I 

116TH CONGRESS 

2D SESSION H. R. 7007 

To initiate negotiations for a bilateral agreement on compensation between 

the United States and the People’s Republic of China relating to the 

spread of the virus responsible for COVID–19, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 22, 2020 

Mrs. WAGNER introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Oversight and Reform, the Judiciary, Financial Services, Energy and Commerce, Armed Services, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To initiate negotiations for a bilateral agreement on compensation between the United States and the People’s 

Republic of China relating to the spread of the virus 

responsible for COVID–19, 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. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Compensation for Americans Act of 2020’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

Sec. 3. Findings. 

Sec. 4. Sense of Congress. 

Sec. 5. Statement of policy. 

Sec. 6. Coronavirus compensation fund. 

Sec. 7. Bilateral agreement on compensation between the United States and 

China. 

Sec. 8. Authorization to freeze Chinese assets. 

Sec. 9. Encouraging developing nations to seek compensation from China. 

Sec. 10. Suspension of requests made by Chinese entities to acquire United 

States entities under certain circumstances. 

Sec. 11. Prohibition on procurement of certain products from a covered foreign 

entity, including products intended to be included in the Strategic National Stockpile. 

Sec. 12. Report on integrity of the United States supply chain. 

Sec. 13. Restriction on Federal funds to propose, finalize, implement, or enforce any rule that reconsiders or amends certain Bureau of 

Industry and Security rules. 

Sec. 14. Authorization of sanctions. 

Sec. 15. Export controls on certain telecommunication equipment. 

Sec. 16. Visa ban on researchers affiliated with the PLA. 

Sec. 17. Prohibition on investment of TSP I fund in China. 

Sec. 18. Protecting pharmaceutical access for Americans. 

Sec. 19. Removal of China’s designation as a developing country in international bodies. 

Sec. 20. Protecting America from cyberattacks. 

Sec. 21. Ensuring transparency for Chinese listings on U.S. Exchanges. 

3 SEC. 2. DEFINITIONS. 

4 In this Act: 

5 (1) CHINA.—The term ‘‘China’’ means the Peo6 ple’s Republic of China. 

7 (2) COMPENSATION FUND.—The term ‘‘com8 pensation fund’’ means the Coronavirus Compensa9 tion Fund. 

10 (3) WHO.—The term ‘‘WHO’’ means the 

11 World Health Organization. 


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1 SEC. 3. FINDINGS. 

2 Congress finds the following: 

3 (1) In the early weeks of the spread of the virus 

4 responsible for COVID–19, the Government of 

5 China systematically suppressed, misrepresented, 

6 and falsified information concerning such spread. 

7 (2) The first reported instance of such virus 

8 may have occurred on November 17, 2019, in 

9 Wuhan, China. The Government of China did not 

10 notify the WHO that it had detected an unknown 

11 respiratory illness until December 31, 2020. 

12 (3) The Government of China violated inter13 national law by covering up the origins and spread 

14 of such virus. 

15 (4) Articles 6 and 7 of the International Health 

16 Regulations of 2005 require notification to the 

17 WHO within 24 hours of an assessment of events 

18 that may constitute a public health emergency of 

19 international concern. 

20 (5) The International Health Regulations re21 quire the WHO to be notified of ‘‘all relevant public 

22 health information’’ regarding public health events 

23 of international concern, and for information to be 

24 shared in a ‘‘timely, accurate, and sufficiently de25 tailed manner’’. 


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1 (6) The Government of China failed to share 

2 information with the WHO, and embarked on a 

3 campaign to silence doctors, scientists, and whistle4 blowers in an attempt to mislead the Chinese people 

5 and the international community concerning the 

6 spread of such virus. 

7 (7) On December 27, 2020, samples of the 

8 virus found in hospitals in Wuhan, China, were ana9 lyzed and determined to be a novel coronavirus. 

10 (8) The Government of China did not share 

11 with the WHO such determination concerning the 

12 novel coronavirus. 

13 (9) On January 3, 2020, the Government of 

14 China ordered Chinese scientists working to se15 quence the genome of such virus to surrender or de16 stroy their samples and the Government of China 

17 did not publicly share the genetic sequence until 

18 January 12, 2020. 

19 (10) In early January, the Government of 

20 China jailed eight medical professionals who sought 

21 to share information relating to such virus. 

22 (11) A Chinese ophthalmologist, Dr. Li 

23 Wenliang, tried to warn the medical community of 

24 such virus. The Government of China forced Dr. Li 

25 to sign a letter stating that he made ‘‘false stateVerDate Sep 11 2014 02:20 Jun 17, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7007.IH H7007

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1 ments’’ concerning such virus. Dr. Li later became 

2 infected with such virus and died on February 7, 

3 2020. 

4 (12) The Government of China insisted that no 

5 evidence existed concerning the spread of such virus 

6 through person-to-person transmission, and allowed 

7 Chinese citizens to travel unimpeded, including dur8 ing the Lunar New Year, when travelers numbered 

9 in the hundreds of millions. 

10 (13) On December 31, 2020, the Government 

11 of Taiwan noted the possibility that such virus could 

12 spread through person-to-person transmission. Offi13 cials of the WHO sent to China did not announce 

14 that such virus could spread through person-to-per15 son transmission until January 22, 2020. 

16 (14) The Government of China continues to 

17 neutralize or eliminate actors who threaten to expose 

18 the Government of China’s culpability in the spread 

19 of such virus. 

20 (15) Wuhan Central Hospital reprimanded Dr. 

21 Ai Fen for sharing a picture of a patient report la22 beled ‘‘SARS Coronavirus’’. In an interview pub23 lished in the Chinese magazine Ren Wu on March 

24 10, 2020, Doctor Ai said ‘‘This incident has shown 

25 that everyone needs to have their own thoughts beVerDate Sep 11 2014 02:20 Jun 17, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7007.IH H7007

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1 cause someone has to step up to speak the truth.’’. 

2 Dr. Ai has been missing since March 29, 2020, and 

3 it is believed the Government of China is involved in 

4 his disappearance. 

5 (16) The repeated violations of the Inter6 national Health Regulations by the Government of 

7 China caused the spread of such virus first in 

8 Wuhan, China, and then worldwide. 

9 (17) As of May 18, 2020, such spread affected 

10 188 countries worldwide, resulting in millions of con11 firmed cases and more than 317,000 deaths. 

12 (18) As of May 18, 2020, 496,509 Americans 

13 were infected by such virus and 89,874 of those peo14 ple died. 

15 (19) On May 15, 2020, the Asia Development 

16 bank estimated that such spread will cost the global 

17 economy between $5.8 trillion and $8.8 trillion in 

18 2020. 

19 (20) The International Labor Organization esti20 mated that the spread of such virus caused a 10.5 

21 percent drop in working hours globally, which is 

22 equivalent to 305 million full-time jobs. 

23 (21) As of April 2020, the Bureau of Labor 

24 Statistics reported 26.5 million Americans lost their 

25 jobs. 


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1 (22) More than 38.6 million Americans filed 

2 unemployment claims over an eight-week period end3 ing on May 16, 2020, bringing the total of unem4 ployed Americans to more than 40 million. 

5 (23) The real unemployment rate is estimated 

6 to be between 22.8 percent and 25 percent. 

7 (24) On April 24, 2020, the Congressional 

8 Budget Office predicted that the United States 

9 Gross Domestic Product would fall 12 percent in the 

10 second quarter of 2020, equivalent to a decline at 

11 annual rate of 40 percent. 

12 (25) To mitigate the economic impact of such 

13 spread and bolster response efforts, Congress appro14 priated nearly $3 trillion in emergency spending. 

