Sec. 206. Reporting on requests to comply with the corporate social credit system in the People’s Republic of China
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In this section, the term corporate social credit system, as established by the Planning Outline for the Construction of a Social Credit System released by the State Council of the Government of the People’s Republic of China in 2014, means a nationwide network of systems operated by private and state actors, that— use existing financial credit systems, public records, online activity, government licenses and registrations, and other information to collect, aggregate, and integrate data regarding corporate entities that come within the jurisdiction of the PRC, including United States companies operating in the PRC; use the data referred to in paragraph (1)— to monitor a corporate entity’s activities; and to evaluate and rate certain financial, social, religious, or political behaviors of the entity and its key personnel; rates such corporate entities according to their trustworthiness (as defined by the CCP and the Government of the PRC); and implements punishments and rewards based on such ratings that have a direct bearing on a corporate entity’s activities within the PRC.
The President, acting through the Secretary of Commerce, and in consultation with the Secretary of State and any other individuals the President determines should be consulted, shall issue regulations requiring United States entities with at least $100,000,000 of assets or other investment in the PRC to submit a semiannual report regarding the impact of the corporate social credit system on the ability of such United States companies to conduct business or otherwise operate in the PRC.
The regulations issued pursuant to subsection
(b)shall require each entity described in such subsection to report information regarding— the positive and negative impacts of the corporate social credit system on the ability of the entity to conduct business in the PRC; major disruptions to the business operations of the entity that are directly linked to the corporate social credit system, including in hiring, making contracts, implementing partnerships with other entities, and other appropriate matters; whether the entity has been placed on or removed from a blacklist, untrustworthy entities list, priority key watchlist, or a redlist within the corporate social credit system; whether the Government of the PRC took any actions directed at the entity as a result of a list described in paragraph (3), including any specific punishments or rewards; any instances in which an agent of the Government of the PRC has asked for the resignation of key leadership within the company due to their individual social credit scores; any instances in which an entity within the Government of PRC at the national, local, or municipal level informed the entity that it will face a negative impact on its rating within the corporate social credit system unless the entity takes a certain course of action or refrains from taking a certain course of action; any instances in which the entity was asked by an agent of the Government of the PRC to take an action to accommodate a political position of the CCP or the Government of the PRC for the purposes of complying with the corporate social credit system; and any instances in which the entity was required to provide sensitive proprietary business information to comply with the corporate social credit system. In developing the regulations required under subsection (b), the Secretary of Commerce, in consultation with the Secretary of State, shall consult with United States entities with significant business operations in the PRC. Not later than 180 days after the issuance of regulations pursuant to subsection (b), any United States entity required to report under such subsection who knowingly and willfully fails to make such report may, in addition to other penalties provided by law, be fined not more than $25,000.