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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8043 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 8043

To impose certain sanctions relating to the People's Republic of China 
    and support for the Russian invasion of Ukraine, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 17, 2024

Mr. Gallagher (for himself, Mr. Panetta, Mr. Moolenaar, and Mr. Golden 
  of Maine) introduced the following bill; which was referred to the 
                      Committee on Foreign Affairs

_______________________________________________________________________

                                 A BILL

 
To impose certain sanctions relating to the People's Republic of China 
    and support for the Russian invasion of Ukraine, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``NO LIMITS Act of 2024''.

SEC. 2. FINDINGS; SENSE OF CONGRESS.

    (a) Findings.--Congress finds the following:
            (1) On September 30, 2022, the Office of Foreign Assets 
        Control of the Department of the Treasury designated People's 
        Republic of China entity Sinno Electronics Co. Limited (Sinno) 
        for providing material support to the defense industrial base 
        of the Russian Federation.
            (2) On January 26, 2023, the Office of Foreign Assets 
        Control of the Department of the Treasury sanctioned People's 
        Republic of China entity Changsha Tianyi Space Science and 
        Technology Research Institute Co. LTD (Spacety China) for 
        providing material support to entities of the Russian 
        Federation involved in combat operations in Ukraine.
            (3) There is clear and increasing evidence that People's 
        Republic of China entities continue to evade United States 
        sanctions to provide material support to the defense and 
        military industrial base of the Russian Federation.
            (4) Under Executive Order 13959 (85 Fed. Reg. 73185; 
        related to addressing the threat from securities investments 
        that finance Communist Chinese military companies), the 
        President found that the People's Republic of China ``increases 
        the size of the country's military-industrial complex by 
        compelling civilian Chinese companies to support its military 
        and intelligence activities. Those companies, though remaining 
        ostensibly private and civilian, directly support the PRC's 
        military, intelligence, and security apparatuses and aid in 
        their development and modernization.''.
            (5) Evidence of industrial support for the Russian 
        Federation by the People's Republic of China, combined with 
        inherent blurred lines between the civilian versus governmental 
        defense apparatus in the People's Republic of China, requires 
        new authorities to protect the national security of the United 
        States.
    (b) Sense of Congress.--It is the sense of Congress that the 
Russian Federation's continued invasion of Ukraine is directly enabled 
by the People's Republic of China. It is therefore time for the 
President to--
            (1) more fully cut off financing avenues for People's 
        Republic of China entities providing materiel support to the 
        defense and related materiel sector of the economy of the 
        Russian Federation;
            (2) more fully cut off financing avenues for People's 
        Republic of China entities involved in military modernization 
        activities;
            (3) impose country-wide export control restrictions on 
        dual-use technology exported to the PRC over concerns of 
        diversion to the Russian Federation; and
            (4) impose sanctions on PRC entities involved in the export 
        of weapons and dual-use technology to the Russian Federation, 
        including microelectronics, aerospace, automobiles, among 
        others.

SEC. 3. IMPOSITION OF SANCTIONS RELATING TO THE PEOPLE'S REPUBLIC OF 
              CHINA AND SUPPORT FOR RUSSIAN INVASION OF UKRAINE.

