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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8329 Introduced in House (IH)]

<DOC>

116th CONGRESS
  2d Session
                                H. R. 8329

    To eliminate or substantially reduce the global availability of 
 critical technologies to United States arms embargoed countries, and 
                          for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 21, 2020

  Mr. McCaul introduced the following bill; which was referred to the 
                      Committee on Foreign Affairs

_______________________________________________________________________

                                 A BILL

 
    To eliminate or substantially reduce the global availability of 
 critical technologies to United States arms embargoed countries, 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 ``Revitalizing Multilateral Export 
Control Diplomacy for Critical Technologies Act''.

SEC. 2. FINDINGS AND SENSE OF CONGRESS.

    (a) Findings.--Congress finds the following:
            (1) United States arms embargoed countries are implementing 
        malign and aggressive industrial policies using non-market 
        means and engaging in predatory investment to gain control of 
        critical technologies in order to achieve market dominance and 
        control supply chains.
            (2) These countries integrate their industrial policies 
        into initiatives that break down the barriers and distinctions 
        between the commercial sector and the military to ensure that 
        critical technologies support the development of their 
        military.
            (3) These countries seek to obtain critical technologies 
        from the United States and covered United States allies and 
        partners.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the fast-paced nature of technological innovation and 
        the systemic diversion of technological innovation and know-how 
        by United States arms embargoed countries for the benefit of 
        developing and enhancing their militaries, challenges the 
        effectiveness of existing multilateral fora established 
        specifically to prevent such export control risks, such as the 
        Wassenaar Arrangement; and
            (2) the ability of United States arms embargoed countries 
        to access critical technologies that affect the national 
        security of the United States should spur the United States to 
        work with covered United States allies and partners to develop 
        unified export control policies to eliminate or substantially 
        reduce the global availability of critical technologies to 
        United States arms embargoed countries.

SEC. 3. STRATEGY TO CONTROL THE AVAILABILITY OF CRITICAL TECHNOLOGIES.

    (a) Statement of Policy.--It is the policy of the United States 
to--
            (1) work with covered United States allies and partners to 
        develop unified export control policies to eliminate or 
        substantially reduce the global availability of critical 
        technologies to United States arms embargoed countries, 
        including by--
                    (A) leading regular and rapid bilateral and 
                plurilateral negotiations with respect to specific 
                critical technologies with different groupings of such 
                allies and partners;
                    (B) using policy instruments, including tax, 
                investment, licensing, lending, and trade, to provide 
                incentives to such allies and partners; and
                    (C) using, if necessary, existing authorities, 
                including trade remedies, the United States Munitions 
                List, the Entity List, economic sanctions, and other 
                authorities available under the International Emergency 
                Economic Powers Act (50 U.S.C. 1701 et seq.);
            (2) ensure critical technologies do not advance the 
        economic strategies, industrial policy goals, or military 
        capabilities of United States arms embargoed countries;
            (3) carry out joint research and development projects with 
        covered United States allies and partners, with adequate 
        safeguards for the protection and promotion of any resulting 
        intellectual property, to--
                    (A) advance a broad range of scientific and 
                technical disciplines, including with respect to 
                critical technologies that may be affected by the 
                implementation of the strategy required by subsection 
                (b); and
                    (B) develop alternative markets to compensate for 
                lost sales opportunities; and
            (4) enhance the sharing of information with covered United 
        States allies and partners that have entered into a 
        multilateral export control agreement with the United States 
        described in section 4(d).
    (b) Strategy.--
            (1) In general.--The President, in consultation with the 
        Secretary of Commerce, the Secretary of Defense, the Secretary 
        of State, the Director of National Intelligence, the Secretary 
        of the Treasury, and the Secretary of Energy, shall develop a 
        strategy to work with covered United States allies and partners 
        to develop unified export control policies to eliminate or 
        substantially reduce the global availability of critical 
        technologies to United States arms embargoed countries.
            (2) Industry consultation.--
                    (A) In general.--The President shall--
                            (i) inform and solicit input in writing 
                        from representatives of relevant United States 
                        industries in developing the strategy required 
                        by paragraph (1); and
                            (ii) submit to the appropriate 
                        congressional committees input received 
                        pursuant to clause (i).
                    (B) Disclosure of confidential information 
                prohibited.--No such committee, or member thereof, may 
                disclose any information made available under 
                subparagraph (A)(ii) that is submitted on a 
                confidential basis unless the committee determines that 
                the withholding of that information is contrary to the 
                national interest of the United States.
            (3) Matters to be included.--The strategy required by this 
        subsection shall include the following:
                    (A) An identification of critical technologies that 
                are priorities for--
                            (i) the national security and the defense 
                        industrial base of the United States; and
                            (ii) the economic strategies, industrial 
                        policies, and military development of United 
                        States arms embargoed countries.
                    (B) An identification of United States export 
                control policies for critical technologies identified 
                under subparagraph (A).
                    (C) An identification of covered United States 
                allies and partners and their share of the global 
                market with respect to critical technologies identified 
                under subparagraph (A).
                    (D) A description of ongoing and future efforts to 
                work with covered United States allies and partners to 
                develop unified export control policies in accordance 
                with the United States policy described in subsection 
                (a).
                    (E) An assessment of the effectiveness and methods 
                of past efforts by United States arms embargoed 
                countries to circumvent export control policies 
                relating to critical technologies identified under 
                subparagraph (A).
                    (F) The establishment of a working group, to 
                include appropriate representatives from the Department 
                of Commerce, the Department of Defense, the Department 
                of State, the Office of the Director of National 
                Intelligence, the Department of the Treasury, the 
                Department of Energy, and other relevant Federal 
                agencies, to implement the strategy.
    (c) Report.--
            (1) In general.--Not later than 120 days after the date of 
        the enactment of this Act, and annually thereafter for 4 years, 
        the President shall submit to the appropriate congressional 
        committees a report in writing that contains--
                    (A) the strategy required by subsection (b); and
                    (B) a summary of input solicited and received from 
                representatives of relevant United States industries in 
                developing the strategy required by subsection (b).
            (2) Form.--The report required by this subsection shall--
                    (A) be submitted in unclassified form but may 
                contain a classified annex; and
                    (B) be made available on a publicly accessible 
                government website.

