I 

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. 

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. 

4 This Act may be cited as the ‘‘Revitalizing Multilat5 eral Export Control Diplomacy for Critical Technologies 

6 Act’’. 

7 SEC. 2. FINDINGS AND SENSE OF CONGRESS. 

8 (a) FINDINGS.—Congress finds the following: 


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1 (1) United States arms embargoed countries 

2 are implementing malign and aggressive industrial 

3 policies using non-market means and engaging in 

4 predatory investment to gain control of critical tech5 nologies in order to achieve market dominance and 

6 control supply chains. 

7 (2) These countries integrate their industrial 

8 policies into initiatives that break down the barriers 

9 and distinctions between the commercial sector and 

10 the military to ensure that critical technologies sup11 port the development of their military. 

12 (3) These countries seek to obtain critical tech13 nologies from the United States and covered United 

14 States allies and partners. 

15 (b) SENSE OF CONGRESS.—It is the sense of Con16 gress that— 

17 (1) the fast-paced nature of technological inno18 vation and the systemic diversion of technological in19 novation and know-how by United States arms em20 bargoed countries for the benefit of developing and 

21 enhancing their militaries, challenges the effective22 ness of existing multilateral fora established specifi23 cally to prevent such export control risks, such as 

24 the Wassenaar Arrangement; and 


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1 (2) the ability of United States arms embargoed 

2 countries to access critical technologies that affect 

3 the national security of the United States should 

4 spur the United States to work with covered United 

5 States allies and partners to develop unified export 

6 control policies to eliminate or substantially reduce 

7 the global availability of critical technologies to 

8 United States arms embargoed countries. 

9 SEC. 3. STRATEGY TO CONTROL THE AVAILABILITY OF 

10 CRITICAL TECHNOLOGIES. 

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

12 United States to— 

13 (1) work with covered United States allies and 

14 partners to develop unified export control policies to 

15 eliminate or substantially reduce the global avail16 ability of critical technologies to United States arms 

17 embargoed countries, including by— 

18 (A) leading regular and rapid bilateral and 

19 plurilateral negotiations with respect to specific 

20 critical technologies with different groupings of 

21 such allies and partners; 

22 (B) using policy instruments, including 

23 tax, investment, licensing, lending, and trade, to 

24 provide incentives to such allies and partners; 

25 and 


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1 (C) using, if necessary, existing authori2 ties, including trade remedies, the United 

3 States Munitions List, the Entity List, eco4 nomic sanctions, and other authorities available 

5 under the International Emergency Economic 

6 Powers Act (50 U.S.C. 1701 et seq.); 

7 (2) ensure critical technologies do not advance 

8 the economic strategies, industrial policy goals, or 

9 military capabilities of United States arms embar10 goed countries; 

11 (3) carry out joint research and development 

12 projects with covered United States allies and part13 ners, with adequate safeguards for the protection 

14 and promotion of any resulting intellectual property, 

15 to— 

16 (A) advance a broad range of scientific and 

17 technical disciplines, including with respect to 

18 critical technologies that may be affected by the 

19 implementation of the strategy required by sub20 section (b); and 

21 (B) develop alternative markets to com22 pensate for lost sales opportunities; and 

23 (4) enhance the sharing of information with 

24 covered United States allies and partners that have 


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1 entered into a multilateral export control agreement 

2 with the United States described in section 4(d). 

3 (b) STRATEGY.— 

4 (1) IN GENERAL.—The President, in consulta5 tion with the Secretary of Commerce, the Secretary 

6 of Defense, the Secretary of State, the Director of 

7 National Intelligence, the Secretary of the Treasury, 

8 and the Secretary of Energy, shall develop a strat9 egy to work with covered United States allies and 

10 partners to develop unified export control policies to 

11 eliminate or substantially reduce the global avail12 ability of critical technologies to United States arms 

13 embargoed countries. 

14 (2) INDUSTRY CONSULTATION.— 

15 (A) IN GENERAL.—The President shall— 

16 (i) inform and solicit input in writing 

17 from representatives of relevant United 

18 States industries in developing the strategy 

19 required by paragraph (1); and 

20 (ii) submit to the appropriate congres21 sional committees input received pursuant 

22 to clause (i). 