    (a) In General.--On and after the date that is 90 days after the 
date of the enactment of this Act, the President--
            (1) may impose the sanction described in subsection (c) 
        with respect to a foreign person the President determines--
                    (A) is located or headquartered within, or is 
                organized under the laws of, the People's Republic of 
                China; and
                    (B) operates in the technology sector of the 
                economy of the Russian Federation, the defense and 
                related materiel sector of such economy, or any other 
                sector of such economy as may be determined by the 
                Secretary of the Treasury or the Secretary of State, as 
                the case may be; and
            (2) may impose the sanction described in subsection (c) 
        with respect to a foreign person the President determines that, 
        in acting for or on behalf of, or for the benefit of, directly 
        or indirectly, the armed forces or intelligence services of the 
        People's Republic of China, is responsible for or engages in--
                    (A) malicious cyber-enabled activities;
                    (B) the production, or research and development, of 
                dual-use technology or defense or related materiels; or
                    (C) facilitating the evasion, circumvention, or 
                direct violation of United States export controls or 
                sanctions.
    (b) People's Republic of China Military Companies Operating in 
Russian Federation.--On and after the date that is 180 days after the 
date of the enactment of this Act, the President shall impose the 
sanctions described in subsection (c) with respect to a foreign person 
that--
            (1) has business operations in the Russian Federation; and
            (2) is--
                    (A) a known Chinese military company; or
                    (B) a covered exporter of automobiles to the 
                Russian Federation.
    (c) Sanction Described.--
            (1) In general.--The sanction described in this paragraph 
        is the exercise all of the powers granted to the President 
        under the International Emergency Economic Powers Act (50 
        U.S.C. 1701 et seq.) to the extent necessary to block and 
        prohibit all transactions in property and interests in property 
        of a foreign person if such property or interests in property 
        are in the United States, come within the United States, or are 
        or come within the possession or control of a United States 
        person.
            (2) Implementation.--The President may exercise the 
        authorities provided to the President under sections 203 and 
        205 of the International Emergency Economic Powers Act (50 
        U.S.C. 1702 and 1704) to the extent necessary to carry out this 
        section.
            (3) Penalties.--The penalties provided for in subsections 
        (b) and (c) of section 206 of the International Emergency 
        Economic Powers Act (50 U.S.C. 1705) shall apply to any person 
        who violates, attempts to violate, conspires to violate, or 
        causes a violation of any prohibition of this section, or an 
        order or regulation prescribed under this section, to the same 
        extent that such penalties apply to a person that commits an 
        unlawful act described in subsection section 206(a) of such Act 
        (50 U.S.C. 1705(a)).
            (4) Exceptions.--
                    (A) Exception for intelligence and law enforcement 
                actions.--Sanctions under this section shall not apply 
                with respect to--
                            (i) any activity subject to the reporting 
                        requirements under title V of the National 
                        Security Act of 1947 (50 U.S.C. 3091 et seq.); 
                        or
                            (ii) any authorized intelligence or law 
                        enforcement activities of the United States.
                    (B) Exception relating to importation of goods.--
                            (i) In general.--The authorities and 
                        requirements to impose sanctions authorized 
                        under this section shall not include the 
                        authority or requirement to impose sanctions on 
                        the importation of goods.
                            (ii) Good defined.--In this subparagraph, 
                        the term ``good'' means any article, natural or 
                        manmade substance, material, supply or 
                        manufactured product, including inspection and 
                        test equipment, and excluding technical data.
    (d) Waivers.--The President may waive the application of sanctions 
under this section with respect to a foreign person for renewable 
periods of not more than 90 days each if the President determines and 
reports to Congress that such a waiver is vital to the national 
interests of the United States.
    (e) Definitions.--In this section:
            (1) Business operations.--The term ``business operations'' 
        means any participation by any person in a commercial 
        enterprise or venture, or participation in any association, 
        institution, organization, or entity, whether of a commercial 
        nature or otherwise. This includes the production, 
