I 
119TH CONGRESS 
1ST SESSION H. R. 2246 
To protect the national security of the United States by imposing sanctions 
with respect to certain persons of the People’s Republic of China and 
prohibiting and requiring notifications with respect to certain investments 
by United States persons in the People’s Republic of China, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 21, 2025 
Mr. BARR (for himself, Mr. MOOLENAAR, Mr. MCCAUL, Mr. GOLDEN of 
Maine, and Mr. SUOZZI) introduced the following bill; which was referred 
to the Committee on Foreign Affairs, and in addition to the Committee 
on Financial Services, 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 protect the national security of the United States by 
imposing sanctions with respect to certain persons of 
the People’s Republic of China and prohibiting and re-
quiring notifications with respect to certain investments 
by United States persons in the People’s Republic of 
China, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This title may be cited as the 
‘‘Foreign 
Investment 
Guardrails 
to 
Help 
Thwart 
(FIGHT) China Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Secretary defined. 
Sec. 3. Severability. 
Sec. 4. Authorization of appropriations. 
Sec. 5. Termination. 
TITLE I—IMPOSITION OF SANCTIONS 
Sec. 101. Imposition of sanctions. 
Sec. 102. Definitions. 
TITLE II—PROHIBITION AND NOTIFICATION ON INVESTMENTS 
RELATING TO COVERED NATIONAL SECURITY TRANSACTIONS 
Sec. 201. Prohibition and notification on investments relating to covered na-
tional security transactions. 
TITLE III—SECURITIES AND RELATED MATTERS 
Sec. 301. Requirements relating to the Non-SDN Chinese Military-Industrial 
Complex Companies List. 
SEC. 2. SECRETARY DEFINED. 
Except as otherwise provided, in this Act, the term 
‘‘Secretary’’ means the Secretary of the Treasury. 
SEC. 3. SEVERABILITY. 
If any provision of this Act, or the application there-
of, is held invalid, the validity of the remainder of this 
Act and the application of such provision to other persons 
and circumstances shall not be affected thereby. 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
SEC. 4. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—There is authorized to be appro-
priated $150,000,000 to the Department of the Treasury, 
out of which amounts may be transferred to the Depart-
ment of Commerce to jointly conduct outreach to industry 
and persons affected by this Act, for each of the first two 
fiscal years beginning on or after the date of the enact-
ment of this Act, to carry out this Act. 
(b) HIRING AUTHORITY.— 
(1) BY THE PRESIDENT.—The President may 
appoint, without regard to the provisions of sections 
3309 through 3318 of title 5, United States Code, 
not more than 15 individuals directly to positions in 
the competitive service (as defined in section 2102 of 
that title) to carry out this Act. 
(2) BY AGENCIES.—The Secretary and the Sec-
retary of Commerce may appoint, without regard to 
the provisions of sections 3309 through 3318 of title 
5, United States Code, individuals directly to posi-
tions in the competitive service (as defined in section 
2102 of that title) of the Department of the Treas-
ury and the Department of Commerce, respectively, 
to carry out this Act. 
SEC. 5. TERMINATION. 
This Act shall cease to have any force or effect on 
the date on which the Secretary of Commerce revises sec-
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
tion 791.4 of title 15, Code of Federal Regulations, to re-
move the People’s Republic of China from the list of for-
eign adversaries contained in such section. 
TITLE I—IMPOSITION OF 
SANCTIONS 
SEC. 101. IMPOSITION OF SANCTIONS. 
(a) IN GENERAL.—The President may impose the 
sanctions described in subsection (b) with respect to any 
foreign person determined by the Secretary, in consulta-
tion with the Secretary of State, to be a covered foreign 
person. 
(b) SANCTIONS DESCRIBED.—The President may ex-
ercise all of the powers granted to the President under 
the International Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.) to the extent necessary to block and 
prohibit all transactions in property and interests in prop-
erty of a foreign person that is determined to be a covered 
foreign person pursuant to subsection (a) if such property 
and interests in property are in the United States, come 
within the United States, or are or come within the posses-
sion or control of a United States person. 
(c) PENALTIES.—The penalties provided for in sub-
sections (b) and (c) of section 206 of the International 
Emergency Economic Powers Act (50 U.S.C. 1705) shall 
apply to any person who violates, attempts to violate, con-
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
spires to violate, or causes a violation of any prohibition 
of this section, or an order or regulation prescribed under 
this section, to the same extent that such penalties apply 
to a person that commits an unlawful act described in sec-
tion 206(a) of such Act (50 U.S.C. 1705(a)). 
(d) EXCEPTION FOR INTELLIGENCE AND LAW EN-
FORCEMENT ACTIVITIES.—Sanctions under this section 
shall not apply with respect to any activity subject to the 
reporting requirements under title V of the National Secu-
rity Act of 1947 (50 U.S.C. 3091 et seq.) or any author-
ized intelligence activities of the United States. 
(e) EXCEPTION FOR UNITED STATES GOVERNMENT 
ACTIVITIES.—Nothing in this section shall prohibit trans-
actions for the conduct of the official business of the Fed-
eral Government by employees, grantees, or contractors 
thereof. 
(f) REPORT TO CONGRESS.—Not later than 365 days 
after the date of the enactment of this Act, and annually 
thereafter for 7 years, the Secretary shall submit to the 
appropriate congressional committees a report that— 
(1) states whether each foreign person on the 
Non-SDN Chinese Military-Industrial Complex Com-
panies List is a covered foreign person; and 
(2) shall be submitted in unclassified form, but 
may include a classified annex. 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
(g) CONSIDERATION OF CERTAIN INFORMATION IN 
IMPOSING SANCTIONS.—In determining whether a foreign 
person is a covered foreign person, the President— 
(1) may consider credible information obtained 
by other countries, nongovernmental organizations, 
or the appropriate congressional committees that re-
lates to the foreign person; and 
(2) may consider any other information that the 
Secretary deems relevant. 
(h) ADMINISTRATIVE PROVISIONS.—The President 
may exercise all authorities provided under sections 203 
and 205 of the International Emergency Economic Powers 
Act (50 U.S.C. 1702 and 1704) to carry out this section. 
(i) DELEGATION.—The President shall delegate the 
authorities granted by this section to the Secretary. 
SEC. 102. DEFINITIONS. 
In this title: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committee on Financial Services 
and the Committee on Foreign Affairs of the 
House of Representatives; and 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
(B) the Committee on Banking, Housing, 
and Urban Affairs and the Committee on For-
eign Relations of the Senate. 
