Trading with the People's Republic of China Military Act of 1998

Summary: Trading With the People's Republic of China Military Act of 1998 - Declares it to be U.S. policy to prohibit any entity owned, operated, or controlled by the People's Liberation Army or the People's Armed Police from operating in the United States or from conducting certain business with persons subject to the jurisdiction of the United States. 
Directs the Secretary of Defense to compile, and publish in the Federal Register, a list of persons who are People's Republic of China (PRC) military companies operating directly or indirectly in the United States or any of its territories or possessions. 
Makes it unlawful for any person to:  (1) serve as an officer, director, or other manager of any office or business anywhere in the United States or its territories or possessions that is owned, operated, or controlled by a PRC military company; or (2) make any loan or other extension of credit to any PRC military company, or acquire any ownership interest in such a company.  Makes it unlawful for:  (1) any person subject to U.S. jurisdiction to export goods, technology, or services to such a company; or (2) any person to export to such a company any goods, technology, or services subject to U.S. jurisdiction. 
Directs the President to require by regulation the closing and divestiture of such companies in the United States or its territories or possessions. 
Prohibits goods or services that are the growth, product, or manufacture of a PRC military company from being imported into the United States. 
Sets forth penalties for violations of this Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Trading With the People's Republic 
of China Military Act of 1998''.

SEC. 2. FINDINGS AND POLICY.

    (a) Findings.--Congress makes the following findings:
            (1) The People's Liberation Army is the principal 
        instrument of repression within the People's Republic of China 
        and is responsible for massacring an unknown number of 
        students, workers, and other demonstrators for democracy in 
        Tiananmen Square on June 4, 1989.
            (2) The People's Liberation Army is responsible for 
        occupying Tibet since 1950 and implementing the official policy 
        of the People's Republic of China to eliminate the unique 
        cultural, linguistic, and religious heritage of the Tibetan 
        people.
            (3) The People's Liberation Army has operational control of 
        the People's Armed Police, an internal security force of over 
        1,000,000 troops, whose primary purpose is to suppress the 
        legitimate protests of the Chinese people.
            (4) The People's Liberation Army is engaged in a massive 
        effort to modernize its military capabilities.
            (5) The People's Liberation Army owns and operates hundreds 
        of companies and thousands of factories the profits from which 
        in some measure are used to support military activities.
            (6) Companies owned by the People's Liberation Army and the 
        People's Armed Police export to the United States such products 
        as toys, clothing, frozen fish, lighting fixtures, garlic, 
        glassware, yarn, footwear, chemicals, machinery, metal 
        products, furniture, decorations, gloves, tents, and tools.
            (7) Companies owned by the People's Liberation Army and the 
        People's Armed Police regularly solicit investment in joint 
        ventures with United States companies.
            (8) The People's Liberation Army and the People's Armed 
        Police have established at least 23 different companies in the 
        United States over the past decade.
            (9) The people of the United States are unaware that 
        certain products they purchase in retail stores are produced by 
        companies owned and operated by the People's Liberation Army or 
        the People's Armed Police.
            (10) The purchase of these products by United States 
        consumers places them in the position of unwittingly 
        subsidizing the operations of the People's Liberation Army and 
        the People's Armed Police.
            (11) The Government of the People's Republic of China, with 
        the assistance of the People's Liberation Army and the People's 
        Armed Police, continues to deny its citizens basic human rights 
        enumerated in the Universal Declaration of Human Rights, 
        persecutes those who seek to freely practice their religion, 
        and denies workers the right to establish free and independent 
        trade unions.
    (b) Policy.--It is the policy of the United States to prohibit any 
entity owned, operated, or controlled by the People's Liberation Army 
or the People's Armed Police from operating in the United States or 
from conducting certain business with persons subject to the 
jurisdiction of the United States.

SEC. 3. COMPILATION AND PUBLICATION OF LIST OF PEOPLE'S REPUBLIC OF 
              CHINA MILITARY COMPANIES.

