II 

116TH CONGRESS 

1ST SESSION S. 1459 

To control the export to the People’s Republic of China of certain technology 

and intellectual property important to the national interest of the United 

States, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 14, 2019 

Mr. HAWLEY introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To control the export to the People’s Republic of China 

of certain technology and intellectual property important 

to the national interest of the United States, 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 ‘‘China Technology 

5 Transfer Control Act of 2019’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 


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1 (1) CHINESE PERSON.—The term ‘‘Chinese 

2 person’’ means— 

3 (A) an individual who is a citizen or na4 tional of the People’s Republic of China; or 

5 (B) an entity organized under the laws of 

6 the People’s Republic of China or otherwise 

7 subject to the jurisdiction of the Government of 

8 the People’s Republic of China. 

9 (2) COVERED NATIONAL INTEREST TECH10 NOLOGY OR INTELLECTUAL PROPERTY.—The term 

11 ‘‘covered national interest technology or intellectual 

12 property’’ includes the following: 

13 (A) Technology or intellectual property 

14 that would make a significant contribution to 

15 the military potential of the People’s Republic 

16 of China that would prove detrimental to the 

17 national security of the United States. 

18 (B) Technology or intellectual property 

19 necessary to protect the economy of the United 

20 States from the excessive drain of scarce mate21 rials and to reduce the serious inflationary im22 pact of demand from the People’s Republic of 

23 China. 

24 (C) Technology or intellectual property 

25 that is a component of the production of prodVerDate Sep 11 2014 05:27 May 23, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1459.IS S1459

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1 ucts included in the most recent list required 

2 under section 183 of the Trade Act of 1974, as 

3 added by section 6(a), determined in consulta4 tion with the United States Trade Representa5 tive. 

6 (D) Technology used by the Government of 

7 the People’s Republic of China to carry out vio8 lations of human rights or religious liberties. 

9 (3) FOREIGN PERSON.—The term ‘‘foreign per10 son’’ means any person that is not a United States 

11 person. 

12 (4) KNOWINGLY.—The term ‘‘knowingly’’, with 

13 respect to conduct, a circumstance, or a result, 

14 means that a person has actual knowledge, or should 

15 have known, of the conduct, the circumstance, or the 

16 result. 

17 (5) INTELLECTUAL PROPERTY.—The term ‘‘in18 tellectual property’’ means— 

19 (A) any work protected by a copyright 

20 under title 17, United States Code; 

21 (B) any property protected by a patent 

22 granted by the United States Patent and 

23 Trademark Office under title 35, United States 

24 Code; 


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1 (C) any word, name, symbol, or device, or 

2 any combination thereof, that is registered as a 

3 trademark with the United States Patent and 

4 Trademark Office under the Act entitled ‘‘An 

5 Act to provide for the registration and protec6 tion of trademarks used in commerce, to carry 

7 out the provisions of certain international con8 ventions, and for other purposes’’, approved 

9 July 5, 1946 (commonly known as the 

10 ‘‘Lanham Act’’ or the ‘‘Trademark Act of 

11 1946’’) (15 U.S.C. 1051 et seq.); 

12 (D) a trade secret (as defined in section 

13 1839 of title 18, United States Code); or 

14 (E) any other form of intellectual property. 

15 (6) TECHNOLOGY.—The term ‘‘technology’’ in16 cludes goods or services relating to information sys17 tems, Internet-based services, production-enhancing 

18 logistics, robotics, artificial intelligence, biotechnolo19 gy, or computing. 

20 (7) UNITED STATES PERSON.—The term 

21 ‘‘United States person’’ means— 

22 (A) a United States citizen or an alien law23 fully admitted for permanent residence to the 

24 United States; or 


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1 (B) an entity organized under the laws of 

2 the United States or of any jurisdiction within 

3 the United States, including a foreign branch of 

4 such an entity. 

5 SEC. 3. SENSE OF CONGRESS. 

6 It is the sense of Congress that— 

7 (1) while the United States is committed to 

8 promoting cultural and technological exchange with 

9 other countries, it is our responsibility to protect the 

10 United States when channels for such exchange are 

11 exploited by adversaries; and 

12 (2) the People’s Republic of China consistently 

13 seeks to exploit those channels, not only in its theft 

14 of intellectual property but also in its manipulation 

15 of lawful transfer and uses of technology in ways 

16 that directly support its military objectives and 

17 threaten the United States. 

