I 

116TH CONGRESS 

1ST SESSION H. R. 2565 

To implement the recommendations of the U.S.–China Economic and Security 

Review Commission, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 7, 2019 

Mr. SHERMAN (for himself and Mr. GALLAGHER) introduced the following bill; 

which was referred to the Committee on Ways and Means, and in addition to the Committees on Foreign Affairs, Oversight and Reform, the 

Judiciary, Intelligence (Permanent Select), Armed Services, and Energy 

and Commerce, 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 implement the recommendations of the U.S.–China Economic and Security Review Commission, 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 ‘‘U.S.–China Economic 

5 and Security Review Act of 2019’’. 


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1 SEC. 2. ANNUAL REPORT ON SUPPLY CHAIN VULNERABILI2 TIES RELATED TO THE PEOPLE’S REPUBLIC 

3 OF CHINA. 

4 Section 3603 of title 44, United States Code, is 

5 amended by adding at the end the following: 

6 ‘‘(g)(1) In this subsection, the term ‘Internet of 

7 Things’ means physical devices embedded with sensors 

8 that can collect data and connect to each other and the 

9 broader internet. 

10 ‘‘(2) Not later than 180 days after the date of the 

11 enactment of this subsection, and not less frequently than 

12 annually thereafter, the Chief Information Officers Coun13 cil shall submit to Congress a report on supply chain 

14 vulnerabilities related to the People’s Republic of China 

15 that includes the following: 

16 ‘‘(A) An assessment of the supply chain risk 

17 posed by the People’s Republic of China to each 

18 Federal agency. 

19 ‘‘(B) A description of how each Federal agency 

20 is mitigating the supply chain risk posed by the Peo21 ple’s Republic of China. 

22 ‘‘(C) An assessment of the existing procurement 

23 and security policies and guidance of each Federal 

24 agency with respect to cybersecurity, operations se25 curity, physical security, information security, and 

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1 munications technology, fifth generation mobile net2 works (commonly known as ‘5G networks’), and the 

3 Internet of Things, that describes the following: 

4 ‘‘(i) Areas for which new policies and guid5 ance may be needed, including for specific in6 formation and communications technology, 5G 

7 networks, and the Internet of Things, including 

8 applications or procedures related to the Inter9 net of Things. 

10 ‘‘(ii) Areas for which existing security poli11 cies and guidance can be updated to address 

12 vulnerabilities with respect to supply chain se13 curity, cybersecurity, operations security, phys14 ical security, information security, and data se15 curity.’’. 

16 SEC. 3. REPORT ON WTO PROCEEDINGS. 

17 (a) IN GENERAL.—Not later than 180 days after the 

18 date of the enactment of this Act, the United States Trade 

19 Representative shall submit to Congress a report assessing 

20 whether it is in the national interests of the United States 

21 to file, in coordination with allies and partners of the 

22 United States, a complaint against the People’s Republic 

23 of China at the World Trade Organization under section 

24 1 of Article XXIII of GATT 1994 alleging that the Peo25 ple’s Republic of China has— 


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1 (1) nullified or impaired a benefit accruing to 

2 the United States under the WTO Agreement with3 out violating that Agreement; and 

4 (2) committed other specific violations of com5 mitments under that Agreement. 

6 (b) DEFINITIONS.—In this section, the terms ‘‘GATT 

7 1994’’ and ‘‘WTO Agreement’’ have the meanings given 

8 those terms in section 2 of the Uruguay Round Agree9 ments Act (19 U.S.C. 3501). 

10 SEC. 4. REPORT ON INTIMIDATION OF UNITED STATES 

11 RESIDENTS. 

12 Not later than 180 days after the date of the enact13 ment of this Act, the Attorney General shall submit to 

14 Congress a report explaining whether, and if so, how, the 

15 Department of Justice is utilizing Federal criminal law, 

16 including section 241 of title 18, United States Code (re17 lating to conspiracy against rights), to prosecute affiliates 

18 of the Chinese Communist Party who threaten, coerce, or 

19 otherwise intimidate United States residents. 

20 SEC. 5. CLEAR LABELING FOR INFORMATIONAL MATE21 RIALS DISTRIBUTED ON BEHALF OF FOREIGN 

22 PRINCIPALS. 

23 Section 4(b) of the Foreign Agents Registration Act 

24 of 1938 (22 U.S.C. 614(b)) is amended by adding at the 

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1 quired to be labeled under this subsection and which are 

2 in the form of prints shall be marked or stamped conspicu3 ously at the top of the first page of such materials with 

4 a statement in the language or languages used therein, 

5 setting forth such information as is required under this 

6 subsection.’’. 