SEC. 4. ACTIONS TO SECURE THE GLOBAL SEMICONDUCTOR SUPPLY CHAIN.

    (a) Finding.--Congress finds that, according to the Second Quarter 
Recommendations of the congressionally-established National Security 
Commission on Artificial Intelligence, high-end semiconductor chips 
with feature sizes 45 nanometers and below are the most useful for 
advanced artificial intelligence capabilities.
    (b) Statement of Policy.--It is the policy of the United States--
            (1) to work with covered United States allies and partners 
        to secure the semiconductor supply chain in a manner that 
        eliminates or substantially reduces its presence in or reliance 
        on United States arms embargoed countries;
            (2) to ensure United States semiconductor manufacturing 
        equipment, design tools, and technical data are not made 
        available to United States arms embargoed countries in 
        achieving their industrial policy goals that threaten United 
        States national security interests; and
            (3) to proceed expeditiously in diplomatic efforts with 
        covered United States allies and partners to develop unified 
        export control policies to eliminate or substantially reduce 
        the global availability of critical technologies to United 
        States arms embargoed countries.
    (c) Identification Provisions.--
            (1) Identification of semiconductor manufacturing 
        equipment, design tools, and related technical data.--Not later 
        than 180 days after the date of the enactment of this Act, and 
        on a periodic basis thereafter, the Secretary of Commerce shall 
        identify semiconductor manufacturing equipment, design tools, 
        and related technical data that--
                    (A) are not manufactured or produced in United 
                States arms embargoed countries; and
                    (B) are used to fabricate high-end semiconductor 
                chips with feature sizes of 45 nanometers and below 
                that the Secretary determines threaten the national 
                security and foreign policy interests of the United 
                States.
            (2) Identification of entities that fabricate semiconductor 
        chips with feature sizes of 45 nanometers and below.--Not later 
        than 180 days after the date of the enactment of this Act, and 
        on a periodic basis thereafter, the Secretary of Commerce shall 
        identify entities in United States arms embargoed countries 
        that--
                    (A) own or control semiconductor manufacturing 
                equipment, design tools, and related technical data 
                that are identified pursuant to paragraph (1); and
                    (B) are required under the laws of United States 
                arms embargoed countries to cooperate with the 
                militaries of such countries relating to the use of 
                such semiconductor manufacturing equipment, design 
                tools, and related technical data to fabricate high-end 
                semiconductor chips described in paragraph (1)(B).
            (3) Industry consultation.--
                    (A) In general.--The President shall--
                            (i) inform and solicit input in writing 
                        from representatives of relevant United States 
                        industries in--
                                    (I) identifying semiconductor 
                                manufacturing equipment, design tools, 
                                and related technical data pursuant to 
                                paragraph (1); and
                                    (II) identifying entities pursuant 
                                to paragraph (2); and
                            (ii) submit to the appropriate 
                        congressional committees input received 
                        pursuant to clause (i).
                    (B) Disclosure of confidential information 
                prohibited.--No such committee, or member thereof, may 
                disclose any information made available under 
                subparagraph (A)(ii) that is submitted on a 
                confidential basis unless the committee determines that 
                the withholding of that information is contrary to the 
                national interest of the United States.
    (d) Multilateral Agreement.--
            (1) In general.--The working group established pursuant to 
        section 3(b)(3)(F) shall, as soon as practicable after the date 
        of the enactment of this Act, seek to establish a multilateral 
        agreement with covered United States allies and partners to 
        develop unified export control policies to eliminate or 
        substantially reduce the global availability of semiconductor 
        manufacturing equipment, design tools, and related technical 
        data identified pursuant to subsection (c)(1) to United States 
        arms embargoed countries, including entities in United States 
        arms embargoed countries identified pursuant to subsection 
        (c)(2).
            (2) Actions after agreement implemented.--
                    (A) In general.--Not later than 30 days after the 
                date on which a multilateral agreement described in 
                paragraph (1) is implemented, the Secretary of 
