Title IV — Investing in our economic statecraft

S. 4629 · 116th Congress · Sep 17, 2020 · Lineage

IV Investing in our economic statecraft

Sec. 401 Appropriate congressional committees defined

In this title, the term appropriate congressional committees means—

(1)

the Committee on Foreign Relations, the Committee on Banking, Housing, and Urban Affairs, the Committee on Finance, the Committee on Health, Education, Labor, and Pensions, and the Committee on Appropriations of the Senate; and

(2)

the Committee on Foreign Affairs, the Committee on Financial Services, the Committee on Ways and Means, the Committee on Energy and Commerce, and the Committee on Appropriations of the House of Representatives.

Sec. 402 Authorization of additional appropriations

There are authorized to be appropriated to the Committee on Foreign Investment in the United States Fund established under section 721(p) of the Defense Production Act of 1950 (50 U.S.C. 4565(p)), the United States Trade Representative, the Secretary of Commerce, the Secretary of the Treasury, the Federal Trade Commission, and the Commissioner of U.S. Customs and Border Protection such sums as may be necessary for each such entity to carry out the responsibilities of the entity under this title.

A Trade enforcement

Sec. 411 Authority to review inbound and outbound investment

(a)

In general— The Trade Act of 1974 (19 U.S.C. 2102 et seq.) is amended by adding at the end the following:

“X Authority to review inbound and outbound investment

“1001. Definitions

“In this title:

“(1) Committee—The term Committee means the Committee on Production Integrity in the United States established under section 1002.

“(2) Control—The term control means the power, whether direct or indirect and whether or not exercised, to make decisions or cause or direct decisions to be made with respect to important matters affecting an entity, through—

“(A) the ownership of a majority or a dominant minority of the total outstanding voting interest in the entity;

“(B) representation on the board of directors of the entity;

“(C) proxy voting on the board of directors of the entity;

“(D) a special share in the entity;

“(E) a contractual arrangement with the entity;

“(F) a formal or informal arrangement to act in concert with the entity; or

“(G) any other means.

“(3) Covered business—The term covered business means—

“(A) a publicly traded United States business conducting business activities in nonmarket economy countries or with state-owned enterprises through direct investments, joint ventures, partnerships, or substantial purchase or service contracts valued at more than $100,000,000 per year in the aggregate; and

“(B) any other United States business that produces or imports into the United States more than 5 percent of the total quantity of covered products sold in the United States in a year.

“(4) Covered product—The term covered product means a supply identified by the Committee under section 1003(1)(A).

“(5) Crisis preparedness—The term crisis preparedness means preparedness for national crises, including public health emergencies or natural disasters.

“(6) Nonmarket economy country—The term nonmarket economy country has the meaning given that term in section 771(18) of the Tariff Act of 1930 (19 U.S.C. 1677(18)).

“(7) Publicly traded

“(A) In general—The term publicly traded, with respect to an entity, means that the entity is an issuer of securities that are listed on an exchange registered under section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f).

“(B) Issuer; securities—For purposes of subparagraph (A), the terms issuer and security have the meanings given those terms in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c).

“(8) State-owned enterprise—The term state-owned enterprise means—

“(A) an entity that is owned by, controlled by, or under the influence of, a national, provincial, or local government in a foreign country or an agency of such a government; or

“(B) an individual acting under the direction or the influence of a government or agency described in subparagraph (A).

“(9) United States business—The term United States business means a person engaged in interstate commerce in the United States.

“1002. Committee on Production Integrity in the United States

“(a) Establishment—There is established a committee, to be known as the “Committee on Production Integrity in the United States”.

“(b) Membership—The Committee shall be composed of the following:

“(1) The United States Trade Representative, who shall serve as the chairperson of the Committee.

“(2) The Secretary of Commerce.

“(3) The Secretary of Defense.

“(4) The Secretary of the Treasury.

“(5) The Secretary of Homeland Security.

“(6) The Secretary of State.

“(7) The Attorney General.

“(8) The Secretary of Energy.

“(9) The Secretary of Labor.

“(10) The Secretary of Health and Human Services.

“(11) The Secretary of Agriculture.

“(12) The Administrator of the Federal Emergency Management Agency.

“(13) The Administrator of the Environmental Protection Agency.

“(14) The heads of such other agencies as the United States Trade Representative considers appropriate.

“(c) Duties—The Committee shall—

“(1) conduct a review and issue a regular report on domestic manufacturing and supply chain resilience in accordance with section 1003;

“(2) review annual reports submitted by covered businesses under section 1004;

“(3) review outbound investments related to nonmarket economy countries or involving state-owned enterprises under section 1005; and

“(4) review inbound investments for economic effect and certain supply chain concerns under section 1006.

“1003. Report on domestic manufacturing and supply chain resilience for critical supplies

“Not later than one year after the date of the enactment of this title, and not less frequently than every 3 years thereafter, the Committee shall submit to Congress a report—

“(1) identifying—

“(A) supplies critical to the crisis preparedness of the United States, such as medical supplies, personal protective equipment, disaster response necessities, electrical generation technology, materials essential to infrastructure repair and renovation, and other supplies identified by the Committee; and

“(B) industries that produce such supplies;

“(2) describing—

“(A) the current domestic manufacturing base and supply chains for those supplies, including raw materials and other goods essential to the production of those supplies; and

“(B) the ability of the United States to maintain readiness and to surge production of those supplies in response to an emergency;

“(3) identifying defense, intelligence, homeland, economic, natural, geopolitical, or other contingencies that may disrupt, strain, compromise, or eliminate the supply chain for those supplies;

“(4) assessing the resiliency and capacity of the domestic manufacturing base and supply chains to support the need for those supplies, including any single points of failure in those supply chains;

“(5) assessing flexible manufacturing capacity available in the United States in cases of emergency; and

“(6) making specific recommendations to improve the security and resiliency of domestic manufacturing capacity and supply chains, including the development of sector-based plans for reshoring manufacturing and for supply chain optimization designed to help manufacturers build domestic supply chains in critical supplies by—

“(A) developing long-term strategies;

“(B) increasing visibility throughout multiple supplier tiers;

“(C) identifying and mitigating risks;

“(D) identifying enterprise resource planning systems that are compatible across supply chain tiers and are affordable for small- and medium-sized enterprises;

“(E) understanding the total cost of ownership, total value contribution, and other best practices that encourage strategic partnerships throughout the supply chain;

“(F) understanding Federal procurement opportunities to fulfill requirements for buying domestically sourced goods and services and fill gaps in domestic purchasing;

“(G) understanding how advanced digital technology, including artificial intelligence, robotics, 3D printing, and cloud computing, can improve the security and resiliency of domestic manufacturing capacity and supply chains; and

“(H) identifying such other services as the Committee considers necessary.

“1004. Responsible investment reporting requirement

“(a) Requirement for reports

“(1) In general—A covered business shall, not less frequently than annually, submit to the Committee a report that—

“(A) identifies—

“(i) patented technology and processes and any other proprietary information of the business that was sold or disclosed, during the year preceding submission of the report, to another entity in the course of business activities in a nonmarket economy country or with a state-owned enterprise;

“(ii) any instances of the forced transfer of technology or related processes or information or intellectual property theft or suspected intellectual property theft, during the year preceding submission of the report, in the course of business activities in a nonmarket economy country or related to a state-owned enterprise; and

“(iii) corporate policies of and measures taken by the business to avoid inadvertent disclosure or theft of intellectual property or the forced transfer of technology or related processes or information;

“(B) identifies—

“(i) censorship required, directly or indirectly, by the government of a nonmarket economy country in which the business conducts business activities or by a government that owns, controls, or influences a state-owned enterprise with which the business conducts such activities, for the business to conduct business activities in that country or with that enterprise; and

“(ii) corporate policies on providing information about censorship activity or the activity of its customers or users to a government described in clause (i); and

“(C) includes a summary of human rights, worker rights, forced labor supply chain, anticorruption, and environmental policies of the business related to the business operations and supply chains of the business in nonmarket economy countries or with state-owned enterprises.

“(2) Treatment of business confidential information—A covered business shall submit each report required by paragraph (1) to the Committee—

“(A) in a form that includes business confidential information; and

“(B) in a form that omits business confidential information and is appropriate for disclosure to the public.

“(b) Review by committee—The Committee shall review the reports submitted by covered businesses under subsection (a).

“1005. Review of outbound investment

“(a) Mandatory notification—A covered business that engages in a transaction described in subsection (b) shall submit a written notification of the transaction to the Committee.

