I

104TH CONGRESS

2D SESSION H. R. 3684

To prohibit the importation into the United States of goods produced, manufactured, or exported by the People’s Liberation Army of China or

any Chinese defense industrial trading company.

IN THE HOUSE OF REPRESENTATIVES

JUNE 20, 1996

Mr. GILMAN (for himself Mr. LANTOS, Mr. SOLOMON, Mr. COX of California,

Mr. SPENCE, Mr. HYDE, Mr. SMITH of New Jersey, Mr. WOLF, Mr.

ROYCE, Mr. BURTON of Indiana, and Ms. PELOSI) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To prohibit the importation into the United States of goods

produced, manufactured, or exported by the People’s Liberation Army of China or any Chinese defense industrial

trading company.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. CONGRESSIONAL FINDINGS AND DECLARA4 TION OF POLICY.

5 (a) FINDINGS.—The Congress makes the following

6 findings:
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1 (1) According to the Defense Intelligence Agen2 cy, the People’s Liberation Army of China owns and

3 operates a number of enterprises which produce both

4 civilian and military products.

5 (2) The General Staff Department of the Peo6 ple’s Liberation Army owns and operates

7 Polytechnologies, which is the weapons trading arm

8 of the People’s Liberation Army and has a rep9 resentative office in the United States.

10 (3) The General Logistics Department of the

11 People’s Liberation Army owns and operates a large

12 international conglomerate known as Xinxing Cor13 poration, which also has a representative office in

14 the United States.

15 (4) The People’s Armed Police, which is par16 tially controlled by the People’s Liberation Army, is

17 responsible for the occupation and suppression of

18 dissent in Tibet and the execution of prisoners

19 throughout China, and provides guards for the

20 forced labor camp system in Laogai, China, owns

21 and operates China Jingan Equipment Import and

22 Export, which also has a representative office in the

23 United States.

24 (5) These and other enterprises owned by the

25 People’s Liberation Army regularly export a great
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1 variety of products to the United States, including,

2 but not limited to, clothing, toys, shoes, hand tools,

3 fish, minerals, and chemicals.

4 (6) The export of products allows the People’s

5 Liberation Army to earn hard currency directly,

6 which in turn can be used to modernize its forces.

7 (7) The average consumer in the United States

8 is unaware that products they are purchasing were

9 produced by the People’s Liberation Army.

10 (8) Trade with the People’s Liberation Army

11 effectively is a subsidy of military operations of the

12 People’s Republic of China.

13 (9) The China National Nuclear Corporation

14 exported illicit nuclear technology to Pakistan in

15 contravention of the Treaty on the Non-Proliferation

16 of Nuclear Weapons and the Arms Export Control

17 Act, thereby contributing to the threat of nuclear

18 war on the Indian Subcontinent.

19 (10) Naval units of the People’s Liberation

20 Army have committed aggression against the Repub21 lic of the Philippines and threatened the United

22 States Navy’s right of free passage in the South

23 China Sea.

24 (11) Chinese defense industrial trading compa25 nies have transferred cruise missiles to Iran, thereby
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1 threatening the safety of United States military per2 sonnel in the region.

3 (12) Representatives of China North Industries

4 Corporation, a Chinese Government organization,

5 have been indicted by the United States Federal

6 Government for smuggling of firearms and conspir7 acy related thereto, importation of firearms without

8 a license, importation and sale of firearms with ob9 literated serial numbers, and transfer and possession

10 of machine guns in violation of the laws of the Unit11 ed States.

12 (13) Representatives of Poly Group, a Chinese

13 Government organization, have also been indicted by

14 the United States Federal Government for engaging

15 in the unlawful activities described in paragraph

16 (12).

17 (14) Representatives of China North Industries

18 Corporation attempted to sell solid rocket fuel to

19 Iraq in the fall of 1990, contrary to a number of ac20 tions by the United Nations Security Council.

21 (b) POLICY.—It is the policy of the United States to

22 prohibit the importation into the United States of goods

23 that are produced, manufactured, or exported by the Peo24 ple’s Liberation Army or Chinese defense industrial trad25 ing companies.
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1 SEC. 2. PROHIBITION ON CERTAIN IMPORTS.

2 (a) IN GENERAL.—Notwithstanding any other provi3 sion of law, no good that is produced, manufactured, or

4 exported by the People’s Liberation Army or a Chinese

5 defense industrial trading company may be entered, or

6 withdrawn from warehouse for consumption, into the cus7 toms territory of the United States.

8 (b) DETERMINATION OF CHINESE DEFENSE INDUS9 TRIAL TRADING COMPANIES.—

10 (1) IN GENERAL.—Subject to paragraphs (2)

11 and (3), not later than 30 days after the date of the

12 enactment of this Act, the Secretary of the Treasury

13 shall determine which persons are Chinese defense

14 industrial trading companies for purposes of this

15 Act. The Secretary shall publish a list of such per16 sons in the Federal Register.

17 (2) PUBLIC HEARING.—

18 (A) GENERAL RULE.—Before making the

19 determination and publishing the list required

20 by paragraph (1), the Secretary of the Treasury

21 shall hold a public hearing for the purpose of

22 receiving oral and written testimony regarding

23 the persons to be included on the list.

24 (B) ADDITIONS AND DELETIONS.—The

25 Secretary of the Treasury may add or delete

26 persons from the list based on information
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1 available to the Secretary or upon receipt of a

2 request containing sufficient information to

3 take such action.

4 (3) CHINESE DEFENSE INDUSTRIAL TRADING

5 COMPANY.—For purposes of making the determina6 tion required by paragraph (1), the term ‘‘Chinese

7 defense industrial trading company’’—

8 (A) means a person that is—

9 (i) engaged in manufacturing, produc10 ing, or exporting, and

11 (ii) affiliated with or owned, con12 trolled, or subsidized by the People’s Lib13 eration Army, and

14 (B) includes any person identified in the

15 United States Defense Intelligence Agency pub16 lication numbered VP–1920–271–90, dated

17 September 1990, or PC–1921–57–95, dated

18 October 1995.

19 (c) EFFECTIVE DATE.—Subsection (a) shall apply

20 with respect to goods entered, or withdrawn from ware21 house for consumption, on or after the 45th day after the

22 date of the enactment of this Act.

23 SEC. 3. DEFINITION.

24 For purposes of this Act, the term ‘‘People’s Libera25 tion Army’’ means any branch or division of the land,
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1 naval, or air military service or the police of the Govern2 ment of the People’s Republic of China.

Æ