15 (26) In April 2020, the Congressional Budget 

16 Office nearly quadrupled its Fiscal Year 2020 Fed17 eral budget deficit projection from $1 trillion in Jan18 uary 2020 to $3.7 trillion. 

19 (27) If China had acted in accordance with its 

20 international obligations just three weeks earlier, the 

21 number of early coronavirus cases may have been 95 

22 percent lower. 

23 SEC. 4. SENSE OF CONGRESS. 

24 It is the sense of Congress that— 


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1 (1) in February 2020, the United States cor2 rectly designated Chinese state-owned media outlets 

3 as foreign missions; 

4 (2) the Secretary of State should limit to 100 

5 or fewer people the total number of Chinese citizens 

6 who may work for a Chinese state-owned media out7 let in the United States; 

8 (3) such limitation may encourage China to 

9 allow American journalists and other foreign inde10 pendent reporters to live and report in China with11 out threat or harassment by China; and 

12 (4) United States entities should avoid sup13 porting or spreading propaganda from China by re14 viewing the policies of such entities relating to media 

15 advertisements created by China or advertising in 

16 media outlets owned or operated by China. 

17 SEC. 5. STATEMENT OF POLICY. 

18 It is the policy of the United States to seek com19 pensation from China for intentionally concealing and dis20 torting information concerning the spread of the virus re21 sponsible for COVID–19 resulting in— 

22 (1) the avoidable loss of life, health, or property 

23 of citizens of the United States; and 

24 (2) the damage to the national economy of the 

25 United States. 


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1 SEC. 6. CORONAVIRUS COMPENSATION FUND. 

2 (a) ESTABLISHMENT.—There is established in the 

3 Treasury a compensation fund to be known as the 

4 Coronavirus Compensation Fund. 

5 (b) DEPOSIT OF FUNDS.—There shall be deposited 

6 into the compensation fund— 

7 (1) the amount agreed upon, if any, between 

8 China and the United States relating to the bilateral 

9 agreement on compensation initiated under section 

10 7(a) of this Act; and 

11 (2) the amount, if any, collected from the freez12 ing of assets belonging to China under section 8. 

13 SEC. 7. BILATERAL AGREEMENT ON COMPENSATION BE14 TWEEN THE UNITED STATES AND CHINA. 

15 (a) NEGOTIATIONS.— 

16 (1) IN GENERAL.—Not later than 30 days after 

17 the date of the enactment of this Act, the Secretary 

18 of State shall enter into negotiations with China 

19 concerning a bilateral agreement on compensation. 

20 (2) MATTERS INCLUDED.—The initiation of ne21 gotiations required under paragraph (1) shall relate 

22 to— 

23 (A) the efforts of China to intentionally 

24 distort and conceal information concerning the 

25 spread of the virus responsible for COVID–19; 

26 and 


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1 (B) the avoidable loss of life, health, or 

2 property of citizens of the United States and 

3 the damage to the national economy of the 

4 United States caused by the actions of China 

5 described in subparagraph (A). 

6 (b) DEPOSIT OF FUNDS.—Any money received relat7 ing to negotiations initiated under paragraph (1) shall be 

8 deposited into the compensation fund established under 

9 section 6(a). 

10 SEC. 8. AUTHORIZATION TO FREEZE CHINESE ASSETS. 

11 (a) IN GENERAL.—The President shall use his au12 thorities under the International Emergency Economic 

13 Powers Act to freeze or block any Chinese asset subject 

14 to the jurisdiction of the United States in order to reach 

15 a bilateral agreement on compensation with China. With 

16 the consent of China under the bilateral agreement on 

17 compensation, the President may deposit all or some of 

18 these frozen funds into the compensation fund established 

19 under section 6(a). 

20 (b) PUBLIC REPOSITORY OF CERTAIN ASSETS.— 

21 (1) IN GENERAL.—Not later than 30 days after 

22 the date of the enactment of this Act, the Secretary 

23 of Treasury shall publish online a public repository 

24 described in paragraph (2). 


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1 (2) MATTERS INCLUDED.—The public reposi2 tory described in this paragraph shall include infor3 mation relating to the following: 

4 (A) Chinese state-owned entities in the 

5 United States. 

6 (B) Chinese entities financed, directed, or 

7 controlled by the Government of China or the 

8 Chinese Communist Party. 

9 (C) United States entities financed, di10 rected, or controlled by the Government of 

11 China or the Chinese Communist Party. 

12 (3) SELF-REPORT.— 

13 (A) IN GENERAL.—Subject to subpara14 graph (B), not later than 60 days after the date 

15 of the enactment of this Act, a United States 

16 entity employed by a Chinese entity, including 

17 a firm in the United States financial, con18 sulting, or legal industries, shall self-report to 

19 the Secretary of Treasury and be added to the 

20 public repository described in paragraph (2). 

21 (B) EXCEPTION.—Notwithstanding any 

22 other provision of law, if a public report under 

23 subparagraph (A) would disclose confidential 

24 proprietary information, including business or 

25 trade secrets, the information shall be provided 


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1 to the Committee on Foreign Affairs of the 

2 House of Representatives and the Committee 

3 on Foreign Relations of the Senate in a classi4 fied repository and shall not be subject to pub5 lic disclosure. 

6 (C) REMOVAL FROM PUBLIC REPOSI7 TORY.—Not later than 30 days after a United 

8 State entity reports to the Secretary of Treas9 ury that all contracts or agreements with a Chi10 nese entity have terminated, the Secretary of 

11 Treasury shall remove all information relating 

12 to the United States entity from the public re13 pository. 

14 (c) DEPOSIT OF FUNDS.—Notwithstanding any other 

15 provision of law, and requiring the consent of China, the 

16 President may deposit all or some of the assets frozen pur17 suant to subsection (a) into the compensation fund estab18 lished under section 6(a). 

19 SEC. 9. ENCOURAGING DEVELOPING NATIONS TO SEEK 

20 COMPENSATION FROM CHINA. 

21 (a) IN GENERAL.—Not earlier than 60 days after the 

22 date that the Secretary of State enters into negotiations 

23 with China concerning a bilateral agreement on compensa24 tion pursuant to section 7, if China did not enter into, 

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1 tiations, the Secretary of State shall submit to the appro2 priate congressional committees a report described in sub3 section (b). 

4 (b) REPORT.—The report described in this subsection 

5 shall include information concerning strategies to encour6 age and support developing countries that are facing a se7 vere health and economic crisis due to China’s actions dur8 ing the spread of the virus responsible for COVID–19 and 

9 indebted to China to freeze, repossess, and seize Chinese 

10 assets and holdings in each such country, renege on loans 

11 or debt, and expropriate ports in order to fund response 

12 efforts to the spread of the virus responsible for COVID– 

13 19 if China does not provide compensation to such devel14 oping countries. 

15 (c) DEFINITIONS.—In this section: 

16 (1) APPROPRIATE CONGRESSIONAL COMMIT17 TEES.—The term ‘‘appropriate congressional com18 mittees’’ means— 

19 (A) the Committee on Foreign Affairs of 

20 the House of Representatives; and 

21 (B) the Committee on Foreign Relations of 

22 the Senate. 

23 (2) CHINESE ASSETS AND HOLDINGS.—The 

24 term ‘‘Chinese assets and holdings’’ means the fol25 lowing entities in a developing country— 


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1 (A) Chinese state-owned entities; 

2 (B) Chinese entities financed, directed, or 

3 controlled by China or the Chinese Communist 

4 Party; or 

5 (C) entities organized under the laws of a 

6 developing country that are financed, directed, 

7 or controlled by China or the Chinese Com8 munist Party. 