                Commerce--
                            (i) shall exercise the authorities under 
                        the Export Control Reform Act of 2018 (50 
                        U.S.C. 4801 et seq.)--
                                    (I) to include semiconductor 
                                manufacturing equipment, design tools, 
                                and related technical data with respect 
                                to which the agreement applies on the 
                                Commerce Control List; and
                                    (II) to presumptively disapprove 
                                any application for a license to 
                                export, reexport, or provide for an in-
                                country transfer of such semiconductor 
                                manufacturing equipment, design tools, 
                                and related technical data to a United 
                                States arms embargoed country; and
                            (ii) shall include entities identified 
                        pursuant to the agreement on the Entity List.
                    (B) Annual meetings.--
                            (i) In general.--The working group shall 
                        seek to meet on an annual basis with covered 
                        United States allies and partners that are 
                        parties to the agreement to--
                                    (I) exchange information to--
                                            (aa) facilitate development 
                                        of unified export control 
                                        policies with respect to trends 
                                        in technology that could pose 
                                        risks to the national security 
                                        of the United States and such 
                                        other parties to the agreement; 
                                        and
                                            (bb) provide for the 
                                        sharing of information with 
                                        respect to specific 
                                        technologies and entities 
                                        acquiring such technologies as 
                                        appropriate to address such 
                                        risks to the national security 
                                        of the United States and such 
                                        other parties to the agreement;
                                    (II) verify that all parties to the 
                                agreement are adhering to a common 
                                standard of controls and licensing and 
                                are otherwise in compliance with the 
                                terms of their commitments under the 
                                agreement;
                                    (III) review the technology 
                                controls and licensing policies for 
                                semiconductor manufacturing equipment, 
                                design tools, and related technical 
                                data with respect to which the 
                                agreement applies and as necessary 
                                update such controls and licensing 
                                policies.
                            (ii) Industry consultation.--The President 
                        shall inform and solicit input in writing from 
                        representatives of relevant United States 
                        industries in advance of the meetings described 
                        in clause (i).
            (3) Certification if agreement not implemented.--
                    (A) In general.--If a multilateral agreement 
                described in paragraph (1) is not implemented within 1 
                year after the date of the enactment of this Act, the 
                President shall certify to the appropriate 
                congressional committees that it is not in the national 
                security interest of the United States to--
                            (i) include semiconductor manufacturing 
                        equipment, design tools, and related technical 
                        data identified pursuant to subsection (c)(1) 
                        on the Commerce Control List; and
                            (ii) include entities identified pursuant 
                        to subsection (c)(2) on the Entity List.
                    (B) Actions if certification not made.--If the 
                President is unable to make the certification described 
                in subparagraph (A), the President shall direct the 
                Secretary of Commerce--
                            (i) to include semiconductor manufacturing 
                        equipment, design tools, and related technical 
                        data identified pursuant to subsection (c)(1) 
                        on the Commerce Control List; and
                            (ii) to include entities identified 
                        pursuant to subsection (c)(2) on the Entity 
                        List.

