I 
118TH CONGRESS 
1ST SESSION 
H. R. 760 
To impose sanctions with respect to Communist Chinese military and 
surveillance companies. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 2, 2023 
Mr. BARR introduced the following bill; which was referred to the Committee 
on Foreign Affairs, and in addition to the Committee on Financial Serv-
ices, for a period to be subsequently determined by the Speaker, in each 
case for consideration of such provisions as fall within the jurisdiction of 
the committee concerned 
A BILL 
To impose sanctions with respect to Communist Chinese 
military and surveillance companies. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Chinese Military and 
Surveillance Company Sanctions Act of 2023’’. 
SEC. 2. FINDINGS AND SENSE OF CONGRESS. 
(a) FINDINGS.—Congress finds the following: 
(1) Under Executive Order 13959 (85 Fed. 
Reg. 73185; relating to addressing the threat from 
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securities investments that finance Communist Chi-
nese military companies) of November 17, 2020, the 
President found that the People’s Republic of China 
‘‘increases the size of the country’s military-indus-
trial complex by compelling civilian Chinese compa-
nies to support its military and intelligence activi-
ties. Those companies, though remaining ostensibly 
private and civilian, directly support the PRC’s mili-
tary, intelligence, and security apparatuses and aid 
in their development and modernization.’’. The 
President further determined that ‘‘the PRC exploits 
United States investors to finance the development 
and modernization of its military.’’. As a result, Ex-
ecutive Order 13959 restricted transactions in pub-
licly traded securities of Communist Chinese military 
companies listed pursuant to section 1237 of the 
Strom Thurmond National Defense Authorization 
Act for Fiscal Year 1999 (50 U.S.C. 1701 note). 
(2) Although Executive Order 13959 targets 
transactions in public securities, it does not address 
financing options for Communist Chinese military 
companies through other forms of equity financing 
or debt financing, nor does it limit transactions with 
United States persons that may generate earnings in 
a manner that facilitates company growth. 
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(3) The Office of Foreign Assets Control 
(OFAC) of the Department of the Treasury, by im-
posing asset blocking through the Specially Des-
ignated Nationals (SDN) List, is able to forbid vir-
tually any transaction between United States per-
sons and a designated entity, including debt and eq-
uity financing, the exchange of goods and services, 
and the provision of material or technological sup-
port. Conversely, restrictions limited to publicly trad-
ed securities are less comprehensive, and in the case 
of certain Chinese companies of concern, may be ir-
relevant if the companies do not issue such securi-
ties. 
(4) While restrictions on public securities are 
restricted to the dealings of United States persons, 
OFAC’s inclusion of a foreign entity on the SDN list 
deters third-country persons from dealing with a 
designated entity, amplifying the effects of United 
States sanctions globally. 
(5) OFAC has long devoted significant re-
sources to compiling evidence on SDNs that rou-
tinely withstand challenges in court, which enhances 
the effectiveness of United States sanctions, encour-
ages allies to consider comparable measures, and 
strengthens national security. 
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(6) On June 3, 2021, the President issued Ex-
ecutive Order 14032, which transferred responsi-
bility for naming Chinese military companies subject 
to investment restrictions to the Secretary of the 
Treasury, and expanded restrictions to entities oper-
ating in the surveillance technology sector of the 
Chinese economy. 
(b) SENSE OF CONGRESS.—It is the sense of the 
Congress that the national emergency declared under Ex-
ecutive Order 13959 calls for the President to— 
(1) more fully cut off financing avenues for 
Communist Chinese military and surveillance compa-
nies; 
(2) prevent adaptation by a company to partial 
restrictions that limit themselves to publicly traded 
securities; 
(3) ensure that the United States assembles an 
appropriate evidentiary basis to support the effec-
tiveness of sanctions; 
(4) enhance the impact of economic sanctions 
by deterring third-country persons from dealing with 
the companies; and 
(5) link the imposition of sanctions to clear ob-
jectives that serve to resolve the national emergency. 
