical of a loan2 7iii7 entrance by such ,united ,states person into a joint venture1 wherever located1 that is formed with a person of a country of concern1 and that the subject ,united ,states person knows at the time of entrance into the joint venture that the joint venture will engage1 or plans to engage1 in a prohibited technology or notifiable technology2 7iv7 conversion of a contingent equity interest 7or interest equivalent to a contingent equity interest7 or conversion of debt to an equity interest in a covered foreign person2 7v7 acquisition1 leasing1 or other development of operations1 land1 property1 or other assets in a country of concern that the ,united ,states person knows at the time of such acquisition1 leasing1 or other development will result in1 or that the ,united ,states person plans to result in-- 7,i7 the establishment of a covered foreign person2 or 7,,ii7 the engagement of a person of a country of concern in a prohibited technology or notifiable technology2 7vi7 knowingly directing prohibited transactions or notifiable transactions by foreign persons that the ,united ,states person has knowledge at the time of the transaction would constitute an activity described in clause 7i71 7ii71 7iii71 7iv71 or 7v71 if engaged in by a ,united ,states person2 7vii7 acquisition of a limited partner or equivalent interest in a venture capital fund1 private equity fund1 fund of funds1 or other pooled investment fund 7in each case where the fund is not a ,united ,states person7 that the ,united ,states person has knowledge at the time of the acquisition likely will invest in a person of a country of concern that is in one of the notifiable technology or prohibited technology sectors1 and such fund undertakes a transaction that would be a covered national security transaction if undertaken by a ,united ,states person2 or 7viii7 any other transaction identified by the ,secretary1 in consultation with the appropriate congressional committees and subject to public notice and comment in accordance with subchapter ,,ii of chapter #e and chapter #g of title #e1 ,united ,states ,code1 and not subject to the requirements of section #gji1 that is contributing to the military1 intelligence1 surveillance1 or cyber-enabled capabilities of a country of concern4 7,b7 ,exceptions and clarifications ,subject to regulations prescribed in accordance with this title1 the term covered national security transaction does not include-- 7i7 any transaction the value of which the ,secretary determines is de minimis2 7ii7 any category of transactions that the ,secretary determines is in the national interest of the ,united ,states2 7iii7 an investment-- 7,i7 in a security 7as defined in section #c7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a777 that is traded on an exchange or the over-the-counter market in any jurisdiction2 7,,ii7 in a security issued by an investment company 7as defined in section #c of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#c77 that is registered with the ,securities and ,exchange ,commission1 or1 if the ,secretary chooses to include it as an exception from a covered national security transaction1 in a security issued by a non-,united ,states investment company that is registered with a foreign regulator with comparable oversight standards and regulatory jurisdiction to the ,securities and ,exchange ,commission as determined by the ,secretary of ,treasury2 7,,iii7 made as a limited partner or equivalent in a venture capital fund1 private equity fund1 fund of funds1 or other pooled investment fund 7other than as described in subclause 7,,ii77 where-- 7aa7 the limited partner or equivalent's committed capital is not more than a de minimis amount1 as determined by the ,secretary1 aggregated across any investment and co-investment vehicles of the fund2 or 7bb7 the limited partner or equivalent has secured a binding contractual assurance that its capital in the fund will not be used to engage in a transaction that would be a covered national security transaction if engaged in by a ,united ,states person2 or 7,,iv7 in a derivative of a security described under subclause 7,i71 7,,ii71 or 7,,iii72 7iv7 any ancillary transaction undertaken by a financial institution 7as defined in section #ecab of title #ca1 ,united ,states ,code72 7v7 the acquisition by a ,united ,states person of the equity or other interest owned or held by a covered foreign person in an entity or assets located outside of a country of concern in which the ,united ,states person is acquiring the totality of the interest in the entity held by the covered foreign person2 7vi7 an intracompany transfer of funds1 as defined in regulations prescribed in accordance with this title1 from a ,united ,states parent company to a subsidiary located in a country of concern or a transaction that1 but for this clause1 would be a covered national security