Preventing PLA Acquisition of United States Technology Act of 2023

Subjects: International Affairs


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1368 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                S. 1368

To counter the military-civil fusion strategy of the Chinese Communist 
  Party and prevent United States contributions to the development of 
                     dual-use technology in China.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 27, 2023

 Mr. Rubio (for himself, Mrs. Blackburn, Mr. Scott of Florida, and Mr. 
Braun) introduced the following bill; which was read twice and referred 
                 to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL


 
To counter the military-civil fusion strategy of the Chinese Communist 
  Party and prevent United States contributions to the development of 
                     dual-use technology in China.

    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 ``Preventing PLA Acquisition of United 
States Technology Act of 2023''.

SEC. 2. COUNTERING THE MILITARY-CIVIL FUSION STRATEGY OF THE CHINESE 
              COMMUNIST PARTY.

    (a) Definitions.--In this section:
            (1) Chinese entity of concern.--The term ``Chinese entity 
        of concern'' means--
                    (A) any college or university in the People's 
                Republic of China that is determined by the Secretary 
                of Defense to be involved in the implementation of the 
                military-civil fusion strategy, including--
                            (i) any college or university known as the 
                        ``Seven Sons of National Defense'';
                            (ii) any college or university that 
                        receives funding from--
                                    (I) the People's Liberation Army; 
                                or
                                    (II) the Equipment Development 
                                Department, or the Science and 
                                Technology Commission, of the Central 
                                Military Commission;
                            (iii) any college or university in the 
                        People's Republic of China involved in military 
                        training and education, including any such 
                        college or university in partnership with the 
                        People's Liberation Army;
                            (iv) any college or university in the 
                        People's Republic of China that conducts 
                        military research or hosts dedicated military 
                        initiatives or laboratories, including such a 
                        college or university designated under the 
                        ``double first-class university plan'';
                            (v) any college or university in the 
                        People's Republic of China that is designated 
                        by the State Administration for Science, 
                        Technology, and Industry for the National 
                        Defense to host ``joint construction'' 
                        programs;
                            (vi) any college or university in the 
                        People's Republic of China that has launched a 
                        platform for military-civil fusion or created 
                        national defense laboratories; and
                            (vii) any college or university in the 
                        People's Republic of China that conducts 
                        research or hosts dedicated initiatives or 
                        laboratories for any other related security 
                        entity beyond the People's Liberation Army, 
                        including the People's Armed Police, the 
                        Ministry of Public Security, and the Ministry 
                        of State Security;
                    (B) any enterprise for which the majority 
                shareholder or ultimate parent entity is the Government 
                of the People's Republic of China at any level of that 
                government;
                    (C) any privately owned company in the People's 
                Republic of China--
                            (i) that has received a military production 
                        license, such as the Weapons and Equipment 
                        Research and Production Certificate, the 
                        Equipment Manufacturing Unit Qualification, the 
                        Weapons and Equipment Quality Management System 
                        Certificate, or the Weapons and Equipment 
                        Research and Production Unit Classified 
                        Qualification Permit;
                            (ii) that is otherwise known to have set up 
                        mechanisms for engaging in activity in support 
                        of military initiatives;
                            (iii) that has a history of subcontracting 
                        for the People's Liberation Army or its 
                        affiliates;
                            (iv) that is participating in, or receiving 
                        benefits under, a military-civil fusion 
                        demonstration base; or
                            (v) that has an owner, director, or a 
                        senior management official who has served as a 
                        delegate to the National People's Congress, a 
                        member of the Chinese People's Political 
                        Consultative Conference, or a member of the 
                        Central Committee of the Chinese Communist 
                        Party; and
                    (D) any entity that--
                            (i) is identified by the Secretary of 
                        Defense under section 1260H(a) of the William 
                        M. (Mac) Thornberry National Defense 
                        Authorization Act for Fiscal Year 2021 (10 
                        U.S.C. 113 note) as a Chinese military company; 
                        and
                            (ii) is included in the Non-SDN Chinese 
                        Military-Industrial Complex Companies List 
                        published by the Department of the Treasury.
            (2) Covered entity.--The term ``covered entity'' means--
                    (A) any Federal agency that engages in research or 
                provides funding for research, including the National 
                Science Foundation and the National Institutes of 
                Health;
