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Title VII — Matters Related to Defense

H.R. 4792 · 117th Congress · Jul 29, 2021 · Lineage

VII Matters Related to Defense

Sec. 701 Modification to use of emergency sanctions authorities regarding Communist Chinese military companies

(a)
In general— Section 1237(a)(1) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (50 U.S.C. 1701 note) is amended—
(1)
by striking “may exercise” and inserting “shall exercise”;
(2)
by striking clause (ii);
(3)
in the matter preceding clause (i), by striking “that—” and inserting “that is engaged in providing commercial services, manufacturing, producing, or exporting and—”;
(4)
in clause (i), by striking “; and” and inserting “; or”; and
(5)
by adding at the end the following new clause:

“(ii)

“(I) is owned or controlled by, or affiliated with, the Chinese Communist Party or any person who has ever been a delegate of a National People’s Congress of the Chinese Communist Party; and

“(II) is engaged in significant investment in the sectors of fifth-generation wireless communications, artificial intelligence, advanced computing, “big data” analytics, autonomy, robotics, directed energy, hypersonics, or biotechnology.”

(b)
Extension of list requirement— Notwithstanding section 1061(i)(6) of the National Defense Authorization Act for Fiscal Year 2017 (10 U.S.C. 111 note), the submission required by subsection (b) of section 1237 of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999—
(1)
shall not terminate on December 31, 2021; and
(2)
shall continue in effect until December 31, 2026.

Sec. 702 Prohibition on use of funds to purchase goods or services from Communist Chinese military companies

(a)
In general— None of the funds authorized to be appropriated or otherwise made available for fiscal year 2020 and available for obligation as of the date of the enactment of this Act, or authorized to be appropriated or otherwise made available for fiscal year 2021 or any fiscal year thereafter, may be obligated or expended to purchase goods or services from a person on the list required by section 1237(b) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (Public Law 105–261; 50 U.S.C. 1701 note).
(b)
Application to private entities and state and local governments—
(1)
In general— The prohibition under subsection (a) includes a prohibition on the obligation or expenditure of funds described in that subsection for the purchase of goods or services from persons described in that subsection by a private entity or a State or local government that received such funds through a grant or any other means.
(2)
Certification required to receive future funds—
(A)
In general— On and after the date of the enactment of this Act, the head of an executive agency shall ensure that funds described in subsection (a) are not provided to a private entity or a State or local government unless the entity or government certifies that the entity or government, as the case may be, is not purchasing goods or services from a person described in subsection (a).
(B)
Review— The head of an executive agency shall conduct a review of the use of funds described in subsection (a) that are provided to a private entity or a State or local government to ensure compliance with the requirements of subparagraph (A).
(c)
Executive agency defined— In this section, the term “executive agency” has the meaning given that term in section 133 of title 41, United States Code.

Sec. 703 Enactment of Executive Order 13959

(a)
In general— The provisions of Executive Order 13959 (85 Fed. Reg. 73185; relating to addressing the threat from securities investments that finance Communist Chinese military companies (November 12, 2020)), as in effect on January 14, 2021, are enacted into law.
(b)
Publication— In publishing this Act in slip form and in the United States Statutes at Large pursuant to section 112 of title 1, United States Code, the Archivist of the United States shall include after the date of approval at the end an appendix setting forth the text of the Executive order referred to in subsection (a), as in effect on January 14, 2021.

Sec. 704 Inclusion of certain Chinese entities on the Annex to Executive Order 13959

(a)
In general— Notwithstanding any other provision of a law, an entity described in subsection (b) shall be deemed to be included on the Annex to Executive Order 13959, as in effect on January 14, 2021, and enacted into law by section 1(a) for purposes of carrying out the provisions of such Executive order.
(b)
Entity described— An entity described in this subsection is an entity that—
(1)
is organized under the laws of the People’s Republic of China or otherwise subject to the jurisdiction of the Government of the People’s Republic of China; and
(2)
is included on the list maintained and set forth in Supplement No. 4 to part 744 of the Export Administration Regulations.
(c)
Export administration regulations defined— In this section, the term “Export Administration Regulations” means the regulations set forth in subchapter C of chapter VII of title 15, Code of Federal Regulations, or successor regulations.

Sec. 705 Arms exports to India

(a)
Eligibility for arms exports— Section 3 of the Arms Export Control Act (22 U.S.C. 2753) is amended—
(1)
in subsection (b)(2), by striking “or the Government of New Zealand” and inserting “the Government of New Zealand, or the Government of India”; and
(2)
in subsection (d), by striking “or New Zealand” each place it appears and inserting “New Zealand, or India”.
(b)
Sales from stocks— Section 21 of the Arms Export Control Act (22 U.S.C. 2761) is amended—
(1)
in subsection (e)(2)(A), by striking “or New Zealand” and inserting “New Zealand, or India”; and
(2)
in subsection (h), by striking “or Israel” each place it appears and inserting “Israel, or India”.
(c)
Reports on commercial and governmental military exports; congressional action— Section 36 of the Arms Export Control Act (22 U.S.C. 2776) is amended by striking “or New Zealand” each place it appears and inserting “New Zealand, or India”.
(d)
Reports to the congress— Section 62(c)(1) of the Arms Export Control Act (22 U.S.C. 2796a) is amended by striking “or New Zealand” and inserting “New Zealand, or India”.
(e)
Legislative review— Section 63(a)(2) of the Arms Export Control Act (22 U.S.C. 2796b) is amended by striking “or New Zealand” and inserting “New Zealand, or India”.