        distribution, exportation, sale of goods, or provision of 
        services, regardless of whether a pecuniary benefit or other 
        assets are derived from such participation.
            (2) Foreign person.--The term ``foreign person'' means any 
        person that is not a United States person.
            (3) Knowingly.--The term ``knowingly'', with respect to 
        conduct, a circumstance, or a result, means that a person has 
        actual knowledge, or should have known, of the conduct, the 
        circumstance, or the result (as the case may be).
            (4) Person.--The term ``person'' means an individual or 
        entity.
            (5) United states person.--The term ``United States 
        person'' means any United States citizen, permanent resident 
        alien, an entity organized under the laws of the United States 
        or any jurisdiction within the United States (including a 
        foreign branch of such an entity), or any person in the United 
        States.
            (6) Covered exporter of automobiles.--The term ``covered 
        exporter of automobiles'' means any of the following persons:
                    (A) Chery International.
                    (B) Haval.
                    (C) Great Wall Motors.
                    (D) Changan International.
                    (E) Chery Automobile.
                    (F) any subsidiary, affiliate, or successor of the 
                entities in subparagraph (A), (B), (C), (D), or (E).
            (7) Known chinese military company.--The term ``known 
        Chinese military company'' means any of the following persons:
                    (A) Aviation Industry Corporation of China Ltd 
                (AVIC).
                    (B) 360 Security Technology Inc. (Qihoo 360).
                    (C) Advanced Micro-Fabrication Equipment Inc. China 
                (AMEC).
                    (D) Aerospace CH UAV Co., Ltd (S-SEA).
                    (E) Beijing Megvii Technology Co., Ltd. (Megvii).
                    (F) BGI Genomics Co. Ltd. (BGI).
                    (G) MGI Co. Ltd. (MGI).
                    (F) China Aerospace Science and Industry 
                Corporation Limited (CASIC).
                    (G) China Electronics Corporation (CEC).
                    (H) China Construction Technology Co. Ltd (CCTC).
                    (I) China Communications Construction Group (CCCG).
                    (J) China Construction Technology Co. Ltd (CCTC).
                    (K) China Electronics Technology Group Corporation 
                (CETC).
                    (L) Hangzhou Hikvision Digital Technology Co. Ltd 
                (Hikvision).
                    (M) China General Nuclear Power Corporation (CGN).
                    (N) China Mobile Communications Group Co. Ltd. 
                (China Mobile Comm).
                    (O) China National Chemical Corporation 
                (ChemChina).
                    (P) China National Offshore Oil Corporation 
                (CNOOC).
                    (Q) China National Nuclear Corporation (CNNC).
                    (R) China Railway Construction Corporation Limited 
                (CRCC).
                    (S) China South Industries Group Corporation 
                (CRCC).
                    (T) China State Construction Engineering 
                Corporation Limited (CSCEC).
                    (U) China State Shipbuilding Corporation Limited 
                (CSSC).
                    (V) China Telecom Group Co, Ltd. (China Telecom).
                    (W) China Three Gorges Corporation (CTG).
                    (X) China United Network Communications Group Co. 
                Ltd (China Unicom).
                    (Y) CloudWalk Technology Co. Ltd (CloudWalk).
                    (Z) Dawning Information Industry Co. Ltd (Sugon).
                    (AA) Hesai Technology Co. Ltd (Hesai).
                    (BB) Huawei Technologies Co. Ltd (Huawei).
                    (CC) Inspur Group Partners Co. Ltd (IDG Capital).
                    (DD) Semiconductor Manufacturing International 
                Corporation (SMIC).
                    (EE) Shenzhen DJI Innovation Technology Co. Ltd 
                (DJI).
                    (FF) Yangtze Memory Technologies Co., Ltd. (YMTC).
                    (GG) Zhejiang Dahua Technology Co., Ltd (Dahua).
                    (HH) AVIC Senyang Aircraft Co., Ltd.
                    (II) Autel Robotics Co. Ltd (Autel).
                    (JJ) AVIC Heavy Machinery Company Limited.
                    (KK) AVIC Xi'An Aircraft Industry Group Company 
                Ltd.
                    (LL) ChangXin Memory Technologies (CXMT).
                    (MM) Dahua Technology.
                    (NN) Zhejiang Uniview Technologies.
                    (OO) Guizhou Guihang Automotive Components Co., 
                Ltd.
                    (PP) Changying Xinzhi Technology Co., Ltd.
                    (QQ) Sichuan Northern Nitrocellulose Co., Ltd.
                    (RR) Northern Chemistry Industry Co., Ltd.
                    (SS) Any subsidiary, affiliate, or successor of 
                entities in subparagraphs (A) through (RR).
    (f) Rules of Construction.--Nothing in this section may be 
construed to limit the authority of the President to designate or 
sanction persons pursuant to an applicable Executive order or otherwise 
pursuant to the International Emergency Economic Powers Act (50 U.S.C. 
1701 et seq.).

