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China Technology Transfer Control Act


Brady

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IN THE SENATE OF THE UNITED STATES

Mr. Bishop (for himself and Mr. Madison, with thanks to Mr. Hawley of Missouri) introduced the following bill

A BILL

To control the export to the People's Republic of China of certain technology and intellectual property important to the national interest of the United States, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the “China Technology Transfer Control Act”.

SEC. 2. DEFINITIONS.

In this Act:

(1) CHINESE PERSON.—The term “Chinese person” means—

(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 otherwise subject to the jurisdiction of the Government of the People's Republic of China.

(2) COVERED NATIONAL INTEREST TECHNOLOGY OR INTELLECTUAL PROPERTY.—The term “covered national interest technology or intellectual property” includes the following:

(A) Technology or intellectual property that would make a significant contribution to the military potential of the People’s Republic of China that would prove detrimental to the national security of the United States.

(B) Technology or intellectual property necessary to protect the economy of the United States from the excessive drain of scarce materials and to reduce the serious inflationary impact of demand from the People’s Republic of China.

(C) Technology or intellectual property that is a component of the production of products included in the most recent list required under section 183 of the Trade Act of 1974, as added by section 6(a), determined in consultation with the United States Trade Representative.

(D) Technology used by the Government of the People's Republic of China to carry out violations of human rights or religious liberties.

(3) FOREIGN PERSON.—The term “foreign person” means any person that is not a United States person.

(4) KNOWINGLY.—The term “knowingly”, with respect to conduct, a circumstance, or a result, means that a person has actual knowledge, or should have known, of the conduct, the circumstance, or the result.

(5) INTELLECTUAL PROPERTY.—The term “intellectual property” means—

(A) any work protected by a copyright under title 17, United States Code;

(B) any property protected by a patent granted by the United States Patent and Trademark Office under title 35, United States Code;

(C) any word, name, symbol, or device, or any combination thereof, that is registered as a trademark with the United States Patent and Trademark Office under the Act entitled “An Act to provide for the registration and protection of trademarks used in commerce, to carry out the provisions of certain international conventions, and for other purposes”, approved July 5, 1946 (commonly known as the “Lanham Act” or the “Trademark Act of 1946”) (15 U.S.C. 1051 et seq.);

(D) a trade secret (as defined in section 1839 of title 18, United States Code); or

(E) any other form of intellectual property.

(6) TECHNOLOGY.—The term “technology” includes goods or services relating to information systems, Internet-based services, production-enhancing logistics, robotics, artificial intelligence, bi­o­tech­nol­o­gy, or computing.

(7) 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. 3. SENSE OF CONGRESS.

It is the sense of Congress that—

(1) while the United States is committed to promoting cultural and technological exchange with other countries, it is our responsibility to protect the United States when channels for such exchange are exploited by adversaries; and

(2) the People's Republic of China consistently seeks to exploit those channels, not only in its theft of intellectual property but also in its manipulation of lawful transfer and uses of technology in ways that directly support its military objectives and threaten the United States.

SEC. 4. CONTROL OF EXPORT OF COVERED NATIONAL INTEREST TECHNOLOGY AND INTELLECTUAL PROPERTY TO THE PEOPLE'S REPUBLIC OF CHINA.

(a) IN GENERAL.—On and after the date that is 180 days after the date of the enactment of this Act, the President shall control the export or re-export to, or transfer in, the People's Republic of China of any covered national interest technology or intellectual property subject to the jurisdiction of the United States or exported by any United States person.

(b) REPORT REQUIRED.—Not later than 90 days after the date of the enactment of this Act, the Secretary of State and the Secretary of Commerce shall jointly submit to Congress a report assessing whether covered national interest technology or intellectual property should be controlled as required by subsection (a) under—

(1) the International Traffic in Arms Regulations under subchapter M of chapter I of title 22, Code of Federal Regulations; or

(2) the Export Administration Regulations under subchapter C of chapter VII of title 15, Code of Federal Regulations.

(c) REGULATIONS.—Not later than 180 days after the date of the enactment of this Act, the President shall prescribe such regulations as are necessary to carry out subsection (a).

SEC. 5. IMPOSITION OF SANCTIONS WITH RESPECT TO PROVISION TO OR PURCHASE FROM THE PEOPLE'S REPUBLIC OF CHINA OF COVERED NATIONAL INTEREST TECHNOLOGY AND INTELLECTUAL PROPERTY.