                    (B) any institution of higher education, or any 
                other private research institution, that receives any 
                Federal financial assistance; and
                    (C) any private company headquartered in the United 
                States that receives Federal financial assistance.
            (3) Federal financial assistance.--The term ``Federal 
        financial assistance'' has the meaning given the term in 
        section 200.1 of title 2, Code of Federal Regulations (or 
        successor regulations).
            (4) Military-civil fusion strategy.--The term ``military-
        civil fusion strategy'' means the strategy of the Chinese 
        Communist Party aiming to mobilize non-military resources and 
        expertise for military application, including the development 
        of technology, improvements in logistics, and other uses by the 
        People's Liberation Army.
    (b) Prohibitions.--
            (1) In general.--No covered entity may engage with a 
        Chinese entity of concern in any scientific research or 
        technical exchange that has a direct bearing on, or the 
        potential for dual use in, the development of technologies that 
        the Chinese Communist Party has identified as a priority of its 
        national strategy of military-civil fusion and that are listed 
        on the website under subsection (c)(1)(A).
            (2) Private partnerships.--No covered entity described in 
        subsection (a)(2)(C) may form a partnership or joint venture 
        with another such covered entity for the purpose of engaging in 
        any scientific research or technical exchange described in 
        paragraph (1).
    (c) Website.--
            (1) In general.--The Secretary of Defense, in consultation 
        with the Secretary of State, the Director of National 
        Intelligence, the Director of the Federal Bureau of 
        Investigation, the Secretary of Energy, the Secretary of 
        Education, the Secretary of the Treasury, and the Secretary of 
        Commerce, shall establish, and periodically update not less 
        than twice a year, a website that includes--
                    (A) a list of the specific areas of scientific 
                research or technical exchange for which the 
                prohibitions under subsection (b) apply, which shall 
                initially include some or all aspects of the fields of 
                quantum computing, photonics and lasers, robotics, big 
                data analytics, semiconductors, new and advanced 
                materials, biotechnology (including synthetic biology 
                and genetic engineering), 5G and all future generations 
                of telecommunications, advanced nuclear technology 
                (including nuclear power and energy storage), aerospace 
                technology, and artificial intelligence; and
                    (B) to the extent practicable, a list of all 
                Chinese entities of concern.
            (2) List of specific areas.--In developing the list under 
        paragraph (1)(A), the Secretary of Defense shall monitor and 
        consider the fields identified by the State Administration for 
        Science, Technology, and Industry for the National Defense of 
        the People's Republic of China as defense-relevant and 
        consider, including the more than 280 fields of study 
        designated as of the date of enactment of this Act, and any 
        others designated thereafter, as disciplines with national 
        defense characteristics that have the potential to support 
        military-civil fusion.
            (3) Resources.--In establishing the website under paragraph 
        (1), the Secretary of Defense may use as a model any existing 
        resources, such as the China Defense Universities Tracker 
        maintained by the Australian Strategic Policy Institute, 
        subject to any other laws applicable to such resources.
    (d) Exception.--The prohibitions under subsection (b) shall not 
apply to any collaborative study or research project in fields 
involving information that would not contribute substantially to the 
goals of the military-civil fusion strategy, as determined by 
regulations issued by the Secretary of Defense.
    (e) Annual Reporting Requirements.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, and December 31 of each year thereafter, 
        each covered entity shall submit to the Secretary of Defense a 
        report that discloses--
                    (A) any research relationships the covered entity 
                has with a Chinese entity of concern or has had during 
                the previous year;
                    (B) any research relationships the covered entity 
                has considered with a Chinese entity of concern during 
                the previous year and declined; and
                    (C) any research relationships the covered entity 
                has terminated with a Chinese entity of concern during 
                the previous year because the relationship violates 
                subsection (b) or as a result of related concerns.
            (2) Audit.--The Secretary of Defense may enter into a 
        contract with an independent entity to conduct an audit of any 
        report submitted under paragraph (1) to ensure compliance with 
        the requirements of such paragraph.
    (f) Enforcement.--
            (1) In general.--Notwithstanding any other provision of 
        law, a covered entity described in subparagraph (B) or (C) of 
        subsection (a)(2) that violates a prohibition under subsection 
        (b), or violates subsection (e), on or after the date of 
        enactment of this Act shall be precluded from receiving any 
        Federal financial assistance on or after the date of such 
        violation.
            (2) Regulations.--The Secretary of Defense, in consultation 
        with the Secretary of State, the Director of National 
        Intelligence, the Director of the Federal Bureau of 
        Investigation, the Secretary of Energy, the Secretary of 
        Education, the Secretary of the Treasury, and the Secretary of 
        Commerce, shall--
                    (A) promulgate regulations to enforce the 
                prohibitions under subsection (b), the auditing 
                requirements under subsection (e), and the requirement 
                under paragraph (1); and
                    (B) coordinate with the heads of other Federal 
                agencies to ensure the enforcement of such prohibitions 
                and requirements.
                                 &lt;all&gt;
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