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SEC. 3. SANCTIONS WITH RESPECT TO COMMUNIST CHI-
NESE MILITARY AND SURVEILLANCE COMPA-
NIES. 
(a) IN GENERAL.—Not later than 180 days after the 
date on which the first updated list is submitted under 
section 1260H of the William M. (Mac) Thornberry Na-
tional Defense Authorization Act for Fiscal Year 2021 (10 
U.S.C. 113 note) on or after the date of the enactment 
of this Act, the President shall impose the sanctions de-
scribed in subsection (b) with respect to— 
(1) each person that is on such updated list, 
and 
(2) each foreign person listed in the Annex to 
Executive Order 14032 (86 Fed. Reg. 30145; relat-
ing to addressing the threat from securities invest-
ments that finance certain companies of the People’s 
Republic of China) of June 3, 2021, or determined 
by the Secretary of the Treasury, in consultation 
with the Secretary of State, and, as the Secretary of 
the Treasury determines appropriate, the Secretary 
of Defense, to engage in the activities described 
under section 1(a)(i) or 1(a)(ii) of such Executive 
Order 14032, 
if the President determines that the imposition of such 
sanctions meets appropriate evidentiary standards and ad-
vances the objective of resolving the national emergency 
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described in Executive Order 14032 (86 Fed. Reg. 30145; 
relating to addressing the threat from securities invest-
ments that finance certain companies of the People’s Re-
public of China) of June 3, 2021. 
(b) SANCTIONS DESCRIBED.—The President shall ex-
ercise all of the powers granted to the President under 
the International Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.) to the extent necessary to block and 
prohibit all transactions in property and interests in prop-
erty of a person if such property and interests in prop-
erty— 
(1) are in the United States; 
(2) come within the United States; or 
(3) come within the possession or control of a 
United States person. 
(c) PENALTIES.—The penalties set forth in section 
206 of the International Emergency Economic Powers Act 
(50 U.S.C. 1705) apply to violations of any license, order, 
or regulation issued under this section. 
(d) WAIVER.—The President may waive the applica-
tion of sanctions under this section if the President cer-
tifies in writing to the appropriate congressional commit-
tees that the waiver is in the national interest of the 
United States, with an explanation of the reasons therefor. 
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(e) EXCEPTION FOR INTELLIGENCE ACTIVITIES.— 
Sanctions under this section shall not apply to any activity 
subject to the reporting requirements under title V of the 
National Security Act of 1947 (50 U.S.C. 3091 et seq.) 
or any authorized intelligence activities of the United 
States. 
(f) EXCEPTION RELATING
TO IMPORTATION
OF 
GOODS.— 
(1) IN GENERAL.—The authorities and require-
ments to impose sanctions authorized under this sec-
tion shall not include the authority or requirement 
to impose sanctions on the importation of goods. 
(2) GOOD
DEFINED.—In this subsection, the 
term ‘‘good’’ means any article, natural or manmade 
substance, material, supply, or manufactured prod-
uct, including inspection and test equipment, and ex-
cluding technical data. 
(g) CONFORMING REQUIREMENT.—Not later than 
180 days after the date of the enactment of this Act, the 
President shall revoke the prohibitions described in section 
1(a) of Executive Order 14032 that are duplicative of, less 
restrictive than, or are otherwise made redundant by, the 
sanctions described in this section. 
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(h) APPROPRIATE
CONGRESSIONAL
COMMITTEES 
DEFINED.—In this section, the term ‘‘appropriate con-
gressional committees’’ means— 
(1) the Committee on Foreign Affairs and the 
Committee on Financial Services of the House of 
Representatives; and 
(2) the Committee on Foreign Relations and 
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate. 
(i) SUNSET.—The authority to impose sanctions 
under this section, and any sanctions imposed under this 
section, shall terminate on the earlier of— 
(1) the date that is 30 days after the date on 
which the President repeals the national emergency 
declared under Executive Order 13959 (85 Fed. 
Reg. 73185); or 
(2) the date that is 7 years after the date of the 
enactment of this Act. 
Æ 
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