Sec. 1260H. PUBLIC REPORTING OF CHINESE MILITARY COMPANIES OPERATING IN THE UNITED STATES
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## SEC. 1260H PUBLIC REPORTING OF CHINESE MILITARY COMPANIES OPERATING IN THE UNITED STATES **[**[10 U.S.C. 113 note](/us/usc/t10/s113)**]** ###
(a)Determination The Secretary of Defense shall identify each entity the Secretary determines, based on the most recent information available, is operating directly or indirectly in the United States or any of its territories and possessions, that is a Chinese military company. ###
(b)Reporting and Publication ####
(1)Annual report Not later than April 15, 2021, and annually thereafter until December 31, 2030, the Secretary shall submit to the Committees on Armed Services of the Senate and the House of Representatives a list of each entity identified pursuant to subsection
(a)to be a Chinese military company, in classified and unclassified forms, and shall include in such submission, as applicable, a justification for adding any entities to the list and for deleting any entities from a prior list. ####
(2)Concurrent publication #####
(A)In general Concurrent with the submission of each list described in paragraph (1), the Secretary shall publish the unclassified portion of such list in the Federal Register. #####
(B)Inclusion The publication required by subparagraph
(A)shall include, for each entity included in the unclassified portion of such list, the justification for inclusion in such list. ####
(3)Annual revisions #####
(A)In general The Secretary shall make additions or deletions to the most recent list submitted under paragraph
(1)not less frequently than annually based on the latest information available. #####
(B)Review of entities added to other lists In preparing each annual revision under subparagraph
(A)of the list required by paragraph (1), the Secretary shall consider whether to include each Chinese entity added, during the preceding year, to any other list maintained by the United States of entities subject to additional restrictions or scrutiny for any purpose, as a result of concerns relating to the activities or affiliations of such entities. ####
(4)Language requirement The Secretary shall prepare the list required by paragraph
(1)in English and in Mandarin Chinese. If the name of a Chinese military company included on the list is referred to by the Government of China in a language other than English or Mandarin Chinese, the Secretary shall also include on the list the name of that company in that language. ###
(c)Consultation The Secretary may consult with the head of any appropriate Federal department or agency in making the determinations described in subsection
(a)and shall transmit a copy of each list submitted under subsection (b)(1) to the heads of each appropriate Federal department and agency. ###
(d)Defense Industrial Base Report ####
(1)In general Not later than December 31, 2026, and biennially thereafter through December 31, 2031, the Secretary shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the status of Department of Defense procurement restrictions on entities included in the list described in subsection (b)(1). ####
(2)Elements Each report required by paragraph
(1)shall include the following: #####
(A)A list of each entity included in the list described in subsection (b)(1) that is likely present in the United States defense industrial base. #####
(B)Available unclassified data on any such entity and its presence within the United States defense industrial base. #####
(C)A description of any update to policies or procedures implemented to enforce procurement restrictions on entities included in the list described in subsection (b)(1). ###
(e)Procedures for Implementation The Secretary of Defense shall establish such reasonable procedures as are necessary to implement the provisions of this section, including for obtaining information from outside entities relevant to the list described in subsection (b)(1) and procedures for removal of entities from the list described in subsection (b)(1). ###
(f)Judicial Review In any judicial review of a determination made under this section, if the determination was based on classified information (as defined in section 1(a) of the Classified Information Procedures Act) such information may be submitted to the reviewing court ex parte and in camera. This subsection does not confer or imply any right to judicial review. ###
(g)Definitions In this section: ####
(1)Affiliated with The term “affiliated with” means in close formal or informal association. ####
(2)Chinese military company The term “Chinese military company”— #####
(A)does not include natural persons; #####
(B)means an entity that is— ######
(i)######
(I)directly or indirectly owned by, controlled by, or beneficially owned by, affiliated with, or in an official or unofficial capacity acting as an agent of or on behalf of, the People’s Liberation Army, Chinese military and paramilitary elements, security forces, police, law enforcement, border control, the People’s Armed Police, the Ministry of State Security (MSS), or any other organization subordinate to the Central Military Commission of the Chinese Communist Party, the Chinese Ministry of Industry and Information Technology (MIIT), the State-Owned Assets Supervision and Administration Commission of the State Council (SASAC), or the State Administration of Science, Technology, and Industry for National Defense (SASTIND); or **[**Note: Effective on December 18, 2026, section 1262(a) of division A of Public Law 119–60 provides for subclause