“(b) Transactions described—A transaction described in this subsection is a transaction proposed or pending on or after the date of the enactment of this title that—

“(1)

“(A) is a merger with, acquisition or takeover of, joint venture with, or investment in, an entity in a nonmarket economy country; or

“(B) results in the establishment of a new entity in such a country; and

“(2)

“(A) in the case of a transaction involving a state-owned enterprise, is valued at $50,000,000 or more; or

“(B) in the case of any other transaction, is valued at $1,000,000,000 or more.

“(c) Review

“(1) In general—Not later than 60 days after receiving written notification under subsection (a) of a transaction described in subsection (b), the Committee shall—

“(A) review the transaction to determine if the transaction is likely to result in the relocation or concentration of production of covered products or inputs for covered products in a manner that poses a risk with respect to the national security and crisis preparedness of the United States or the supply of covered products for the United States, considering factors specified in subsection (d); and

“(B) if the Committee determines under subparagraph (A) that the transaction poses a risk described in that subparagraph, recommend to the President that appropriate action be taken to address or mitigate that risk, such as—

“(i) procurement by the Federal Government of covered products produced in the United States;

“(ii) use of authorities under the Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) to increase the production of covered products in the United States;

“(iii) the use or establishment of Federal programs to provide subsidies or investments for the production of covered products in the United States;

“(iv) the conduct of an investigation under section 232 of the Trade Expansion Act of 1962 (19 U.S.C. 1862) with respect to covered products; or

“(v) such other actions as the Committee considers appropriate.

“(2) Unilateral initiation of review—The Committee may initiate a review under paragraph (1) of a transaction described in subsection (b) for which written notification is not submitted under subsection (a).

“(3) Initiation of review by request from Congress—The Committee shall initiate a review under paragraph (1) of a transaction described in subsection (b) (determined without regard to the value of the transaction under subparagraph (A) or (B) of subsection (b)(2)) if the chairperson and the ranking member of the Committee on Finance of the Senate or the Committee on Ways and Means of the House of Representatives request the Committee to review the transaction.

“(d) Factors To be considered—In reviewing and making a determination with respect to a transaction under subsection (c)(1), the Committee shall consider any factors relating to the economy, national security, or crisis preparedness of the United States that the Committee considers relevant, including—

“(1) the long-term strategic economic, national security, and crisis preparedness interests of the United States;

“(2) the history of distortive trade practices in each country in which a foreign party to the transaction is domiciled;

“(3) control and beneficial ownership (as determined in accordance with section 847 of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116–92)) of each foreign person that is a party to the transaction;

“(4) impact on the domestic industry and resulting resiliency, taking into consideration any pattern of foreign investment in the domestic industry; and

“(5) any other factors the Committee considers appropriate.

“(e) Report to Congress—The Committee shall, not less frequently than annually, submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report—

“(1) describing, for the year preceding submission of the report—

“(A) the notifications received under subsection (a) and reviews conducted pursuant to such notifications;

“(B) reviews initiated under paragraph (2) or (3) of subsection (c);

“(C) actions recommended by the Committee under subsection (c)(1)(B) as a result of such reviews; and

“(D) reviews during which the Committee determined no action was required; and

“(2) assessing the overall impact of such reviews on the economy, national security, and crisis preparedness of the United States.

“1006. Review of inbound investment

“(a) Mandatory notification by parties—Each party to a transaction described in subsection (b) shall submit a written notification of the transaction to the Committee.

“(b) Transactions described—A transaction described in this subsection is any transaction, by or with any person, proposed or pending after the date of the enactment of this title that—

“(1)

“(A) is a merger with, acquisition or takeover of, or investment in, an entity; or

“(B) results in the establishment of a new entity; and

“(2) could result in foreign control of any covered business; and

“(3)

“(A) in the case of a transaction involving a state-owned enterprise, is valued at $50,000,000 or more; or

“(B) in the case of any other transaction, is valued at $1,000,000,000 or more.

“(c) Review

“(1) In general—Upon receiving written notification under subsection (a) of a transaction described in subsection (b), the Committee shall—

“(A) review the transaction to determine—

“(i) the economic effect of the transaction on the United States, based on the factors described in subsection (e); and

“(ii) whether the transaction creates a risk with respect to the crisis preparedness of the United States or the supply of covered products for the United States; and

“(B) based on the results of the review, take appropriate action under subsection (d) with respect to the transaction.

“(3) Initiation of review by request from Congress—The Committee shall initiate a review under paragraph (1) of a transaction described in subsection (b) (determined without regard to the value of the transaction under subparagraph (A) or (B) of subsection (b)(3)) if the chairperson and the ranking member of the Committee on Finance of the Senate or the Committee on Ways and Means of the House of Representatives request the Committee to review the transaction.

“(d) Action

“(1) Action after initial review—Not later than 15 days after receiving a written notification of a transaction under subsection (a) or initiating a review of a transaction under paragraph (2) or (3) of subsection (b), as the case may be, the Committee shall—

“(A) approve the transaction; or

“(B) inform the parties to the transaction that the Committee requires additional time to conduct a more thorough review of the transaction.

“(2) Action after extended review

“(A) In general—Subject to subparagraph (B), if the Committee informs the parties to a transaction under paragraph (1)(B) that the Committee requires additional time to conduct a more thorough review, the Committee shall, not later than 45 days after receiving the written notification of the transaction under subsection (a) or initiating a review of the transaction under paragraph (2) or (3) of subsection (c), as the case may be—

“(i) complete that review; and

“(ii) approve the transaction, prohibit the transaction, or require the parties to the transaction to modify the transaction and resubmit the modified transaction to the Committee for review under this section.

“(B) Extension of deadline—The Committee may extend the deadline under subparagraph (A) with respect to the review of a transaction by not more than 15 days.

“(3) Cases of inaccurate or inadequate information—The Committee may prohibit a transaction under this subsection if the Committee determines that any party to the transaction provides to the Committee inaccurate or inadequate information in response to inquiries of the Committee as part of a review of the transaction under subsection (c).

“(4) Public availability of decision—Each decision under this subsection to approve, prohibit, or allow for modification of a transaction, and a justification for each such decision, shall be made available to the public.

“(e) Factors To be considered—In taking action with respect to a transaction under subsection (d), the Committee shall consider any economic and crisis preparedness factors the Committee considers relevant, including—

“(1) the long-term strategic economic and crisis preparedness interests of the United States;

“(2) the history of distortive trade practices in each country in which a foreign party to the transaction is domiciled;

“(4) impact on the domestic industry, taking into consideration any pattern of foreign investment in the domestic industry; and

“(5) any other factors the Committee considers appropriate.

“(f) Public comments—The Committee shall—

“(1) make available to the public each written notification submitted under subsection (a) with respect to a transaction described in subsection (b) and notify the public if the Committee initiates a review under paragraph (2) or (3) of subsection (c) with respect to a transaction; and

“(2) in the case of a transaction that the Committee determines under subsection (d)(1)(B) requires additional time for review, provide a period for public comment on the transaction of not more than 10 days.

“(g) Coordination with Committee on Foreign Investment in the United States

“(1) In general—In the case of a transaction undergoing review under this section and section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565), the Committee shall coordinate with the Secretary of the Treasury with respect to those reviews.

“(2) Review of national security concerns—Review of any threat posed by a transaction to the national security of the United States shall be conducted by the Committee on Foreign Investment in the United States under section 721 of the Defense Production Act of 1950 and not under this section.

“(h) Report to Congress—The Committee shall, not less frequently than annually, submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report—

“(1) describing, for the year preceding submission of the report—

“(A) the notifications received under subsection (a) with respect to transactions described in subsection (b) and reviews conducted pursuant to such notifications;

“(B) reviews initiated under paragraph (2) or (3) of subsection (c) with respect to such transactions; and

“(C) whether the Committee approved, prohibited, or allowed for modification of each such transaction; and

“(2) assessing the overall impact of such reviews on the economy and crisis preparedness of the United States.”

(b)

Clerical amendment— The table of contents for the Trade Act of 1974 is amended by adding at the end the following:

Sec. 412 Establishment of Special Investigations Unit in Office of the United States Trade Representative

(a)

Sense of Congress— It is the sense of Congress that the United States Trade Representative must proactively and independently investigate practices of countries that are trading partners of the United States in order to identify and address violations of trade agreements and other practices that have systemic, diffuse impacts on the economy and workers of the United States.

