II 

117TH CONGRESS 

2D SESSION S. 5050 

To impose sanctions on certain foreign flash memory integrated circuit 

companies that threaten the interests of the United States. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 29, 2022 

Mr. COTTON introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To impose sanctions on certain foreign flash memory integrated circuit companies that threaten the interests of 

the United States. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Defending Memory 

5 Chip Supply Chains from the Chinese Communist Party 

6 Act’’. 

7 SEC. 2. IMPOSITION OF SANCTIONS ON CERTAIN FOREIGN 

8 ENTITIES. 

9 (a) IN GENERAL.— 


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1 (1) ASSET BLOCKING.—On and after the date 

2 that is 30 days after the date of the enactment of 

3 this Act, the President shall exercise all the powers 

4 granted to the President under the International 

5 Emergency Economic Powers Act (50 U.S.C. 1701 

6 et seq.) to the extent necessary to block and prohibit 

7 all significant transactions in property and interests 

8 in property of an entity described in subsection (b), 

9 if such property and interests in are in the United 

10 States, come within the United States, or are or 

11 come within the possession or control of a United 

12 States person. 

13 (2) DETERMINATION OF SIGNIFICANCE.—For 

14 the purposes of this subsection, in determining if 

15 transactions are significant, the President may con16 sider the totality of the facts and circumstances, in17 cluding the factors set forth in section 561.404 of 

18 title 31, Code of Federal Regulations (or any cor19 responding similar regulation or ruling). 

20 (3) RULE OF CONSTRUCTION.—For purposes of 

21 this section, participation in an international stand22 ards-setting organization or in the activities of such 

23 an organization may not be construed to be trans24 actions. 


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1 (b) ENTITIES AFFILIATED WITH A COUNTRY OF

2 CONCERN DESCRIBED.—An entity is described in this 

3 subsection if the entity is— 

4 (1) Yangtze Memory Technologies Corporation 

5 (YMTC), any of its subsidiaries, or any company in 

6 which YMTC or its subsidiaries own at least 5 per7 cent; or 

8 (2) an entity— 

9 (A) that is engaged in the production of 

10 flash memory integrated circuits of at least 128 

11 layers; and 

12 (B)(i) that receives or has received sub13 sidies or investments from any national, provin14 cial, county, municipal, or other government, 

15 quasi-government, or party body of a country of 

16 concern, including the Chinese Communist 

17 Party; 

18 (ii) that has links to the sale, transfer, or 

19 research and development of technology for the 

20 Armed Forces of a country of concern, includ21 ing the People’s Liberation Army; 

22 (iii) that is directly or indirectly owned or 

23 controlled by the government or ruling party of 

24 a country of concern or by another entity de25 scribed in this subsection; 


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1 (iv) five percent or more of the outstanding 

2 voting stock or shares of which are owned, con3 trolled, or held by the government or ruling 

4 party of a country of concern or by another en5 tity described in this subsection; 

6 (v) that is subject to substantial influence 

7 from either a country of concern or another en8 tity described in this subsection; 

9 (vi) that is domiciled in a country of con10 cern and shares with another entity described 

11 in this subsection an employee in a position of 

12 material decisionmaking authority; 

13 (vii) that is part of another entity that is 

14 headquartered in a country of concern, includ15 ing a subsidiary, a holding company, a contract 

16 affiliate, or a variable interest entity; or 

17 (viii) that is otherwise substantially influ18 enced by a national of a country of concern or 

19 by another entity domiciled in the country of 

20 concern. 

21 (c) EXCEPTIONS.— 

22 (1) INTELLIGENCE ACTIVITIES.—Sanctions 

23 under this section shall not apply to any activity 

24 subject to the reporting requirements under title V 

25 of the National Security Act of 1947 (50 U.S.C. 


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1 3091 et seq.) or any authorized intelligence activities 

2 of the United States. 

3 (2) EXCEPTION RELATING TO IMPORTATION OF

4 GOODS.— 

5 (A) IN GENERAL.—The authorities and re6 quirements to impose sanctions authorized 

7 under this section shall not include the author8 ity or requirement to impose sanctions on the 

9 importation of goods. 

10 (B) GOOD DEFINED.—In this paragraph, 

11 the term ‘‘good’’ means any article, natural or 

12 manmade substance, material, supply or manu13 factured product, including inspection and test 

14 equipment, and excluding technical data. 

15 (d) WAIVER.—The President may waive the applica16 tion of sanctions under this section with respect to a for17 eign person for renewable periods of not more than 30 

18 days each if the President determines and reports to Con19 gress that such a waiver is vital to the national security 

20 interests of the United States. 

21 (e) IMPLEMENTATION; PENALTIES.— 

22 (1) IMPLEMENTATION.—The President shall ex23 ercise the authorities provided to the President 

24 under sections 203 and 205 of the International 

25 Emergency Economic Powers Act (50 U.S.C. 1702 


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1 and 1704) to the extent necessary to carry out this 

2 section. 

3 (2) PENALTIES.—A person that violates, at4 tempts to violate, conspires to violate, or causes a 

5 violation of subsection (a) or any regulation, license, 

6 or order issued to carry out that subsection shall be 

7 subject to the penalties set forth in subsections (b) 

8 and (c) of section 206 of the International Emer9 gency Economic Powers Act (50 U.S.C. 1705) to the 

10 same extent as a person that commits an unlawful 

11 act described in subsection (a) of that section. 

12 (f) DEFINITIONS.— 

13 (1) IN GENERAL.—In this section: 

14 (A) COUNTRY OF CONCERN.—The term 

15 ‘‘country of concern’’— 

16 (i) has the meaning given the term 

17 ‘‘foreign adversary’’ in section 8(c)(2) of 

18 the Secure and Trusted Communications 

19 Networks Act of 2019 (47 U.S.C. 

20 1607(c)(2)); and 

21 (ii) includes the People’s Republic of 

22 China, Russia, Iran, North Korea, Cuba, 

23 and Venezuela. 

24 (B) UNITED STATES PERSON.—The term 

25 ‘‘United States person’’ means— 


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1 (i) a United States citizen or an alien 

2 lawfully admitted for permanent residence 

3 to the United States; or 

4 (ii) an entity organized under the laws 

5 of the United States or any jurisdiction 

6 within the United States, including a for7 eign branch of such an entity. 

8 (g) SEVERABILITY.—If any provision of this Act or 

9 its application to any person or circumstance is held in10 valid, the invalidity does not affect other provisions or ap11 plications of this Act that can be given effect without the 

12 invalid provision or application, and to this end the provi13 sions of this Act are severable. 

Æ 


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