I 

116TH CONGRESS 

2D SESSION H. R. 8407 

To require the Securities and Exchange Commission to assess whether the 

disclosure of information related to investments in certain entities is 

necessary or appropriate for the purposes of certain reports under the 

securities laws, to establish the Entities of the People’s Republic of 

China that Threaten United States National Security List, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 29, 2020 

Mr. RESCHENTHALER (for himself, Mr. MCCAUL, and Mr. RIGGLEMAN) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Foreign Affairs, 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 require the Securities and Exchange Commission to assess whether the disclosure of information related to 

investments in certain entities is necessary or appropriate 

for the purposes of certain reports under the securities 

laws, to establish the Entities of the People’s Republic 

of China that Threaten United States National Security 

List, 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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Protecting National 

3 Security in Financial Investments Act’’. 

4 SEC. 2. ASSESSMENT OF INFORMATION WITH RESPECT TO 

5 INVESTMENTS IN CERTAIN ENTITIES. 

6 (a) IN GENERAL.—Not later than 360 days following 

7 the date of the enactment of this Act, the Securities and 

8 Exchange Commission, in consultation with the Secretary 

9 of the Treasury, shall submit to the Committee on Finan10 cial Services of the House of Representatives and the 

11 Committee on Banking, Housing, and Urban Affairs of 

12 the Senate a report assessing whether disclosure of invest13 ments in entities on the entity list by an issuer qualifies 

14 as necessary or appropriate for the purposes of section 

15 13(a) of the Securities Exchange Act of 1934. 

16 (b) RULEMAKING.—Not later than 180 days fol17 lowing submission of the report required under subsection 

18 (a), the Securities and Exchange Commission shall pre19 scribe regulations requiring an issuer to disclose in any 

20 annual report required under section 13 of the Securities 

21 Exchange Act of 1934, and in any prospectus in connec22 tion with an initial public offering, the information as23 sessed by the Commission in such report to be necessary 

24 or appropriate for the purposes of subsection (a) of such 

25 section 13. 

26 (c) DEFINITIONS.—In this section: 


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1 (1) ENTITY LIST.—The term ‘‘entity list’’ 

2 means the list maintained by the Bureau of Industry 

3 and Security of the Department of Commerce and 

4 set forth in Supplement No. 4 to part 744 of the 

5 Export Administration Regulations. 

6 (2) EXPORT ADMINISTRATION REGULATIONS.— 

7 The term ‘‘Export Administration Regulations’’ 

8 means subchapter C of chapter VII of title 15, Code 

9 of Federal Regulations. 

10 SEC. 3. ENTITIES OF THE PEOPLE’S REPUBLIC OF CHINA 

11 THAT THREATEN UNITED STATES NATIONAL 

12 SECURITY LIST. 

13 (a) IN GENERAL.—Not later than one year after the 

14 date of the enactment of this Act, and annually thereafter, 

15 the Secretary of State, in consultation with the Director 

16 of National Intelligence, the Secretary of Defense, and the 

17 Secretary of Commerce, shall submit to the Congress a 

18 list of— 

19 (1) each entity of the People’s Republic of 

20 China associated with the People’s Liberation Army, 

21 the Chinese People’s Armed Police Force, the Min22 istry of State Security, or the China Coast Guard, 

23 including any entity that— 

24 (A) is a listed military supplier; 


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1 (B) is licensed to engage in military pro2 duction; 

3 (C) is carrying out a declared military-civil 

4 fusion business strategy; 

5 (D) is a military factory representative, on6 site; 

7 (E) maintains an office in a military-civil 

8 fusion-linked industrial zone; 

9 (F) is a defense contractor or is involved 

10 in a defense contractor partnership; 

11 (G) is engaged in collaborative efforts with 

12 a defense research and development university; 

13 (H) is a subsidiary of a defense university; 

14 or 

15 (I) is a military-civil fusion funding pro16 vider or recipient; and 

17 (2) each entity of the People’s Republic of 

18 China that is owned, controlled, or influenced by an 

19 entity on the entity list. 

20 (b) REFERENCE.—The list required by subsection (a) 

21 may be referred to as the ‘‘Entities of the People’s Repub22 lic of China that Threaten United States National Secu23 rity List’’. 

24 (c) PUBLIC AVAILABILITY.—The Secretary of State 

25 shall make each list submitted pursuant to subsection (a) 


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1 available to the public, including on a website of the De2 partment of State, but shall remove any classified portions 

3 of such list. 

4 (d) STATEMENT OF POLICY.—It is the policy of the 

5 United States that the Entities of the People’s Republic 

6 of China that Threaten United States National Security 

7 List should inform Federal Government policy. 

8 (e) DEFINITIONS.—In this section: 

9 (1) ENTITY LIST.—The term ‘‘entity list’’ 

10 means the list maintained by the Bureau of Industry 

11 and Security of the Department of Commerce and 

12 set forth in Supplement No. 4 to part 744 of the 

13 Export Administration Regulations. 

14 (2) EXPORT ADMINISTRATION REGULATIONS.— 

15 The term ‘‘Export Administration Regulations’’ 

16 means subchapter C of chapter VII of title 15, Code 

17 of Federal Regulations. 

Æ 


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