(b)

Establishment of Special Investigations Unit— Section 141 of the Trade Act of 1974 (19 U.S.C. 2171) is amended by adding at the end the following:

“(i) Special investigations unit

“(1) In general—There is established in the Office of the United States Trade Representative a Special Investigations Unit, which shall report to the general counsel of the Office.

“(2) Investigations

“(A) In general—The Special Investigations Unit shall be responsible for investigating—

“(i) potential violations of trade agreements to which the United States is a party; and

“(ii) other acts, policies, or practices of a foreign government that are unjustifiable, unreasonable, or discriminatory and burden or restrict United States commerce as described in section 301.

“(B) Prioritization—The Special Investigations Unit shall prioritize investigations under subparagraph (A) involving—

“(i) countries that are major trading partners of the United States; or

“(ii) violations described in clause (i) of subparagraph (A) or acts, policies, or practices described in clause (ii) of that subparagraph that have a systemic or diffuse impact on the economy of the United States across industries.

“(3) Authorities

“(A) In general—The Special Investigations Unit shall have the power—

“(i) subject to subparagraph (B), to require by subpoena the production of all information, documents, reports, answers, records, accounts, papers, and other data in any medium (including electronically stored information), as well as any tangible thing and documentary evidence necessary in the performance of the functions assigned by this subsection, which subpoena, in the case of contumacy or refusal to obey, shall be enforceable by order of any appropriate United States district court; and

“(ii) to request such information or assistance as may be necessary for carrying out the duties and responsibilities provided by this subsection from any Federal, State, or local governmental agency or unit thereof.

“(B) Information from Federal agencies—The Special Investigations Unit shall use procedures other than subpoenas to obtain documents and information from Federal agencies.”

Sec. 413 Establishment of Inspector General of the Office of the United States Trade Representative

(a)

Definitions— Section 12 of the Inspector General Act of 1978 (5 U.S.C. App.) is amended—

(1)

in paragraph (1), by striking “or the Director of the National Reconnaissance Office” and inserting “the Director of the National Reconnaissance Office; or the United States Trade Representative”; and

(2)

in paragraph (2), by striking “or the National Reconnaissance Office” and inserting “the National Reconnaissance Office, or the Office of the United States Trade Representative,”.

(b)

Appointment of Inspector General— Not later than 120 days after the date of the enactment of this Act, the President shall appoint an individual to serve as the Inspector General of the Office for the United States Trade Representative in accordance with section 3(a) of the Inspector General Act of 1978 (5 U.S.C. App.).

Sec. 414 Audit of process for seeking exclusions from certain duties

(a)

In general— Not later than 180 days after the date of the enactment of this Act, the Inspector General of the Office of the United States Trade Representative shall commence conducting an audit of the process established by the United States Trade Representative for excluding articles from duties imposed under section 301 of the Trade Act of 1974 (19 U.S.C. 2411) with respect to articles imported from the People’s Republic of China.

(b)

Elements— In conducting the audit required by subsection (a), the Inspector General shall assess whether—

(1)

all information used to make determinations with respect to requests for or objections to exclusions described in that subsection was included in the official record; and

(2)

officials of the Office of the United States Trade Representative—

(A)

uniformly applied the criteria used to review such requests or objections to all persons that submitted such requests or objections, as the case may be;

(B)

changed the criteria used to review such requests or objections while such requests or objections, as the case may be, were pending;

(C)

met with any interested parties to discuss such requests or objections while such requests or objections, as the case may be, were pending;

(D)

at any time permitted the resubmission of a previously submitted request or objection after the submission deadline; and

(E)

uniformly allowed persons that submitted such requests or objections to submit additional information at any time while such requests or objections, as the case may be, were under review.

Sec. 415 Identification of and accountability with respect to government-coerced censorship

(a)

In general— Chapter 8 of title I of the Trade Act of 1974 is amended by adding at the end the following:

“183. Identification of countries that disrupt digital trade

“(a) In general—By not later than the date that is 30 days after the date on which the annual report is submitted to congressional committees under section 181(b), the United States Trade Representative (in this section referred to as the “Trade Representative”) shall identify, in accordance with subsection (b), foreign countries that are trading partners of the United States that engage in acts, policies, or practices that disrupt digital trade activities, including—

“(1) coerced censorship in their own markets or extraterritorially; and

“(2) other eCommerce and digital practices with the goal, or substantial effect, of promoting censorship or extrajudicial data access that disadvantage United States persons.

“(b) Requirements for identifications—In identifying countries under subsection (a), the Trade Representative shall identify only foreign countries that—

“(1) disrupt digital trade in a discriminatory or trade distorting manner with the goal, or substantial effect, of promoting censorship or extrajudicial data access;

“(2) deny fair and equitable market access to United States digital service providers with the goal, or substantial effect, of promoting censorship or extrajudicial data access; or

“(3) engage in coerced censorship or extra-judicial data access so as to harm the integrity of services or products provided by United States persons in the market of that country, the United States market, or other markets.

“(c) Designation of priority foreign countries

“(1) In general—The Trade Representative shall designate as priority foreign countries the foreign countries identified under subsection (a) that—

“(A) engage in the most onerous or egregious acts, policies, or practices, that have the greatest impact on the United States; and

“(B) are not negotiating or otherwise making progress to end those acts, policies, or practices.

“(2) Revocations and additional identifications

“(A) In general—The Trade Representative may at any time, if information available to the Trade Representative indicates that such action is appropriate—

“(i) revoke the identification of any foreign country as a priority foreign country under paragraph (1); or

“(ii) identify any foreign country as a priority foreign country under that paragraph.

“(B) Report on reasons for revocation—The Trade Representative shall include in the semiannual report submitted to Congress under section 309(3) a detailed explanation of the reasons for the revocation under subparagraph (A) of the identification of any foreign country as a priority foreign country under paragraph (1).

“(d) Referral to Attorney General or investigation—If the Trade Representative identifies an instance in which a foreign country designated as a priority foreign country under subsection (c) has pressured online service providers to inhibit free speech in the United States, the Trade Representative shall—

“(1) refer the instance to the Attorney General; or

“(2) initiate an investigation under section 302 and, if appropriate, consider a remedy of barring such providers and similar entities of that foreign country from operating in the United States until the issue is resolved.

“(e) Publication—The Trade Representative shall publish in the Federal Register a list of foreign countries identified under subsection (a) and foreign countries designated as priority foreign countries under subsection (c) and shall make such revisions to the list as may be required by reason of action under subsection (c)(2).

“(f) Annual report—Not later than 30 days after the date on which the Trade Representative submits the National Trade Estimate under section 181(b), the Trade Representative shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report on actions taken under this section during the 12 months preceding such report, and the reasons for such actions, including—

“(1) a list of any foreign countries identified under subsection (a); and

“(2) a description of progress made in decreasing disruptions to digital trade.”

(b)

Investigations under title III of the Trade Act of 1974— Section 302(b)(2) of the Trade Act of 1974 (19 U.S.C. 2412(b)(2)) is amended—

(1)

in subparagraph (A), in the matter preceding clause (i), by inserting “or designated as a priority foreign country under section 183(c)” after “section 182(a)(2)”; and

(2)

in subparagraph (D), by striking “by reason of subparagraph (A)” and inserting “with respect to a country identified under section 182(a)(2)”.

(c)

Clerical amendment— The table of contents for the Trade Act of 1974 is amended by inserting after the item relating to section 182 the following:

Sec. 416 Reports on agreements to resolve disputes under section 301 of the Trade Act of 1974

Section 301 of the Trade Act of 1974 (19 U.S.C. 2411) is amended by adding at the end the following:

“(e) Reports on agreements To resolve disputes under this section

“(1) Reports on agreements with the People’s Republic of China—Not later than 90 days after the date of the enactment of this subsection, and every 90 days thereafter, the United States International Trade Commission shall submit to the Committee on Finance of the Senate, the Committee on Ways and Means of the House of Representatives, and the President a report on the compliance of the People’s Republic of China with each provision of—

“(A) the Economic and Trade Agreement Between the Government of the United States of America and the Government of China, dated January 15, 2020 (commonly referred to as the “Phase I Trade Deal”); and

“(B) any other agreement entered into with the People’s Republic of China to resolve a dispute relating to a matter under investigation under this title.

“(2) Reports on other agreements

“(A) In general—Not later than 180 days after the United States enters into any agreement with a foreign country to settle or resolve a trade dispute relating to a matter under investigation under this title, the United States International Trade Commission shall submit to the Committee on Finance of the Senate, the Committee on Ways and Means of the House of Representatives, and the President a report assessing—

“(i) whether the parties to the agreement are complying with the agreement; and

“(ii) whether the agreement is effective at resolving the dispute.

