Sec. 2. Review by Committee on Foreign Investment in the United States of investments impacting economic or technological competitiveness
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Subsection (a)(4) of section 721 of the Defense Production Act of 1950 ( 50 U.S.C. 4565 ) is amended— in subparagraph (A)— in clause (i), by striking ; and and inserting a semicolon; in clause (ii)— by striking clauses
(ii)through
(v)and inserting any of clauses
(ii)through
(iv)or clause
(vii); and by striking the period at the end and inserting ; and ; by adding at the end the following: any transaction described in clause
(v)or
(vi)of subparagraph
(B)proposed or pending after the date of the enactment of this clause. ; and in subparagraph (B)— by redesignating clause
(v)as clause (vii); and by inserting after clause
(iv)the following: Any other investment, subject to regulations prescribed under subparagraph (D), by a foreign person in a United States business that could support the acquisition by a foreign country of capabilities to attain technological self-sufficiency or impair the economic and technological competitiveness of the United States, including— an investment in a United States business that has received direct funding from, or has been awarded a contract by, the Department of Defense, the Department of Commerce, the Department of Energy, or another Federal agency; or any other investment the Committee determines, by regulation, may provide to the foreign person access to expertise, business networks, or production methods critical to maintaining the economic and technological competitiveness of the United States. Any other investment, subject to regulations prescribed under subparagraph (D)— in a United States business that produces, designs, tests, manufactures, fabricates, or develops one or more critical technologies; and by a foreign entity of concern (as defined in section 9901 of the William M.
(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 ( 15 U.S.C. 4651 )) that is organized under the laws of or otherwise subject to the jurisdiction of the People's Republic of China. . Section 721(b)(1)(C)(v)(IV) of the Defense Production Act of 1950 ( 50 U.S.C. 4565(b)(1)(C)(v)(IV) ) is amended by adding at the end the following: The parties to a covered transaction shall submit a declaration described in subclause
(I)with respect to the transaction if— a foreign person that is a party to the transaction is a national of the People's Republic of China or an entity organized under the laws of or otherwise subject to the jurisdiction of the People's Republic of China; or the transaction is in the metallurgy, telecommunications, energy, industrial gas, chemicals, or petrochemicals sector or any other sector the Secretary determines appropriate for purposes of this item. . Section 721(b)(1) of the Defense Production Act of 1950 ( 50 U.S.C. 4565(b)(1) ) is amended by adding at the end the following: In the case of a review of a covered transaction described in clause (ii), the Secretary of Commerce, in consultation with other members of the Committee as appropriate, shall conduct an analysis of— the sector or industry in which the United States business involved in the transaction operates; the cumulative control of, or pattern of recent transactions by, foreign persons, including, directly or indirectly, foreign governments, in that sector or industry; and the effect of foreign investment in that sector or industry on the national security of the United States. A covered transaction described in this clause is a covered transaction— described in clause
(vi)or
(vii)of subsection (a)(4)(B); and to which a foreign person that is a national of the People's Republic of China or an entity organized under the laws of or otherwise subject to the jurisdiction of the People's Republic of China is a party. . There are authorized to be appropriated for the Committee on Foreign Investment in the United States such sums as may be necessary to carry out the amendments made by this section.
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Sec. 2
Review by Committee on Foreign Investment in the United States of investments impacting economic or technological competitiveness
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