23 (B) DISCLOSURE OF CONFIDENTIAL IN24 FORMATION PROHIBITED.—No such committee, 

25 or member thereof, may disclose any informaVerDate Sep 11 2014 23:55 Oct 03, 2020 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H8329 H8329

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1 tion made available under subparagraph (A)(ii) 

2 that is submitted on a confidential basis unless 

3 the committee determines that the withholding 

4 of that information is contrary to the national 

5 interest of the United States. 

6 (3) MATTERS TO BE INCLUDED.—The strategy 

7 required by this subsection shall include the fol8 lowing: 

9 (A) An identification of critical tech10 nologies that are priorities for— 

11 (i) the national security and the de12 fense industrial base of the United States; 

13 and 

14 (ii) the economic strategies, industrial 

15 policies, and military development of 

16 United States arms embargoed countries. 

17 (B) An identification of United States ex18 port control policies for critical technologies 

19 identified under subparagraph (A). 

20 (C) An identification of covered United 

21 States allies and partners and their share of the 

22 global market with respect to critical tech23 nologies identified under subparagraph (A). 

24 (D) A description of ongoing and future ef25 forts to work with covered United States allies 


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1 and partners to develop unified export control 

2 policies in accordance with the United States 

3 policy described in subsection (a). 

4 (E) An assessment of the effectiveness and 

5 methods of past efforts by United States arms 

6 embargoed countries to circumvent export con7 trol policies relating to critical technologies 

8 identified under subparagraph (A). 

9 (F) The establishment of a working group, 

10 to include appropriate representatives from the 

11 Department of Commerce, the Department of 

12 Defense, the Department of State, the Office of 

13 the Director of National Intelligence, the De14 partment of the Treasury, the Department of 

15 Energy, and other relevant Federal agencies, to 

16 implement the strategy. 

17 (c) REPORT.— 

18 (1) IN GENERAL.—Not later than 120 days 

19 after the date of the enactment of this Act, and an20 nually thereafter for 4 years, the President shall 

21 submit to the appropriate congressional committees 

22 a report in writing that contains— 

23 (A) the strategy required by subsection 

24 (b); and 


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1 (B) a summary of input solicited and re2 ceived from representatives of relevant United 

3 States industries in developing the strategy re4 quired by subsection (b). 

5 (2) FORM.—The report required by this sub6 section shall— 

7 (A) be submitted in unclassified form but 

8 may contain a classified annex; and 

9 (B) be made available on a publicly acces10 sible government website. 

11 SEC. 4. ACTIONS TO SECURE THE GLOBAL SEMICON12 DUCTOR SUPPLY CHAIN. 

13 (a) FINDING.—Congress finds that, according to the 

14 Second Quarter Recommendations of the congressionally15 established National Security Commission on Artificial In16 telligence, high-end semiconductor chips with feature sizes 

17 45 nanometers and below are the most useful for advanced 

18 artificial intelligence capabilities. 

19 (b) STATEMENT OF POLICY.—It is the policy of the 

20 United States— 

21 (1) to work with covered United States allies 

22 and partners to secure the semiconductor supply 

23 chain in a manner that eliminates or substantially 

24 reduces its presence in or reliance on United States 

25 arms embargoed countries; 


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1 (2) to ensure United States semiconductor 

2 manufacturing equipment, design tools, and tech3 nical data are not made available to United States 

4 arms embargoed countries in achieving their indus5 trial policy goals that threaten United States na6 tional security interests; and 

7 (3) to proceed expeditiously in diplomatic ef8 forts with covered United States allies and partners 

9 to develop unified export control policies to eliminate 

10 or substantially reduce the global availability of crit11 ical technologies to United States arms embargoed 

12 countries. 

13 (c) IDENTIFICATION PROVISIONS.— 

14 (1) IDENTIFICATION OF SEMICONDUCTOR MAN15 UFACTURING EQUIPMENT, DESIGN TOOLS, AND RE16 LATED TECHNICAL DATA.—Not later than 180 days 

17 after the date of the enactment of this Act, and on 

18 a periodic basis thereafter, the Secretary of Com19 merce shall identify semiconductor manufacturing 

20 equipment, design tools, and related technical data 

21 that— 

22 (A) are not manufactured or produced in 

23 United States arms embargoed countries; and 

24 (B) are used to fabricate high-end semi25 conductor chips with feature sizes of 45 nanoVerDate Sep 11 2014 23:55 Oct 03, 2020 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H8329 H8329

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1 meters and below that the Secretary determines 

2 threaten the national security and foreign policy 

3 interests of the United States. 