(a) IN GENERAL.—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 a person described in subsection (b) 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) PERSONS DESCRIBED.—A person described in this subsection is—

(1) a foreign person that, on or after the date of the enactment of this Act, knowingly sells or otherwise provides to, or knowingly purchases from, the People's Republic of China any covered national interest technology or intellectual property subject to the jurisdiction of the United States; or

(2) a Chinese person that, on or after such date of enactment, knowingly uses covered national interest technology or intellectual property provided to the Chinese person in violation of section 4 or any other export control law of the United States.

(c) EXCEPTION RELATING TO IMPORTATION OF GOODS.—

(1) IN GENERAL.—The requirement to block and prohibit all transactions in all property and interests in property under subsection (a) shall not include the authority to impose sanctions on the importation of goods.

(2) GOOD DEFINED.—In this subsection, the term “good” means any article, natural or man-made substance, material, supply or manufactured product, including inspection and test equipment, and excluding technical data.

(d) WAIVER.—The President may waive the imposition of sanctions under subsection (a) with respect to a person if the President determines and reports to Congress that the waiver is in the national security interests of the United States.

(e) 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 subsection (a) or any regulation, license, or order issued to carry out that subsection 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.

(3) INAPPLICABILITY OF NATIONAL EMERGENCY REQUIREMENT.—The requirements of section 202 of the International Emergency Economic Powers Act (50 U.S.C. 1701) shall not apply for purposes of this section.

SEC. 6. ESTABLISHMENT OF LIST OF CERTAIN PRODUCTS RECEIVING SUPPORT FROM THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA OR USED BY THAT GOVERNMENT FOR HUMAN RIGHTS VIOLATIONS.

(a) IN GENERAL.—Chapter 8 of title I of the Trade Act of 1974 (19 U.S.C. 2241 et seq.) is amended by adding at the end the following:

SEC. 183. LIST OF CERTAIN PRODUCTS RECEIVING SUPPORT FROM THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA OR USED BY THAT GOVERNMENT FOR HUMAN RIGHTS VIOLATIONS.
“(a) IN GENERAL.—Not later than 120 days after the date of the enactment of the China Technology Transfer Control Act, and annually thereafter, the United States Trade Representative shall set forth a list of products manufactured or produced in, or exported from, the People's Republic of China that are determined by—

“(1) the Trade Representative—

“(A) to receive support from that Government and that have or will in the future displace net exports of like products by the United States; or

“(2) the Secretary of State to be used by the Government of the People's Republic of China to carry out violations of human rights or religious liberties.

“(2) INCLUDED PRODUCTS.—In addition to such products as the Trade Representative shall include pursuant to paragraph (1) in the list under subsection (a)(1)(A), the Trade Representative shall include products in the following industries:

“(A) Civil aircraft.

“(B) Turbine engines.

“(C) Motor car and vehicle.

“(D) Advanced medical equipment.

“(E) Advanced construction equipment.

“(F) Agricultural machinery.

“(G) Railway equipment.

“(H) Diesel locomotive.

“(I) Moving freight.

“(J) Semiconductor.

“(K) Lithium battery manufacturing.

“(L) Artificial intelligence.

“(M) High-capacity computing.

“(N) Quantum computing.

“(O) Robotics.

“(P) Biotechnology.”.

(b) 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. 183. List of certain products receiving support from the Government of the People's Republic of China or used by that Government for human rights violations.”.

PES

  • Formally admonishes China for intellectual property theft and manipulation of lawful transfer and uses of technology in ways that directly support its military objectives and threaten the United States.
  • Controls the export of national interest technology and intellectual property to China, to prevent China from using such technology to support its military objectives, threaten the United States, or violate human rights and religious liberties.
  • Places all core technologies supported by Chinese industrial policy that threaten U.S. exports, or that are used by the Chinese government to carry out human rights abuses or violations of religious liberties, on the Department of Commerce’s Export Control List.
  • Once a technology is placed on the Export Control List, companies must obtain licenses to export that technology to China.
  • Core technologies include nearly 15 different technologies such as artificial intelligence, robotics, semiconductors, advanced construction equipment and lithium battery manufacturing.
  • Imposes sanctions on foreign entities and individuals that violate these export controls through transfer of these “core technologies” to China.

Senator Holly Hawthorne (R-AK)

@HollyHawthorne | Join the Freedom Caucus!

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