Sec. 202. Sanctions for Communist Chinese military companies and Chinese military companies
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The Secretary of Defense is authorized to include a covered entity on the Section 1237 List or the Section 1260H List. The purchase or sale by a United States person of any publicly traded securities, or any publicly traded securities that are derivative of such securities or are designed to provide investment exposure to such securities, of any person described in subparagraph
(B)is prohibited. A person described in this subparagraph is— a company designated by the Office of Foreign Assets Control on the Non-SDN Chinese Military-Industrial Complex Companies List, including any affiliate of such company; a Communist Chinese military company listed on the Section 1237 List; any person that was designated as a Communist Chinese military company on June 2, 2021, in accordance with section 1237(b) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 ( 50 U.S.C. 1701 note); or a Chinese military company or a military-civil fusion contributor listed on the Section 1260H List. The prohibitions in paragraph
(1)shall take effect: Beginning at 12:01 a.m. eastern daylight time on August 2, 2021, with respect to a person designated or listed on a List described in paragraph (1)(B) on such date. With respect to a person not described in subparagraph (A), beginning at 12:01 a.m. eastern daylight time on the date that is 60 days after a person is designated or listed on a List described in paragraph (1)(B). The purchase or sale of publicly traded securities described in subsection (b)(1) made solely to effect the divestment, in whole or in part, of such securities by a United States person is permitted prior to: 12:01 a.m. eastern daylight time on June 3, 2022, with respect to any person described in paragraph (2)(A). 12:01 a.m. eastern daylight time on the date that is 365 days after the date a person is designated or listed on a List described in paragraph (1)(B). This subsection shall apply except to the extent provided by statutes, or in regulations, orders, directives, or licenses that may be issued pursuant to this Act, and notwithstanding any contract entered into or any license or permit granted before the date of this Act. The following actions are prohibited: Any transactions by a United States person or within the United States that evades or avoids, has the purpose of evading or avoiding, causes a violation of, or attempts to violate the prohibitions set forth in this Act. Any conspiracy formed to violate any of the prohibitions set forth in this Act. The authorization provided in subsection
(e)may be used to apply penalties provided for in subsections
(b)and
(c)of section 206 of the International Emergency Economic Powers Act ( 50 U.S.C. 1705 ) with respect to a person that knowingly violates, attempts to violate, conspires to violate, or causes a violation of regulations promulgated under subsection
(e)to the same extent that such penalties apply to a person that knowingly commits an unlawful act described in section 206(a) of that Act. The Secretary of Defense is authorized to make additions or deletions to the Section 1237 List and the Section 1260H List on an ongoing basis based on the latest information available. The Secretary of Defense shall, concurrently with the publication of the Section 1237 List and the Section 1260H List, transmit a copy of such lists to the Secretary of State, the Secretary of the Treasury, and the Director of National Intelligence. The Secretary of Defense shall also transmit a copy of lists to the Director of the Office of Foreign Assets Control of the Department of the Treasury for immediate implementation of the prohibitions described in subsection
(b)against those covered entities included on such lists. The Secretary of the Treasury, after consultation with the Secretary of State, the Secretary of Defense, the Director of National Intelligence, and the heads of other executive departments and agencies as deemed appropriate by the Secretary of the Treasury, is hereby authorized to take such actions, including the promulgation of rules and regulations, and to employ all powers granted to the President by the International Emergency Economic Powers Act, to carry out the purposes of this section. The Secretary of the Treasury may, consistent with applicable law, redelegate any of these functions within the Department of the Treasury. All departments and agencies shall take all appropriate measures within their authority to carry out the provisions of this section. Rules and regulations issued pursuant to this section may, among other things, establish procedures to license transactions otherwise prohibited pursuant to this section. But prior to issuing any license under this section, the Secretary of the Treasury shall consult with the Secretary of State, the Secretary of Defense, and the Director of National Intelligence.
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Sec. 202
Sanctions for Communist Chinese military companies and Chinese military companies
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