18 SEC. 4. CONTROL OF EXPORT OF COVERED NATIONAL IN19 TEREST TECHNOLOGY AND INTELLECTUAL 

20 PROPERTY TO THE PEOPLE’S REPUBLIC OF 

21 CHINA. 

22 (a) IN GENERAL.—On and after the date that is 180 

23 days after the date of the enactment of this Act, the Presi24 dent shall control the export or re-export to, or transfer 

25 in, the People’s Republic of China of any covered national 


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1 interest technology or intellectual property subject to the 

2 jurisdiction of the United States or exported by any 

3 United States person. 

4 (b) REPORT REQUIRED.—Not later than 90 days 

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

6 of State and the Secretary of Commerce shall jointly sub7 mit to Congress a report assessing whether covered na8 tional interest technology or intellectual property should 

9 be controlled as required by subsection (a) under— 

10 (1) the International Traffic in Arms Regula11 tions under subchapter M of chapter I of title 22, 

12 Code of Federal Regulations; or 

13 (2) the Export Administration Regulations 

14 under subchapter C of chapter VII of title 15, Code 

15 of Federal Regulations. 

16 (c) REGULATIONS.—Not later than 180 days after 

17 the date of the enactment of this Act, the President shall 

18 prescribe such regulations as are necessary to carry out 

19 subsection (a). 


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1 SEC. 5. IMPOSITION OF SANCTIONS WITH RESPECT TO PRO2 VISION TO OR PURCHASE FROM THE PEO3 PLE’S REPUBLIC OF CHINA OF COVERED NA4 TIONAL INTEREST TECHNOLOGY AND INTEL5 LECTUAL PROPERTY. 

6 (a) IN GENERAL.—The President shall, pursuant to 

7 the International Emergency Economic Powers Act (50 

8 U.S.C. 1701 et seq.), block and prohibit all transactions 

9 in all property and interests in property of a person de10 scribed in subsection (b) if such property and interests in 

11 property are in the United States, come within the United 

12 States, or are or come within the possession or control 

13 of a United States person. 

14 (b) PERSONS DESCRIBED.—A person described in 

15 this subsection is— 

16 (1) a foreign person that, on or after the date 

17 of the enactment of this Act, knowingly sells or oth18 erwise provides to, or knowingly purchases from, the 

19 People’s Republic of China any covered national in20 terest technology or intellectual property subject to 

21 the jurisdiction of the United States; or 

22 (2) a Chinese person that, on or after such date 

23 of enactment, knowingly uses covered national inter24 est technology or intellectual property provided to 

25 the Chinese person in violation of section 4 or any 

26 other export control law of the United States. 


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1 (c) EXCEPTION RELATING TO IMPORTATION OF

2 GOODS.— 

3 (1) IN GENERAL.—The requirement to block 

4 and prohibit all transactions in all property and in5 terests in property under subsection (a) shall not in6 clude the authority to impose sanctions on the im7 portation of goods. 

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

9 term ‘‘good’’ means any article, natural or man10 made substance, material, supply or manufactured 

11 product, including inspection and test equipment, 

12 and excluding technical data. 

13 (d) WAIVER.—The President may waive the imposi14 tion of sanctions under subsection (a) with respect to a 

15 person if the President determines and reports to Con16 gress that the waiver is in the national security interests 

17 of the United States. 

18 (e) IMPLEMENTATION; PENALTIES.— 

19 (1) IMPLEMENTATION.—The President may ex20 ercise all authorities provided under sections 203 

21 and 205 of the International Emergency Economic 

22 Powers Act (50 U.S.C. 1702 and 1704) to carry out 

23 this section. 

24 (2) PENALTIES.—A person that violates, at25 tempts to violate, conspires to violate, or causes a 


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1 violation of subsection (a) or any regulation, license, 

2 or order issued to carry out that subsection shall be 

3 subject to the penalties set forth in subsections (b) 

4 and (c) of section 206 of the International Emer5 gency Economic Powers Act (50 U.S.C. 1705) to the 

6 same extent as a person that commits an unlawful 

7 act described in subsection (a) of that section. 

8 (3) INAPPLICABILITY OF NATIONAL EMER9 GENCY REQUIREMENT.—The requirements of section 

10 202 of the International Emergency Economic Pow11 ers Act (50 U.S.C. 1701) shall not apply for pur12 poses of this section. 