“(B) Additional reports—If the Commission determines under subparagraph (A)(ii) that an agreement is not effective at resolving a dispute described in subparagraph (A), the Commission shall review the matter and submit to the Committee on Finance of the Senate, the Committee on Ways and Means of the House of Representatives, and the President a report on the matter every 180 days after that determination until the matter is resolved.”

Sec. 417 Technical and legal support for addressing intellectual property rights infringement cases

(a)

In general— The head of any Federal agency may provide support, as requested and appropriate, to United States persons seeking technical, legal, or other support in addressing intellectual property rights infringement cases regarding the People’s Republic of China.

(b)

United States person defined— In this section, the term United States person means—

(1)

a United States citizen or an alien lawfully admitted for permanent residence to the United States; or

(2)

an entity organized under the laws of the United States or of any jurisdiction within the United States, including a foreign branch of such an entity.

Sec. 418 Improvement of anti-counterfeiting measures

(a)

Report on seizures of counterfeit goods— Not later than one year after the date of the enactment of this Act, and annually thereafter, the Commissioner of U.S. Customs and Border Protection shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report on seizures by U.S. Customs and Border Protection of counterfeit goods during the year preceding submission of the report, including the number of such seizures disaggregated by category of good, source country, and mode of transport.

(b)

Increased inspections of goods from certain countries— The Commissioner shall increase inspections of imports of goods from each source country identified in the report required by subsection (a) as one of the top source countries of counterfeit goods, as determined by the Commissioner.

(c)

Publication of criteria for notorious markets list— Not later than 2 years after the date of the enactment of this Act, and not less frequently than every 5 years thereafter, the United States Trade Representative shall publish in the Federal Register criteria for determining that a market is a notorious market for purposes of inclusion of that market in the Notorious Markets List developed by the Trade Representative pursuant to section 182 of the Trade Act of 1974 (19 U.S.C. 2242).

B Financial services

Sec. 431 Findings on transparency and disclosure; sense of Congress

(a)

Findings— Congress finds the following:

(1)

More than 2,000,000 corporations and limited liability companies are formed under the laws of the States each year and some of those entities are formed by persons outside of the United States, including by persons in the People’s Republic of China.

(2)

Most or all States do not require information about the beneficial owners of the corporations, limited liability companies, or other similar entities formed under the laws of the State.

(3)

Malign actors seek to conceal their ownership of corporations, limited liability companies, or other similar entities in the United States to facilitate illicit activity, including money laundering, the financing of terrorism, proliferation financing, serious tax fraud, human and drug trafficking, counterfeiting, piracy, securities fraud, financial fraud, economic espionage, theft of intellectual property, and acts of foreign corruption, which harm the national security interests of the United States and allies of the United States.

(4)

National security, intelligence, and law enforcement investigations have consistently been impeded by an inability to reliably and promptly obtain information identifying the persons that ultimately own corporations, limited liability companies, or other similar entities suspected of engaging in illicit activity, as documented in reports and testimony by officials from the Department of Justice, the Department of Homeland Security, the Department of the Treasury, the Government Accountability Office, and other agencies.

(5)

In the National Strategy for Combating Terrorist and Other Illicit Financing, issued in 2020, the Department of the Treasury found the following: “Misuse of legal entities to hide a criminal beneficial owner or illegal source of funds continues to be a common, if not the dominant, feature of illicit finance schemes, especially those involving money laundering, predicate offences, tax evasion, and proliferation financing.”.

(6)

Federal legislation providing for the collection of beneficial ownership information by the Financial Crimes Enforcement Network of the Department of the Treasury (referred to in this section as “FinCEN”) with respect to corporations, limited liability companies, or other similar entities formed under the laws of the States is needed to—

(A)

set a clear, Federal standard for incorporation practices;

(B)

protect vital United States national security interests;

(C)

protect interstate and foreign commerce;

(D)

better enable critical national security, intelligence, and law enforcement efforts to identify and counter money laundering, the financing of terrorism, and other illicit activity; and

(E)

bring the United States into compliance with international standards with respect to anti-money laundering and countering the financing of terrorism.

(7)

Providing beneficial ownership information to FinCEN is especially important in cases in which—

(A)

foreign firms, including those in the People’s Republic of China or subject to the jurisdiction of the People’s Republic of China, seek to acquire United States firms and the valuable intellectual property of those firms; and

(B)

the acquisitions described in subparagraph (A) pose a threat to the economic or national security of the United States.

(b)

Sense of Congress— It is the sense of Congress that, before the end of the 116th Congress, Congress should enact comprehensive beneficial ownership legislation that includes strong transparency and disclosure requirements ensuring that complete beneficial ownership information is provided by all domestic and foreign corporations, limited liability companies, and similar entities formed in the United States.

Sec. 432 Disclosure of private business transactions with foreign persons

Section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565) is amended by adding at the end the following:

“(r) Disclosure of private business transactions with foreign persons

“(1) In general—Not less frequently than every 90 days, each covered officer shall disclose to the public any covered private business transaction during the preceding 90 days between—

“(A)

“(i) the covered officer;

“(ii) the spouse of the covered officer;

“(iii) a child of the covered officer; or

“(iv) a covered private business with respect to the covered officer; and

“(B) a foreign person.

“(2) Matters to be included—For any covered private business transaction disclosed under paragraph (1), the covered officer shall include in the disclosure the following:

“(A) The name of the foreign person with which the transaction was conducted.

“(B) The amount of any funds received from or owed to the foreign person.

“(C) The date of the transaction.

“(D) A detailed summary of the purpose of the transaction.

“(E) The name of any United States entity through which the transaction was processed or funds relating to the transaction were transferred.

“(3) Publication—Any disclosure made under paragraph (1) shall be made available on the publicly available internet website of the Department of the Treasury.

“(4) Definitions—In this subsection:

“(A) Covered officer—The term covered officer means the President, the Vice President, and each member of the Committee.

“(B) Covered private business—The term covered private business—

“(i) means—

“(I) a sole proprietorship or business entity in which a covered officer, the spouse of the covered officer, or a child of the covered officer holds an ownership interest; and

“(II) an entity in which—

“(aa) a covered officer holds a position required to be reported under section 102(a)(6) of the Ethics in Government Act of 1978 (5 U.S.C. App.); or

“(bb) the spouse or a child of the covered officer holds a position that would be required to be reported under section 102(a)(6) of the Ethics in Government Act of 1978 (5 U.S.C. App.) if it were a position held by the covered officer;

“(ii) includes any private entity for which—

“(I) the covered officer is required to report an ownership interest of the covered officer under section 102(a)(3) of the Ethics in Government Act of 1978 (5 U.S.C. App.); or

“(II) the spouse or a child of the covered officer would be required to report an ownership interest under section 102(a)(3) of the Ethics in Government Act of 1978 (5 U.S.C. App.) if it were an ownership interest held by the covered officer; and

“(iii) does not include—

“(I) a publicly traded entity; or

“(II) an entity described in clause (i)(I) or (ii) if the ownership interest is held in a qualified blind trust, as defined in section 101(f)(3) of the Ethics in Government Act of 1978 (5 U.S.C. App.).

“(C) Covered private business transaction—The term covered private business transaction means—

“(i) the exchange of anything with a value of more than $200; and

“(ii) incurring a liability that would be required to be reported under section 102(a)(4) of the Ethics in Government Act of 1978 (5 U.S.C. App.) if it were a liability of the covered officer.”

Sec. 433 Cyber theft disclosure

(a)

Definitions— In this section—

(1)

the term Commission means the Securities and Exchange Commission;

(2)

the terms computer network intrusion and intellectual property have the meanings given those terms by the Commission in carrying out subsection (b);

(3)

the term Form 8–K means the form described in section 249.308 of title 17, Code of Federal Regulations, or any successor regulation;

(4)

the terms issuer and securities have the meanings given those terms in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)); and

(5)

the term reporting company means an issuer—

(A)

the securities of which are registered under section 12 of the Securities Exchange Act of 1934 (15 U.S.C. 78l); or

(B)

that is required to file reports under section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(d)).

(b)

Rules— Not later than 360 days after the date of enactment of this Act, the Commission shall issue final rules to require a reporting company to issue a timely public disclosure, using Form 8–K, not later than 30 days after the date on which the reporting company first suspects that the intellectual property of the reporting company has been stolen through a computer network intrusion.