7 SEC. 6. NATIONAL INTELLIGENCE ESTIMATE ON ACCESS 

8 AND BASING FACILITIES OF THE PEOPLE’S 

9 REPUBLIC OF CHINA. 

10 (a) IN GENERAL.—Not later than 180 days after the 

11 date of the enactment of this Act, the Director of National 

12 Intelligence shall submit to Congress a National Intel13 ligence Estimate on the access and basing facilities of the 

14 People’s Republic of China. 

15 (b) CONTENTS.—The National Intelligence Estimate 

16 submitted under subsection (a) shall include a description 

17 of the effect of existing and potential access and basing 

18 facilities of the People’s Republic of China along the Silk 

19 Road Economic Belt and the New Maritime Silk Road on 

20 the following: 

21 (1) Freedom of navigation and sea control, in 

22 peacetime and during periods of conflict. 

23 (2) The regional political and security interests 

24 of the United States and allies of the United States. 


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1 (c) FORM.—The National Intelligence Estimate sub2 mitted under subsection (a) shall be submitted in unclassi3 fied form, but may include a classified annex. 

4 SEC. 7. ANNUAL REPORT ON INFLUENCE AND PROPA5 GANDA ACTIVITIES OF THE CHINESE COM6 MUNIST PARTY IN THE UNITED STATES. 

7 (a) IN GENERAL.—Title IX of the Intelligence Au8 thorization Act for Fiscal Year 2003 (Public Law 107– 

9 306) is amended by adding at the end the following: 

10 ‘‘SEC. 905. ANNUAL REPORT ON INFLUENCE AND PROPA11 GANDA ACTIVITIES OF THE CHINESE COM12 MUNIST PARTY IN THE UNITED STATES. 

13 ‘‘(a) ANNUAL REPORT REQUIRED.—Not later than 

14 180 days after the date of the enactment of this section, 

15 and not less frequently than annually thereafter, the Di16 rector of the National Counterintelligence and Security 

17 Center shall submit to Congress a report on the influence 

18 and propaganda activities of the Chinese Communist 

19 Party in the United States. 

20 ‘‘(b) FORM.—The report submitted under subsection 

21 (a) shall be submitted in unclassified form, but may in22 clude a classified annex.’’. 

23 (b) CLERICAL AMENDMENT.—The table of contents 

24 in section 1(b) of the Intelligence Authorization Act for 

25 Fiscal Year 2003 (Public Law 107–306) is amended by 


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1 inserting after the item relating to section 904 the fol2 lowing: 

‘‘Sec. 905. Annual report on influence and propaganda activities of the Chinese 

Communist Party in the United States.’’. 

3 SEC. 8. REPORT ON THE CHINA COAST GUARD. 

4 (a) IN GENERAL.—Not later than 180 days after the 

5 date of the enactment of this Act, the Secretary of Defense 

6 and the Secretary of Homeland Security shall jointly sub7 mit to the appropriate congressional committees a report 

8 on the China Coast Guard (referred to in this section as 

9 the ‘‘CCG’’). 

10 (b) CONTENTS.—The report submitted under sub11 section (a) shall include an assessment of the following: 

12 (1) How the change in the command structure 

13 of the CCG affects the status of the CCG as a law 

14 enforcement entity considering that the CCG now re15 ports to the Central Military Commission. 

16 (2) The implications of the new command 

17 structure of the CCG with respect to the use of the 

18 CCG as a coercive tool in ‘‘gray zone’’ activity in the 

19 East China Sea and the South China Sea. 

20 (3) How the change in the command structure 

21 of the CCG may affect interactions between the 

22 United States Navy and the United States Coast 

23 Guard and the China Coast Guard. 


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1 (4) Whether the China Coast Guard should be 

2 designated as a military force by the Secretary of 

3 Defense and the Secretary of Homeland Security. 

4 (c) FORM.—The report submitted under subsection 

5 (a) shall be submitted in unclassified form, but may in6 clude a classified annex. 

