I
104TH CONGRESS
2D SESSION
H. R. 3684
To prohibit the importation into the United States of goods produced, manu-
factured, 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 follow-
ing 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 Lib-
eration Army of China or any Chinese defense industrial
trading company.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. CONGRESSIONAL FINDINGS AND DECLARA-
TION OF POLICY.
(a) FINDINGS.—The Congress makes the following
findings:
(1) According to the Defense Intelligence Agen-
cy, the People’s Liberation Army of China owns and
operates a number of enterprises which produce both
civilian and military products.
(2) The General Staff Department of the Peo-
ple’s 
Liberation 
Army 
owns 
and 
operates
Polytechnologies, which is the weapons trading arm
of the People’s Liberation Army and has a rep-
resentative office in the United States.
(3) The General Logistics Department of the
People’s Liberation Army owns and operates a large
international conglomerate known as Xinxing Cor-
poration, which also has a representative office in
the United States.
(4) The People’s Armed Police, which is par-
tially controlled by the People’s Liberation Army, is
responsible for the occupation and suppression of
dissent in Tibet and the execution of prisoners
throughout China, and provides guards for the
forced labor camp system in Laogai, China, owns
and operates China Jingan Equipment Import and
Export, which also has a representative office in the
United States.
(5) These and other enterprises owned by the
People’s Liberation Army regularly export a great
variety of products to the United States, including,
but not limited to, clothing, toys, shoes, hand tools,
fish, minerals, and chemicals.
(6) The export of products allows the People’s
Liberation Army to earn hard currency directly,
which in turn can be used to modernize its forces.
(7) The average consumer in the United States
is unaware that products they are purchasing were
produced by the People’s Liberation Army.
(8) Trade with the People’s Liberation Army
effectively is a subsidy of military operations of the
People’s Republic of China.
(9) The China National Nuclear Corporation
exported illicit nuclear technology to Pakistan in
contravention of the Treaty on the Non-Proliferation
of Nuclear Weapons and the Arms Export Control
Act, thereby contributing to the threat of nuclear
war on the Indian Subcontinent.
(10) Naval units of the People’s Liberation
Army have committed aggression against the Repub-
lic of the Philippines and threatened the United
States Navy’s right of free passage in the South
China Sea.
(11) Chinese defense industrial trading compa-
nies have transferred cruise missiles to Iran, thereby
threatening the safety of United States military per-
sonnel in the region.
(12) Representatives of China North Industries
Corporation, a Chinese Government organization,
have been indicted by the United States Federal
Government for smuggling of firearms and conspir-
acy related thereto, importation of firearms without
a license, importation and sale of firearms with ob-
literated serial numbers, and transfer and possession
of machine guns in violation of the laws of the Unit-
ed States.
(13) Representatives of Poly Group, a Chinese
Government organization, have also been indicted by
the United States Federal Government for engaging
in the unlawful activities described in paragraph
(12).
(14) Representatives of China North Industries
Corporation attempted to sell solid rocket fuel to
Iraq in the fall of 1990, contrary to a number of ac-
tions by the United Nations Security Council.
(b) POLICY.—It is the policy of the United States to
prohibit the importation into the United States of goods
that are produced, manufactured, or exported by the Peo-
ple’s Liberation Army or Chinese defense industrial trad-
ing companies.
SEC. 2. PROHIBITION ON CERTAIN IMPORTS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, no good that is produced, manufactured, or
exported by the People’s Liberation Army or a Chinese
defense industrial trading company may be entered, or
withdrawn from warehouse for consumption, into the cus-
toms territory of the United States.
(b) DETERMINATION OF CHINESE DEFENSE INDUS-
TRIAL TRADING COMPANIES.—
(1) IN GENERAL.—Subject to paragraphs (2)
and (3), not later than 30 days after the date of the
enactment of this Act, the Secretary of the Treasury
shall determine which persons are Chinese defense
industrial trading companies for purposes of this
Act. The Secretary shall publish a list of such per-
sons in the Federal Register.
(2) PUBLIC HEARING.—
(A) GENERAL RULE.—Before making the
determination and publishing the list required
by paragraph (1), the Secretary of the Treasury
shall hold a public hearing for the purpose of
receiving oral and written testimony regarding
the persons to be included on the list.
(B) ADDITIONS
AND
DELETIONS.—The
Secretary of the Treasury may add or delete
persons from the list based on information
available to the Secretary or upon receipt of a
request containing sufficient information to
take such action.
(3) CHINESE DEFENSE INDUSTRIAL TRADING
COMPANY.—For purposes of making the determina-
tion required by paragraph (1), the term ‘‘Chinese
defense industrial trading company’’—
(A) means a person that is—
(i) engaged in manufacturing, produc-
ing, or exporting, and
(ii) affiliated with or owned, con-
trolled, or subsidized by the People’s Lib-
eration Army, and
(B) includes any person identified in the
United States Defense Intelligence Agency pub-
lication numbered VP–1920–271–90, dated
September 1990, or PC–1921–57–95, dated
October 1995.
(c) EFFECTIVE DATE.—Subsection (a) shall apply
with respect to goods entered, or withdrawn from ware-
house for consumption, on or after the 45th day after the
date of the enactment of this Act.
SEC. 3. DEFINITION.
For purposes of this Act, the term ‘‘People’s Libera-
tion Army’’ means any branch or division of the land,
naval, or air military service or the police of the Govern-
ment of the People’s Republic of China.
Æ