Sec. 434 Cybersecurity expertise disclosure

The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by inserting after section 14B (15 U.S.C. 78n–2) the following:

“14C. Cybersecurity transparency

“(a) Definitions—In this section—

“(1) the term cybersecurity means any action, step, or measure to detect, prevent, deter, mitigate, or address any cybersecurity threat or any potential cybersecurity threat;

“(2) the term cybersecurity threat—

“(A) means an action, not protected by the First Amendment to the Constitution of the United States, on or through an information system that may result in an unauthorized effort to adversely impact the security, availability, confidentiality, or integrity of an information system or information that is stored on, processed by, or transiting an information system; and

“(B) does not include any action that solely involves a violation of a consumer term of service or a consumer licensing agreement;

“(3) the term information system—

“(A) has the meaning given the term in section 3502 of title 44, United States Code; and

“(B) includes industrial control systems, such as supervisory control and data acquisition systems, distributed control systems, and programmable logic controllers;

“(4) the term NIST means the National Institute of Standards and Technology; and

“(5) the term reporting company means any company that is an issuer—

“(A) the securities of which are registered under section 12; or

“(B) that is required to file reports under section 15(d).

“(b) Requirement To issue rules—Not later than 360 days after the date of enactment of this section, the Commission shall issue final rules to require each reporting company, in the annual report of the reporting company submitted under section 13 or section 15(d) or in the annual proxy statement of the reporting company submitted under section 14(a)—

“(1) to disclose whether any member of the governing body, such as the board of directors or general partner, of the reporting company has expertise or experience in cybersecurity and in such detail as necessary to fully describe the nature of the expertise or experience; and

“(2) if no member of the governing body of the reporting company has expertise or experience in cybersecurity, to describe what other aspects of the reporting company’s cybersecurity were taken into account by any person, such as an official serving on a nominating committee, that is responsible for identifying and evaluating nominees for membership to the governing body.

“(c) Cybersecurity expertise or experience—For purposes of subsection (b), the Commission, in consultation with NIST, shall define what constitutes expertise or experience in cybersecurity using commonly defined roles, specialties, knowledge, skills, and abilities, such as those provided in NIST Special Publication 800–181, entitled “National Initiative for Cybersecurity Education (NICE) Cybersecurity Workforce Framework”, or any successor thereto.”

Sec. 435 Independence from influence of the Government of China

(a)

Definitions— In this section—

(1)

the term Commission means the Securities and Exchange Commission; and

(2)

the term registrant means an entity that is subject to section 229.101 of title 17, Code of Federal Regulations, or any successor regulation.

(b)

Rules— Not later than 360 days after the date of enactment of this Act, the Commission shall amend section 229.101 of title 17, Code of Federal Regulations, or any successor regulation, to require a registrant to disclose the following under that section:

(1)

Whether the Government of China has provided any financial support, including a direct subsidy, a grant, a loan (including a below-market loan), a loan guarantee, a tax concession, benefits with respect to government procurement policy, or any other form of governmental support, to the registrant.

(2)

If the Government of China has provided financial support described in paragraph (1), the conditions under which that Government provided that support, including whether that Government has required the registrant to—

(A)

satisfy certain requirements with respect to export performance;

(B)

purchase items—

(i)

from certain producers; or

(ii)

that were produced using certain intellectual property; or

(C)

employ members of the Chinese Communist Party or other employees of that Government.

(3)

Whether there is any committee of the Chinese Communist Party established within the registrant, which shall include the disclosure of—

(A)

whether the registrant established that committee;

(B)

the standing of that committee within the registrant;

(C)

which employees of the registrant comprise that committee; and

(D)

the roles played by the employees described in subparagraph (C).

(4)

Information regarding each individual who, as of the date on which the disclosure is made, is an officer or director of the registrant (or a United States subsidiary or joint venture of the registrant in the People’s Republic of China) and holds, or previously held, a position with the Chinese Communist Party or the Government of China, including the title of that position and the geographic location in which the individual holds, or held, the position.

(c)

Commission discretion— In addition to the amendments required under subsection (b), the Commission may make any other amendments to the rules of the Commission that the Commission determines necessary to carry out the purposes of this section.

Sec. 436 Establishment of interagency task force to address Chinese market manipulation in the United States

(a)

In general— The Department of Justice, the Federal Trade Commission, and, as appropriate, other Federal agencies shall establish a joint interagency task force to investigate allegations of systemic market manipulation and other potential violations of antitrust and competition laws in the United States by companies established in the People’s Republic of China, including investigations to illegally capture market share, fix prices, and control the supply of goods in critical industries of the United States, including—

(1)

the pharmaceutical and medical devices industry;

(2)

the green energy industry; and

(3)

the steel and aluminum industries.

(b)

Report— Not later than 180 days after the date of enactment of this Act, the President shall provide to the Committee on Foreign Relations, the Committee on Finance, and the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Foreign Affairs, the Committee on Ways and Means, and the Committee on Energy and Commerce of the House of Representatives—

(1)

a briefing on the progress of the interagency task force and its findings as described in subsection (a); and

(2)

recommendations to the committees on potential amendments to antitrust and competition laws in the United States that would strengthen the ability of United States antitrust enforcement agencies to bring actions against anticompetitive business practices by Chinese companies.

Sec. 437 Holding foreign companies accountable

(a)

Disclosure requirement— Section 104 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7214) is amended by adding at the end the following:

“(i) Disclosure regarding foreign jurisdictions that prevent inspections

“(1) Definitions—In this subsection—

“(A) the term covered issuer means an issuer that is required to file reports under section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m, 78o(d)); and

“(B) the term non-inspection year means, with respect to a covered issuer, a year—

“(i) during which the Commission identifies the covered issuer under paragraph (2)(A) with respect to every report described in subparagraph (A) filed by the covered issuer during that year; and

“(ii) that begins after the date of enactment of this subsection.

“(2) Disclosure to Commission—The Commission shall—

“(A) identify each covered issuer that, with respect to the preparation of the audit report on the financial statement of the covered issuer that is included in a report described in paragraph (1)(A) filed by the covered issuer, retains a registered public accounting firm that has a branch or office that—

“(i) is located in a foreign jurisdiction; and

“(ii) the Board is unable to inspect or investigate completely because of a position taken by an authority in the foreign jurisdiction described in clause (i), as determined by the Board; and

“(B) require each covered issuer identified under subparagraph (A) to, in accordance with the rules issued by the Commission under paragraph (4), submit to the Commission documentation that establishes that the covered issuer is not owned or controlled by a governmental entity in the foreign jurisdiction described in subparagraph (A)(i).

“(3) Trading prohibition after 3 years of non-inspections

“(A) In general—If the Commission determines that a covered issuer has 3 consecutive non-inspection years, the Commission shall prohibit the securities of the covered issuer from being traded—

“(i) on a national securities exchange; or

“(ii) through any other method that is within the jurisdiction of the Commission to regulate, including through the method of trading that is commonly referred to as the “over-the-counter” trading of securities.

“(B) Removal of initial prohibition—If, after the Commission imposes a prohibition on a covered issuer under subparagraph (A), the covered issuer certifies to the Commission that the covered issuer has retained a registered public accounting firm that the Board has inspected under this section to the satisfaction of the Commission, the Commission shall end that prohibition.

“(C) Recurrence of non-inspection years—If, after the Commission ends a prohibition under subparagraph (B) or (D) with respect to a covered issuer, the Commission determines that the covered issuer has a non-inspection year, the Commission shall prohibit the securities of the covered issuer from being traded—

“(i) on a national securities exchange; or

“(D) Removal of subsequent prohibition—If, after the end of the 5-year period beginning on the date on which the Commission imposes a prohibition on a covered issuer under subparagraph (C), the covered issuer certifies to the Commission that the covered issuer will retain a registered public accounting firm that the Board is able to inspect under this section, the Commission shall end that prohibition.

“(4) Rules—Not later than 90 days after the date of enactment of this subsection, the Commission shall issue rules that establish the manner and form in which a covered issuer shall make a submission required under paragraph (2)(B).”

(b)

Additional disclosure—

(1)

Definitions— In this subsection—

(A)

the term audit report has the meaning given the term in section 2(a) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201(a));

(B)

the term Commission means the Securities and Exchange Commission;

(C)

the term covered form—

(i)

means—

(I)

the form described in section 249.310 of title 17, Code of Federal Regulations, or any successor regulation; and

(II)

the form described in section 249.220f of title 17, Code of Federal Regulations, or any successor regulation; and

(ii)

includes a form that—

(I)

is the equivalent of, or substantially similar to, the form described in subclause (I) or (II) of clause (i); and

(II)

a foreign issuer files with the Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) or rules issued under that Act;

(D)

the terms covered issuer and non-inspection year have the meanings given the terms in subsection (i)(1) of section 104 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7214), as added by subsection (a) of this section; and

(E)

the term foreign issuer has the meaning given the term in section 240.3b–4 of title 17, Code of Federal Regulations, or any successor regulation.

