Sec. 1211. PROHIBITION ON PROCUREMENTS FROM CHINESE MILITARY COMPANIES

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## SEC. 1211 PROHIBITION ON PROCUREMENTS FROM CHINESE MILITARY COMPANIES **[**[10 U.S.C. 2302 note](/us/usc/t10/s2302)**]** ###

(a)Prohibition The Secretary of Defense may not procure goods or services described in subsection (b), through a contract or any subcontract (at any tier) under a contract, from any Communist Chinese military company, any Chinese military company, any Non-SDN Chinese military-industrial complex company, or any other covered company. ###

(b)Goods and Services Covered ####

(1)In general For purposes of subsection (a), and except as provided in paragraph (2), the goods and services described in this subsection are goods and services— #####

(A)on the munitions list of the International Traffic in Arms Regulations; or #####

(B)on the Commerce Control List that— ######

(i)are classified in the 600 series; or ######

(ii)contain strategic and critical materials, rare earth elements, or energetic materials used to manufacture missiles or munitions. ####

(2)Exceptions Goods and services described in this subsection do not include goods or services procured— #####

(A)in connection with a visit by a vessel or an aircraft of the United States Armed Forces to the People’s Republic of China; #####

(B)for testing purposes; or #####

(C)for purposes of gathering intelligence. ###

(c)Waiver Authorized The Secretary of Defense may waive the prohibition in subsection

(a)if the Secretary determines that such a waiver is necessary for national security purposes and the Secretary submits to the congressional defense committees a report described in subsection

(d)not less than 15 days before issuing the waiver under this subsection. ###

(d)Report The report referred to in subsection

(c)is a report that identifies the specific reasons for the waiver issued under subsection

(c)and includes recommendations as to what actions may be taken to develop alternative sourcing capabilities in the future. ###

(e)Definitions In this section: ####

(1)The term “Chinese military company” has the meaning given that term by section 1260H(d)(1) of the William M.

(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283; 10 U.S.C. 113 note). ####

(2)The term “Commerce Control List” means the list maintained by the Bureau of Industry and Security and set forth in Supplement No. 1 to part 774 of the Export Administration Regulations. ####

(3)The term “**Communist Chinese military company**” has the meaning provided that term by section 1237(b)(4) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (50 U.S.C. 1701 note). ####

(4)The term “Export Administration Regulations” has the meaning given that term in section 1742 of the Export Control Reform Act of 2018 (50 U.S.C. 4801). ####

(5)The term “**munitions list of the International Traffic in Arms Regulations**” means the United States Munitions List contained in part 121 of subchapter M of title 22 of the Code of Federal Regulations. ####

(6)The term “Non-SDN Chinese military-industrial complex company” means any entity on the Non-SDN Chinese Military-Industrial Complex Companies List— #####

(A)established pursuant to Executive Order 13959 (50 U.S.C. 1701 note; relating to addressing the threat from securities investments that finance Communist Chinese military companies), as amended before, on, or after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2023; and #####

(B)maintained by the Office of Foreign Assets Control of the Department of the Treasury. ####

(7)The term “other covered company” means a company that— #####

(A)is owned or controlled by the government of the People’s Republic of China; and #####

(B)is certified by the Secretary of Defense to the congressional defense committees to be a company that must be covered by this section for national security reasons. ####

(8)The term “strategic and critical materials” means materials designated as strategic and critical under section 3(a) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98b(a)). ###

(f)Effective Date With respect to goods and services described in clause

(ii)of subparagraph (b)(1)(B), the prohibition shall take effect 180 days after the date on which the Secretary of Defense certifies to the congressional defense committees that a sufficient number of commercially viable providers exist outside of the People’s Republic of China that collectively can provide the Department of Defense with satisfactory quality and sufficient quantity of such goods or services as and when needed at United States market prices. * * * * * * * ## subtitle C Reports and Sense of Congress Provisions **[**Section 1221 was repealed by section 1272 of division A of Public Law 119–60.**]**

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