Sec. 3. Prohibition on dealing in information and communications technology or services from foreign adversaries
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No United States person may engage in a transaction for the acquisition, importation, transfer, installation, dealing in, or use of any information and communications technology or service by a United States person, or with respect to any property subject to the jurisdiction of the United States, if— the transaction involves any property in which any foreign country or foreign person has any interest (including through an interest in a contract for the provision of the technology or service); notwithstanding any contract entered into or any license or permit issued before the date of the enactment of this Act, the transaction is initiated or pending on or after such date of enactment; and the Secretary of Commerce, in consultation with the officials specified in subsection (b), determines that— the transaction involves information and communications technology or services designed, developed, manufactured, or supplied, by persons owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary; and the transaction— poses an undue risk of sabotage to or subversion of the design, integrity, manufacturing, production, distribution, installation, operation, or maintenance of information and communications technology or services in the United States; poses an undue risk of catastrophic effects on the security or resiliency of United States critical infrastructure or the digital economy of the United States; or otherwise poses an unacceptable risk to the national security or foreign policy interests of the United States or the security and safety of United States persons.
The officials specified in this subsection are the following: The Secretary of the Treasury. The Secretary of State. The Secretary of Defense. The Attorney General. The Secretary of Homeland Security. The United States Trade Representative. The Director of National Intelligence. The Administrator of General Services. The Chairman of the Federal Communications Commission. The heads of such other Federal agencies as the Secretary of Commerce considers appropriate. The Secretary of Commerce, in consultation with the officials specified in subsection (b), as appropriate, may establish or negotiate measures to mitigate concerns that are the basis for a determination under subsection (a)(3).
Such measures may serve as a precondition to the approval of a transaction or of a class of transactions that would otherwise be prohibited by subsection (a). Not later than 150 days after the date of the enactment of this Act, the Secretary of Commerce, in consultation with the officials specified in subsection (b), shall prescribe regulations to carry out this section. The regulations prescribed under paragraph
(1)may include regulations with respect to— determining that countries or persons are foreign adversaries for purposes of subsection (a)(3)(A); identifying persons owned by, controlled by, or subject to the jurisdiction or direction of foreign adversaries for purposes of subsection (a)(3)(A); identifying technologies or countries with respect to which transactions involving information and communications technology or services warrant particular scrutiny under subsection (a); establishing procedures to license transactions otherwise prohibited by subsection (a); establishing criteria, consistent with section 1 of this order, by which particular technologies or participants in the market for information and communications technology or services may be recognized as categorically included in or as categorically excluded from the prohibition under subsection (a); and identifying a mechanism and relevant factors for the negotiation of mitigation measures under subsection (c). The Secretary of Commerce may exercise the authorities provided to the President under sections 203 and 205 of the International Emergency Economic Powers Act ( 50 U.S.C. 1702 and 1704) to the extent necessary to carry out this section. 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.
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Sec. 3
Prohibition on dealing in information and communications technology or services from foreign adversaries
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