13 SEC. 6. ESTABLISHMENT OF LIST OF CERTAIN PRODUCTS 

14 RECEIVING SUPPORT FROM THE GOVERN15 MENT OF THE PEOPLE’S REPUBLIC OF CHINA 

16 OR USED BY THAT GOVERNMENT FOR 

17 HUMAN RIGHTS VIOLATIONS. 

18 (a) IN GENERAL.—Chapter 8 of title I of the Trade 

19 Act of 1974 (19 U.S.C. 2241 et seq.) is amended by add20 ing at the end the following: 


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1 ‘‘SEC. 183. LIST OF CERTAIN PRODUCTS RECEIVING SUP2 PORT FROM THE GOVERNMENT OF THE PEO3 PLE’S REPUBLIC OF CHINA OR USED BY THAT 

4 GOVERNMENT FOR HUMAN RIGHTS VIOLA5 TIONS. 

6 ‘‘(a) IN GENERAL.—Not later than 120 days after 

7 the date of the enactment of the China Technology Trans8 fer Control Act of 2019, and annually thereafter, the 

9 United States Trade Representative shall set forth a list 

10 of products manufactured or produced in, or exported 

11 from, the People’s Republic of China that are determined 

12 by— 

13 ‘‘(1) the Trade Representative— 

14 ‘‘(A) to receive support from the Govern15 ment of the People’s Republic of China pursu16 ant to the Made in China 2025 industrial policy 

17 of that Government; or 

18 ‘‘(B) to otherwise receive support from 

19 that Government and that have or will in the 

20 future displace net exports of like products by 

21 the United States; or 

22 ‘‘(2) the Secretary of State to be used by the 

23 Government of the People’s Republic of China to 

24 carry out violations of human rights or religious lib25 erties. 


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1 ‘‘(b) IDENTIFICATION OF PRODUCTS RECEIVING

2 SUPPORT PURSUANT TO MADE IN CHINA 2025 POLICY.— 

3 ‘‘(1) IN GENERAL.—The Trade Representative 

4 shall include in the list under subsection (a)(1)(A) 

5 any product specified in the following documents set 

6 forth by the Government of the People’s Republic of 

7 China: 

8 ‘‘(A) Notice on Issuing Made in China 

9 2025. 

10 ‘‘(B) China Manufacturing 2025. 

11 ‘‘(C) Notice on Issuing the 13th Five-Year 

12 National Strategic Emerging Industries Devel13 opment Plan. 

14 ‘‘(D) Guiding Opinion on Promoting Inter15 national Industrial Capacity and Equipment 

16 Manufacturing Cooperation. 

17 ‘‘(E) Any other document that expresses a 

18 national strategy or stated goal in connection 

19 with the Made in China 2025 industrial policy 

20 set forth by the Government of the People’s Re21 public of China, the Communist Party of China, 

22 or another entity or individual capable of im23 pacting the national strategy of the People’s 

24 Republic of China. 


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1 ‘‘(2) INCLUDED PRODUCTS.—In addition to 

2 such products as the Trade Representative shall in3 clude pursuant to paragraph (1) in the list under 

4 subsection (a)(1)(A), the Trade Representative shall 

5 include products in the following industries: 

6 ‘‘(A) Civil aircraft. 

7 ‘‘(B) Turbine engines. 

8 ‘‘(C) Motor car and vehicle. 

9 ‘‘(D) Advanced medical equipment. 

10 ‘‘(E) Advanced construction equipment. 

11 ‘‘(F) Agricultural machinery. 

12 ‘‘(G) Railway equipment. 

13 ‘‘(H) Diesel locomotive. 

14 ‘‘(I) Moving freight. 

15 ‘‘(J) Semiconductor. 

16 ‘‘(K) Lithium battery manufacturing. 

17 ‘‘(L) Artificial intelligence. 

18 ‘‘(M) High-capacity computing. 

19 ‘‘(N) Quantum computing. 

20 ‘‘(O) Robotics. 

21 ‘‘(P) Biotechnology.’’. 

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

23 for the Trade Act of 1974 is amended by inserting after 

24 the item relating to section 182 the following: 


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‘‘Sec. 183. List of certain products receiving support from the Government of 

the People’s Republic of China or used by that Government for 

human rights violations.’’. 

Æ 


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