(2) COUNTRY OF CONCERN.—The term ‘‘coun-
try of concern’’— 
(A) means the People’s Republic of China; 
and 
(B) includes the Hong Kong Special Ad-
ministrative Region and the Macau Special Ad-
ministrative Region. 
(3) COVERED
FOREIGN
PERSON.—The term 
‘‘covered foreign person’’ means a foreign person— 
(A)(i) that is incorporated in, has a prin-
cipal place of business in, or is organized under 
the laws of a country of concern; 
(ii) the equity securities of which are pri-
marily traded in the ordinary course of business 
on one or more exchanges in a country of con-
cern; 
(iii) that is a member of the Central Com-
mittee of the Chinese Communist Party; 
(iv) that is the state or the government of 
a country of concern, as well as any political 
subdivision, agency, or instrumentality thereof; 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
(v) that is subject to the direction or con-
trol of any entity described in clause (i), (ii), 
(iii), or (iv); or 
(vi) that is owned in the aggregate, directly 
or indirectly, 50 percent or more by an entity 
or a group of entities described in clause (i), 
(ii), (iii), or (iv); and 
(B) that knowingly engaged in significant 
operations in the defense and related materiel 
sector or the surveillance technology sector of 
the economy of a country of concern. 
(4) FOREIGN PERSON.—The term ‘‘foreign per-
son’’ means a person, country, state, or government 
(and any political subdivision, agency, or instrumen-
tality thereof) that is not a United States person. 
(5) NON-SDN CHINESE MILITARY-INDUSTRIAL 
COMPLEX COMPANIES LIST.—The term ‘‘Non-SDN 
Chinese 
Military-Industrial 
Complex 
Companies 
List’’ means the list maintained by the Office of 
Foreign Assets Control of the Department of the 
Treasury under Executive Order 13959, as amended 
by Executive Order 14032 (50 U.S.C. 1701 note; re-
lating to addressing the threat from securities in-
vestments that finance certain companies of the Peo-
ple’s Republic of China), or any successor order. 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
(6) 
UNITED
STATES
PERSON.—The 
term 
‘‘United States person’’ means— 
(A) any United States citizen or an alien 
lawfully admitted for permanent residence to 
the United States; 
(B) an entity organized under the laws of 
the United States or of any jurisdiction within 
the United States (including any foreign branch 
of such an entity); or 
(C) any person in the United States. 
TITLE II—PROHIBITION AND NO-
TIFICATION 
ON 
INVEST-
MENTS RELATING TO COV-
ERED 
NATIONAL 
SECURITY 
TRANSACTIONS 
SEC. 201. PROHIBITION AND NOTIFICATION ON INVEST-
MENTS RELATING TO COVERED NATIONAL 
SECURITY TRANSACTIONS. 
The Defense Production Act of 1950 (50 U.S.C. 
4501 et seq.) is amended by adding at the end the fol-
lowing: 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
‘‘TITLE VIII—PROHIBITION AND 
NOTIFICATION 
ON 
INVEST-
MENTS RELATING TO COV-
ERED 
NATIONAL 
SECURITY 
TRANSACTIONS 
‘‘SEC. 801. PROHIBITION ON INVESTMENTS. 
‘‘(a) IN GENERAL.—The Secretary may prohibit, in 
accordance with regulations issued under subsection (e), 
a United States person from knowingly engaging in a cov-
ered national security transaction in a prohibited tech-
nology. 
‘‘(b) EVASION.—Any transaction by a United States 
person or within the United States that evades or avoids, 
has the purpose of evading or avoiding, causes a violation 
of, or attempts to violate the prohibition set forth in sub-
section (a) is prohibited. 
‘‘(c) WAIVER.—Subject to subsection (d), the Sec-
retary is authorized to exempt from the prohibition set 
forth in subsection (a) any activity determined by the 
President, in consultation with the Secretary, the Sec-
retary of Commerce and, as appropriate, the heads of 
other relevant Federal departments and agencies, to be in 
the national interest of the United States. 
‘‘(d) CONGRESSIONAL
NOTIFICATION.—The Sec-
retary shall— 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
‘‘(1) notify the appropriate congressional com-
mittees not later than 5 business days after issuing 
a waiver under subsection (c); and 
‘‘(2) include in such notification an identifica-
tion of the national interest justifying the use of the 
waiver. 
‘‘(e) REGULATIONS.— 
‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the Secretary of Commerce and, as appro-
priate, the heads of other relevant Federal depart-
ments and agencies, may issue regulations to carry 
out this section in accordance with subchapter II of 
chapter 5 and chapter 7 of title 5, United States 
Code (commonly known as ‘Administrative Proce-
dure Act’). 
‘‘(2) NON-BINDING FEEDBACK.— 
‘‘(A) IN GENERAL.—The regulations issued 
under paragraph (1) shall include a process 
under which a person can request non-binding 
feedback on a confidential basis as to whether 
a transaction would constitute a covered na-
tional security transaction in a prohibited tech-
nology. 
‘‘(B) AUTHORITY
TO
LIMIT
FRIVOLOUS 
FEEDBACK
REQUESTS.—In establishing the 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
process required by subparagraph (A), the Sec-
retary may prescribe limitations on requests for 
feedback identified as frivolous for purposes of 
this subsection. 
‘‘(3) NOTICE AND OPPORTUNITY TO CURE.— 
‘‘(A) IN GENERAL.—The regulations issued 
under paragraph (1) shall account for whether 
a United States person has self-identified a vio-
lation of the prohibition set forth in subsection 
(a) in determining the legal consequences of 
that violation. 
‘‘(B) SELF-DISCLOSURE
LETTERS.—The 
regulations issued under paragraph (1) shall 
dictate the form and content of a letter of self- 
disclosure, which shall include relevant facts 
about the violation, why the United States per-
son believes its activity to have violated the pro-
hibition set forth in subsection (a), and a pro-
posal for mitigation of the harm of such action. 
‘‘(4) PUBLIC NOTICE AND COMMENT.—The reg-
ulations issued under paragraph (1) shall be subject 
to public notice and comment. 
‘‘(5) LOW-BURDEN REGULATIONS.—In issuing 
regulations under paragraph (1), the Secretary shall 
balance the priority of protecting the national secu-
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
rity interest of the United States while, to the extent 
practicable— 
‘‘(A) minimizing the cost and complexity of 
compliance for affected parties, including the 
duplication of reporting requirements under 
current regulations; 
‘‘(B) adopting the least burdensome alter-
native that achieves regulatory objectives; and 
‘‘(C) prioritizing transparency and stake-
holder involvement in the process of issuing the 
rules. 
