SPACE Act

To prohibit the purchase of certain telecommunications or aerospace goods or service from entities affiliated with the People's Republic of China or the Russian Federation and to require reporting relating to investment by foreign persons in the aerospace industry in the United States, and for other purposes. 1. Short title This Act may be cited as the Space Protection of American Command and Enterprise Act SPACE Act 2. Definitions In this Act: (1) Covered entity The term covered entity (A) that is a United States business; and (B) the business of which relates to exploration, manufacturing, telecommunications, or national security activities involving space. (2) Foreign person The term foreign person (3) United States person The term United States person (A) a United States citizen or an alien lawfully admitted to the United States for permanent residence; and (B) an entity organized under the laws of the United States or any jurisdiction within the United States (including any foreign branch of such an entity). 3. Report on space investment competition from the People's Republic of China and the Russian Federation (a) In general Not later than 180 days after the date of the enactment of this Act, the National Space Council shall submit to Congress a report on space investment competition from the People's Republic of China and the Russian Federation. (b) Elements The report required by subsection (a) shall include the following: (1) A description of commercial investment activities used by the People's Republic of China and the Russian Federation to produce technologies and devices for space activities and programs, including— (A) launch vehicles and technologies; (B) satellites and telecommunications equipment and services; (C) manned spaceships, cargo spaceships, deep space explorers, and space stations; (D) nuclear missiles, conventional ground-to-ground missiles, and air and missile defense equipment; (E) space and zero-gravity manufacturing; (F) space-based precious minerals excavation and exploration technologies; (G) space-based solar power technologies; and (H) any other critical technologies and investment activities as determined by the National Space Council, particularly activities conducted by— (i) China Aerospace Science and Industry Corporation Limited; (ii) China Aerospace Science and Technology Corporation; (iii) the China National Space Administration; (iv) the BeiDou Satellite Navigation Experimental System; (v) the Government of the People's Republic of China; or (vi) the People’s Liberation Army. (2) An assessment of military-civil fusion activities in the People's Republic of China and the Russian Federation regarding space-related investments, including— (A) converting space-related technologies and resources to civilian entities; (B) increasing commercial enterprise participation in space-related investments; and (C) using investment vehicles affiliated with the People's Republic of China or the Russian Federation to acquire critical technologies in other countries. (3) An assessment of and recommendation to strengthen the ability of the United States to protect the intellectual property and critical technologies of the United States regarding space-related investments from export, transfer, and foreign theft or imitation, particularly from entities affiliated with the Government of the People's Republic of China or the Government of the Russian Federation. (4) A review and assessment of the research, technology, and commercial ties between the United States and the People's Republic of China and the Russian Federation regarding space-related investments to assess exposure and risks that may contribute to the development or enhancement of the space capabilities of the People's Republic of China and the Russian Federation. (5) An interagency strategy— (A) to defend supply chains of the United States that are critical to competitiveness in space; and (B) to ensure that the United States remains the preeminent commercial leader in the global space industry. 4. Prohibition on use of funds to purchase certain telecommunications or aerospace goods or service from entities associated with the Government of the People's Republic of China or the Communist Party of China No funds made available to the Department of Commerce or the National Aeronautics and Space Administration may be used to purchase or lease telecommunications or aerospace hardware or software equipment or services from any telecommunications or aerospace corporation, subsidiary, or affiliate associated with any of the following: (1) The Government of the People's Republic of China. (2) The Communist Party of China. (3) The People’s Liberation Army. (4) The China National Space Administration. (5) China Aerospace Science and Industry Corporation Limited. (6) China Aerospace Science and Technology Corporation. (7) The BeiDou Satellite Navigation Experimental System. (8) Any Communist Chinese military company identified by the Secretary of Defense under section 1237(b) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 ( 50 U.S.C. 1701 Public Law 105–261 5. SEC reporting (a) Definitions In this section— (1) the term Commission (2) the term Schedule 13D (3) the term Schedule 13G (b) Reporting required Notwithstanding section 240.13d–1 of title 17, Code of Federal Regulations, or any successor regulation, the Commission shall require any person who, after acquiring directly or indirectly the beneficial ownership of any equity security of a class which is specified in paragraph (i) of such section 240.13d–1 and that is issued by a covered entity, is directly or indirectly the beneficial owner of more than 2 percent of the class, to file with the Commission Schedule 13D or Schedule 13G, as determined under such section 240.13d–1. (c) Updates to rules The Commission may make any updates to the rules of the Commission that may be necessary as a result of this section. 6. Annual report on foreign investment in United States exploration, manufacturing, telecommunications, and national security involving space (a) In general Not later than 1 year after the date of the enactment of this Act, and annually thereafter, the Secretary of Defense, in coordination with the Secretary of Commerce and the Secretary of the Treasury, shall submit to Congress a report on investment by foreign persons in activities conducted in the United States or by United States persons relating to exploration, manufacturing, telecommunications, or national security activities involving space. (b) Elements The report required by subsection (a) shall include— (1) the country of origin of the foreign person; (2) the source of funds for investment by the foreign person in space; and (3) any other information that the Secretary of Defense considers appropriate. (c) Form The report required by subsection (a) shall be submitted in unclassified form but may contain a classified annex.

Summary: Space Protection of American Command and Enterprise Act or the SPACE Act This bill prohibits the purchase of certain telecommunications or aerospace equipment and services from China and requires reporting on investment by foreign persons in U.S. space companies. The National Space Council shall submit a specified report to Congress on space investment competition from China and Russia. No funds made available to the Department of Commerce or the National Aeronautics and Space Administration (NASA) may be used to purchase or lease telecommunications or aerospace hardware or software equipment or services from any telecommunications or aerospace corporation, subsidiary, or affiliate associated with China or the Communist Party of China. The bill reduces the threshold beyond which a person must report to the Securities and Exchange Commission the acquisition of shares in a U.S. space company. Currently, a person must make such a report when that person's ownership exceeds 5% of a company's total issue of stock. This bill reduces that to 2% for the acquisition of shares in such a company. The Department of Defense, in coordination with Commerce and the Department of the Treasury, shall submit annual reports to Congress on investment by foreign persons in activities conducted in the United States or by U.S. persons related to exploration, manufacturing, telecommunications, or national security activities involving space.