Sec. 1346. MODIFICATION OF PUBLIC REPORTING OF CHINESE MILITARY COMPANIES OPERATING IN THE UNITED STATES
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## SEC. 1346 MODIFICATION OF PUBLIC REPORTING OF CHINESE MILITARY COMPANIES OPERATING IN THE UNITED STATES Section 1260H of the William M. ( Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283; 134 Stat. 3965; 10 U.S.C. 113 note) is amended— ####
(1)in subsection (b)— #####
(A)in paragraph (1), by striking “an explanation of any entities deleted from such list with respect to a prior list” and inserting “a justification for adding any entities to the list and for deleting any entities from a prior list”; #####
(B)in paragraph (2)— ######
(i)by striking “Concurrent with” and inserting the following: > > ##### “(A) In general > > Concurrent with” > ; and ######
(ii)by adding at the end the following: > > ##### “(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.” > ; #####
(C)in paragraph (3)— ######
(i)in the paragraph heading, by striking “ongoing” and inserting “annual”; and ######
(ii)by striking “on an ongoing basis” and inserting “not less frequently than annually”; and #####
(D)by adding at the end the following: > > #### “(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.” > ; ####
(2)in subsection (d)— #####
(A)by redesignating paragraphs (1), (2), and
(3)as paragraphs (2), (3), and (5), respectively; #####
(B)by inserting before paragraph (2), as so redesignated, the following: > > #### “(1) Affiliated with > > The term ‘affiliated with’ means in close formal or informal association.” > ; #####
(C)in paragraph (2), as so redesignated— ######
(i)in subparagraph (A), by striking “and” at the end; ######
(ii)in subparagraph (B)— ######
(I)in clause (i), by amending subclause
(I)to read as follows: > > ###### “(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” > ; and ######
(II)in clause (ii), by striking the period at the end and inserting “; and”; and ######
(iii)by adding at the end the following: > > ##### “(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).” > ; #####
(D)in paragraph (3), as so redesignated— ######
(i)by amending subparagraphs
(A)and
(B)to read as follows: > > ##### “(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.” > ; and ######
(ii)in subparagraph (F), by striking “such as” and inserting “including”; #####
(E)by inserting after paragraph (3), as so redesignated, the following: > > #### “(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.” > ; and #####
(F)in paragraph (5), as so redesignated— ######
(i)by inserting “or intelligence” after “security”; and ######
(ii)by adding at the end before the period the following; “, including other Chinese military and paramilitary elements, security forces, police, law enforcement, border control, and the Ministry of State Security”; ####
(3)by redesignating subsection (d), as so amended, as subsection (g); and ####
(4)by inserting after subsection
(c)the following: > > ### “(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.” > .
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- 134 Stat. 3965
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Sec. 1346
MODIFICATION OF PUBLIC REPORTING OF CHINESE MILITARY COMPANIES OPERATING IN THE UNITED STATES
Stat.134 Stat. 3965
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