‘‘(6) PENALTIES.— 
‘‘(A) IN GENERAL.—The regulations issued 
under paragraph (1) shall provide for the impo-
sition of civil penalties described in subpara-
graph (B) for violations of the prohibition set 
forth in subsection (a). 
‘‘(B) PENALTIES DESCRIBED.— 
‘‘(i) UNLAWFUL
ACTS.—It shall be 
unlawful for a person to violate, attempt to 
violate, conspire to violate, or cause a vio-
lation of any license, order, regulation, no-
tification 
requirement, 
or 
prohibition 
issued under this section. 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
‘‘(ii) CIVIL PENALTY.—The Secretary 
may impose a civil penalty on any person 
who commits an unlawful act described in 
clause (i) in an amount not to exceed the 
greater of— 
‘‘(I) $250,000; or 
‘‘(II) an amount that is twice the 
amount of the transaction that is the 
basis of the violation with respect to 
which the penalty is imposed. 
‘‘(iii) DIVESTMENT.—The Secretary 
may compel the divestment of a covered 
national security transaction in a prohib-
ited technology determined to be in viola-
tion of this title. 
‘‘(iv) RELIEF.—The President may di-
rect the Attorney General of the United 
States to seek appropriate relief, including 
divestment relief, in the district courts of 
the United States, in order to implement 
and enforce this title. 
‘‘(7) BURDEN OF PROOF.—In accordance with 
section 556(d) of title 5, United States Code, in an 
enforcement action for a violation of the prohibition 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
set forth in subsection (a), the burden of proof shall 
be upon the Secretary. 
‘‘SEC. 802. NOTIFICATION ON INVESTMENTS. 
‘‘(a) MANDATORY NOTIFICATION.—Not later than 
450 days after the date of the enactment of this title, the 
Secretary shall issue regulations prescribed in accordance 
with subsection (b), to require a United States person that 
engages in a covered national security transaction in a 
prohibited technology (unless the Secretary has exercised 
the authority provided by section 801(a) to prohibit know-
ingly engaging in such covered national security trans-
action) or a notifiable technology to submit to the Sec-
retary a written notification of the transaction not later 
than 30 days after the completion date of the transaction. 
‘‘(b) REGULATIONS.— 
‘‘(1) IN GENERAL.—Not later than 450 days 
after the date of the enactment of this title, the Sec-
retary, in consultation with the Secretary of Com-
merce and, as appropriate, the heads of other rel-
evant Federal departments and agencies, shall issue 
regulations to carry out this section in accordance 
with subchapter II of chapter 5 and chapter 7 of 
title 5, United States Code (commonly known as 
‘Administrative Procedure Act’). 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
‘‘(2) PUBLIC NOTICE AND COMMENT.—The reg-
ulations issued under paragraph (1) shall be subject 
to public notice and comment. 
‘‘(3) LOW-BURDEN REGULATIONS.—In issuing 
regulations under paragraph (1), the Secretary shall 
balance the priority of protecting the national secu-
rity interest of the United States while, to the extent 
practicable— 
‘‘(A) minimizing the cost and complexity of 
compliance for affected parties, including the 
duplication of reporting requirements under 
current regulation; 
‘‘(B) adopting the least burdensome alter-
native that achieves regulatory objectives; and 
‘‘(C) prioritizing transparency and stake-
holder involvement in the process of issuing the 
rules. 
‘‘(4) PENALTIES.— 
‘‘(A) IN GENERAL.—The regulations issued 
under paragraph (1) shall provide for the impo-
sition of civil penalties described in subpara-
graph (B) for violations of the notification re-
quirement set forth in subsection (a). 
‘‘(B) PENALTIES DESCRIBED.— 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
‘‘(i) UNLAWFUL
ACTS.—It shall be 
unlawful for a person to violate, attempt to 
violate, conspire to violate, or cause a vio-
lation of any license, order, regulation, no-
tification 
requirement, 
or 
prohibition 
issued under this section. 
‘‘(ii) CIVIL PENALTY.—A civil penalty 
may be imposed on any person who com-
mits an unlawful act described in clause (i) 
in an amount not to exceed the greater 
of— 
‘‘(I) $250,000; or 
‘‘(II) an amount that is twice the 
amount of the transaction that is the 
basis of the violation with respect to 
which the penalty is imposed. 
‘‘(5) BURDEN OF PROOF.—In accordance with 
section 556(d) of title 5, United States Code, in an 
enforcement action for a violation of the prohibition 
set forth in subsection (a), the burden of proof shall 
be upon the Secretary. 
‘‘(6) COMPLETENESS OF NOTIFICATION.— 
‘‘(A) IN GENERAL.—The Secretary shall, 
upon receipt of a notification under subsection 
(a), and in consultation with the Secretary of 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
Commerce, promptly inspect the notification for 
completeness. 
‘‘(B) INCOMPLETE
NOTIFICATIONS.—If a 
notification submitted under subsection (a) is 
incomplete, the Secretary shall promptly inform 
the United States person that submits the noti-
fication that the notification is not complete 
and provide an explanation of relevant material 
respects in which the notification is not com-
plete. 
‘‘(7) IDENTIFICATION OF NON-NOTIFIED ACTIV-
ITY.—The Secretary, in coordination with the Sec-
retary of Commerce, shall establish a process to 
identify covered national security transactions in a 
prohibited technology or a notifiable technology for 
which— 
‘‘(A) a notification is not submitted to the 
Secretary under subsection (a); and 
‘‘(B) information is reasonably available. 
‘‘(c) CONFIDENTIALITY OF INFORMATION.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), any information or documentary material 
filed with the Secretary pursuant to this section 
shall be exempt from disclosure under section 
552(b)(3) of title 5, United States Code, and no 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
such information or documentary material may be 
made public by any government agency or Member 
of Congress. 
‘‘(2) EXCEPTIONS.—The exemption from disclo-
sure provided by paragraph (1) shall not prevent the 
disclosure of the following: 
‘‘(A) Information relevant to any adminis-
trative or judicial action or proceeding. 
‘‘(B) Information provided to Congress or 
any of the appropriate congressional commit-
tees. 
‘‘(C) Information important to the national 
security analysis or actions of the Secretary to 
any domestic governmental entity, or to any 
foreign governmental entity of an ally or part-
ner of the United States, under the direction 
and authorization of the Secretary, only to the 
extent necessary for national security purposes, 
and subject to appropriate confidentiality and 
classification requirements. 
‘‘(D) Information that the parties have 
consented to be disclosed to third parties. 
‘‘(E) Information where the disclosure of 
such information is determined by the Secretary 
to be in the national security interest. 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
‘‘(d) INAPPLICABILITY.—If the Secretary prohibits a 
covered national security transaction in a prohibited tech-
nology under section 801, the requirements of this section 
shall not apply with respect to the covered national secu-
rity transaction. 
