Trading With the Communist Chinese Military Act of 1998

Summary: Trading With the Communist Chinese Military Act of 1998 - Directs the Secretary of Defense to compile, publish, and update continuously a list of Communist Chinese military companies owned or controlled by the People's Liberation Army and operating directly or indirectly in the United States or any of its territories and possessions. 
Makes it unlawful for any person to serve as an officer, director, or other manager of any office or business in the United States or its territories or possessions that is owned, operated, or controlled by a Communist Chinese military company.  Directs the President by regulation to require the closing and divestiture of such offices and businesses. 
Prohibits the importation into the United States of goods or services that are the growth, product, or manufacture of a Communist Chinese military company. 
Makes it unlawful for any U.S. person to:  (1) make a loan or extend credit to any Communist Chinese military company; (2) acquire an ownership interest in such a company; or (3) export to such a company any item on the U.S. Munitions List. 
Exempts from the application of this Act any transaction which the President determines (and reports to the Congress) to involve the transfer of food, clothing, medicine, or emergency supplies intended to relieve human suffering. 
Sets forth penalties for violations of this Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Trading With the Communist Chinese 
Military Act of 1998''.

SEC. 2. FINDINGS AND POLICY.

    (a) Findings.--The Congress makes the following findings:
            (1) The People's Liberation Army is the principal 
        instrument of repression within the People's Republic of China, 
        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 Chinese workers.
            (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 
        People's Armed Police regularly solicit investment in joint 
        ventures with United States companies.
            (8) The People's Liberation Army and People's Armed Police 
        have established in the United States over the past decade at 
        least 23 different companies.
            (9) The people of the United States are unaware that 
        certain products they are purchasing in retail stores are 
        produced by companies owned and operated by the People's 
        Liberation Army or the People's Armed Police of China.
            (10) The purchase of these products by American 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 
of China or the People's Armed Police of China from operating in the 
United States or conducting certain business with persons subject to 
the jurisdiction of the United States.

SEC. 3. DETERMINATION OF COMMUNIST CHINESE MILITARY COMPANIES.

    (a) In General.--Not later than 90 days after the date of the 
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 compile a list of persons who are Communist 
Chinese military companies and who are operating directly or indirectly 
in the United States or any of its territories and possessions, and 
shall publish the list of such persons in the Federal Register. Every 6 
months, 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 make such additions to or deletions from the list as are 
necessary, based on the latest information available.
    (b) Communist Chinese Military Company.--For purposes of making the 
determination required by subsection (a), the term ``Communist Chinese 
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 of China or the People's Armed Police 
                of China; and
            (2) includes, but is not limited to, any person identified 
        in the United States Defense Intelligence Agency publication 
        numbered VP-1920-271-90, dated September 1990, or PC-1921-57-
        95, dated October 1995, and any updates of such report under 
        subsection (c).
    (c) Updating of Reports.--The United States Defense Intelligence 
Agency shall update the report described in subsection (b)(2) by not 
later than 90 days after the date of the enactment of this Act and not 
later than every 6 months thereafter, for purposes of identifying 
Communist Chinese military companies.

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 Communist 
Chinese 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 Communist Chinese military company.
    (c) Importation.--No goods or services that are the growth, 
product, or manufacture of a Communist Chinese 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 
knowingly--
            (1) to make any loan or other extension of credit to any 
        Communist Chinese military company; or
            (2) to acquire an ownership interest in any Communist 
        Chinese military company.
    (e) Exports.--It shall be unlawful for any person subject to the 
jurisdiction of the United States to export any item on the United 
States Munitions List to a Communist Chinese military company.
    (f) Exception For Humanitarian Items.--Subsections (a) through (e) 
shall not apply with respect to a transaction if the President 
determines that the transaction involves the transfer of food, 
clothing, medicine, or emergency supplies intended to relieve human 
suffering, and the President transmits that determination to the 
Congress.

SEC. 5. REGULATORY AUTHORITY.

    The President shall issue 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 the $100,000, or 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, or imprisoned not more than 4 years, 
        or both.

SEC. 7. DEFINITION.

    For purposes of this Act--
            (1) the term ``People's Liberation Army'' means the land, 
        naval, and air military services and the military intelligence 
        services of the Communist Government of the People's Republic 
        of China, and any member of any such service; and
            (2) the term ``People's Armed Police'' means the 
        paramilitary service of the Communist Government 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.