(2)

Requirement— Each covered issuer that is a foreign issuer and for which, during a non-inspection year with respect to the covered issuer, a registered public accounting firm described in subsection (i)(2)(A) of section 104 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7214), as added by subsection (a) of this section, has prepared an audit report shall disclose in each covered form filed by that issuer that covers such a non-inspection year—

(A)

that, during the period covered by the covered form, such a registered public accounting firm has prepared an audit report for the issuer;

(B)

the percentage of the shares of the issuer owned by governmental entities in the foreign jurisdiction in which the issuer is incorporated or otherwise organized;

(C)

whether governmental entities in the applicable foreign jurisdiction with respect to that registered public accounting firm have a controlling financial interest with respect to the issuer;

(D)

the name of each official of the Chinese Communist Party who is a member of the board of directors of—

(i)

the issuer; or

(ii)

the operating entity with respect to the issuer; and

(E)

whether the articles of incorporation of the issuer (or equivalent organizing document) contains any charter of the Chinese Communist Party, including the text of any such charter.

C Economic security

Sec. 441 Imposition of sanctions with respect to theft of trade secrets of United States persons

(a)

Report required—

(1)

In general— Not later than 180 days after the date of the enactment of this Act, and not less frequently than every 180 days thereafter, the President shall submit to the appropriate congressional committees a report—

(A)

identifying, for the 180-day period preceding submission of the report—

(i)

any foreign person that has knowingly engaged in, or benefitted from, significant theft of trade secrets of United States persons, if the theft of such trade secrets is reasonably likely to result in, or has materially contributed to, a significant threat to the national security, foreign policy, or economic health or financial stability of the United States;

(ii)

any foreign person that has provided significant financial, material, or technological support for, or goods or services in support of or to benefit significantly from, such theft;

(iii)

any entity owned or controlled by, or that has acted or purported to act for or on behalf of, directly or indirectly, any foreign person identified under clause (i) or (ii); and

(iv)

any foreign person that is a chief executive officer or member of the board of directors of any foreign entity identified under clause (i) or (ii); and

(B)

describing the nature, objective, and outcome of the theft of trade secrets each foreign person described in subparagraph (A)(i) engaged in or benefitted from; and

(C)

assessing whether any chief executive officer or member of the board of directors described in clause (iv) of subparagraph (A) engaged in, or benefitted from, activity described in clause (i) or (ii) of that subparagraph.

(2)

Form of report— Each report required by paragraph (1) shall be submitted in unclassified form but may include a classified annex.

(b)

Authority To impose sanctions—

(1)

Sanctions applicable to entities— In the case of a foreign entity identified under subparagraph (A) of subsection (a)(1) in the most recent report submitted under that subsection, the President shall impose one of the following:

(A)

Blocking of property— The President may, pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), block and prohibit all transactions in all property and interests in property of the entity if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.

(B)

Inclusion on entity list— The President may include the entity on the entity list maintained by the Bureau of Industry and Security of the Department of Commerce and set forth in Supplement No. 4 to part 744 of the Export Administration Regulations, for activities contrary to the national security or foreign policy interests of the United States.

(2)

Sanctions applicable to individuals— In the case of an individual identified under subparagraph (A) of subsection (a)(1) in the most recent report submitted under that subsection, the following shall apply:

(A)

Blocking of property— The President shall, pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), block and prohibit all transactions in all property and interests in property of the individual if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.

(B)

Visa ban; exclusion— The Secretary of State shall deny a visa to the individual and revoke, in accordance with section 221(i) of the Immigration and Nationality Act (8 U.S.C. 1201(i)), any visa or other documentation of the individual, and the Secretary of Homeland Security shall exclude the individual from the United States.

(c)

Exceptions—

(1)

Intelligence activities— This section shall not apply with respect to activities subject to the reporting requirements under title V of the National Security Act of 1947 (50 U.S.C. 3091 et seq.) or any authorized intelligence activities of the United States.

(2)

Law enforcement activities— Sanctions under this section shall not apply with respect to any authorized law enforcement activities of the United States.

(3)

Exception relating to importation of goods—

(A)

In general— The authority to impose sanctions under this section shall not include the authority or a requirement to impose sanctions on the importation of goods.

(B)

Good defined— In this paragraph, the term good means any article, natural or manmade substance, material, supply, or manufactured product, including inspection and test equipment, and excluding technical data.

(4)

Exception to comply with international agreements— Subsection (b)(2)(B) shall not apply with respect to the admission of an individual to the United States if such admission is necessary to comply with the obligations of the United States under the Agreement regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, between the United Nations and the United States, under the Convention on Consular Relations, done at Vienna April 24, 1963, and entered into force March 19, 1967, or under other international agreements.

(d)

National security waiver— The President may waive the imposition of sanctions under subsection (b) with respect to a person if the President—

(1)

determines that such a waiver is in the national security interests of the United States; and

(2)

not more than 15 days after issuing such a waiver, submits to the appropriate congressional committees a notification of the waiver and the reasons for the waiver.

(e)

Termination of sanctions— Sanctions imposed under subsection (b) with respect to a foreign person identified in a report submitted under subsection (a) shall terminate if the President certifies to the appropriate congressional committees, before the termination takes effect, that the person is no longer engaged in the activity identified in the report.

(f)

Implementation; penalties—

(1)

Implementation— The President may exercise all authorities provided under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this section.

(2)

Penalties— A person that violates, attempts to violate, conspires to violate, or causes a violation of paragraph (1)(A) or (2)(A) of subsection (b) or any regulation, license, or order issued to carry out that paragraph shall be subject to the penalties set forth in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) to the same extent as a person that commits an unlawful act described in subsection (a) of that section.

(g)

Definitions— In this section:

(1)

Export administration regulations— The term Export Administration Regulations means subchapter C of chapter VII of title 15, Code of Federal Regulations.

(2)

Foreign entity— The term foreign entity means an entity that is not a United States person.

(3)

Foreign person— The term foreign person means a person that is not a United States person.

(4)

Trade secret— The term trade secret has the meaning given that term in section 1839 of title 18, United States Code.

(5)

Person— The term person means an individual or entity.

(6)

United states person— The term United States person means—

(A)

an individual who is a United States citizen or an alien lawfully admitted for permanent residence to the United States;

(B)

an entity organized under the laws of the United States or any jurisdiction within the United States, including a foreign branch of such an entity; or

(C)

any person in the United States.

Sec. 442 Countering foreign corrupt practices

(a)

In general— The Secretary of State, working through the Assistant Secretary of State for Economic and Business Affairs and the Assistant Secretary of State for International Narcotics and Law Enforcement Affairs, shall offer to provide technical assistance to the governments of countries that are partners of the United States to assist members of national legislatures and officials of executive branches in those countries in establishing legislative and regulatory frameworks that are similar to those set forth in—

(1)

section 30A of the Securities Exchange Act of 1934 (15 U.S.C. 78dd–1); and

(2)

section 104 of the Foreign Corrupt Practices Act of 1977 (15 U.S.C. 78dd–2).

(b)

Purposes— In carrying out subsection (a), the Secretary of State shall actively encourage governments described in that subsection—

(1)

to adopt standards that deter fraudulent business practices and increase government and private sector accountability; and

(2)

to strengthen the investigative and prosecutorial capacity of government institutions to combat fraudulent business practices involving public officials.

(c)

Strategy requirement— Not later than 90 days after the date of enactment of this Act, the Secretary of State shall submit a strategy for carrying out the activities described in subsections (a) and (b) to—

(1)

the Committee on Foreign Relations of the Senate; and

(2)

the Committee on Foreign Affairs of the House of Representatives.

(d)

Consultation— In formulating the strategy described in subsection (c), the Secretary of State shall consult with the Secretary of the Treasury and the Attorney General.

(e)

Semiannual briefing requirement— Not later than 180 days after the date of enactment of this Act, and every 180 days thereafter, the Secretary of State shall provide a briefing regarding the activities described in subsections (a) and (b) and the strategy submitted under subsection (c) to—

(1)

the Committee on Foreign Relations of the Senate; and

(2)

the Committee on Foreign Affairs of the House of Representatives.