    (a) Compilation and Publication.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary of Defense, in 
        consultation with the Secretary of the Treasury, the Attorney 
        General, the Director of Central Intelligence, and the Director 
        of the Federal Bureau of Investigation, shall--
                    (A) compile a list of persons who are People's 
                Republic of China military companies and who are 
                operating directly or indirectly in the United States 
                or any of its territories and possessions; and
                    (B) publish the list of such persons in the Federal 
                Register.
            (2) Periodic updates.--Every 6 months after the date of the 
        publication of the list under paragraph (1), the Secretary of 
        Defense, in consultation with the officials referred to in that 
        paragraph, shall make such additions to or deletions from the 
        list as the Secretary considers appropriate based on the latest 
        information available.
    (b) People's Republic of China Military Company.--For purposes of 
making the determination required by subsection (a), the term 
``People's Republic of China military company''--
            (1) means a person that is--
                    (A) engaged in providing commercial services, 
                manufacturing, producing, or exporting; and
                    (B) owned, operated, or controlled by the People's 
                Liberation Army or the People's Armed Police; and
            (2) includes any person identified in Defense Intelligence 
        Agency publication numbered VP-1920-271-90, dated September 
        1990, or PC-1921-57-95, dated October 1995, or any updates of 
        such publications under subsection (c).
    (c) Updating of Publications.--Not later than 90 days after the 
date of enactment of this Act, and every 6 months thereafter, the 
Defense Intelligence Agency shall update the publications referred to 
in subsection (b)(2) for purposes of determining People's Republic of 
China military companies under this section.

SEC. 4. PROHIBITIONS.

    (a) Officers, Directors, Etc.--It shall be unlawful for any person 
to serve as an officer, director, or other manager of any office or 
business anywhere in the United States or its territories or 
possessions that is owned, operated, or controlled by a People's 
Republic of China military company.
    (b) Divestiture.--The President shall by regulation require the 
closing and divestiture of any office or business in the United States 
or its territories or possessions that is owned, operated, or 
controlled by a People's Republic of China military company.
    (c) Importation.--No goods or services that are the growth, 
product, or manufacture of a People's Republic of China military 
company may enter the customs territory of the United States.
    (d) Contracts, Loans, Ownership Interests.--It shall be unlawful 
for any person subject to the jurisdiction of the United States--
            (1) to make any loan or other extension of credit to any 
        People's Republic of China military company; or
            (2) to acquire an ownership interest in any People's 
        Republic of China military company.
    (e) Exports.--It shall be unlawful for any person subject to the 
jurisdiction of the United States to export goods, technology, or 
services to, or for any person to export goods, technology, or services 
that are subject to the jurisdiction of the United States to, a 
People's Republic of China military company.
    (f) Exception for Humanitarian Items.--Subsections (a) through (e) 
shall not apply with respect to a transaction if the President--
            (1) determines that the transaction involves the transfer 
        of food, clothing, medicine, or emergency supplies intended to 
        relieve human suffering; and
            (2) transmits notice of that determination to Congress.

SEC. 5. REGULATORY AUTHORITY.

    The President shall prescribe such regulations as are necessary to 
carry out this Act.

SEC. 6. PENALTIES.

    Any person who knowingly violates section 4 or any regulation 
issued thereunder--
            (1) in the case of the first offense, shall be fined not 
        more than $100,000, imprisoned not more than 1 year, or both; 
        and
            (2) in the case of any subsequent offense, shall be fined 
        not more than $1,000,000, imprisoned not more than 4 years, or 
        both.

SEC. 7. DEFINITIONS.

    For purposes of this Act:
            (1) People's armed police.--The term ``People's Armed 
        Police'' means the paramilitary service of the People's 
        Republic of China, whether or not such service is subject to 
        the control of the People's Liberation Army, the Public 
        Security Bureau of that government, or any other governmental 
        entity of the People's Republic of China.
            (2) People's liberation army.--The term ``People's 
        Liberation Army'' means the land, naval, and air military 
        services and the military intelligence services of the People's 
        Republic of China, and any member of any such service.