Sec. 1313. STUDIES ON DEFENSE BUDGET TRANSPARENCY OF THE PEOPLE’S REPUBLIC OF CHINA AND THE UNITED STATES

476 words·~2 min read·/statute-compilations/comps-17632/sec-1313

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

## SEC. 1313 STUDIES ON DEFENSE BUDGET TRANSPARENCY OF THE PEOPLE’S REPUBLIC OF CHINA AND THE UNITED STATES ###

(a)Studies Required ####

(1)Study of prc budget Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a study on the defense budget of the People’s Republic of China. ####

(2)Comparative study on budgets Not later than 90 days after the date on which the study required by paragraph

(1)is submitted, the Secretary of Defense shall submit to the congressional defense committees a comparative study on the defense budgets of the People’s Republic of China and the United States. ####

(3)Objective The objective of the studies required by paragraphs

(1)and

(2)shall be to provide the people of the United States with an accurate comparison of the defense spending of the People’s Republic of China and the United States. ###

(b)Elements The studies required by subsection

(a)shall include, at a minimum, the following: ####

(1)A determination of the amounts invested by the applicable subject country across functional categories for spending, including— #####

(A)defense-related research and development; #####

(B)weapons procurement from domestic and foreign sources; #####

(C)operations and maintenance; #####

(D)pay and benefits; #####

(E)military construction; #####

(F)military pensions; and #####

(G)any other category the Secretary considers relevant. ####

(2)A consideration of the effects of purchasing power parity and market exchange rates, particularly on non-traded goods. ####

(3)An estimate of the magnitude of omitted spending from official defense budget information and, in the study required by subsection (a)(2), an accounting for such spending. ###

(c)Methodology The studies required by subsection

(a)shall each employ a robust methodology that— ####

(1)does not depend on the official budget pronouncements of the Government of the People’s Republic of China or the Chinese Communist Party; ####

(2)takes into account the military-civil fusion present in the People’s Republic of China; ####

(3)employs the building-block method of analysis or a similar method of analysis, as appropriate; and ####

(4)excludes spending related to veterans benefits, other than military pensions provided to veterans. ###

(d)Considerations The studies required by this section may take into consideration the following: ####

(1)The effects of state-owned enterprises on the defense expenditures of the People’s Republic of China. ####

(2)The role of differing acquisition policies and structures with respect to the defense expenditures of each subject country. ####

(3)Any other matter relevant to evaluating the resources dedicated to the defense spending or the various military-related outlays of the People’s Republic of China. ###

(e)Form The studies required by this section shall be submitted in unclassified form, without any designation relating to dissemination control, but may include classified annexes.