4 (2) IDENTIFICATION OF ENTITIES THAT FAB5 RICATE SEMICONDUCTOR CHIPS WITH FEATURE

6 SIZES OF 45 NANOMETERS AND BELOW.—Not later 

7 than 180 days after the date of the enactment of 

8 this Act, and on a periodic basis thereafter, the Sec9 retary of Commerce shall identify entities in United 

10 States arms embargoed countries that— 

11 (A) own or control semiconductor manu12 facturing equipment, design tools, and related 

13 technical data that are identified pursuant to 

14 paragraph (1); and 

15 (B) are required under the laws of United 

16 States arms embargoed countries to cooperate 

17 with the militaries of such countries relating to 

18 the use of such semiconductor manufacturing 

19 equipment, design tools, and related technical 

20 data to fabricate high-end semiconductor chips 

21 described in paragraph (1)(B). 

22 (3) INDUSTRY CONSULTATION.— 

23 (A) IN GENERAL.—The President shall— 


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1 (i) inform and solicit input in writing 

2 from representatives of relevant United 

3 States industries in— 

4 (I) identifying semiconductor 

5 manufacturing equipment, design 

6 tools, and related technical data pur7 suant to paragraph (1); and 

8 (II) identifying entities pursuant 

9 to paragraph (2); and 

10 (ii) submit to the appropriate congres11 sional committees input received pursuant 

12 to clause (i). 

13 (B) DISCLOSURE OF CONFIDENTIAL IN14 FORMATION PROHIBITED.—No such committee, 

15 or member thereof, may disclose any informa16 tion made available under subparagraph (A)(ii) 

17 that is submitted on a confidential basis unless 

18 the committee determines that the withholding 

19 of that information is contrary to the national 

20 interest of the United States. 

21 (d) MULTILATERAL AGREEMENT.— 

22 (1) IN GENERAL.—The working group estab23 lished pursuant to section 3(b)(3)(F) shall, as soon 

24 as practicable after the date of the enactment of this 

25 Act, seek to establish a multilateral agreement with 


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1 covered United States allies and partners to develop 

2 unified export control policies to eliminate or sub3 stantially reduce the global availability of semicon4 ductor manufacturing equipment, design tools, and 

5 related technical data identified pursuant to sub6 section (c)(1) to United States arms embargoed 

7 countries, including entities in United States arms 

8 embargoed countries identified pursuant to sub9 section (c)(2). 

10 (2) ACTIONS AFTER AGREEMENT IMPLE11 MENTED.— 

12 (A) IN GENERAL.—Not later than 30 days 

13 after the date on which a multilateral agree14 ment described in paragraph (1) is imple15 mented, the Secretary of Commerce— 

16 (i) shall exercise the authorities under 

17 the Export Control Reform Act of 2018 

18 (50 U.S.C. 4801 et seq.)— 

19 (I) to include semiconductor 

20 manufacturing equipment, design 

21 tools, and related technical data with 

22 respect to which the agreement ap23 plies on the Commerce Control List; 

24 and 


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1 (II) to presumptively disapprove 

2 any application for a license to export, 

3 reexport, or provide for an in-country 

4 transfer of such semiconductor manu5 facturing equipment, design tools, and 

6 related technical data to a United 

7 States arms embargoed country; and 

8 (ii) shall include entities identified 

9 pursuant to the agreement on the Entity 

10 List. 

11 (B) ANNUAL MEETINGS.— 

12 (i) IN GENERAL.—The working group 

13 shall seek to meet on an annual basis with 

14 covered United States allies and partners 

15 that are parties to the agreement to— 

16 (I) exchange information to— 

17 (aa) facilitate development 

18 of unified export control policies 

19 with respect to trends in tech20 nology that could pose risks to 

21 the national security of the 

22 United States and such other 

23 parties to the agreement; and 

24 (bb) provide for the sharing 

25 of information with respect to 


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1 specific technologies and entities 

2 acquiring such technologies as 

3 appropriate to address such risks 

4 to the national security of the 

5 United States and such other 

6 parties to the agreement; 

7 (II) verify that all parties to the 

8 agreement are adhering to a common 

9 standard of controls and licensing and 

10 are otherwise in compliance with the 

11 terms of their commitments under the 

12 agreement; 

13 (III) review the technology con14 trols and licensing policies for semi15 conductor manufacturing equipment, 

16 design tools, and related technical 

17 data with respect to which the agree18 ment applies and as necessary update 

19 such controls and licensing policies. 