‘‘SEC. 803. REPORT. 
‘‘(a) IN GENERAL.—Not later than one year after the 
date on which the regulations issued under section 801(e) 
take effect, and not less frequently than annually there-
after for 7 years, the Secretary, in consultation with the 
Secretary of Commerce, shall submit to the appropriate 
congressional committees a report that— 
‘‘(1) lists all enforcement actions taken subject 
to the regulations during the year preceding submis-
sion of the report, which includes, with respect to 
each such action, a description of— 
‘‘(A) the prohibited technology or notifiable 
technology; 
‘‘(B) the covered national security trans-
action; and 
‘‘(C) the covered foreign person; 
‘‘(2) provides an assessment of whether Con-
gress should amend the definition of the term ‘pro-
hibited technology’ by— 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
‘‘(A) identifying additional technologies, 
not currently listed as a prohibited technology, 
that the Secretary, in consultation with the Sec-
retary of Commerce and, as applicable, the Sec-
retary of Defense, the Secretary of State, the 
Secretary of Energy, the Director of National 
Intelligence, and the heads of any other rel-
evant Federal agencies, determines may pose an 
acute threat to the national security of the 
United States if developed or acquired by a 
country of concern; 
‘‘(B) explaining why each technology iden-
tified in subparagraph (A) may pose an acute 
threat to the national security of the United 
States if developed or acquired by a country of 
concern; and 
‘‘(C) recommending the repeal of tech-
nologies from the category of prohibited tech-
nology to the extent that the technologies no 
longer pose an acute threat to the national se-
curity of the United States if developed or ac-
quired by a country of concern; 
‘‘(3) lists all notifications submitted under sec-
tion 802 during the year preceding submission of the 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
report and includes, with respect to each such notifi-
cation— 
‘‘(A) basic information on each party to 
the covered national security transaction with 
respect to which the notification was submitted; 
and 
‘‘(B) the nature of the covered national se-
curity transaction that was the subject to the 
notification, including the elements of the cov-
ered national security transaction that neces-
sitated a notification; 
‘‘(4) includes a summary of those notifications, 
disaggregated by prohibited technology, notifiable 
technology, by covered national security transaction, 
and by country of concern; 
‘‘(5) provides additional context and informa-
tion regarding trends in the prohibited technology, 
notifiable technology, the types of covered national 
security transaction, and the countries involved in 
those notifications; and 
‘‘(6) assesses the overall impact of those notifi-
cations, including recommendations for— 
‘‘(A) expanding existing Federal programs 
to support the production or supply of prohib-
ited technologies or notifiable technologies in 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
the United States, including the potential of ex-
isting authorities to address any related na-
tional security concerns; 
‘‘(B) investments needed to enhance pro-
hibited technologies or notifiable technologies 
and reduce dependence on countries of concern 
regarding those technologies; and 
‘‘(C) the continuation, expansion, or modi-
fication of the implementation and administra-
tion of this title, including recommendations 
with respect to whether the definition of the 
term ‘country of concern’ under section 807(2) 
should be amended to add or remove countries. 
‘‘(b) CONSIDERATION OF CERTAIN INFORMATION.— 
In preparing the report pursuant to subsection (a), the 
Secretary— 
‘‘(1) shall consider information provided jointly 
by the chairperson and ranking member of any of 
the appropriate congressional committees; 
‘‘(2) may consider credible information obtained 
by other countries and nongovernmental organiza-
tions that monitor the military, surveillance, intel-
ligence, or technology capabilities of a country of 
concern; and 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
‘‘(3) may consider any other information that 
the Secretary deems relevant. 
‘‘(c) FORM OF REPORT.—Each report required by 
this section shall be submitted in unclassified form, but 
may include a classified annex. 
‘‘(d) TESTIMONY REQUIRED.—Not later than one 
year after the date of the enactment of this title, and an-
nually thereafter for five years, the Secretary and the Sec-
retary of Commerce shall each provide to the Committee 
on Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the House of 
Representatives testimony with respect to the national se-
curity threats relating to investments by United States 
persons in countries of concern and broader international 
capital flows. 
‘‘(e) REQUESTS BY APPROPRIATE CONGRESSIONAL 
COMMITTEES.— 
‘‘(1) IN GENERAL.—After receiving a request 
that meets the requirements of paragraph (2) with 
respect to whether a technology should be included 
in the amendments as described in subsection (a)(2), 
the Secretary shall, in preparing the report pursuant 
to subsection (a)— 
‘‘(A) determine if that technology may 
pose an acute threat to the national security of 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
the United States if developed or acquired by a 
country of concern; and 
‘‘(B) include in the report pursuant to sub-
section (a) an explanation with respect to that 
determination that includes— 
‘‘(i) a statement of whether or not the 
technology, as determined by the Sec-
retary, may pose an acute threat to the na-
tional security of the United States if de-
veloped or acquired by a country of con-
cern; and 
‘‘(ii) if the Secretary determines 
that— 
‘‘(I) the technology may pose an 
acute threat to the national security 
of the United States if developed or 
acquired by a country of concern, an 
explanation for such determination 
and a recommendation whether that 
technology should be named a prohib-
ited technology or a notifiable tech-
nology; and 
‘‘(II) the technology would not 
pose an acute threat to the national 
security of the United States if devel-
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
oped or acquired by a country of con-
cern, an explanation for such deter-
mination. 
‘‘(2) REQUIREMENTS.—A request under para-
graph (1) with respect to whether a technology may 
pose an acute threat to the national security of the 
United States if developed or acquired by a country 
of concern shall be submitted to the Secretary in 
writing jointly by the chairperson and ranking mem-
ber of one or more of the appropriate congressional 
committees. 
‘‘SEC. 804. MULTILATERAL ENGAGEMENT AND COORDINA-
TION. 
‘‘(a) AUTHORITIES.—The Secretary, in coordination 
with the Secretary of State, the Secretary of Commerce, 
and the heads of other relevant Federal agencies, should— 
‘‘(1) conduct bilateral and multilateral engage-
ment with the governments of countries that are al-
lies and partners of the United States to promote 
and increase coordination of protocols and proce-
dures to facilitate the effective implementation of 
and appropriate compliance with the prohibitions 
pursuant to this title; 
‘‘(2) upon adoption of protocols and procedures 
described in paragraph (1), work with those govern-
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
ments to establish mechanisms for sharing informa-
tion, including trends, with respect to such activities; 
and 
‘‘(3) work with and encourage the governments 
of countries that are allies and partners of the 
United States to develop similar mechanisms of their 
own, for the exclusive purpose of preventing the de-
velopment or acquisition of prohibited technologies 
by a country of concern. 