9 SEC. 10. SUSPENSION OF REQUESTS MADE BY CHINESE EN10 TITIES TO ACQUIRE UNITED STATES ENTI11 TIES UNDER CERTAIN CIRCUMSTANCES. 

12 (a) IN GENERAL.—Not earlier than 60 days after the 

13 date that the Secretary of State enters into negotiations 

14 with China concerning a bilateral agreement on compensa15 tion pursuant to section 7, the President shall suspend re16 view of requests made by a Chinese entity to acquire a 

17 United States entity to the Committee on Foreign Invest18 ment in the United States. 

19 (b) APPLICATION.—Subsection (a) shall only apply if 

20 China did not enter into, or abide by, a contract or agree21 ment relating to such negotiations pursuant to section 7, 

22 and such suspension shall be lifted if such contract or 

23 agreement is established. 


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1 SEC. 11. PROHIBITION ON PROCUREMENT OF CERTAIN 

2 PRODUCTS FROM A COVERED FOREIGN ENTI3 TY, INCLUDING PRODUCTS INTENDED TO BE 

4 INCLUDED IN THE STRATEGIC NATIONAL 

5 STOCKPILE. 

6 (a) PROHIBITION ON USE OF FEDERAL FUNDS FOR

7 FOREIGN PROCUREMENT.—No Federal funds may be 

8 used to procure by contract, subcontract, grant, coopera9 tive agreement, or otherwise any product sourced, manu10 factured, or assembled in whole or in part by a covered 

11 foreign entity that poses a supply chain risk to the na12 tional security of the United States, including products 

13 identified in the report required under subsection (b). 

14 (b) REPORT.— 

15 (1) IN GENERAL.—Not later than 60 days after 

16 the date of the enactment of this Act, the President 

17 shall submit to the appropriate congressional com18 mittees a report concerning supply chain risks and 

19 vulnerabilities posed by a covered foreign entity to 

20 the national security, including health security, of 

21 the United States, and methods to mitigate such 

22 risks and vulnerabilities. 

23 (2) MATTERS INCLUDED.—The report required 

24 under paragraph (1) shall include information relat25 ing to such business sectors: 

26 (A) Pharmaceutical. 


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1 (B) Medical. 

2 (C) Rare earth material. 

3 (D) Cybersecurity. 

4 (E) Information security. 

5 (F) Communication technology, including 

6 fifth generation technology. 

7 (G) Electronics. 

8 (c) WAIVER.—The President may waive the prohibi9 tions under this section with respect to a product if the 

10 President determines and reports to the appropriate con11 gressional committees that such waiver is in the national 

12 security interests of the United States. 

13 (d) TERMINATION.—The President may terminate 

14 the prohibition with respect to a product if the President 

15 determines and reports to the appropriate congressional 

16 committees not less than 15 days before such termination 

17 takes effect that China— 

18 (1) acknowledges intentionally distorting and 

19 concealing information concerning the spread of the 

20 virus responsible for COVID–19; and 

21 (2) provides compensation to the United States 

22 for actions described in paragraph (1), which 

23 caused— 

24 (A) avoidable loss of life, health, or prop25 erty of citizens of the United States; and 


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1 (B) damage to the national economy of the 

2 United States. 

3 (e) DEFINITIONS.—In this section: 

4 (1) APPROPRIATE CONGRESSIONAL COMMIT5 TEES.—The term ‘‘appropriate congressional com6 mittees’’ means— 

7 (A) the Committee on Foreign Affairs of 

8 the House of Representatives; 

9 (B) the Committee on Energy and Com10 merce of the House of Representatives; 

11 (C) the Committee on Homeland Security 

12 of the House of Representatives; 

13 (D) the Committee on Armed Services of 

14 the House of Representatives; 

15 (E) the Committee on Veterans’ Affairs of 

16 the House of Representatives; 

17 (F) the Committee on Ways and Means of 

18 the House of Representatives; 

19 (G) the Committee on Foreign Relations of 

20 the Senate; 

21 (H) the Committee on Health, Education, 

22 Labor, and Pensions of the Senate; 

23 (I) the Committee on Homeland Security 

24 and Governmental Affairs of the Senate; 


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1 (J) the Committee on Armed Services of 

2 the Senate; and 

3 (K) the Committee on Veterans’ Affairs of 

4 the Senate. 

5 (2) COVERED FOREIGN ENTITY.—The term 

6 ‘‘covered foreign entity’’ means any entity domiciled 

7 in China or subject to influence or control by China 

8 or the Communist Party of China, as determined by 

9 the Secretary of State. 

10 SEC. 12. REPORT ON INTEGRITY OF THE UNITED STATES 

11 SUPPLY CHAIN. 

12 (a) IN GENERAL.—Not later than 60 days after the 

13 date of the enactment of this Act, the Secretary of Com14 merce shall submit to the appropriate congressional com15 mittees a report concerning strategies to incentivize, re16 quire, or compensate United States persons for relocating 

17 or repatriating United States business activities and as18 sets from China to the United States. 

19 (b) MATTERS INCLUDED.—The report required 

20 under subsection (a) shall include information relating to 

21 the following business sectors: 

22 (1) Pharmaceutical. 

23 (2) Medical. 

24 (3) Electronics. 


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1 (4) Information and communications tech2 nology. 

3 (5) Science. 

4 (6) Defense industries. 

5 (c) DEFINITIONS.—In this section: 

6 (1) APPROPRIATE CONGRESSIONAL COMMIT7 TEES.—The term ‘‘appropriate congressional com8 mittees’’ means— 

9 (A) the Committee on Foreign Affairs of 

10 the House of Representatives; 

11 (B) the Committee on Energy and Com12 merce of the House of Representatives; 

13 (C) the Committee on Financial Services of 

14 the House of Representatives; 

15 (D) the Committee on Foreign Relations of 

16 the Senate; 

17 (E) the Committee on Commerce, Science, 

18 and Transportation of the Senate; and 

19 (F) the Committee on Finance of the Sen20 ate. 

21 (2) PERSON.—The term ‘‘person’’ means— 

22 (A) a natural person; 

23 (B) a corporation, business association, 

24 partnership, society, trust, financial institution, 

25 insurer, underwriter, guarantor, and any other 


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1 business organization, any other nongovern2 mental entity, organization, or group, or any 

3 government or agency thereof; and 

4 (C) any successor to any entity described 

5 in subparagraph (B). 

6 (3) UNITED STATES PERSON.—The term 

7 ‘‘United States person’’ means— 

8 (A) any individual who is a citizen or na9 tional of the United States or who is an indi10 vidual described in subparagraph (B) of section 

11 274B(a)(3) of the Immigration and Nationality 

12 Act (8 U.S.C. 1324b(a)(3)); or 

13 (B) a corporation or other legal entity 

14 which is organized under the laws of the United 

15 States, any State or territory thereof, or the 

16 District of Columbia. 

17 SEC. 13. RESTRICTION ON FEDERAL FUNDS TO PROPOSE, 

18 FINALIZE, IMPLEMENT, OR ENFORCE ANY 

19 RULE THAT RECONSIDERS OR AMENDS CER20 TAIN BUREAU OF INDUSTRY AND SECURITY 

21 RULES. 

22 No Federal funds may be used to propose, finalize, 

23 implement, or enforce any rule that reconsiders or amends 

24 Bureau of Industry and Security’s— 


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1 (1) rule dated April 28, 2020, and titled, 

2 ‘‘Elimination of License Exception Civil End Users 

3 (CIV)’’ (85 Fed. Reg. 23470); or 

4 (2) rule dated April 28, 2020, and titled, ‘‘Ex5 pansion of Export, Reexport, and Transfer (in-Coun6 try) Controls for Military End Use or Military End 

7 Users in the People’s Republic of China, Russia, or 

8 Venezuela’’ (85 Fed. Reg. 23459). 

9 SEC. 14. AUTHORIZATION OF SANCTIONS. 

10 (a) IN GENERAL.—The President shall impose the 

11 sanctions described in subsection (b) with respect to a for12 eign person the President determines, based on credible 

13 evidence, is one of the following: 

14 (1) A government official, or a senior associate 

15 of such an official, of China. 

