Sec. 2. Findings; sense of Congress
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Congress finds the following: On September 30, 2022, the Office of Foreign Assets Control of the Department of the Treasury designated People’s Republic of China entity Sinno Electronics Co. Limited (Sinno) for providing material support to the defense industrial base of the Russian Federation. On January 26, 2023, the Office of Foreign Assets Control of the Department of the Treasury sanctioned People’s Republic of China entity Changsha Tianyi Space Science and Technology Research Institute Co.
LTD (Spacety China) for providing material support to entities of the Russian Federation involved in combat operations in Ukraine. There is clear and increasing evidence that People’s Republic of China entities continue to evade United States sanctions to provide material support to the defense and military industrial base of the Russian Federation. Under Executive Order 13959 (85 Fed. Reg. 73185; related to addressing the threat from securities investments that finance Communist Chinese military companies), the President found that the People’s Republic of China increases the size of the country’s military-industrial complex by compelling civilian Chinese companies to support its military and intelligence activities.
Those companies, though remaining ostensibly private and civilian, directly support the PRC’s military, intelligence, and security apparatuses and aid in their development and modernization. . Evidence of industrial support for the Russian Federation by the People’s Republic of China, combined with inherent blurred lines between the civilian versus governmental defense apparatus in the People’s Republic of China, requires new authorities to protect the national security of the United States.
It is the sense of Congress that the Russian Federation’s continued invasion of Ukraine is directly enabled by the People’s Republic of China. It is therefore time for the President to— more fully cut off financing avenues for People’s Republic of China entities providing materiel support to the defense and related materiel sector of the economy of the Russian Federation; more fully cut off financing avenues for People’s Republic of China entities involved in military modernization activities; impose country-wide export control restrictions on dual-use technology exported to the PRC over concerns of diversion to the Russian Federation; and impose sanctions on PRC entities involved in the export of weapons and dual-use technology to the Russian Federation, including microelectronics, aerospace, automobiles, among others.
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- 85 FR 73185
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