‘‘(b) STRATEGY FOR MULTILATERAL ENGAGEMENT 
AND COORDINATION.—Not later than 180 days after the 
date of the enactment of this title, the Secretary, in con-
sultation with the Secretary of State, the Secretary of 
Commerce, and the heads of other relevant Federal agen-
cies, should— 
‘‘(1) develop a strategy to work with the gov-
ernments of countries that are allies and partners of 
the United States to develop mechanisms that are 
comparable to the prohibitions pursuant to this title, 
for the exclusive purpose of preventing the develop-
ment and acquisition of prohibited technologies by a 
country of concern; and 
‘‘(2) assess opportunities to provide technical 
assistance to those countries with respect to the de-
velopment of those mechanisms. 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
‘‘(c) REPORT.—Not later than one year after the date 
of the enactment of this title, and annually thereafter for 
four years, the Secretary shall submit to the appropriate 
congressional committees a report that includes— 
‘‘(1) a discussion of any strategy developed pur-
suant to subsection (b)(1), including key tools and 
objectives for the development of comparable mecha-
nisms by the governments of allies and partners of 
the United States; 
‘‘(2) a list of partner and allied countries to 
target for cooperation in developing their own prohi-
bitions; 
‘‘(3) the status of the strategy’s implementation 
and outcomes; and 
‘‘(4) a description of impediments to the estab-
lishment of comparable mechanisms by governments 
of allies and partners of the United States. 
‘‘(d) APPROPRIATE CONGRESSIONAL COMMITTEES 
DEFINED.—In this section, the term ‘appropriate congres-
sional committees’ means— 
‘‘(1) the Committee on Foreign Relations and 
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate; and 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
‘‘(2) the Committee on Foreign Affairs and the 
Committee on Financial Services of the House of 
Representatives. 
‘‘SEC. 805. PUBLIC DATABASE OF COVERED FOREIGN PER-
SONS. 
‘‘(a) IN GENERAL.—The Secretary, in consultation 
with the Secretary of Commerce, may establish a publicly 
accessible, non-exhaustive database that identifies covered 
foreign persons in a prohibited technology pursuant to this 
title. 
‘‘(b) CONFIDENTIALITY
OF EVIDENCE.—The Sec-
retary shall establish a mechanism for the public, includ-
ing Congress, stakeholders, investors, and nongovern-
mental organizations, to submit evidence on a confidential 
basis regarding whether a foreign person is a covered for-
eign person in a prohibited technology and should be in-
cluded in the database described in subsection (a), if any. 
‘‘(c) EXEMPTION FROM DISCLOSURE.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), any information or documentary material 
filed with the Secretary pursuant to this section 
shall be exempt from disclosure under section 
552(b)(3) of title 5, United States Code, and no 
such information or documentary material may be 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
made public (other than the identity of a covered 
foreign person in accordance with subsection (b)). 
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not 
prohibit the disclosure of the following: 
‘‘(A) Information relevant to any adminis-
trative or judicial action or proceeding. 
‘‘(B) Information to Congress or any duly 
authorized committee or subcommittee of Con-
gress. 
‘‘(C) Information important to the national 
security analysis or actions of the Secretary to 
any domestic governmental entity, or to any 
foreign governmental entity of a United States 
ally or partner, under the exclusive direction 
and authorization of the Secretary, only to the 
extent necessary for national security purposes, 
and subject to appropriate confidentiality and 
classification requirements. 
‘‘(D) Information that the parties have 
consented to be disclosed to third parties. 
‘‘(d) RULE OF CONSTRUCTION.—The database de-
scribed in subsection (a), if any, shall not be considered 
to be an exhaustive or comprehensive list of covered for-
eign persons for the purposes of this title. 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
‘‘SEC. 806. RULE OF CONSTRUCTION. 
‘‘Nothing in this title may be construed to negate the 
authority of the President under any authority, process, 
regulation, investigation, enforcement measure, or review 
provided by or established under any other provision of 
Federal law, or any other authority of the President or 
the Congress under the Constitution of the United States. 
‘‘SEC. 807. DEFINITIONS. 
‘‘In this title: 
‘‘(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—Except as provided by section 804(d), the 
term 
‘appropriate 
congressional 
committees’ 
means— 
‘‘(A) the Committee on Financial Services, 
the Committee on Foreign Affairs, the Com-
mittee on Energy and Commerce, and the Com-
mittee on Appropriations of the House of Rep-
resentatives; and 
‘‘(B) the Committee on Banking, Housing, 
and Urban Affairs and the Committee on Ap-
propriations of the Senate. 
‘‘(2) COUNTRY OF CONCERN.—The term ‘coun-
try of concern’— 
‘‘(A) means the People’s Republic of 
China; and 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
‘‘(B) includes the Hong Kong Special Ad-
ministrative Region and the Macau Special Ad-
ministrative Region. 
‘‘(3) COVERED FOREIGN PERSON.—Subject to 
regulations prescribed in accordance with this title, 
the term ‘covered foreign person’ means a foreign 
person that— 
‘‘(A) is incorporated in, has a principal 
place of business in, or is organized under the 
laws of a country of concern; 
‘‘(B) is a member of the Central Com-
mittee of the Chinese Communist Party; 
‘‘(C) is subject to the direction or control 
of a country of concern, an entity described in 
subparagraph (A) or (B), or the state or the 
government of a country of concern (including 
any political subdivision, agency, or instrumen-
tality thereof); or 
‘‘(D) is owned in the aggregate, directly or 
indirectly, 50 percent or more by a country of 
concern, an entity described in subparagraph 
(A) or (B), or the state or the government of 
a country of concern (including any political 
subdivision, agency, or instrumentality thereof). 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
‘‘(4) COVERED
NATIONAL
SECURITY
TRANS-
ACTION.— 
‘‘(A) IN GENERAL.—Subject to such regu-
lations as may be issued in accordance with this 
title, the term ‘covered national security trans-
action’ means any activity engaged in by a 
United States person that involves— 
‘‘(i) the acquisition of an equity inter-
est or contingent equity interest in a cov-
ered foreign person; 
‘‘(ii) the provision of a loan or similar 
debt financing arrangement to a covered 
foreign person, where such debt financ-
ing— 
‘‘(I) is convertible to an equity 
interest; or 
‘‘(II) affords or will afford the 
United States person the right to 
make management decisions with re-
spect to or on behalf of a covered for-
eign person or the right to appoint 
members of the board of directors (or 
equivalent) of the covered foreign per-
son; 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
‘‘(iii) the entrance by such United 
States person into a joint venture with a 
covered foreign person; 
‘‘(iv) the conversion of a contingent 
equity interest (or interest equivalent to a 
contingent equity interest) or conversion of 
debt to an equity interest in a covered for-
eign person; 
‘‘(v) the acquisition, leasing, or other 
development of operations, land, property, 
or other assets in a country of concern 
that will result in, or that the United 
States person intends to result in— 
‘‘(I) the establishment of a cov-
ered foreign person; or 
‘‘(II) the engagement of a person 
of a country of concern in a prohib-
ited technology where it was not pre-
viously engaged in such prohibited 
technology; 
‘‘(vi) knowingly directing transactions 
by foreign persons that the United States 
person has knowledge at the time of the 
transaction would constitute an activity de-
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
scribed in clause (i), (ii), (iii), (iv), or (v), 
if engaged in by a United States person; or 
‘‘(vii) the acquisition of a limited part-
ner or equivalent interest in a venture cap-
ital fund, private equity fund, fund of 
funds, or other pooled investment fund 
that the United States person has knowl-
edge at the time of the acquisition, intends 
to engage in an activity described in clause 
(i), (ii), (iii), (iv), (v), or (vi). 