transaction between a ,united ,states person and its controlled foreign person that supports operations that are not covered national security transactions or that maintains covered national security transactions that the controlled foreign person was engaged in prior to the effective date of the regulations implementing this title2 7vii7 a transaction secondary to a covered national security transaction1 including-- 7,i7 contractual arrangements 7not including contractual arrangements for technology transfer or technical knowledge transfer7 or the procurement of material inputs for any covered national security transaction 7such as raw materials72 7,,ii7 bank lending2 7,,iii7 the processing1 clearing1 or sending of payments by a bank2 7,,iv7 underwriting services including1 but not limited to1 the temporary acquisition of an equity interest for the sole purpose of facilitating underwriting services2 7,v7 debt rating services2 7,,vi7 prime brokerage2 7,,vii7 global custody2 7,,viii7 equity research or analysis2 or 7,,ix7 other similar services2 7viii7 any ordinary or administrative business transaction as may be defined in such regulations2 or 7ix7 any transaction completed before the date of the enactment of this title4 7,c7 ,ancillary transaction defined ,in this paragraph1 the term ancillary transaction means1 subject to regulations prescribed by the ,secretary-- 7i7 the processing1 settling1 clearing1 or sending of payments and cash transactions2 7ii7 underwriting services1 including the temporary acquisition of an equity interest for the sole purpose of facilitating underwriting services2 7iii7 credit rating services2 and 7iv7 other services ordinarily incident to and part of the provision of financial services1 such as opening deposit accounts1 direct custody services1 foreign exchange services1 remittances services1 and safe deposit services4 7#e7 ,foreign person ,the term foreign person has the meaning given that term in regulations prescribed in accordance with this title4 7#f7 ,knowledge2 know ,the terms knowledge or know mean-- 7,a7 actual knowledge that a fact or circumstance exists or is substantially certain to occur2 7,b7 an awareness of a high probability of a fact or circumstance's existence or future occurrence2 or 7,c7 reason to know of a fact or circumstance's existence4 7#g7 ,notifiable technology 7,a7 ,in general ,subject to the regulations prescribed in accordance with this title1 the term notifiable technology means a technology within the following areas not already captured by the technical thresholds specified by any regulations issued in accordance with section #hja3 7i7 ,semiconductor technology and microelectronics4 7ii7 ,artificial intelligence systems4 7iii7 ,quantum information technologies4 7iv7 ,high-performance computing and supercomputing4 7v7 ,hypersonic systems4 7,b7 ,updates ,the ,secretary1 in consultation with the appropriate congressional committees and subject to notice and comment in accordance with subchapter ,,ii of chapter #e and chapter #g of title #e1 ,united ,states ,code1 and not subject to the requirements of section #gji1 may prescribe regulations in accordance with this title to-- 7i7 define the technical parameters of technologies described in subparagraph 7,a71 as reasonably needed for national security purposes2 or 7ii7 to add and define categories to the list in subparagraph 7,a7 that enable the military1 intelligence1 surveillance1 or cyber-enabled capabilities of a country of concern4 7#h7 ,party ,the term party1 with respect to a covered national security transaction1 has the meaning given that term in regulations prescribed in accordance with this title4 7#i7 ,person ,the term person includes an individual1 corporation1 partnership1 association1 or any other organized group of persons1 or legal successor or representative thereof1 or any ,state or local government or agency thereof4 7#aj7 ,prohibited technology 7,a7 ,in general ,subject to the regulations prescribed in accordance with this title1 the term prohibited technology means a technology within the following areas1 as specified by the regulations3 7i7 ,advanced semiconductor technology and microelectronics4 7ii7 ,artificial intelligence systems4 7iii7 ,quantum information technologies4 7iv7 ,high-performance computing and supercomputing4 7v7 ,hypersonic systems4 7,b7 ,updates ,the ,secretary1 in consultation with the appropriate congressional committees and subject to notice and comment in accordance with subchapter ,,ii of chapter #e and chapter #g of title #e1 ,united ,states ,code1 and not subject to the requirements of section #gji1 may prescribe regulations in accordance with this title to-- 7i7 define the technical parameters of technologies described in subparagraph 7,a71 as reasonably needed for national security purposes2 or 7ii7 to add and define categories to the list in subparagraph 7,a7 that enable the