Sec. 2. Findings
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/bill/118/s/2275/is/section-2·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Congress finds the following: On February 1, 2023, a spy balloon originating from the People's Republic of China was identified over the skies of Montana. From the time the balloon entered the airspace of the United States until the balloon was terminated on February 4, 2023, the balloon collected and transmitted data regarding sensitive national security sites, such as the missile fields at Malmstrom Air Force Base, Cascade County, Montana. Following the incident the Bureau of Industry and Security added 6 entities of the People's Republic of China to the Entity List set forth in Supplement No. 4 to part 744 of the Export Administration Regulations due to support by such entities for military programs of the People's Republic of China related to airships and balloons.
Of the 6 entities, only 1 has been added to the Non-SDN Chinese Military-Industrial Complex Companies List maintained by the Office of Foreign Assets Control of the Department of the Treasury and subject to sanctions by the Department of the Treasury. According to Executive Order 14032 (86 Fed. Reg. 30145; relating to addressing the threat from securities investments that finance certain companies of the People’s Republic of China)— there is a threat posed by the military-industrial complex of the People’s Republic of China and its involvement in military, intelligence, and security research and development programs, and weapons and related equipment production under the Military-Civil Fusion strategy of the People's Republic of China; and the use of Chinese surveillance technology outside the PRC and the development or use of Chinese surveillance technology to facilitate repression or serious human rights abuse constitute unusual and extraordinary threats, which have their source in whole or substantial part outside the United States, to the national security, foreign policy, and economy of the United States .
Executive Order 14032 explicitly expands the scope of Executive Order 13959 ( 50 U.S.C. 1701 note; relating to addressing the threat from securities investments that finance Communist Chinese military companies).
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- 86 FR 30145
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