Sec. 879. Phase-out of computer and printer acquisitions involving entities owned or controlled by China
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/bill/119/s/2296/es/section-879A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Secretary of Defense may not directly or indirectly acquire any computer or printer if the manufacturer is a covered Chinese entity. The Secretary of Defense shall ensure that the prohibition under subsection
(a)also applies to indirect sales through exempt subsidiaries. No covered entity may use an exempt subsidiary to circumvent the prohibition on the acquisition of computers, unified communication devices, or printers. This section shall apply only with respect to contracts or other agreements entered into, renewed, or extended in accordance with the percentage thresholds specified in subsection (d), for end user computing devices such as laptops, desktops, and other physical computing equipment. This section shall not apply to contracts or other agreements for cloud-based services, including virtual desktops, or cellular telephones. The percentage thresholds referred to in subsection
(c)are, for both computers and printers, as follows: Not less than 10 percent of the Department’s total procurement beginning in fiscal year 2026. Not less than 25 percent of the Department’s total procurement beginning in fiscal year 2027. Not less than 50 percent of the Department’s total procurement beginning in fiscal year 2028. 100 percent of the Department’s total procurement beginning in fiscal year 2029. The Secretary of Defense may allow acquisition of items not for operational use, to conduct testing, evaluation, exfiltration, and reverse engineering missions on adversarial products and capabilities. In this section: The term computer — means an electronic, magnetic, optical, electrochemical, or other high speed data processing device performing logical, arithmetic, or storage functions, and includes any data storage facility or communications facility directly related to or operating in conjunction with such device; and does not include an automated typewriter or typesetter, a portable handheld calculator, or other similar device. The term country of concern means the Government of the People's Republic of China. The term covered Chinese entity means an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, determines to be— an entity whose ultimate parent company is domiciled in the People's Republic of China and therefore required to comply with China's 2015 National Security Law, China's 2017 National Intelligence Law, and other Chinese laws that require such ultimate parent company to cooperate with Chinese national defense and national intelligence agencies; or an entity or parent company of any entity in which a country of concern has an ownership stake. The term manufacturer means— the entity that transforms raw materials, miscellaneous parts, or components into the end item; any entity that subcontracts with the entity described in subparagraph
(A)for the entity described in such subparagraph to transform raw materials, miscellaneous parts, or components into the end item; any entity that otherwise directs the entity described in subparagraph
(A)to transform raw materials, miscellaneous parts, or components into the end item; or any parent company, subsidiary, or affiliate of the entity described in subparagraph (A). The term printer — means desktop printers, multifunction printer copiers, and printer/fax combinations taken out of service that may or may not be designed to reside on a work surface, and include various print technologies, including laser and light-emitting diode (electrographic), ink jet, dot matrix, thermal, and digital sublimation, and multi-function or all-in-one devices that perform different tasks, including copying, scanning, faxing, and printing; includes floor-standing printers, printers with optional floor stand, or household printers; and does not include point of sale
(POS)receipt printers, calculators with printing capabilities, label makers, or non-standalone printers that are embedded into products that are not covered by the definition in subparagraphs
(A)and (B).