military1 intelligence1 surveillance1 or cyber-enabled capabilities of a country of concern4 7#aa7 ,secretary ,except as otherwise provided1 the term ,secretary means the ,secretary of the ,treasury4 7#ab7 ,united ,states person ,the term ,united ,states person means-- 7,a7 any ,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 ,states 7including any foreign branch of such an entity72 or 7,c7 any person in the ,united ,states4 4 ,,iv ,securities and ,related ,matters #dja4 ,requirements relating to the ,non-,,sdn ,chinese ,military-,industrial ,complex ,companies ,list 7a7 ,report 7#a7 ,in general ,not later than two years after the date of the enactment of this ,act1 and biennially thereafter for six years1 the ,president shall submit to the appropriate congressional committees a report that states whether any of the following foreign persons qualifies for inclusion on the ,non-,,sdn ,chinese ,military-,industrial ,complex ,companies ,list3 7,a7 ,any ,,prc person listed on the ,military ,end-,user ,list 7,supplement ,no4 #g to part #gdd of the ,export ,administration ,regulations74 7,b7 ,any ,,prc person listed pursuant to section #abfj;,h of the ,william ,m4 7,mac7 ,thornberry ,national ,defense ,authorization ,act for ,fiscal ,year #bjba 7#aj ,u4,s4,c4 #aac note74 7,c7 ,any ,,prc person listed on the ,department of ,commerce's ,entity ,list 7,supplement ,no4 #d to part #gdd of the ,export ,administration ,regulations74 7,d7 ,any ,,prc person listed on the ,federal ,communications ,commission's ,covered ,list pursuant to the ,secure and ,trusted ,communications ,networks ,act of #bjai 7#dg ,u4,s4,c4 #afja74 7,e7 ,any ,,prc person listed on the ,uyghur ,forced ,labor ,prevention ,act ,entity ,list pursuant to the ,act entitled ,an ,act to ensure that goods made with forced labor in the ,xinjiang ,uyghur ,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#b7 ,process required ,to prepare the reports required by paragraph 7#a71 the ,president shall establish a process under which the ,federal agencies responsible for administering the lists described in subparagraphs 7,a71 7,b71 and 7,c7 of paragraph 7#a7 shall share with each other all relevant information that led to the identification of the entities described in such lists4 7#c7 ,risk-based prioritization framework ,in making the initial determinations under paragraph 7#a71 the ,secretary may establish a risk-based prioritization framework factoring in prioritization of entity review submitted to the ,secretary by the ,federal agencies administering the lists described in subparagraphs 7,a71 7,b71 and 7,c7 of paragraph 7#a74 7#d7 ,annual reports to the appropriate congressional committees ,the report under paragraph 7#a7 may summarize findings concerning entities previously reviewed pursuant to this section that do not necessitate additional review by the ,secretary4 7#e7 ,matters to be included ,the ,secretary shall include in the report required by paragraph 7#a7 an overview of the criteria required for listing on the ,non-,,sdn ,chinese ,military-,industrial ,complex ,companies ,list4 ,the heads of the ,federal agencies administering the lists described in subparagraphs 7,a71 7,b71 and 7,c7 of paragraph 7#a7 shall provide to the ,secretary for use in the report an overview of the criteria for entity identification or listing on each respective list4 7b7 ,definitions ,in this section3 7#a7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,financial ,services and the ,committee on ,foreign ,affairs of the ,house of ,representatives2 and 7,b7 the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate4 7#b7 ,country of concern ,the term country of concern-- 7,a7 means the ,people's ,republic of ,china2 and 7,b7 includes the ,hong ,kong ,special ,administrative ,region and the ,macau ,special ,administrative ,region4 7#c7 ,non-,,sdn ,chinese ,military-industrial ,complex ,companies ,list ,the term ,non-,,sdn ,chinese ,military-,industrial ,complex ,companies ,list means the list maintained by the ,office of ,foreign ,assets ,control of the ,department of the ,treasury under ,executive ,order #aciei1 as amended by ,executive ,order #adjcb 7#ej ,u4,s4,c4 #agja note2 relating to addressing the threat from securities investments that finance certain companies of the ,people's ,republic of ,china71 and any successor order4 7#d7 ,,prc person ,the term ,,prc person means a foreign person that-- 7,a7 is incorporated in a principal place of business in1 or is organized under the laws of1 a country of concern2 7,b7 is a member of the ,central ,committee of the ,chinese ,communist ,party2 7,c7 is the state or the government of a country of concern1 as well as any political subdivision1 agency1 or instrumentality thereof2 or 7,d7 is owned in the aggregate1 directly or indirectly1 #ej percent or more by an entity or a group of entities described in subparagraph 7,a71 7,b71 or 7,c74