16 (2) A Chinese manufacturer or supplier, or a 

17 corporate officer of, or a principal shareholder with 

18 controlling interests in, such a manufacturer or sup19 plier, in the following industries: 

20 (A) Artificial intelligence. 

21 (B) Genetic engineering technologies. 

22 (C) Semiconductors. 

23 (D) Lithium battery manufacturing. 

24 (E) High-capacity computing. 

25 (F) Quantum computing. 


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1 (G) Medical equipment. 

2 (H) Pharmaceuticals. 

3 (I) Robotics. 

4 (J) Biotechnology. 

5 (3) An individual, corporate officer, or principal 

6 shareholder with controlling interests in a medical 

7 equipment supplier or pharmaceutical manufacturer 

8 entity that profited from the global response to the 

9 spread of the virus responsible for COVID–19. 

10 (4) A citizen of China who the President deter11 mines to— 

12 (A) be responsible for or complicit in, or to 

13 have engaged in, the misappropriation, receipt, 

14 or use of intellectual property stolen from 

15 United States persons if that misappropriation, 

16 receipt, or use is reasonably likely to result in, 

17 or has materially contributed to, a significant 

18 threat to the national security, foreign policy, or 

19 economy of the United States; 

20 (B) have materially assisted, sponsored, or 

21 provided financial, material, or technological 

22 support for, or goods or services to or in sup23 port of— 

24 (i) any activity described in subpara25 graph (A); or 


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1 (ii) any person the property and inter2 ests in property of which are blocked pur3 suant to subsection (b)(1); 

4 (C) be owned or controlled by, or to have 

5 acted or purported to act for or on behalf of, 

6 directly or indirectly, any person the property 

7 and interests in property of which are blocked 

8 pursuant to subsection (b)(1); 

9 (D) have attempted to engage in any of 

10 the activity described in subparagraph (A), (B), 

11 or (C); or 

12 (E) be a corporate officer of, or a principal 

13 shareholder with controlling interests in, an en14 tity described in any of subparagraph (A), (B), 

15 (C), or (D). 

16 (5) A Chinese state-owned entity or a Chinese 

17 entity financed, directed, or controlled by the Gov18 ernment of China or the Chinese Communist Party, 

19 that the President determines to, on or after the 

20 date of the enactment of this Act— 

21 (A) be responsible for or complicit in, or to 

22 have engaged in, censorship, surveillance, or 

23 any other similar or related activity through 

24 means of telecommunications, including the 

25 internet; 


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1 (B) have materially assisted, sponsored, or 

2 provided financial, material, or technological 

3 support for, or goods or services to or in sup4 port of— 

5 (i) any activity described in subpara6 graph (A); or 

7 (ii) any person the property and inter8 ests in property of which are blocked pur9 suant to subsection (b)(1); 

10 (C) be owned or controlled by, or to have 

11 acted or purported to act for or on behalf of, 

12 directly or indirectly, any person the property 

13 and interests in property of which are blocked 

14 pursuant to subsection (b)(1); 

15 (D) have attempted to engage in any of 

16 the activity described in subparagraph (A), (B), 

17 or (C); or 

18 (E) be a corporate officer of, or a principal 

19 shareholder with controlling interests in, an en20 tity described in any of subparagraph (A), (B), 

21 (C), or (D). 

22 (b) SANCTIONS DESCRIBED.—The sanctions de23 scribed in this subsection are the following: 

24 (1) ASSET BLOCKING.—The President shall ex25 ercise all of the powers granted to the President 


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1 under the International Emergency Economic Pow2 ers Act (50 U.S.C. 1701 et seq.) to the extent nec3 essary to block and prohibit all transactions in prop4 erty and interests in property of a foreign person 

5 identified in the report required under subsection (a) 

6 if such property and interests in property are in the 

7 United States, come within the United States, or 

8 come within the possession or control of a United 

9 States person. 

10 (2) INELIGIBILITY FOR VISAS, ADMISSION, OR

11 PAROLE.— 

12 (A) VISAS, ADMISSION, OR PAROLE.—A 

13 foreign person described in subsection (a) and 

14 his or her immediate family members is— 

15 (i) inadmissible to the United States; 

16 (ii) ineligible to receive a visa or other 

17 documentation to enter the United States; 

18 and 

19 (iii) otherwise ineligible to be admitted 

20 or paroled into the United States or to re21 ceive any other benefit under the Immigra22 tion and Nationality Act (8 U.S.C. 1101 et 

23 seq.). 

24 (B) CURRENT VISA REVOKED.— 


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1 (i) IN GENERAL.—A foreign person 

2 described in subsection (a) is subject to 

3 revocation of any visa or other entry docu4 mentation regardless of when the visa or 

5 other entry documentation is or was 

6 issued. 

7 (ii) IMMEDIATE EFFECT.—A revoca8 tion under clause (i) shall— 

9 (I) take effect immediately; and 

10 (II) automatically cancel any 

11 other valid visa or entry documenta12 tion that is in the alien’s possession. 

13 (C) EXCEPTION TO COMPLY WITH INTER14 NATIONAL OBLIGATIONS.—Sanctions under this 

15 paragraph shall not apply with respect to a for16 eign person if admitting or paroling such per17 son into the United States is necessary to per18 mit the United States to comply with the 

19 Agreement regarding the Headquarters of the 

20 United Nations, signed at Lake Success June 

21 26, 1947, and entered into force November 21, 

22 1947, between the United Nations and the 

23 United States, or other applicable international 

24 obligations. 


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1 (c) IMPLEMENTATION.—The President may exercise 

2 all authorities provided under sections 203 and 205 of the 

3 International Emergency Economic Powers Act (50 

4 U.S.C. 1702 and 1704) to carry out this section. 

5 (d) WAIVER.—The President may waive the applica6 tion of sanctions under this section with respect to a for7 eign person identified in the report required under sub8 section (a) if the President determines and certifies to the 

9 appropriate congressional committees that such a waiver 

10 is in the national interest of the United States. 

11 (e) TERMINATION OF SANCTIONS.—The President 

12 may terminate the application of sanctions under this sec13 tion with respect to a foreign person if the President deter14 mines and reports to the appropriate congressional com15 mittees not less than 15 days before such termination 

16 takes effect that China— 

17 (1) acknowledges intentionally distorting and 

18 concealing information concerning the spread of the 

19 virus responsible for COVID–19; and 

20 (2) provides compensation to the United States 

21 for such actions described in paragraph (1), which 

22 caused an avoidable injury to— 

23 (A) the life, health, and property of the 

24 citizens of the United States; and 


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1 (B) the national economy of the United 

2 States. 

3 (f) EXCEPTION RELATING TO THE IMPORTATION OF

4 GOODS.— 

5 (1) IN GENERAL.—The authorities and require6 ments to impose sanctions under this section shall 

7 not include the authority or requirement to impose 

8 sanctions on the importation of goods. 