Sec. 443 Debt relief for countries eligible for assistance from the International Development Association

(a)

Policy statement— It is the policy of the United States to coordinate with the international community to provide debt relief for debt that is held by countries eligible for assistance from the International Development Association that request forbearance to respond to the COVID–19 pandemic.

(b)

Debt relief— The Secretary of the Treasury, in consultation with the Secretary of State, shall—

(1)

engage with international financial institutions and other bilateral official creditors to advance policy discussions on restructuring, rescheduling, or canceling the sovereign debt of countries eligible for assistance from the International Development Association; and

(2)

instruct the United States Executive Director of the International Monetary Fund and the United States Executive Director of the World Bank to use the voice and vote of the United States to advance agreement on the efforts described in paragraph (1).

(c)

Reporting requirement— Not later than 45 days after the date of the enactment of this Act, and every 90 days thereafter until the end of the COVID–19 pandemic, as determined by the World Health Organization, the Secretary of the Treasury, in coordination with the Secretary of State, shall submit to the committees specified in subsection (d) a report that describes—

(1)

actions that have been taken to advance debt relief for countries eligible for assistance from the International Development Association that request forbearance to respond to the COVID–19 pandemic in coordination with international financial institutions, the Group of 7 (G7), the Group of 20 (G20), Paris Club members, and the Institute of International Finance;

(2)

mechanisms that have been utilized and mechanisms that are under consideration to provide the debt relief described in paragraph (1);

(3)

any United States policy concerns regarding debt relief to specific countries;

(4)

the balance and status of repayments on all loans from the People’s Republic of China to countries eligible for assistance from the International Development Association, including—

(A)

loans provided as part of the Belt and Road Initiative of the People’s Republic of China;

(B)

loans made by the Export-Import Bank of China;

(C)

loans made by the China Development Bank; and

(D)

loans made by the Asian Infrastructure Investment Bank;

(5)

the transparency measures established or proposed to ensure that funds saved through the debt relief described in paragraph (1) will be used for activities—

(A)

that respond to the health, economic, and social consequences of the COVID–19 pandemic; and

(B)

that are consistent with the interests and values of the United States; and

(6)

policy options available to the United States Government to support and advance debt relief from the official creditors of Sudan.

(d)

Committees specified— The committees specified in this subsection are—

(1)

the Committee on Appropriations, the Committee on Banking, Housing, and Urban Affairs, and the Committee on Foreign Relations of the Senate; and

(2)

the Committee on Appropriations, the Committee on Financial Services, and the Committee on Foreign Affairs of the House of Representatives.

Sec. 444 Collection of information from United States entities concerning requests by the Government of China

(a)

In general— The Secretary of Commerce shall collect from each United States entity that does business in the People’s Republic of China information concerning requests from the Government of China relating to censorship, surveillance, data transfers, and the establishment of cells of that government within that entity.

(b)

Classified report—

(1)

In general— Not later than one year after the date of the enactment of this Act, and annually thereafter, the Secretary shall submit to Congress a classified report on the information collected under subsection (a) during the period covered by the report.

(2)

Elements— The information included in each report submitted under paragraph (1)—

(A)

shall not identify any particular United States entity; and

(B)

shall be disaggregated by industry sector.

Sec. 445 Report on manner and extent to which the Government of China exploits Hong Kong to circumvent United States laws and protections

Title III of the United States-Hong Kong Policy Act of 1992 (22 U.S.C. 5731 et seq.) is amended by adding at the end the following:

“303. Report on manner and extent to which the Government of China exploits Hong Kong to circumvent United States laws and protections

“(a) In general—Not later than 180 days after the date of the enactment of this section, the Secretary of State shall submit to the appropriate congressional committees a report on the manner and extent to which the Government of China uses the status of Hong Kong to circumvent the laws and protections of the United States.

“(b) Elements—The report required by subsection (a) shall include the following:

“(1) In consultation with the Secretary of Commerce, the Secretary of Homeland Security, and the Director of National Intelligence—

“(A) an assessment of how the Government of China uses Hong Kong to circumvent United States export controls; and

“(B) a list of all significant incidents in which the Government of China used Hong Kong to circumvent such controls during the reporting period.

“(2) In consultation with the Secretary of the Treasury and the Secretary of Commerce—

“(A) an assessment of how the Government of China uses Hong Kong to circumvent duties on merchandise exported to the United States from the People’s Republic of China; and

“(B) a list of all significant incidents in which the Government of China used Hong Kong to circumvent such duties during the reporting period.

“(3) In consultation with the Secretary of the Treasury, the Secretary of Homeland Security, and the Director of National Intelligence—

“(A) an assessment of how the Government of China uses Hong Kong to circumvent sanctions imposed by the United States or pursuant to multilateral regimes; and

“(B) a list of all significant incidents in which the Government of China used Hong Kong to circumvent such sanctions during the reporting period.

“(4) In consultation with the Secretary of Homeland Security and the Director of National Intelligence—

“(A) an assessment of how the Government of China uses formal or informal means to extradite or coercively move foreign nationals, including United States persons, from Hong Kong to the People’s Republic of China; and

“(B) a list of foreign nationals, including United States persons, who have been formally or informally extradited or coercively moved from Hong Kong to the People’s Republic of China.

“(5) In consultation with the Secretary of Defense, the Director of National Intelligence, and the Director of Homeland Security—

“(A) an assessment of how the intelligence, security, and law enforcement agencies of the Government of China, including the Ministry of State Security, the Ministry of Public Security, and the People’s Armed Police, use the Hong Kong Security Bureau and other security agencies in Hong Kong to conduct espionage on foreign nationals, including United States persons, conduct influence operations, or violate civil liberties guaranteed under the laws of Hong Kong; and

“(B) a list of all significant incidents of such espionage, influence operations, or violations of civil liberties during the reporting period.

“(c) Form of report; availability

“(1) Form—The report required by subsection (a) shall be submitted in unclassified form, but may include a classified index.

“(2) Availability—The unclassified portion of the report required by subsection (a) shall be posted on a publicly available internet website of the Department of State.

“(d) Definitions—In this section:

“(1) Appropriate congressional committees—The term appropriate congressional committees means—

“(A) the Committee on Foreign Relations, the Committee on Banking, Housing, and Urban Affairs, the Committee on Finance, and the Select Committee on Intelligence of the Senate; and

“(B) the Committee on Foreign Affairs, the Committee on Financial Services, the Permanent Select Committee on Intelligence, and the Committee on Ways and Means of the House of Representatives.

“(2) Foreign national—The term foreign national means a person that is neither—

“(A) an individual who is a citizen or national of the People’s Republic of China; or

“(B) an entity organized under the laws of the People’s Republic of China or of a jurisdiction within the People’s Republic of China.

“(3) Reporting period—The term reporting period means the 5-year period preceding submission of the report required by subsection (a).

“(4) United states person—The term United States person means—

“(A) a United States citizen or an alien lawfully admitted for permanent residence to the United States; or

“(B) an entity organized under the laws of the United States or of any jurisdiction within the United States, including a foreign branch of such an entity.”

Sec. 446 Monitoring overcapacity of industries in the People’s Republic of China

(a)

Report on overcapacity—

(1)

In general— Not later than one year after the date of the enactment of this Act, and annually thereafter, the Secretary of Commerce, in consultation with the United States Trade Representative, shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report on overcapacity of industries in the People’s Republic of China.

(2)

Elements— The report required by paragraph (1) shall include—

(A)

a determination on whether overcapacity exists in any major industry in the People’s Republic of China; and

(B)

a description of the effects of that overcapacity on industry in the United States.

(b)

Multilateral negotiations—

(1)

In general— Not later than 180 days after a positive determination of overcapacity under subsection (a)(2)(A), the United States Trade Representative shall enter into negotiations at an appropriate multilateral institution to which the United States is a party, as determined by the Trade Representative, to reduce that overcapacity.

(2)

Determination of substantial reduction— Not later than one year after the start of negotiations under paragraph (1), and annually thereafter for the following 2 years, the Trade Representative shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report containing a determination of whether those negotiations are likely to lead to a substantive reduction in the overcapacity described in that paragraph.

(c)

Investigation into increased imports— If the Trade Representative determines that negotiations under subsection (b) are not likely to be successful with respect to overcapacity described in that subsection, the United States International Trade Commission shall initiate an investigation under section 202(b) of the Trade Act of 1974 (19 U.S.C. 2252(b)) to protect industry in the United States from increases in imports that may result from that overcapacity.