‘‘(B) EXCEPTIONS.—Subject to notice and 
comment regulations prescribed in consultation 
with Congress and in accordance with this title, 
the term ‘covered national security transaction’ 
does not include— 
‘‘(i) any transaction the value of 
which the Secretary determines is de mini-
mis; 
‘‘(ii) any category of transactions that 
the Secretary determines is in the national 
interest of the United States; 
‘‘(iii) an investment— 
‘‘(I) in a security (as defined in 
section 3(a) of the Securities Ex-
change Act of 1934 (15 U.S.C. 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
78c(a))) that is traded on an ex-
change or the over-the-counter market 
in any jurisdiction; 
‘‘(II) in a security issued by an 
investment company (as defined in 
section 3 of the Investment Company 
Act of 1940 (15 U.S.C. 80a–3)) that 
is registered with the Securities and 
Exchange Commission; 
‘‘(III) made as a limited partner 
or equivalent in a venture capital 
fund, private equity fund, fund of 
funds, or other pooled investment 
fund (other than as described in sub-
clause (II)) where— 
‘‘(aa) the limited partner or 
equivalent’s committed capital is 
not more than $2,000,000, ag-
gregated across any investment 
and co-investment vehicles of the 
fund; or 
‘‘(bb) the limited partner or 
equivalent has secured a binding 
contractual assurance that its 
capital in the fund will not be 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
used to engage in a transaction 
that would be a covered national 
security transaction if engaged in 
by a United States person; or 
‘‘(IV) in a derivative of a security 
described under subclause (I), (II), or 
(III); 
‘‘(iv) any ancillary transaction under-
taken by a financial institution (as defined 
in section 5312 of title 31, United States 
Code); 
‘‘(v) the acquisition by a United 
States person of the equity or other inter-
est owned or held by a covered foreign per-
son in an entity or assets located outside 
of a country of concern in which the 
United States person is acquiring the to-
tality of the interest in the entity held by 
the covered foreign person; 
‘‘(vi) an intracompany transfer of 
funds, as defined in regulations prescribed 
in accordance with this title, from a United 
States parent company to a subsidiary lo-
cated in a country of concern or a trans-
action that, but for this clause, would be a 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00037
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
covered national security transaction be-
tween a United States person and its con-
trolled foreign person that supports oper-
ations that are not covered national secu-
rity transactions or that maintains covered 
national security transactions that the con-
trolled foreign person was engaged in prior 
to January 2, 2025; 
‘‘(vii) a transaction secondary to a 
covered national security transaction, in-
cluding— 
‘‘(I) contractual arrangements or 
the procurement of material inputs 
for any covered national security 
transaction (such as raw materials); 
‘‘(II) bank lending; 
‘‘(III) the processing, clearing, or 
sending of payments by a bank; 
‘‘(IV) underwriting services; 
‘‘(V) debt rating services; 
‘‘(VI) prime brokerage; 
‘‘(VII) global custody; 
‘‘(VIII) equity research or anal-
ysis; or 
‘‘(IX) other similar services; 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
‘‘(viii) any ordinary or administrative 
business transaction as may be defined in 
such regulations; or 
‘‘(ix) any transaction completed before 
the date of the enactment of this title. 
‘‘(C) 
ANCILLARY
TRANSACTION
DE-
FINED.—In this paragraph, the term ‘ancillary 
transaction’ means— 
‘‘(i) the processing, settling, clearing, 
or sending of payments and cash trans-
actions; 
‘‘(ii) underwriting services; 
‘‘(iii) credit rating services; and 
‘‘(iv) other services ordinarily incident 
to and part of the provision of financial 
services, such as opening deposit accounts, 
direct custody services, foreign exchange 
services, remittances services, and safe de-
posit services. 
‘‘(5) FOREIGN PERSON.—The term ‘foreign per-
son’ means a person that is not a United States per-
son. 
‘‘(6) NOTIFIABLE TECHNOLOGY.— 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
‘‘(A) IN GENERAL.—The term ‘notifiable 
technology’ means a technology with respect to 
which a covered foreign person— 
‘‘(i) designs any advanced integrated 
circuit that is not covered under paragraph 
(8)(A)(iii); 
‘‘(ii) fabricates any integrated circuit 
that is not covered under paragraph 
(8)(A)(iv); 
‘‘(iii) packages any integrated circuit 
that is not covered under paragraph 
(8)(A)(v); or 
‘‘(iv) develops any artificial intel-
ligence system that is not covered under 
clause (vii), (viii), (ix), or (xvi) of para-
graph (8)(A), and that is— 
‘‘(I) designed to be used for— 
‘‘(aa) any military end use 
(such as for weapons targeting, 
target identification, combat sim-
ulation, military vehicle or weap-
ons control, military decision- 
making, weapons design (includ-
ing chemical, biological, radio-
logical, or nuclear weapons), or 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
combat 
system 
logistics 
and 
maintenance); or 
‘‘(bb) any government intel-
ligence or mass-surveillance end 
use (such as through incorpora-
tion of features such as mining 
text, audio, or video, image rec-
ognition, location tracking, or 
surreptitious listening devices); 
‘‘(II) intended by the covered for-
eign person or joint venture to be 
used for— 
‘‘(aa) cybersecurity applica-
tions; 
‘‘(bb) digital forensics tools; 
‘‘(cc) 
penetration 
testing 
tools; or 
‘‘(dd) control of robotic sys-
tems; or 
‘‘(III) trained using a quantity of 
computing power greater than 1023 
computational operations (such as in-
teger or floating-point operations). 