20 (ii) INDUSTRY CONSULTATION.—The 

21 President shall inform and solicit input in 

22 writing from representatives of relevant 

23 United States industries in advance of the 

24 meetings described in clause (i). 


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1 (3) CERTIFICATION IF AGREEMENT NOT IMPLE2 MENTED.— 

3 (A) IN GENERAL.—If a multilateral agree4 ment described in paragraph (1) is not imple5 mented within 1 year after the date of the en6 actment of this Act, the President shall certify 

7 to the appropriate congressional committees 

8 that it is not in the national security interest of 

9 the United States to— 

10 (i) include semiconductor manufac11 turing equipment, design tools, and related 

12 technical data identified pursuant to sub13 section (c)(1) on the Commerce Control 

14 List; and 

15 (ii) include entities identified pursuant 

16 to subsection (c)(2) on the Entity List. 

17 (B) ACTIONS IF CERTIFICATION NOT

18 MADE.—If the President is unable to make the 

19 certification described in subparagraph (A), the 

20 President shall direct the Secretary of Com21 merce— 

22 (i) to include semiconductor manufac23 turing equipment, design tools, and related 

24 technical data identified pursuant to subVerDate Sep 11 2014 23:55 Oct 03, 2020 Jkt 019200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H8329 H8329

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1 section (c)(1) on the Commerce Control 

2 List; and 

3 (ii) to include entities identified pur4 suant to subsection (c)(2) on the Entity 

5 List. 

6 SEC. 5. CRITICAL TECHNOLOGY EXPORT CONTROL FUND. 

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

8 Treasury of the United States a trust fund, to be known 

9 as the ‘‘Critical Technology Export Control Fund’’ (in this 

10 section referred to as the ‘‘Fund’’), consisting of— 

11 (1) amounts deposited into the Fund under 

12 subsection (b)(1); and 

13 (2) amounts that may be credited to the Fund 

14 under subsection (b)(2). 

15 (b) AMOUNTS.— 

16 (1) AUTHORIZATION OF APPROPRIATIONS.— 

17 There are authorized to be appropriated 

18 $2,000,000,000 to be deposited in the Fund for fis19 cal year 2021. 

20 (2) INVESTMENT OF AMOUNTS.— 

21 (A) IN GENERAL.—The Secretary of the 

22 Treasury shall invest such portion of the Fund 

23 as is not required to meet current withdrawals 

24 in interest-bearing obligations of the United 


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1 States or in obligations guaranteed as to both 

2 principal and interest by the United States. 

3 (B) INTEREST AND PROCEEDS.—The in4 terest on, and the proceeds from the sale or re5 demption of, any obligations held in the Fund 

6 shall be credited to and form a part of the 

7 Fund. 

8 (3) AVAILABILITY OF AMOUNTS.— 

9 (A) IN GENERAL.—Amounts in the Fund 

10 shall remain available through the end of the 

11 10th fiscal year beginning after the date of the 

12 enactment of this Act. 

13 (B) REMAINDER.—Any amounts remaining 

14 in the Fund after the end of the fiscal year de15 scribed in subparagraph (A) shall be deposited 

16 in the general fund of the Treasury. 

17 (c) USE OF AMOUNTS.— 

18 (1) IN GENERAL.—The Secretary of State, in 

19 consultation with the working group established pur20 suant to section 3(b)(3)(F), shall use amounts in the 

21 Fund to carry out projects described in paragraph 

22 (2) with one or more covered United States allies 

23 and partners that enter into an agreement with the 

24 Secretary to develop a unified export control policy 

25 to eliminate or substantially reduce the global availVerDate Sep 11 2014 23:55 Oct 03, 2020 Jkt 019200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H8329 H8329

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1 ability of a critical technology identified under sec2 tion 3(b)(3)(A) to United States arms embargoed 

3 countries. 

4 (2) PROJECTS DESCRIBED.—The projects de5 scribed in this paragraph are joint research and de6 velopment projects carried out by the United States 

7 and the covered United States allies and partners to 

8 develop basic and applied research, develop regu9 latory and enforcement capacity building, expand 

10 production capacity, and carry out other related ac11 tivities with respect to the critical technology. 

