I 

118TH CONGRESS 

2D SESSION H. R. 10453 

To prohibit the Secretary of Defense from entering into information technology contracts with entities that provide certain services to China, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 17, 2024 

Mr. FALLON (for himself, Mr. ALFORD, and Mr. ELLZEY) introduced the 

following bill; which was referred to the Committee on Armed Services 

A BILL 

To prohibit the Secretary of Defense from entering into 

information technology contracts with entities that provide certain services to China, and for other purposes. 

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

3 SECTION 1. PROHIBITION ON INFORMATION TECHNOLOGY 

4 CONTRACTS WITH ENTITIES THAT PROVIDE 

5 CERTAIN SERVICES TO CHINA. 

6 (a) PROHIBITION.—The Secretary of Defense may 

7 not enter into, renew, or extend an information technology 

8 contract with an entity, including a parent, subsidiary, afVerDate Sep 11 2014 02:24 Jan 22, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H10453.IH H10453

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1 filiate, or subcontractor (at any tier) of such an entity, 

2 that— 

3 (1) owns, operates, substantially funds, or has 

4 a material interest in a facility or research organiza5 tion located on the mainland of the People’s Repub6 lic of China if such facility or research organization 

7 has a primary purpose, as determined by the Sec8 retary, of researching or developing artificial intel9 ligence; 

10 (2) has enabled a covered Chinese entity to ac11 cess a source code of software to be used by or on 

12 behalf of the United States Government, if such con13 tract is for such software; 

14 (3) provides software with a military or law en15 forcement application or a dual-use application to a 

16 covered Chinese entity; or 

17 (4) operates a data center (as such term is de18 fined in section 453 of the Energy Independence and 

19 Security Act of 2007 (42 U.S.C. 17112)) in the 

20 mainland of China, including a data center oper21 ated— 

22 (A) by a parent, subsidiary, or affiliate of 

23 an entity seeking to enter into, renew, or extend 

24 a contract with the Secretary; or 


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1 (B) on behalf of such an entity by a cov2 ered Chinese entity. 

3 (b) WAIVER AUTHORITY.—The Secretary may waive 

4 the prohibition under this section for a contract if the Sec5 retary determines such a waiver is necessary to advance 

6 the national security interests of the United States. 

7 (c) APPLICABILITY.—This section shall apply only 

8 with respect to contracts entered into, renewed, or ex9 tended within three years after the date of the enactment 

10 of this Act. 

11 (d) DEFINITIONS.—In this section: 

12 (1) The term ‘‘covered Chinese entity’’ means 

13 an entity that the Secretary of Defense, in consulta14 tion with the Director of National Intelligence or the 

15 Director of the Federal Bureau of Investigation, de16 termines to be— 

17 (A) owned, controlled, directed, or subcon18 tracted by, affiliated with, or otherwise con19 nected to, the government of China, or a par20 ent, subsidiary, or affiliate of such an entity; or 

21 (B) a subcontractor (at any tier) of the 

22 government of China. 

23 (2) The term ‘‘material interest’’ means a fi24 nancial or other interest that the Secretary deterVerDate Sep 11 2014 02:24 Jan 22, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H10453.IH H10453

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1 mines is significant enough to influence a decision or 

2 action of an individual. 

Æ 


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