Sec. 102. Definitions; report on Chinese corporate human rights abusers with securities traded by United States persons
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In this title: The term affiliate — has the meaning given such term in section 230.405 of title 17, Code of Federal Regulations (as in effect on the date of the enactment of this Act); means a person that is closely associated with another person typically in a dependent or subordinate position; or means a person that has a common purpose or shared characteristics with another person. The term appropriate committees of Congress means— the Committee on Foreign Relations, the Select Committee on Intelligence, the Committee on Banking, Housing, and Urban Affairs, and the Committee on Armed Services of the Senate; and the Committee on Foreign Affairs, the Permanent Select Committee on Intelligence, the Committee on Financial Services, and the Committee on Armed Services of the House of Representatives.
The term covered entity — means an entity identified in the report required by subsection (b); and includes any affiliate of such entity. The term entity means a government or instrumentality of such government, partnership, association, trust, joint venture, corporation, group, subgroup, or other organization. The term person means an individual or entity. The term PRC means the People’s Republic of China. The term publicly traded securities includes any security (as defined in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78 )), denominated in any currency that trades on a securities exchange or through the method of trading that is commonly referred to as over-the-counter , in any jurisdiction.
The term transaction means the purchase for value, or sale, of any publicly traded security. The term United States person means— any United States citizen, permanent resident alien, or entity (including foreign branches) organized under the laws of the United States or any jurisdiction within the United States; or any person in the United States. Not later than 180 days after the date of the enactment of this Act, and annually thereafter for 5 years, the Secretary of State, in consultation with the Director of National Intelligence and the Secretary of the Treasury, shall submit to the appropriate committees of Congress a report that describes the risks posed to the United States by the presence in United States capital markets of entities incorporated in the PRC, or entities owned, controlled, or are entitled to a share of the profits of entities incorporated in the PRC.
The report required by paragraph
(1)shall— identify entities described in paragraph (1)— whose shares are publicly traded by United States persons; based on the factors for consideration described in paragraph (3), have knowingly and materially contributed to— activities that both undermine and pose an unusual and extraordinary threat to the national security, foreign policy, or economy of the United States; serious abuses of internationally recognized human rights; or a substantially increased financial risk exposure for United States-based investors; describe the activities of entities identified pursuant to subparagraph
(A)and the implications of such activities for the United States; develop policy recommendations for the United States Government, State governments, United States financial institutions, United States equity and debt exchanges, and other relevant stakeholders to address the risks posed by the presence in United States capital markets of entities identified pursuant to subparagraph (A); and identify entities described in paragraph
(1)that are included on the entity list. The factors for consideration described in this paragraph, with respect to an entity, are whether or the extent to which the entity— has materially contributed to the development or manufacture, or sold or facilitated procurement by the People’s Liberation Army (PLA), of military equipment or component parts of such equipment; has contributed to the construction and militarization of features in the South China Sea; has been sanctioned by the United States or has been determined to have conducted business with sanctioned entities; has engaged in an act or a series of acts of intellectual property theft; has engaged in corporate or economic espionage; has contributed to the proliferation of nuclear or missile technology in violation of United Nations Security Council resolutions or United States sanctions; has contributed to the repression of distinct religious and ethnic groups, including in the Uyghur or Tibet Autonomous Regions; has contributed to the repression of pro-democracy activists, journalists, and publishers in Hong Kong and throughout the PRC; has contributed to the development of technologies that enable censorship directed or directly supported by the PRC government; has failed to comply fully with— the securities laws (as defined in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c )); a required audit by the Public Company Accounting Oversight Board; or a material risk disclosure requirement of the Securities and Exchange Commission; or has contributed to other activities or behavior determined to be relevant by the President. The report required by paragraph
(1)shall be submitted in unclassified form, but may include a classified annex. The unclassified portion of the report required by paragraph
(1)shall be made accessible to the public online through publication on a relevant United States Government website and in the Federal Register. In paragraph (2)(D), the term entity list means the list maintained and set forth in Supplement No. 4 to part 744 of the Export Administration Regulations. In subparagraph (A), 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.
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- 15 USC 78
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Sec. 102
Definitions; report on Chinese corporate human rights abusers with securities traded by United States persons
Cite15 USC 78
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