‘‘(B) UPDATES.—The Secretary, in con-
sultation with Congress, may prescribe regula-
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00041
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
tions in accordance with this title to refine the 
technical parameters of technologies described 
in subparagraph (A) as reasonably needed for 
national security purposes or to add or remove 
categories to or from the list in subparagraph 
(A). 
‘‘(7) PARTY.—The term ‘party’, with respect to 
a covered national security transaction, has the 
meaning given that term in regulations prescribed in 
accordance with this title. 
‘‘(8) PROHIBITED TECHNOLOGY.— 
‘‘(A) IN GENERAL.—The term ‘prohibited 
technology’ means a technology with respect to 
which a covered foreign person— 
‘‘(i) develops or produces any design 
automation software for the design of inte-
grated circuits or advanced packaging; 
‘‘(ii) develops or produces any— 
‘‘(I) electronic design automation 
software for the design of integrated 
circuits or advanced packaging; 
‘‘(II) 
front-end 
semiconductor 
fabrication equipment designed for the 
volume fabrication of integrated cir-
cuits, including equipment used in the 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
production stages from a blank wafer 
or substrate to a completed wafer or 
substrate; or 
‘‘(III) equipment for performing 
volume advanced packaging; 
‘‘(iii) designs any integrated circuit 
designs that meet or exceed the specifica-
tions set in Export Control Classification 
Number (ECCN) 3A090 in Supplement 
No. 1 to the Export Administration Regu-
lations, or integrated circuits designed for 
operation at or below 4.5 Kelvin; 
‘‘(iv) fabricates integrated circuits 
that are— 
‘‘(I) 
logic 
integrated 
circuits 
using a non-planar transistor architec-
ture or with a technology node of 16/ 
14 nanometers or less, including fully 
depleted silicon-on-insulator (FDSOI) 
integrated circuits; 
‘‘(II) NOT–AND (NAND) mem-
ory integrated circuits with 128 layers 
or more; 
‘‘(III) 
dynamic 
random-access 
memory (DRAM) integrated circuits 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
using a technology node of 18 
nanometer half-pitch or less; 
‘‘(IV) integrated circuits manu-
factured from a gallium-based com-
pound semiconductor; 
‘‘(V) integrated circuits using 
graphene 
transistors 
or 
carbon 
nanotubes; or 
‘‘(VI) integrated circuits designed 
for operation at or below 4.5 Kelvin; 
‘‘(v) packages any integrated circuit 
using advanced packaging techniques; 
‘‘(vi) develops, designs, or produces 
any commodity, material, software, or 
technology designed exclusively for use in 
or with extreme ultraviolet lithography fab-
rication equipment; 
‘‘(vii) develops, designs, or produces 
any artificial intelligence models trained 
with at least 1025 floating point oper-
ations; 
‘‘(viii) develops, designs, or produces 
any artificial intelligence models that rely 
upon or utilize advanced integrated circuits 
that meet or exceed the specifications set 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
in Export Control Classification Number 
(ECCN) 3A090 in Supplement No. 1 to 
the Export Administration Regulations; 
‘‘(ix) develops, designs, or produces 
any artificial intelligence models designed 
for use by the Government of the People’s 
Republic of China, its special administra-
tive regions, or its agencies and instrumen-
talities; 
‘‘(x) develops a quantum computer or 
produces any critical components required 
to produce a quantum computer such as a 
dilution refrigerator or two-stage pulse 
tube cryocooler; 
‘‘(xi) develops or produces any quan-
tum sensing platform designed for, or 
which the relevant covered foreign person 
intends to be used for, any military, gov-
ernment intelligence, or mass-surveillance 
end use; 
‘‘(xii) develops or produces quantum 
networks or quantum communication sys-
tems designed for or intended to be used 
for— 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
‘‘(I) networking to scale up the 
capabilities of quantum computers, 
such as for the purposes of breaking 
or compromising encryption; 
‘‘(II) 
secure 
communications, 
such as quantum key distribution; or 
‘‘(III) any other application that 
has any military, government intel-
ligence, or mass-surveillance end use; 
‘‘(xiii) develops, designs, or produces 
materials, components, avionics, flight con-
trol, propulsion, Global Positioning System 
(GPS), data relay, and target detection 
systems designed for use in hypersonic sys-
tems or capable of sustainable operations 
above 1,000 degrees Celsius; 
‘‘(xiv) develops, installs, sells, or pro-
duces any supercomputer enabled by ad-
vanced integrated circuits that can provide 
theoretical compute capacity of 100 or 
more double-precision (64-bit) petaflops or 
200 or more single-precision (32-bit) 
petaflops of processing power within a 
41,600 cubic foot or smaller envelope; 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00046
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
‘‘(xv) develops, designs, or produces 
any other technologies in the advanced 
semiconductors and microelectronics sec-
tor, the artificial intelligence sector, the 
high-performance computing and super-
computing sector, the hypersonic missiles 
sector, or the quantum information science 
and technology sector that are— 
‘‘(I) defense articles or defense 
services included on the United States 
Munitions List set forth in the Inter-
national Traffic in Arms Regulations 
under subchapter M of chapter I of 
title 22, Code of Federal Regulations; 
‘‘(II) specially designed and pre-
pared nuclear equipment, parts or 
components, materials, software, or 
technologies covered by part 810 of 
title 10, Code of Federal Regulations 
(relating to assistance to foreign 
atomic energy activities); 
‘‘(III) nuclear facilities, equip-
ment, or materials covered by part 
110 of title 10, Code of Federal Regu-
lations (relating to export and import 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00047
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
of nuclear equipment and material); 
or 
‘‘(IV) emerging or foundational 
technologies controlled pursuant to 
section 1758 of the Export Control 
Reform Act of 2018 (50 U.S.C. 
4817); or 
‘‘(xvi) develops any artificial intel-
ligence system that is designed to be exclu-
sively used for, or which the relevant cov-
ered foreign person intends to be used for, 
any— 
‘‘(I) military end use (such as for 
weapons targeting, target identifica-
tion, combat simulation, military vehi-
cle or weapon control, military deci-
sion-making, weapons design (includ-
ing chemical, biological, radiological, 
or nuclear weapons), or combat sys-
tem logistics and maintenance); or 
‘‘(II) government intelligence or 
mass-surveillance 
end 
(such 
as 
through incorporation of features such 
as mining text, audio, or video, image 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00048
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
recognition, location tracking, or sur-
reptitious listening devices). 