9 (2) GOOD DEFINED.—In this subsection, the 

10 term ‘‘good’’ means any article, natural or man11 made substance, material, supply or manufactured 

12 product, including inspection and test equipment, 

13 and excluding technical data. 

14 (g) DEFINITIONS.—In this section: 

15 (1) APPROPRIATE CONGRESSIONAL COMMIT16 TEES.—The term ‘‘appropriate congressional com17 mittees’’ means— 

18 (A) the Committee on Foreign Affairs of 

19 the House of Representatives; and 

20 (B) the Committee on Foreign Relations of 

21 the Senate. 

22 (2) FOREIGN PERSON.—The term ‘‘foreign per23 son’’ means— 


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1 (A) an individual who is not a citizen of 

2 the United States or an alien admitted for per3 manent residence to the United States; or 

4 (B) a corporation, partnership, or other 

5 entity which is created or organized under the 

6 laws of a foreign country or which has its prin7 cipal place of business outside the United 

8 States. 

9 SEC. 15. EXPORT CONTROLS ON CERTAIN TELECOMMUNI10 CATION EQUIPMENT. 

11 (a) IN GENERAL.—Section 1754 of the John S. 

12 McCain National Defense Authorization Act for Fiscal 

13 Year 2019 (50 U.S.C. 4813) is amended by adding at the 

14 end the following: 

15 ‘‘(g) CERTAIN TELECOMMUNICATIONS EQUIP16 MENT.— 

17 ‘‘(1) IN GENERAL.—The Secretary, in consulta18 tion with the Secretary of State, the Secretary of 

19 Defense, and the heads of other appropriate Federal 

20 departments and agencies, shall establish and main21 tain a list of goods and technology that would serve 

22 the primary purpose of assisting, or be specifically 

23 configured to assist, the People’s Republic of China 

24 in acquiring the capability to carry out censorship, 

25 surveillance, or any other similar or related activity 


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1 through means of telecommunications, including the 

2 internet, the prohibition or licensing of which would 

3 be effective in barring acquisition or enhancement of 

4 such capability. 

5 ‘‘(2) PROHIBITION.—Notwithstanding any other 

6 provision of law, the Secretary shall prohibit the ex7 port of goods or technology on the list established 

8 under paragraph (1) to Chinese state-owned entities 

9 or Chinese entities financed, directed, or controlled 

10 by the People’s Republic of China or the Chinese 

11 Communist Party. 

12 ‘‘(3) WAIVER.—The President may waive the 

13 application of paragraph (2) with respect to export 

14 of goods or technology on the list established under 

15 paragraph (1) on a case-by-case basis if the Presi16 dent determines and certifies to Congress that it is 

17 in the national interests of the United States to do 

18 so. 

19 ‘‘(4) DEFINITIONS.—In this subsection, the 

20 term ‘Internet’ has the meaning given the term in 

21 section 231(e)(3) of the Communications Act of 

22 1934 (47 U.S.C. 231(e)(3)).’’. 

23 (b) REGULATIONS.— 

24 (1) IN GENERAL.—Not later than 90 days after 

25 the date of the enactment of this Act, the President 


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1 shall revise the Export Administration Regulations 

2 and any other regulations necessary to carry out the 

3 amendment made by subsection (a). 

4 (2) EXPORT ADMINISTRATION REGULATIONS

5 DEFINED.—In this subsection, the term ‘‘Export Ad6 ministration Regulations’’ means the Export Admin7 istration Regulations as maintained and amended 

8 under the authority of the International Emergency 

9 Economic Powers Act and codified, as of the date of 

10 the enactment of this Act, in subchapter C of chap11 ter VII of title 15, Code of Federal Regulations. 

12 (c) EFFECTIVE DATE.—Section 1754(g) of the John 

13 S. McCain National Defense Authorization Act for Fiscal 

14 Year 2019 (50 U.S.C. 4813(g)), as added by subsection 

15 (a), shall take effect on the date of the enactment of this 

16 Act. 

17 SEC. 16. VISA BAN ON RESEARCHERS AFFILIATED WITH 

18 THE PLA. 

19 (a) IDENTIFICATION OF PLA–SUPPORTED INSTITU20 TIONS.— 

21 (1) IN GENERAL.—Not later than 60 days after 

22 the date of the enactment of this Act, and annually 

23 thereafter, the Secretary of Homeland Security shall 

24 publish a list identifying the research, engineering, 

25 and scientific institutions that the Secretary of 


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1 Homeland Security determines are affiliated with, or 

2 funded by, the Chinese People’s Liberation Army. 

3 (2) FORM.—The list published under paragraph 

4 (1) shall be unclassified and publicly accessible, but 

5 may include a classified annex. 

6 (b) EXCLUSION FROM UNITED STATES.—Except as 

7 provided in subsections (d) and (e), the Secretary of State 

8 may not issue a visa under subparagraph (F) or (J) of 

9 section 101(a)(15) of the Immigration and Nationality Act 

10 (8 U.S.C. 1101(a)(15)), and the Secretary of Homeland 

11 Security may not admit, parole into the United States, 

12 or otherwise provide nonimmigrant status under such sub13 paragraphs, to any alien who is, or has previously been, 

14 employed, sponsored, or funded by any entity identified 

15 on the most recently published list under subsection (a). 

16 (c) INQUIRY.—Before issuing a visa described in sub17 section (b) to a national of China, the Secretary of State, 

18 the Secretary of Homeland Security, a consular officer, 

19 or a U.S. Customs and Border Protection officer shall ask 

20 the alien seeking such visa if the alien is, or has previously 

21 been, employed, funded, or otherwise sponsored by the 

22 Chinese People’s Liberation Army or any of the affiliated 

23 institutions identified on the most recently published list 

24 under subsection (a). 


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1 (d) EXCEPTION TO COMPLY WITH UNITED NATIONS

2 HEADQUARTERS AGREEMENT.—Subsection (b) shall not 

3 apply to an individual if admitting the individual to the 

4 United States is necessary to permit the United States 

5 to comply with the Agreement between the United Nations 

6 and the United States of America regarding the Head7 quarters of the United Nations, signed June 26, 1947, 

8 and entered into force November 21, 1947, and other ap9 plicable international obligations. 

10 (e) NATIONAL SECURITY WAIVER.—The President, 

11 or a designee of the President, may waive subsection (b) 

12 if the President or such designee certifies in writing to 

13 the appropriate congressional committees that such waiver 

14 is in the national security interest of the United States. 

15 SEC. 17. PROHIBITION ON INVESTMENT OF TSP I FUND IN 

16 CHINA. 

17 (a) IN GENERAL.—Section 8438(b)(4) of title 5, 

18 United States Code, is amended by adding at the end the 

19 following: 

20 ‘‘(C) The index selected by the Board 

21 under subparagraph (A) may not include invest22 ments in any stock of an entity based in the 

23 People’s Republic of China.’’. 

24 (b) DIVESTITURE OF ASSETS.—Not later than 60 

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1 eral Retirement Thrift Investment Board (as established 

2 under section 8472(a) of title 5, United States Code), in 

3 consultation with the manager of the Thrift Savings Fund, 

4 shall— 

5 (1) review whether any sums in the Thrift Sav6 ings Fund are invested in contravention of subpara7 graph (C) of section 8438(b)(4) of such title, as 

8 added by subsection (a); 

9 (2) if any sums are so invested, and consistent 

10 with the legal and fiduciary duties provided under 

11 chapter 84 of such title or any other provision of 

12 law, divest such sums; and 

13 (3) re-invest the divested sums in investments 

14 that do not contradict such subparagraph. 