Sec. 447 Report on currency issues with respect to the People's Republic of China

Not later than 180 days after the date of enactment of this Act, and every 180 days thereafter, the Secretary of the Treasury shall submit to Congress a report analyzing the economic effects of the People’s Republic of China's movement towards a free floating currency, including the effects on United States exports and economic growth and job creation in the United States.

Sec. 448 Report on exposure of the United States to the financial system of the People's Republic of China

Not later than 1 year after the date of enactment of this Act, and annually thereafter, the Secretary of the Treasury shall submit to Congress a report on the exposure of the United States to the financial sector of the People’s Republic of China that includes—

(1)

an assessment of the effects of reforms to the financial sector of the People’s Republic of China on the United States and global financial systems;

(2)

a description of the policies the United States Government is adopting to protect the interests of the United States while the financial sector of the People’s Republic of China undergoes such reforms; and

(3)

recommendations for additional actions the United States Government should take to protect such interests.

Sec. 449 Report on the extent to which United States entities across industrial sectors source from the People's Republic of China and use Chinese-operated global distribution networks

Not later than 180 days after the date of the enactment of this Act, the Secretary of Commerce shall submit to the appropriate congressional committees a report regarding the degree to which private entities in the United States across industrial sectors source from the People's Republic of China and use Chinese-operated global distribution networks.

Sec. 450 Report on anticompetitive behavior by the Government of China

Not later than 1 year after the date of enactment of this Act, and annually thereafter, the Secretary of the Treasury, in consultation with the Attorney General, the Federal Trade Commission, and such other Federal officials as the Secretary considers appropriate, shall submit to Congress a report on the economic effects of alleged anticompetitive behavior by antitrust enforcers in the People’s Republic of China.

Sec. 451 Report on investment reciprocity between the United States and the People’s Republic of China

Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury shall submit to Congress a report on legislative or administrative action that would be necessary to permit the President to condition the provision of access by Chinese investors to the United States market on a reciprocal, sector-by-sector basis to provide an equivalent level of market access as there is for United States investors to the market of the People’s Republic of China.

Sec. 452 Statement of policy to encourage the development of a corporate code of conduct for countering malign influence in the private sector

It is the policy of the United States—

(1)

to support business practices that are open, transparent, respect workers’ rights, and are environmentally conscious;

(2)

to reaffirm the commitment of the United States to economic freedom, which is the bedrock of the United States economy and enables anyone in the United States to freely conduct business and pursue the American dream;

(3)

to support freedom of expression for all people;

(4)

to promote the security of United States supply chains and United States businesses against malign foreign influence;

(5)

to welcome and commit to supporting business people from the People’s Republic of China who are in the United States to pursue the American dream, free from restrictions and surveillance, including freedom of inquiry and freedom of expression, that may be proscribed or restricted in the People’s Republic of China;

(6)

to condemn and oppose xenophobia and racial discrimination in any form, including against Chinese businesspeople, entrepreneurs, and visitors in the United States;

(7)

to recognize the threats posed to economic freedom and freedom of expression by the Government of China, which are seeking to influence and interfere with United States businesses and distort United States markets for the gain of the People’s Republic of China, either directly or indirectly;

(8)

to condemn the practice by the Government of China of direct and indirect surveillance and censorship and acts of retaliation by officials of that Government or their agents against businesspeople or entrepreneurs, as well as harassment of their family members in the People’s Republic of China, for the international business dealings of Chinese students and scholars;

(9)

to encourage United States businesses that conduct substantial business with or in the People’s Republic of China to collectively develop and commit to using best practices to ensure that their business in or with the People’s Republic of China is consistent with the policies of the United States; and

(10)

to specifically encourage United States businesses to develop and agree to a code of conduct for business with or in the People’s Republic of China, pursuant to which a United States business would commit—

(A)

to protect the free speech rights of its employees to, in their personal capacities, express views on global issues without fear that pressure from the Government of China would result in them being retaliated against by the business;

(B)

to ensure that products and services made by the business and sold in the People’s Republic of China do not enable the Government of China to undermine fundamental rights and freedoms, for example by facilitating repression and censorship;

(C)

to maintain robust due diligence programs to ensure that the business is not engaging in business with—

(i)

the military of the People’s Republic of China;

(ii)

Chinese entities subject to United States export controls; or

(iii)

other Chinese actors that engage in conduct prohibited by the law of the United States;

(D)

to disclose publicly any funding or support received from Chinese diplomatic missions or other entities linked to the Government of China;

(E)

to help mentor and support businesspeople and entrepreneurs from the People’s Republic of China to ensure that they can enjoy full economic freedom;

(F)

to ensure that employees of the business in the People’s Republic of China are not subject to undue influence by the Government of China at their workplace; and

(G)

to ensure that agreements and practices of the business in the People’s Republic of China ensure the protection of intellectual property.

Sec. 453 Analysis of foreign laws, policies, and practices that harm competition

Section 181(a) of the Trade Act of 1974 (19 U.S.C. 2241(a)) is amended—

(1)

by redesignating paragraph (4) as paragraph (5); and

(2)

by inserting after paragraph (3) the following:

“(4) Inclusion of laws, policies, and practices that harm competition

“(A) In general—For calendar year 2021 and each succeeding calendar year, the Trade Representative shall include in the analyses and estimates under paragraph (1) an identification and analysis of any laws, policies, or practices of a foreign country that are market-distorting so as to potentially harm competition in the United States and violate antitrust laws of the United States.

“(B) Reporting requirement—In each report required by subsection (b), the Trade Representative shall include a description and estimate of the impact of each law, policy, or practice identified under subparagraph (A) on United States commerce.

“(C) Information sharing—The Trade Representative shall provide a list of the laws, policies, and practices identified under subparagraph (A), and any supporting information, to the Attorney General and the Federal Trade Commission to develop policy and research tools to promote competition and inform the enforcement of antitrust laws.”

Lineage

Sep 17, 2020viewing Introduced in Senate Mr. Menendez (for himself, Mr. Schumer, Mr. Durbin, Mr. Wyden, Mr. Brown, Mrs. Murray, Mr. Reed, Mr. Warner, Ms. Klobuchar, Mrs. Shaheen, Mr. Van Hollen, and Mr. Heinrich) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations

Title IV — Investing in our economic statecraft

IV Investing in our economic statecraft

Sec. 401 Appropriate congressional committees defined

Sec. 402 Authorization of additional appropriations

A Trade enforcement

Sec. 411 Authority to review inbound and outbound investment

Sec. 412 Establishment of Special Investigations Unit in Office of the United States Trade Representative

Sec. 413 Establishment of Inspector General of the Office of the United States Trade Representative

Sec. 414 Audit of process for seeking exclusions from certain duties

Sec. 415 Identification of and accountability with respect to government-coerced censorship

Sec. 416 Reports on agreements to resolve disputes under section 301 of the Trade Act of 1974

Sec. 417 Technical and legal support for addressing intellectual property rights infringement cases

Sec. 418 Improvement of anti-counterfeiting measures

B Financial services

Sec. 431 Findings on transparency and disclosure; sense of Congress

Sec. 432 Disclosure of private business transactions with foreign persons

Sec. 433 Cyber theft disclosure

Sec. 434 Cybersecurity expertise disclosure

Sec. 435 Independence from influence of the Government of China

Sec. 436 Establishment of interagency task force to address Chinese market manipulation in the United States

Sec. 437 Holding foreign companies accountable

C Economic security

Sec. 441 Imposition of sanctions with respect to theft of trade secrets of United States persons

Sec. 442 Countering foreign corrupt practices

Sec. 443 Debt relief for countries eligible for assistance from the International Development Association

Sec. 444 Collection of information from United States entities concerning requests by the Government of China

Sec. 445 Report on manner and extent to which the Government of China exploits Hong Kong to circumvent United States laws and protections

Sec. 446 Monitoring overcapacity of industries in the People’s Republic of China

Sec. 447 Report on currency issues with respect to the People's Republic of China

Sec. 448 Report on exposure of the United States to the financial system of the People's Republic of China

Sec. 449 Report on the extent to which United States entities across industrial sectors source from the People's Republic of China and use Chinese-operated global distribution networks

Sec. 450 Report on anticompetitive behavior by the Government of China

Sec. 451 Report on investment reciprocity between the United States and the People’s Republic of China

Sec. 452 Statement of policy to encourage the development of a corporate code of conduct for countering malign influence in the private sector

Sec. 453 Analysis of foreign laws, policies, and practices that harm competition

Cite this provision

Incoming references