7 (d) APPROPRIATE CONGRESSIONAL COMMITTEES

8 DEFINED.—In this section, the term ‘‘appropriate con9 gressional committees’’ means— 

10 (1) the Committee on Foreign Relations, the 

11 Committee on Armed Services, the Committee on 

12 Homeland Security and Governmental Affairs, and 

13 the Committee on Appropriations of the Senate; and 

14 (2) the Committee on Foreign Affairs, the 

15 Committee on Armed Services, the Committee on 

16 Homeland Security, and the Committee on Appro17 priations of the House of Representatives. 

18 SEC. 9. REPORT ON STEPS TO PROTECT 5G NETWORKS. 

19 Not later than 180 days after the date of the enact20 ment of this Act, the Assistant Secretary of Commerce 

21 for Communications and Information and the Federal 

22 Communications Commission shall jointly submit to Con23 gress a report that includes the following: 

24 (1) The steps required to ensure the rapid and 

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1 works (commonly known as ‘‘5G networks’’), with a 

2 particular focus on the threat posed by equipment 

3 and services designed or manufactured in the Peo4 ple’s Republic of China. 

5 (2) How the executive branch agencies are im6 plementing the steps described in paragraph (1). 

7 (3) Any new statutory authorities that may be 

8 required to ensure the security of domestic 5G net9 works. 

10 SEC. 10. GAO REPORT ON UNITED STATES–CHINA TECH11 NICAL COOPERATION. 

12 (a) ASSESSMENT.— 

13 (1) IN GENERAL.—The Comptroller General of 

14 the United States shall conduct an assessment of 

15 collaborative initiatives between the United States 

16 and the People’s Republic of China relating to tech17 nical cooperation. 

18 (2) DUTIES.—In carrying out the assessment 

19 required by paragraph (1), the Comptroller General 

20 shall— 

21 (A) describe the nature of technical co22 operation between the United States and the 

23 People’s Republic of China, including funding, 

24 participation, and reporting on the outcomes; 


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1 (B) detail the licensing and regulatory re2 gime under which collaborative initiatives de3 scribed in paragraph (1) occur; 

4 (C) consider whether the intellectual prop5 erty rights of researchers and entities of the 

6 United States are being adequately protected; 

7 (D) examine whether state-owned enter8 prises or the military of the People’s Republic 

9 of China are benefitting from research funded 

10 by the taxpayers of the United States; 

11 (E) investigate if any researchers of the 

12 People’s Republic of China participating in col13 laborative initiatives described in paragraph (1) 

14 have ties to the Government or the military of 

15 the People’s Republic of China; 

16 (F) investigate if any institutions of higher 

17 education, laboratories, or other entities of the 

18 United States participating in collaboration led 

19 by the Government of the United States with 

20 the People’s Republic of China have been sub21 ject to cyber penetration originating in the Peo22 ple’s Republic of China; 

23 (G) evaluate the benefits of the collabora24 tion for the United States; and 


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1 (H) examine redundancies, if any, among 

2 various government-led collaborative programs 

3 between the United States and the People’s Re4 public of China, and make suggestions for im5 proving technical collaboration. 

6 (b) REPORT REQUIRED.—Not later than 180 days 

7 after the date of the enactment of this Act, the Comp8 troller General shall submit to Congress a report on the 

9 assessment required by subsection (a)(1). 

10 SEC. 11. REPORT ON CHINESE ENFORCEMENT OF SANC11 TIONS AGAINST NORTH KOREA. 

12 (a) IN GENERAL.—Not later than 180 days after the 

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

14 Treasury shall submit to Congress a report on the current 

15 state of the enforcement by the Government of the Peo16 ple’s Republic of China of sanctions imposed by the United 

17 Nations with respect to the Democratic People’s Republic 

18 of Korea. 

19 (b) FORM.—The report submitted under subsection 

20 (a) shall be submitted in unclassified form but shall in21 clude a classified annex that includes the following: 

22 (1) A list of financial institutions, other enti23 ties, and officials of the People’s Republic of China 

24 for which sanctions may be imposed with respect to 

25 the Democratic People’s Republic of Korea. 


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1 (2) Whether the Government of the United 

2 States has imposed sanctions with respect to any in3 stitution, entity, or official described paragraph (1) 

4 and, if so, an identification of such institution, enti5 ty, or official. 

6 (3) Whether any foreign country has imposed 

7 sanctions with respect to any institution, entity, or 

8 official described in paragraph (1) and, if so, an 

9 identification of such institution, entity, or official. 

10 SEC. 12. REPORT ON TRADE-DISTORTING PRACTICES OF 

11 THE PEOPLE’S REPUBLIC OF CHINA. 

12 Not later than 180 days after the date of the enact13 ment of this Act, the United States Trade Representative 

14 shall submit to Congress a report that includes the fol15 lowing: 

16 (1) An identification of the trade-distorting 

17 practices of the state-owned enterprises of the Peo18 ple’s Republic of China. 

19 (2) A description of how the Office of the 

20 United States Trade Representative is counteracting 

21 the anticompetitive impact of the practices described 

22 in paragraph (1). 

Æ 


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