‘‘(B) UPDATES.—The Secretary, in con-
sultation with Congress, may prescribe regula-
tions in accordance with this title to make up-
dates to the technical parameters of tech-
nologies described in subparagraph (A) as rea-
sonably needed for national security purposes. 
‘‘(9) SECRETARY.—Except as otherwise pro-
vided, the term ‘Secretary’ means the Secretary of 
the Treasury. 
‘‘(10) UNITED
STATES
PERSON.—The term 
‘United States person’ means— 
‘‘(A) any United States citizen or an alien 
lawfully admitted for permanent residence to 
the United States; 
‘‘(B) an entity organized under the laws of 
the United States or of any jurisdiction within 
the United States (including any foreign branch 
of such an entity); or 
‘‘(C) any person in the United States.’’. 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00049
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
TITLE III—SECURITIES AND 
RELATED MATTERS 
SEC. 301. REQUIREMENTS RELATING TO THE NON-SDN CHI-
NESE MILITARY-INDUSTRIAL COMPLEX COM-
PANIES LIST. 
(a) REPORT.— 
(1) IN
GENERAL.—Not later than 365 days 
after the date of the enactment of this Act, and bi-
ennially thereafter for 6 years, the Secretary shall 
submit to the appropriate congressional committees 
a report that states whether any of the following for-
eign persons qualifies for inclusion on the Non-SDN 
Chinese 
Military-Industrial 
Complex 
Companies 
List: 
(A) Any PRC person listed on the Military 
End-User List (Supplement No. 7 to part 744 
of the Export Administration Regulations). 
(B) Any PRC person listed pursuant to 
section 1260H of the William M. (Mac) Thorn-
berry National Defense Authorization Act for 
Fiscal Year 2021 (10 U.S.C. 113 note). 
(C) Any PRC person listed on the Depart-
ment of Commerce’s Entity List (Supplement 
No. 4 to part 744 of the Export Administration 
Regulations). 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00050
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
(2) PROCESS REQUIRED.—To prepare the re-
ports under paragraph (1), the President shall es-
tablish a process under which the Federal agencies 
responsible for administering the lists described in 
subparagraphs (A), (B), and (C) of paragraph (1) 
shall share with each other all relevant information 
that led to the identification of the entities described 
in such lists. 
(3) 
RISK-BASED
PRIORITIZATION
FRAME-
WORK.—In making the initial determinations under 
paragraph (1), the Secretary may establish a risk- 
based 
prioritization 
framework 
factoring 
in 
prioritization of entity review submitted to the Sec-
retary by the Federal agencies administering the 
lists described in subparagraphs (A), (B), and (C) of 
paragraph (1). 
(4) ANNUAL REPORTS TO THE APPROPRIATE 
CONGRESSIONAL
COMMITTEES.—The report under 
paragraph (1) may summarize findings concerning 
entities previously reviewed pursuant to this section 
and do not necessitate additional review by the Sec-
retary. 
(5) MATTERS
TO
BE
INCLUDED.—The Sec-
retary shall include in the report required by para-
graph (1) an overview of the criteria required for 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00051
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
listing on Non-SDN Chinese Military-Industrial 
Complex Companies List. The heads of the Federal 
agencies administering the lists described in sub-
paragraphs (A), (B), and (C) of paragraph (1) shall 
provide an overview of the criteria for entity identi-
fication or listing on each respective list. 
(b) REQUIREMENT FOR DIVESTMENT.— 
(1) IN GENERAL.—The President shall promul-
gate rules that prohibit a United States person from 
knowingly holding securities of entities on the Non- 
SDN Chinese Military-Industrial Complex Compa-
nies List, after the date that is 365 days after the 
date of enactment of this Act. 
(2) AUTHORIZATION.—The prohibitions on in-
vestment imposed under paragraph (1) shall not 
apply to a transaction in a security that is entered 
into on or before the date that is 365 days after the 
date of enactment of this Act by a United States 
person, if such transaction is entered into solely to 
divest of the security. 
(c) WAIVER.— 
(1) IN GENERAL.—The President may establish 
a process under which the requirements of sub-
section (b) shall not apply if the President deter-
mines to do so is necessary to protect the national 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00052
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
security or foreign policy objectives of the United 
States. 
(2) CASE-BY-CASE REQUIREMENT.—Determina-
tions under paragraph (1) shall be issued on a case- 
by-case basis for each entity on the Non-SDN Chi-
nese Military-Industrial Complex Companies List. 
(3) NOTICE
AND
BRIEFING.—The President 
shall notify the appropriate congressional committees 
in writing in advance of issuing a determination 
under paragraph (1) and shall provide a substantive 
briefing on the determination to the appropriate con-
gressional committees within 30 days of issuing a 
determination. 
(d) DEFINITIONS.—In this section: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committee on Financial Services 
and the Committee on Foreign Affairs of the 
House of Representatives; and 
(B) the Committee on Banking, Housing, 
and Urban Affairs of the Senate. 
(2) COUNTRY OF CONCERN.—The term ‘‘coun-
try of concern’’— 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00053
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
(A) means the People’s Republic of China; 
and 
(B) includes the Hong Kong Special Ad-
ministrative Region and the Macau Special Ad-
ministrative Region. 
(3) NON-SDN CHINESE MILITARY-INDUSTRIAL 
COMPLEX COMPANIES LIST.—The term ‘‘Non-SDN 
Chinese 
Military-Industrial 
Complex 
Companies 
List’’ means the list maintained by the Office of 
Foreign Assets Control of the Department of the 
Treasury under Executive Order 13959, as amended 
by Executive Order 14032 (50 U.S.C. 1701 note; re-
lating to addressing the threat from securities in-
vestments that finance certain companies of the Peo-
ple’s Republic of China), and any successor order. 
(4) PRC PERSON.—The term ‘‘PRC person’’ 
means a foreign person that— 
(A) is incorporated in a principal place of 
business in, or is organized under the laws of, 
a country of concern; 
(B) is a member of the Central Committee 
of the Chinese Communist Party; 
(C) is the state or the government of a 
country of concern, as well as any political sub-
division, agency, or instrumentality thereof; or 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00054
Fmt 6652
Sfmt 6201
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB
(D) is owned in the aggregate, directly or 
indirectly, 50 percent or more by an entity or 
a group of entities described in subparagraph 
(A), (B), or (C). 
Æ 
VerDate Sep 11 2014 
08:39 Mar 26, 2025
Jkt 000000
PO 00000
Frm 00055
Fmt 6652
Sfmt 6301
E:\BILLS\H2246.IH
H2246
mprince on LAP1J3WLY3PROD with $$_JOB