SEC. 4. DETERMINATION OF SANCTIONS ON ARMS MANUFACTURERS OF THE 
              PEOPLE'S REPUBLIC OF CHINA ENGAGED IN OVERSEAS WEAPONS 
              SALES.

    (a) Determination.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of the Treasury, in consultation 
with the Secretary of State, and the Secretary of Defense, shall submit 
to the appropriate congressional committees a determination of whether, 
for each covered person, that covered person meets the criteria for the 
imposition of the sanction described in section 3(c).
    (b) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Affairs, the Permanent 
                Select Committee on Intelligence, and the Select 
                Committee on the Strategic Competition Between the 
                United States and the Chinese Communist Party of the 
                House of Representatives; and
                    (B) the Committee on Foreign Relations, the 
                Committee on Banking, Housing, and Urban Affairs, and 
                the Select Committee on Intelligence of the Senate.
            (2) Covered person.--The term ``covered person'' means any 
        of the following persons:
                    (A) China North Industries Group Corporation.
                    (B) Aviation Industry Corporation of China.
                    (C) China Electronics Technology Group Corporation.
                    (D) China South Industries Group Corporation.
                    (E) China Aerospace Science and Industry 
                Corporation.
                    (F) China General Nuclear Power Group.
                    (G) China National Nuclear Corporation.
                    (H) China State Shipbuilding Corporation.

SEC. 5. CLASSIFYING THE PEOPLE'S REPUBLIC OF CHINA AT HIGH RISK OF 
              FACILITATING DIVERSION OF UNITED STATES TECHNOLOGY TO THE 
              RUSSIAN FEDERATION.

    (a) In General.--Section 1754 of the Export Control Reform Act of 
2018 (50 U.S.C. 4813) is amended--
            (1) by redesignating subsections (d), (e), and (f) as 
        subsections (e), (f), and (g), respectively; and
            (2) by inserting after subsection (c) the following:
    ``(d) Anti-Diversion Controls Relating to the People's Republic of 
China.--
            ``(1) In general.--A license shall be required for the 
        export, reexport, or in-country transfer of items described in 
        paragraph (2), the control of which is implemented pursuant to 
        subsection (a) by the Secretary, to--
                    ``(A) the People's Republic of China; or
                    ``(B) any other foreign country the Secretary of 
                State, in consultation with the Secretary of Defense, 
                determines is facilitating the diversion of technology 
                or defense-related materials that are contributing 
                materially to the ability of the Government of Russia 
                to undertake military action in Ukraine.
            ``(2) Items described.--The items described in this 
        paragraph--
                    ``(A) are items that the Secretary of Defense, in 
                consultation with the Secretary of Commerce, the 
                Secretary of State, and the Secretary of Energy, 
                determines could make a contribution to the military 
                potential or logistical capability of the Russian 
                Federation and are at risk of diversion to the Russian 
                Federation or affiliates through the People's Republic 
                of China; and
                    ``(B) items that directly or indirectly relate to--
                            ``(i) semiconductors;
                            ``(ii) sensors and lasers;
                            ``(iii) aviation and propulsion;
                            ``(iv) materials processing; or
                            ``(v) other technologies, as defined by the 
                        Secretary of Defense, in consultation with the 
                        Secretary of Commerce, the Secretary of State, 
                        and the Secretary of Energy.
            ``(3) Rebuttable presumption.--The Secretary shall deny a 
        license described in paragraph (1) for the export, reexport, or 
        in-country transfer of an item described in paragraph (2) 
        unless the person seeking to export the item submits to the 
        Secretary such documentation as the Secretary may reasonably 
        require that demonstrates by clear and convincing evidence that 
        the export of the item will not pose a threat to the national 
        security of the United States.
            ``(4) Applications of licensing requirements to 
        subsidiaries.--Any licensing requirement applied to a PRC or 
        Russian entity by reason of the entity being included on the 
        entity list shall also apply to any subsidiary or other entity 
        over which the listed entity has control.''.

SEC. 6. REGULATIONS.

    Not later than 90 days after the date of the enactment of this Act, 
the Secretary of Commerce, the Secretary of Defense, and the Secretary 
of State, shall issue such regulations as may be necessary to carry out 
this Act and the amendments made by this Act.
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