(I)to read as follows (note that the margin for amended subclause
(I)is so in law):**]** ######
(I)directly or indirectly owned by, controlled by, or beneficially owned by, affiliated with, or in an official or unofficial capacity acting as an agent of or on behalf of, any of the following, whether operating inside or outside of China— ######
(aa)the People’s Liberation Army; ######
(bb)Chinese military and paramilitary elements, security forces, police, law enforcement, or border control; ######
(cc)the People’s Armed Police; ######
(dd)the Ministry of State Security, or any other organization subordinate to the Central Military Commission of the Chinese Communist Party; ######
(ee)the Chinese Ministry of Industry and Information Technology; ######
(ff)the State-Owned Assets Supervision and Administration Commission of the State Council; or ######
(gg)the State Administration of Science, Technology, and Industry for National Defense; or ######
(II)identified as a military-civil fusion contributor to the Chinese defense industrial base; and ######
(ii)engaged in providing commercial services, manufacturing, producing, or exporting; and #####
(C)includes a wholly-owned or wholly-controlled subsidiary or wholly-owned or wholly-controlled affiliate of such an entity or any entity that owns in the aggregate, directly or indirectly, 50 percent or more of any entity or entities described in subparagraph (B). ####
(3)Military-civil fusion contributor The term “military-civil fusion contributor” includes any of the following: #####
(A)Entities knowingly receiving assistance from the Government of China or the Chinese Communist Party through science, technology, research, and industrial efforts initiated, granted, or created by, or provided under, or related to, the Chinese military industrial planning apparatus, or in furtherance of Chinese military industrial planning objectives, including selection or designation as a ‘Single Champion’, ‘Little Giant’, or any other successor selection or designation as an enterprise associated with industrial planning or military-civil fusion efforts. #####
(B)Entities managed, overseen, or supervised by, otherwise under the control of, or affiliated with (including by means of formal participation in research partnerships and projects)— ######
(i)the Chinese Ministry of Industry and Information Technology (MIIT); ######
(ii)the State-Owned Assets Supervision and Administration Commission of the State Council (SASAC); ######
(iii)the State Administration of Science, Technology and Industry for National Defense (SASTIND); ######
(iv)the Ministry of State Security (MSS); or ######
(v)the People’s Liberation Army. #####
(C)Entities receiving assistance, operational direction or policy guidance from the State Administration for Science, Technology and Industry for National Defense. #####
(D)Any entities or subsidiaries defined as a “defense enterprise” by the State Council of the People’s Republic of China. #####
(E)Entities residing in or affiliated with a military-civil fusion enterprise zone or receiving assistance from the Government of China through such enterprise zone. #####
(F)Entities awarded with receipt of military production licenses by the Government of China, including a Weapons and Equipment Research and Production Unit Classified Qualification Permit, Weapons and Equipment Research and Production Certificate, Weapons and Equipment Quality Management System Certificate, or Equipment Manufacturing Unit Qualification. #####
(G)Entities that advertise on national, provincial, and non-governmental military equipment procurement platforms in the People’s Republic of China. #####
(H)Any other entities the Secretary determines is appropriate. ####
(4)Operating directly or indirectly in the united states or any of its territories and possessions With respect to an entity, the term ‘operating directly or indirectly in the United States or any of its territories and possessions’ includes an entity selling goods in, or receiving goods or services from, the United States or any of its territories or possessions, regardless of whether the entity has a physical presence in the United States. ####
(5)People’s liberation army The term “People’s Liberation Army” means the land, naval, and air military services, the People’s Armed Police, the Strategic Support Force, the Rocket Force, and any other related security or intelligence element within the Government of China or the Chinese Communist Party that the Secretary determines is appropriate, including other Chinese military and paramilitary elements, security forces, police, law enforcement, border control, and the Ministry of State Security.
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Sec. 1260H
PUBLIC REPORTING OF CHINESE MILITARY COMPANIES OPERATING IN THE UNITED STATES
Pub. L.Pub. L. 119-60
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