SEC. 5. CRITICAL TECHNOLOGY EXPORT CONTROL FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a trust fund, to be known as the ``Critical Technology 
Export Control Fund'' (in this section referred to as the ``Fund''), 
consisting of--
            (1) amounts deposited into the Fund under subsection 
        (b)(1); and
            (2) amounts that may be credited to the Fund under 
        subsection (b)(2).
    (b) Amounts.--
            (1) Authorization of appropriations.--There are authorized 
        to be appropriated $2,000,000,000 to be deposited in the Fund 
        for fiscal year 2021.
            (2) Investment of amounts.--
                    (A) In general.--The Secretary of the Treasury 
                shall invest such portion of the Fund as is not 
                required to meet current withdrawals in interest-
                bearing obligations of the United States or in 
                obligations guaranteed as to both principal and 
                interest by the United States.
                    (B) Interest and proceeds.--The interest on, and 
                the proceeds from the sale or redemption of, any 
                obligations held in the Fund shall be credited to and 
                form a part of the Fund.
            (3) Availability of amounts.--
                    (A) In general.--Amounts in the Fund shall remain 
                available through the end of the 10th fiscal year 
                beginning after the date of the enactment of this Act.
                    (B) Remainder.--Any amounts remaining in the Fund 
                after the end of the fiscal year described in 
                subparagraph (A) shall be deposited in the general fund 
                of the Treasury.
    (c) Use of Amounts.--
            (1) In general.--The Secretary of State, in consultation 
        with the working group established pursuant to section 
        3(b)(3)(F), shall use amounts in the Fund to carry out projects 
        described in paragraph (2) with one or more covered United 
        States allies and partners that enter into an agreement with 
        the Secretary to develop a unified export control policy to 
        eliminate or substantially reduce the global availability of a 
        critical technology identified under section 3(b)(3)(A) to 
        United States arms embargoed countries.
            (2) Projects described.--The projects described in this 
        paragraph are joint research and development projects carried 
        out by the United States and the covered United States allies 
        and partners to develop basic and applied research, develop 
        regulatory and enforcement capacity building, expand production 
        capacity, and carry out other related activities with respect 
        to the critical technology.
            (3) Rule of construction.--Nothing in this section may be 
        construed to authorize the use of amounts in the Fund to carry 
        out projects described in paragraph (2) that may benefit 
        directly or indirectly entities in United States arms embargoed 
        countries
    (d) Report by Secretary of State.--Not later than 1 year after the 
date of the enactment of this Act, and annually thereafter for each 
fiscal year during which amounts in the Fund are available under 
subsection (b)(3), the Secretary of State shall submit to the 
appropriate congressional committees a report on the implementation of 
this section.
    (e) Report by Comptroller General.--Not later than 2 years after 
the date of the enactment of this Act, the Comptroller General of the 
United States shall submit to the appropriate congressional committees 
a report evaluating the effectiveness of the Fund, including--
            (1) the effectiveness of projects supported by the Fund; 
        and
            (2) an assessment of the merits of continuation of the 
        Fund.

SEC. 6. SENSE OF CONGRESS.

    It is the sense of Congress that the working group established 
pursuant to section 3(b)(3)(F) should, as soon as practicable after the 
date of the enactment of this Act, seek to establish a multilateral 
agreement with covered United States allies and partners to eliminate 
or substantially reduce the global availability of other critical 
technologies identified under section 3(b)(3)(A) to United States arms 
embargoed countries.

SEC. 7. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Affairs and the 
                Committee on Energy and Commerce of the House of 
                Representatives; and
                    (B) the Committee on Banking, Housing, and Urban 
                Affairs and the Committee on Commerce, Science, and 
                Transportation of the Senate.
            (2) Commerce control list.--The term ``Commerce Control 
        List'' means the list set forth in Supplement No. 1 to part 774 
        of the Export Administration Regulations.
            (3) Covered united states ally or partner.--The term 
        ``covered United States ally or partner'' means a foreign 
        country that--
                    (A) is an ally or partner of the United States; and
                    (B)(i) produces, designs, tests, manufactures, 
                fabricates, or develops critical technologies; or
                    (ii) for purposes of section 4, produces or 
                manufactures semiconductor manufacturing equipment, 
                design tools, and related technical data that--
                            (I) are not manufactured or produced in 
                        United States arms embargoed countries; and
                            (II) are used to fabricate high-end 
                        semiconductor chips with feature sizes of 45 
                        nanometers and below that the Secretary of 
                        Commerce determines threaten the national 
                        security and foreign policy interests of the 
                        United States; and
            (4) Critical technologies.--The term ``critical 
        technologies'' has the meaning given the term in section 
        721(a)(6) of the Defense Production Act of 1950 (50 U.S.C. 
        4565(a)(6)); and
            (5) Entity list.--The term ``Entity List'' means the list 
        maintained by the Bureau of Industry and Security and set forth 
        in Supplement No. 4 to part 744 of the Export Administration 
        Regulations.
            (6) Export administration regulations.--The term ``Export 
        Administration Regulations'' means subchapter C of chapter VII 
        of title 15, Code of Federal Regulations.
            (7) United states arms embargoed country.--The term 
        ``United States arms embargoed country'' means a country--
                    (A) identified in column D:5 of Country Group D in 
                Supplement No. 1 to part 740 of the Export 
                Administration Regulations; or
                    (B) determined to be a proscribed country pursuant 
                to section 126.1 of title 22, Code of Federal 
                Regulations.
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