15 SEC. 18. PROTECTING PHARMACEUTICAL ACCESS FOR 

16 AMERICANS. 

17 (a) LIST OF CRITICAL DRUGS PRODUCED EXCLU18 SIVELY IN CHINA.— 

19 (1) IN GENERAL.—Not later than 30 days after 

20 the date of enactment of this Act, the Commissioner 

21 of Food and Drugs shall submit to the Congress a 

22 list of all critical drugs and critical active pharma23 ceutical ingredients— 

24 (A) that are produced in China; and 


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1 (B) the supply of which would be disrupted 

2 for United States consumers if such production 

3 were discontinued or interrupted. 

4 (2) DEFINITIONS.—In this subsection: 

5 (A) The term ‘‘critical active pharma6 ceutical ingredient’’ means an active pharma7 ceutical ingredient in a critical drug. 

8 (B) The term ‘‘critical drug’’ means a 

9 product that— 

10 (i) is a drug (as defined in section 

11 201 of the Federal Food, Drug, and Cos12 metic Act (21 U.S.C. 321)) for which the 

13 approval of an application submitted under 

14 subsection (b) or (j) of section 505 of such 

15 Act (21 U.S.C. 355) or subsection (a) or 

16 (k) of section 351 of the Public Health 

17 Service Act (42 U.S.C. 352) remains in ef18 fect; and 

19 (ii) is deemed by the Commissioner of 

20 Food and Drugs to be critical to the health 

21 and safety of United States consumers. 

22 (C) The term ‘‘produce’’ means manufac23 tured, prepared, propagated, compounded, or 

24 processed, in whole or in part. 


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1 (b) CERTIFICATION CONCERNING CHINESE PHARMA2 CEUTICAL REGULATION.— 

3 (1) IN GENERAL.—Not later than 180 days 

4 after the date of enactment of this Act, the Commis5 sioner of Food and Drugs (in this subsection re6 ferred to as the ‘‘Commissioner’’) shall certify to the 

7 Congress whether the Chinese pharmaceutical indus8 try is being regulated for safety (including regula9 tion of such industry by Chinese authorities and the 

10 Food and Drug Administration) to substantially the 

11 same degree as the United States pharmaceutical in12 dustry. 

13 (2) INVESTIGATIONS.—The Commissioner— 

14 (A) shall conduct such investigations as 

15 may be necessary to make the certification re16 quired by paragraph (1); and 

17 (B) in conducting such investigations, may 

18 use unannounced inspections and demand all 

19 necessary onsite access. 

20 (3) PLAN.—If the Commissioner certifies pur21 suant to paragraph (1) that the Chinese pharma22 ceutical industry is not being regulated for safety to 

23 substantially the same degree as the United States 

24 pharmaceutical industry, the Commissioner shall, 

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1 mits the certification required by paragraph (1), 

2 submit a plan to the Congress to protect United 

3 States consumers from unsafe Chinese drugs. 

4 (c) PURCHASING PLAN.— 

5 (1) IN GENERAL.—Not later than 90 days after 

6 the date of the enactment of this Act, the Secretary 

7 of Defense, in coordination with the Secretary of 

8 Health and Human Services and the Commissioner 

9 of Food and Drugs, shall submit to the Congress— 

10 (A) a plan to ensure that by 2024 no phar11 maceutical products purchased for beneficiaries 

12 of health care from the Department of Defense 

13 or any associated program are made in part or 

14 in whole in China; and 

15 (B) an assessment of the resilience and ca16 pacity of the current supply chain and indus17 trial base to support national defense if no 

18 pharmaceutical products purchased for bene19 ficiaries of health care from the Department of 

20 Defense or any associated program are made in 

21 part or in whole in China, including with re22 spect to— 

23 (i) the manufacturing capacity of the 

24 United States; 


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1 (ii) gaps in domestic manufacturing 

2 capabilities, including non-existent, extinct, 

3 threatened, and single-point-of-failure ca4 pabilities; and 

5 (iii) supply chains with single points 

6 of failure and limited resiliency. 

7 (2) REQUIRED RECOMMENDATIONS.—The as8 sessment under paragraph (1)(B) shall include rec9 ommendations— 

10 (A) to address critical bottlenecks in the 

11 supply of pharmaceutical products in the 

12 United States; and 

13 (B) to mitigate single points of failure and 

14 limited resilience of supply chains for pharma15 ceutical products in the United States. 

16 SEC. 19. REMOVAL OF CHINA’S DESIGNATION AS A DEVEL17 OPING COUNTRY IN INTERNATIONAL BODIES. 

18 (a) STATEMENT OF POLICY.—It is the policy of the 

19 United States to oppose efforts by China to use its self20 declared status as a developing country to lessen its obli21 gations under international agreements, dispute settle22 ment proceedings, negotiations, rules, and regulations. 

23 (b) WORLD BANK.—The Secretary of the Treasury 

24 shall instruct the United States Executive Director at the 

25 International Bank for Reconstruction and Development 


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1 to pursue the removal of China from eligibility for assist2 ance from the Bank. 

3 (c) DESIGNATION OF CHINA AS A DEVELOPED COUN4 TRY.— 

5 (1) UNITED STATES TRADE LAW.—Notwith6 standing any other provision of law, China shall be 

7 treated as a developed country for the purposes of 

8 United States trade law. 

9 (2) WTO DESIGNATION.—The President shall 

10 direct the United States Trade Representative to use 

11 the voice, vote, and influence of the United States to 

12 secure changes at the World Trade Organization 

13 to— 

14 (A) prevent China from receiving benefits 

15 under the rules and regulations of the World 

16 Trade Organization that are not justified by ap17 propriate economic and other indicators; and 

18 (B) treat China as a developed country. 

19 (d) UNITED NATIONS CLASSIFICATION SYSTEM.— 

20 The President shall direct the United States Permanent 

21 Representative to the United Nations to use the voice, 

22 vote, and influence of the United States— 

23 (1) to revise the classification system of the 

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1 sure the classification of China reflects justifiable 

2 economic and other indicators; and 

3 (2) to treat China as a developed country for 

4 purposes of the Standard Country or Area Codes for 

5 Statistical Use (Series M, No. 49). 

6 SEC. 20. PROTECTING AMERICA FROM CYBERATTACKS. 

7 (a) EXEMPTIONS TO THE COMPUTER FRAUD AND

8 ABUSE ACT.—Section 1030 of title 18, United States 

9 Code, is amended by adding at the end the following: 

10 ‘‘(k) EXCEPTION FOR THE USE OF ATTRIBUTIONAL

11 TECHNOLOGY.— 

12 ‘‘(1) IN GENERAL.—This section shall not apply 

13 with respect to the use of attributional technology in 

14 regard to a defender who uses a program, code, or 

15 command for attributional purposes that beacons or 

16 returns locational or attributional data in response 

17 to a cyber intrusion in order to identify the source 

18 of an intrusion; if— 

19 ‘‘(A) the program, code, or command origi20 nated on the computer of the defender but is 

21 copied or removed by an unauthorized user; 

22 ‘‘(B) the program, code, or command does 

23 not result in the destruction of data or result 

24 in an impairment of the essential operating 

25 functionality of the attacker’s computer system, 


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1 or intentionally create a backdoor enabling in2 trusive access into the attacker’s computer sys3 tem; and 

4 ‘‘(C) the defender believes the attacker is 

5 an agent or an affiliate of Chinese state com6 mercial actors in the United States, other Chi7 nese entities or individuals financed, directed, 

8 or controlled by the Chinese State, Government 

9 of China, or the Chinese Communist Party. 