12 (3) RULE OF CONSTRUCTION.—Nothing in this 

13 section may be construed to authorize the use of 

14 amounts in the Fund to carry out projects described 

15 in paragraph (2) that may benefit directly or indi16 rectly entities in United States arms embargoed 

17 countries 

18 (d) REPORT BY SECRETARY OF STATE.—Not later 

19 than 1 year after the date of the enactment of this Act, 

20 and annually thereafter for each fiscal year during which 

21 amounts in the Fund are available under subsection 

22 (b)(3), the Secretary of State shall submit to the appro23 priate congressional committees a report on the implemen24 tation of this section. 


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1 (e) REPORT BY COMPTROLLER GENERAL.—Not later 

2 than 2 years after the date of the enactment of this Act, 

3 the Comptroller General of the United States shall submit 

4 to the appropriate congressional committees a report eval5 uating the effectiveness of the Fund, including— 

6 (1) the effectiveness of projects supported by 

7 the Fund; and 

8 (2) an assessment of the merits of continuation 

9 of the Fund. 

10 SEC. 6. SENSE OF CONGRESS. 

11 It is the sense of Congress that the working group 

12 established pursuant to section 3(b)(3)(F) should, as soon 

13 as practicable after the date of the enactment of this Act, 

14 seek to establish a multilateral agreement with covered 

15 United States allies and partners to eliminate or substan16 tially reduce the global availability of other critical tech17 nologies identified under section 3(b)(3)(A) to United 

18 States arms embargoed countries. 

19 SEC. 7. DEFINITIONS. 

20 In this Act: 

21 (1) APPROPRIATE CONGRESSIONAL COMMIT22 TEES.—The term ‘‘appropriate congressional com23 mittees’’ means— 


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1 (A) the Committee on Foreign Affairs and 

2 the Committee on Energy and Commerce of the 

3 House of Representatives; and 

4 (B) the Committee on Banking, Housing, 

5 and Urban Affairs and the Committee on Com6 merce, Science, and Transportation of the Sen7 ate. 

8 (2) COMMERCE CONTROL LIST.—The term 

9 ‘‘Commerce Control List’’ means the list set forth in 

10 Supplement No. 1 to part 774 of the Export Admin11 istration Regulations. 

12 (3) COVERED UNITED STATES ALLY OR PART13 NER.—The term ‘‘covered United States ally or 

14 partner’’ means a foreign country that— 

15 (A) is an ally or partner of the United 

16 States; and 

17 (B)(i) produces, designs, tests, manufac18 tures, fabricates, or develops critical tech19 nologies; or 

20 (ii) for purposes of section 4, produces or 

21 manufactures semiconductor manufacturing 

22 equipment, design tools, and related technical 

23 data that— 


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1 (I) are not manufactured or produced 

2 in United States arms embargoed coun3 tries; and 

4 (II) are used to fabricate high-end 

5 semiconductor chips with feature sizes of 

6 45 nanometers and below that the Sec7 retary of Commerce determines threaten 

8 the national security and foreign policy in9 terests of the United States; and 

10 (4) CRITICAL TECHNOLOGIES.—The term ‘‘crit11 ical technologies’’ has the meaning given the term in 

12 section 721(a)(6) of the Defense Production Act of 

13 1950 (50 U.S.C. 4565(a)(6)); and 

14 (5) ENTITY LIST.—The term ‘‘Entity List’’ 

15 means the list maintained by the Bureau of Industry 

16 and Security and set forth in Supplement No. 4 to 

17 part 744 of the Export Administration Regulations. 

18 (6) EXPORT ADMINISTRATION REGULATIONS.— 

19 The term ‘‘Export Administration Regulations’’ 

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

21 of Federal Regulations. 

22 (7) UNITED STATES ARMS EMBARGOED COUN23 TRY.—The term ‘‘United States arms embargoed 

24 country’’ means a country— 


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1 (A) identified in column D:5 of Country 

2 Group D in Supplement No. 1 to part 740 of 

3 the Export Administration Regulations; or 

4 (B) determined to be a proscribed country 

5 pursuant to section 126.1 of title 22, Code of 

6 Federal Regulations. 

Æ 


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