China Technology Transfer Control Act of 2019
This bill controls exports of certain national interest technology and intellectual property to China.
Specifically, covered technology or intellectual property includes items that (1) would contribute significantly to the Chinese military to the detriment of U.S. national security, (2) are included in a designated list of product components compiled by the U.S. Trade Representative (USTR), or (3) are used by China to violate human rights or religious liberties.
The bill requires the President to control exports to China of any covered technology or intellectual property. Additionally, the President must sanction (1) any foreign person who sells to, or purchases from, China any covered item; and (2) any Chinese person who knowingly uses a covered item provided to them in violation of U.S. export control law.
In addition to a specified list of industries subject to the bill, the USTR must identify products manufactured or produced in, or exported from, China that either receive certain support from China or are used by China to violate human rights or religious liberties.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3532 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 3532
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 27, 2019
Mr. Green of Tennessee (for himself, Mr. Cuellar, Mr. Biggs, Mr.
Crawford, Mr. Diaz-Balart, Mr. Flores, Mr. Gaetz, Mr. Gallagher, Mr.
Gibbs, Mr. Hagedorn, Mr. Hunter, Mr. Lamborn, Mrs. Luria, Mr.
Riggleman, Mr. Stewart, and Mr. Espaillat) introduced the following
bill; which was referred to the Committee on Foreign Affairs, and in
addition to the Committee on Ways and Means, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
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 of 2019''.
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 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.
(C) 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 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 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 GOVERNMENT OF 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 GOVERNMENT
OF 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 of 2019, 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 the Government of the
People's Republic of China pursuant to the Made in
China 2025 industrial policy of that Government; or
``(B) to otherwise 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.
``(b) Identification of Products Receiving Support Pursuant to Made
in China 2025 Policy.--
``(1) In general.--The Trade Representative shall include
in the list under subsection (a)(1)(A) any product specified in
the following documents set forth by the Government of the
People's Republic of China:
``(A) Notice on Issuing Made in China 2025.
``(B) China Manufacturing 2025.
``(C) Notice on Issuing the 13th Five-year National
Strategic Emerging Industries Development Plan.
``(D) Guiding Opinion on Promoting International
Industrial Capacity and Equipment Manufacturing
Cooperation.
``(E) Any other document that expresses a national
strategy or stated goal in connection with the Made in
China 2025 industrial policy set forth by the
Government of the People's Republic of China, the
Communist Party of China, or another entity or
individual capable of impacting the national strategy
of the People's Republic of China.
``(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 Government
of People's Republic of China or used by
that Government for human rights
violations.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Foreign Affairs, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Foreign Affairs, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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