10 ‘‘(2) DEFINITION.—The term ‘attributional 

11 data’ means any digital information such as log files, 

12 text strings, time stamps, malware samples, identi13 fiers such as user names and Internet Protocol ad14 dresses and metadata or other digital artifacts gath15 ered through forensic analysis.’’. 

16 (b) EXCLUSION FROM PROSECUTION FOR CERTAIN

17 COMPUTER CRIMES FOR THOSE TAKING ACTIVE CYBER

18 DEFENSE MEASURES.—Section 1030 of title 18, United 

19 States Code, is amended by adding at the end the fol20 lowing: 

21 ‘‘(l) ACTIVE CYBER DEFENSE MEASURES NOT A

22 VIOLATION.— 

23 ‘‘(1) IN GENERAL.—It is a defense to a crimi24 nal prosecution under this section that the conduct 

25 constituting the offense was an active cyber defense 


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1 measure if the defender believes the attacker was an 

2 agent or an affiliate of Chinese state commercial ac3 tors in the United States, other Chinese entities or 

4 individuals financed, directed, or controlled by the 

5 Chinese State, the Government of China, or the Chi6 nese Communist Party. 

7 ‘‘(2) DEFINITIONS.—In this subsection— 

8 ‘‘(A) the term ‘defender’ means a person 

9 or an entity that is a victim of a persistent un10 authorized intrusion of the individual entity’s 

11 computer; 

12 ‘‘(B) the term ‘active cyber defense meas13 ure’— 

14 ‘‘(i) means any measure— 

15 ‘‘(I) undertaken by, or at the di16 rection of, a defender; and 

17 ‘‘(II) consisting of accessing 

18 without authorization the computer of 

19 the attacker to the defender’s own 

20 network to gather information in 

21 order to— 

22 ‘‘(aa) establish attribution of 

23 criminal activity to share with 

24 law enforcement and other 


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1 United States Government agen2 cies responsible for cybersecurity; 

3 ‘‘(bb) disrupt continued un4 authorized activity against the 

5 defender’s own network; or 

6 ‘‘(cc) monitor the behavior 

7 of an attacker to assist in devel8 oping future intrusion prevention 

9 or cyber defense techniques; but 

10 ‘‘(ii) does not include conduct that— 

11 ‘‘(I) intentionally destroys or ren12 ders inoperable information that does 

13 not belong to the victim that is stored 

14 on another person or entity’s com15 puter; 

16 ‘‘(II) recklessly causes physical 

17 injury or financial loss as described 

18 under subsection (c)(4); 

19 ‘‘(III) creates a threat to the 

20 public health or safety; 

21 ‘‘(IV) intentionally exceeds the 

22 level of activity required to perform 

23 reconnaissance on an intermediary 

24 computer to allow for attribution of 


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1 the origin of the persistent cyber in2 trusion; 

3 ‘‘(V) intentionally results in in4 trusive or remote access into an 

5 intermediary’s computer; 

6 ‘‘(VI) intentionally results in the 

7 persistent disruption to a person or 

8 entities internet connectivity resulting 

9 in damages defined under subsection 

10 (c)(4); or 

11 ‘‘(VII) impacts any computer de12 scribed under subsection (a)(1) re13 garding access to national security in14 formation, subsection (a)(3) regarding 

15 government computers, or to sub16 section (c)(4)(A)(i)(V) regarding a 

17 computer system used by or for a 

18 Government entity for the furtherance 

19 of the administration of justice, na20 tional defense, or national security; 

21 ‘‘(C) the term ‘attacker’ means a person or 

22 an entity that is the source of the persistent un23 authorized intrusion into the victim’s computer; 

24 and 


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1 ‘‘(D) the term ‘intermediary computer’ 

2 means a person or entity’s computer that is not 

3 under the ownership or primary control of the 

4 attacker but has been used to launch or obscure 

5 the origin of the persistent cyber-attack.’’. 

6 (c) NOTIFICATION REQUIREMENT FOR THE USE OF

7 ACTIVE CYBER DEFENSE MEASURES.—Section 1030 of 

8 title 18, United States Code, is amended by adding the 

9 following: 

10 ‘‘(m) NOTIFICATION REQUIREMENT FOR THE USE

11 OF ACTIVE CYBER DEFENSE MEASURES.— 

12 ‘‘(1) IN GENERAL.—A defender who uses an ac13 tive cyber defense measure under the preceding sec14 tion must notify the FBI National Cyber Investiga15 tive Joint Task Force and either receive a response 

16 from the FBI acknowledging receipt of the notifica17 tion or wait 48 hours prior to using the measure. 

18 ‘‘(2) REQUIRED NOTIFICATION.—Notification 

19 must include the type of cyber breach that the per20 son or entity was a victim of, the intended target of 

21 the active cyber defense measure, the steps the de22 fender plans to take to preserve evidence of the 

23 attacker’s criminal cyber intrusion, as well as the 

24 steps they plan to prevent damage to intermediary 

25 computers not under the ownership of the attacker 


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1 and other information requested by the FBI to as2 sist with oversight.’’. 

3 SEC. 21. ENSURING TRANSPARENCY FOR CHINESE LIST4 INGS ON U.S. EXCHANGES. 

5 (a) DEFINITIONS.—In this section— 

6 (1) the term ‘‘applicable Chinese issuer’’ means 

7 a Chinese issuer— 

8 (A) that is required to file a covered form; 

9 and 

10 (B) for which, during the period covered 

11 by the filing described in subparagraph (A), a 

12 covered foreign public accounting firm has pre13 pared an audit report for the issuer; 

14 (2) the term ‘‘audit report’’ has the meaning 

15 given the term in section 2(a) of the Sarbanes-Oxley 

16 Act of 2002 (15 U.S.C. 7201(a)); 

17 (3) the term ‘‘Board’’ means the Public Com18 pany Accounting Oversight Board; 

19 (4) the term ‘‘Commission’’ means the Securi20 ties and Exchange Commission; 

21 (5) the term ‘‘covered foreign public accounting 

22 firm’’ means a foreign public accounting firm that 

23 the Board is unable to inspect or investigate under 

24 the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201 et 


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1 seq.) because of a position taken by an authority 

2 outside of the United States; 

3 (6) the term ‘‘covered form’’— 

4 (A) means— 

5 (i) the form described in section 

6 249.310 of title 17, Code of Federal Regu7 lations, or any successor regulation; and 

8 (ii) the form described in section 

9 249.220f of title 17, Code of Federal Reg10 ulations, or any successor regulation; and 

11 (B) includes a form that— 

12 (i) is the equivalent of, or substan13 tially similar to, the form described in 

14 clause (i) or (ii) of subparagraph (A); and 

15 (ii) a Chinese issuer files with the 

16 Commission under the Securities Exchange 

17 Act of 1934 (15 U.S.C. 78a et seq.) or 

18 rules issued under that Act; 

19 (7) the term ‘‘covered jurisdiction’’ means the 

20 foreign jurisdiction in which the position described 

21 in paragraph (5) is taken with respect to a covered 

22 foreign public accounting firm that prepares an 

23 audit report for an applicable Chinese issuer; 


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1 (8) the term ‘‘exchange’’ has the meaning given 

2 the term in section 3(a) of the Securities Exchange 

3 Act of 1934 (15 U.S.C. 78a(a)); 

4 (9) the term ‘‘Chinese issuer’’ means any issuer 

5 which is the Chinese government, a national of 

6 China or a corporation or other organization incor7 porated or organized under the laws of China; 

8 (10) the term ‘‘foreign public accounting firm’’ 

9 has the meaning given the term in section 106(g) of 

10 the Sarbanes-Oxley Act of 2002 (15 U.S.C. 

