I 
117TH CONGRESS 
1ST SESSION H. R. 2964 
To codify the denial of export privileges and related provisions under title 
15, Code of Federal Regulations. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 4, 2021 
Mr. BUCK introduced the following bill; which was referred to the Committee 
on Foreign Affairs 
A BILL 
To codify the denial of export privileges and related 
provisions under title 15, Code of Federal Regulations. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. FINDINGS. 
Congress finds the following: 
(1) The Founders of the United States viewed 
intellectual property rights as fundamental rights 
that must be protected by the government. 
(2) Article I, section 8, clause 8 of the United 
States Constitution affirmatively defends the individ-
ual’s right to protect intellectual property by grant-
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ing Congress power ‘‘to promote the Progress of 
Science and Useful arts, by securing, for limited 
Times, to Authors and Inventors, the exclusive Right 
to their respective Writings and Discoveries’’. 
(3) The Commission on the Theft of American 
Intellectual Property estimates that intellectual 
property theft costs the United States economy ap-
proximately $600 billion annually. 
(4) A March 1, 2019, CNBC poll found that 
one-in-five United States corporations say that 
China has stolen proprietary intellectual property 
within the last year and one-in-three United States 
corporations state that China has stolen their intel-
lectual property within the last decade. 
(5) The Commission on the Theft of American 
Intellectual Property further reports that China’s in-
dustrial policies call for the ‘‘absorption, digestion, 
and re-innovation of foreign intellectual property to 
meet the Made in China 2025 goal of 40 percent 
self-sufficiency by 2020 and 75 percent by 2025’’. 
(6) The Chinese Government remains the 
world’s principle source of intellectual property theft. 
(7) China engages in foreign ownership restric-
tions that include joint venture requirements and ad-
ministrative reviews that pressure United States 
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companies to transfer intellectual property and pro-
prietary technology to Chinese companies. 
(8) China imposes harmful contractual obliga-
tions on United States companies seeking to license 
their proprietary technology to Chinese-based firms 
and is engaged in a purposeful and unfair practice 
of acquiring United States businesses to generate 
technology transfers. 
(9) The Chinese Government is engaged in 
cyberattacks against United States businesses, mili-
tary installations, and government entities, including 
the United States Office of Personnel Management, 
resulting in the theft of untold proprietary informa-
tion and commercial trade secrets. 
(10) China is undertaking the ‘‘greatest intel-
lectual property theft in human history’’ according 
to former Secretary of Defense Mark Esper. 
(11) Congress must take bold action to combat 
the Chinese Government’s concerted efforts to per-
petrate cyber-attacks against United States entities 
and steal United States intellectual property. 
(12) Denial orders are issued by the Assistant 
Secretary of Commerce for Export Enforcement of 
the Bureau of Industry and Security to deny the ex-
port privileges of an entity or individual. A denial of 
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export privileges prohibits the person from partici-
pating in any way in any transaction subject to the 
Export Administration Regulations (EAR). Further-
more, it is unlawful for any other entity or indi-
vidual to participate in any way in an export trans-
action subject to the EAR with a person subject to 
a denial order. 
(13) On April 16, 2018, former Secretary of 
Commerce Wilbur Ross announced that the Bureau 
of Industry and Security of the Department of Com-
merce had issued an order to deny the export privi-
leges of Zhongxing Telecommunications Equipment 
Corporation of Shenzhen, China (‘‘ZTE Corpora-
tion’’) and ZTE Kangxun Telecommunications Ltd. 
of Hi-New Shenzhen, China. 
SEC. 2. SENSE OF CONGRESS. 
It is the sense of Congress that— 
(1) denial orders are an important foreign pol-
icy tool to use against foreign entities and individ-
uals, especially Chinese persons, with a pattern of 
violating United States laws, especially laws relating 
to intellectual property; and 
(2) the Department of Commerce should vigor-
ously utilize denial orders to hold such persons ac-
countable. 
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SEC. 3. STRATEGY. 
Not later than one year after the date of the enact-
ment of this Act, the Secretary of Commerce, in consulta-
tion with the Secretary of State, the Secretary of Treas-
ury, and Attorney General, shall submit to Congress a 
strategy regarding how denial orders issued by the Bureau 
of Industry and Security of the Department of Commerce 
to deny the export privileges of foreign entities and indi-
viduals, especially entities and individuals located in 
China, can be better utilized as part of a holistic approach 
to hold such entities and individuals accountable for theft 
of United States intellectual property. 
SEC. 4. CODIFICATION OF DENIAL OF EXPORT PRIVILEGES 
AND RELATED PROVISIONS UNDER TITLE 15, 
CODE OF FEDERAL REGULATIONS. 
The provisions of part 730 of title 15, Code of Fed-
eral Regulations, relating to general information, and sec-
tion 766.25 of such title, relating to administrative action 
denying export privileges, are hereby enacted into law. 
Æ 
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