11 7216(g)); 

12 (11) the term ‘‘national securities exchange’’ 

13 means an exchange that is registered with the Com14 mission under section 6 of the Securities Exchange 

15 Act of 1934 (15 U.S.C. 78f); and 

16 (12) the term ‘‘public accounting firm’’ has the 

17 meaning given the term in section 2(a) of the Sar18 banes-Oxley Act of 2002 (15 U.S.C. 7201(a)). 

19 (b) DISCLOSURE.— 

20 (1) LIST OF CERTAIN CHINESE ISSUERS AND

21 COVERED FOREIGN PUBLIC ACCOUNTING FIRMS.— 

22 (A) IN GENERAL.—The Commission shall 

23 maintain a publicly available list of— 

24 (i) each Chinese issuer, an audit re25 port of which— 


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1 (I) is prepared by a foreign pub2 lic accounting firm; and 

3 (II) the Board is not able to in4 spect or investigate because of a posi5 tion taken by an authority that is out6 side of the United States; 

7 (ii) each covered foreign public ac8 counting firm that has prepared an audit 

9 report identified under clause (i); and 

10 (iii) the jurisdiction in which each cov11 ered foreign public accounting firm identi12 fied under clause (ii) is organized or oper13 ating. 

14 (B) ROLE OF THE BOARD.—Not less fre15 quently than annually, the Board shall provide 

16 to the Commission the information that is re17 quired for the Commission to carry out sub18 paragraph (A). 

19 (2) ANNUAL REPORT DISCLOSURE.— 

20 (A) DISCLOSURE.—Each applicable Chi21 nese issuer shall disclose in each covered form 

22 filed by the applicable Chinese issuer— 

23 (i) that, during the period covered by 

24 covered form, a covered foreign public acVerDate Sep 11 2014 02:20 Jun 17, 2020 Jkt 099200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\H7007.IH H7007

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1 counting firm has prepared an audit report 

2 for the issuer; 

3 (ii) the percentage of the shares of the 

4 issuer owned by governmental entities in 

5 the foreign jurisdiction in which the issuer 

6 is incorporated or otherwise organized; 

7 (iii) whether governmental entities in 

8 a covered jurisdiction with respect to any 

9 covered foreign public accounting firm that 

10 has prepared an audit report for the issuer 

11 during the period covered by the form have 

12 a controlling financial interest with respect 

13 to the issuer; and 

14 (iv) the name of any official of the 

15 Chinese Communist Party who is a mem16 ber of the board of directors of the issuer 

17 or the operating entity with respect to the 

18 issuer. 

19 (B) UPDATE OF RULES.—Not later than 

20 270 days after the date of enactment of this 

21 Act, and after providing the opportunity for 

22 public notice and comment, the Commission 

23 shall make any amendments to the rules of the 

24 Commission that are required as a result of the 

25 requirements of this subsection. 


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1 (C) EFFECTIVE DATE.—This subsection 

2 shall take effect on the date on which the Com3 mission completes the amendments required 

4 under paragraph (2). 

5 (3) DISCLOSURE BY BROKERS AND DEALERS.— 

6 Section 15(n) of the Securities Exchange Act of 

7 1934 (15 U.S.C. 78o(n)) is amended— 

8 (A) in paragraph (1), by striking ‘‘Com9 mission may issue’’ and all that follows through 

10 the period at the end and inserting the fol11 lowing: ‘‘Commission— 

12 ‘‘(A) shall issue rules that require a broker 

13 and a dealer to disclose, with respect to any ad14 vice, analysis, or report of the broker or dealer 

15 to a retail investor regarding the securities of a 

16 Chinese issuer, whether a covered foreign public 

17 accounting firm has prepared an audit report 

18 for the Chinese issuer; and 

19 ‘‘(B) in addition to the rules required 

20 under subparagraph (A), may issue rules desig21 nating documents or information that shall be 

22 provided by a broker or dealer to a retail inves23 tor before the purchase of an investment prod24 uct or service by the retail investor.’’; and 

25 (B) by adding at the end the following: 


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1 ‘‘(4) DEFINITIONS.—In this subsection, the 

2 terms ‘audit report’, ‘covered foreign public account3 ing firm’, and ‘Chinese issuer’ have the meanings 

4 given the terms in section 21(a) of the Compensa5 tion for Americans Act of 2020.’’. 

6 (c) PROHIBITION AGAINST THE LISTING OF CERTAIN

7 FIRMS ON NATIONAL SECURITIES EXCHANGES.— 

8 (1) IN GENERAL.—Section 6(b) of the Securi9 ties Exchange Act of 1934 (15 U.S.C. 78f(b)) is 

10 amended by adding at the end the following: 

11 ‘‘(11)(A) The rules of the exchange prohibit the 

12 initial listing, after the date of enactment of this 

13 paragraph, of any security of an issuer for which a 

14 covered foreign public accounting firm has prepared 

15 an audit report. 

16 ‘‘(B) Nothing in subparagraph (A) may be con17 strued to prevent an exchange from listing a security 

18 on the exchange on or after the date of enactment 

19 of this paragraph if that security was listed on the 

20 exchange or a national securities exchange before 

21 the date of enactment of this paragraph. 

22 ‘‘(C) In this paragraph, the terms ‘audit report’ 

23 and ‘covered foreign public accounting firm’ have the 

24 meanings given the terms in section 2 of the Com25 pensation for Americans Act of 2020. 


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1 ‘‘(12)(A) The rules of the exchange prohibit the 

2 listing of any security of a Chinese issuer that, be3 ginning in 2025, has been identified under section 

4 21(b)(1)(A)(i) of the Compensation for Americans 

5 Act of 2020 in 3 consecutive years. 

6 ‘‘(B) Nothing in subparagraph (A) may be con7 strued to prevent an exchange from listing a security 

8 of a Chinese issuer described in that subparagraph 

9 beginning on the date on which the issuer submits 

10 to the Commission an audit report for the issuer 

11 that is prepared by a registered public accounting 

12 firm that the Public Company Accounting Oversight 

13 Board has inspected, or is able to inspect, under sec14 tion 104 of the Sarbanes-Oxley Act of 2002 (15 

15 U.S.C. 7214). 

16 ‘‘(C) In this paragraph— 

17 ‘‘(i) the terms ‘audit report’ and ‘reg18 istered public accounting firm’ have the mean19 ings given the terms in section 2(a) of the Sar20 banes-Oxley Act of 2002 (15 U.S.C. 7201(a)); 

21 and 

22 ‘‘(ii) the terms ‘covered foreign public ac23 counting firm’ and ‘Chinese issuer’ have the 

24 meanings given the terms in section 21(a) of 

25 the Compensation for Americans Act of 2020.’’. 


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1 (2) RULES.— 

2 (A) PROPOSALS.—Not later than 90 days 

3 after the date of enactment of this Act, each 

4 national securities exchange shall, in accordance 

5 with section 19(b) of the Securities Exchange 

6 Act of 1934 (15 U.S.C. 78s(b)) and any rules 

7 prescribed by the Commission under that sec8 tion, file with the Commission any proposed 

9 change to the rules of the exchange that is re10 quired as a result of the amendments made by 

11 this subsection. 

12 (B) ADOPTION.—Not later than 1 year 

13 after the date of enactment of this Act, each 

14 national securities exchange shall have each 

15 proposed change described in subparagraph (A) 

16 approved by the Commission. 

Æ 


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