I 
117TH CONGRESS 
2D SESSION 
H. R. 9051 
To impose sanctions on certain foreign flash memory integrated circuit 
companies that threaten the interests of the United States. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 29, 2022 
Mr. GALLAGHER introduced the following bill; which was referred to the 
Committee on Foreign Affairs 
A BILL 
To impose sanctions on certain foreign flash memory inte-
grated circuit companies that threaten the interests of 
the United States. 
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 ‘‘Defending Memory 
Chip Supply Chains from the Chinese Communist Party 
Act’’. 
SEC. 2. IMPOSITION OF SANCTIONS ON CERTAIN FOREIGN 
ENTITIES. 
(a) IN GENERAL.— 
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(1) ASSET BLOCKING.—On and after the date 
that is 30 days after the date of the enactment of 
this Act, the President shall exercise all 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 significant transactions in property and interests 
in property of an entity described in subsection (b), 
if such property and interests in are in the United 
States, come within the United States, or are or 
come within the possession or control of a United 
States person. 
(2) DETERMINATION
OF
SIGNIFICANCE.—For 
the purposes of this subsection, in determining if 
transactions are significant, the President may con-
sider the totality of the facts and circumstances, in-
cluding the factors set forth in section 561.404 of 
title 31, Code of Federal Regulations (or any cor-
responding similar regulation or ruling). 
(3) RULE OF CONSTRUCTION.—For purposes of 
this section, participation in an international stand-
ards-setting organization or in the activities of such 
an organization may not be construed to be trans-
actions. 
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(b) ENTITIES AFFILIATED WITH
A COUNTRY
OF 
CONCERN DESCRIBED.—An entity is described in this 
subsection if the entity is— 
(1) Yangtze Memory Technologies Corporation 
(YMTC), any of its subsidiaries, or any company in 
which YMTC or its subsidiaries own at least 5 per-
cent; or 
(2) an entity— 
(A) that is engaged in the production of 
flash memory integrated circuits of at least 128 
layers; and 
(B)(i) that receives or has received sub-
sidies or investments from any national, provin-
cial, county, municipal, or other government, 
quasi-government, or party body of a country of 
concern, including the Chinese Communist 
Party; 
(ii) that has links to the sale, transfer, or 
research and development of technology for the 
Armed Forces of a country of concern, includ-
ing the People’s Liberation Army; 
(iii) that is directly or indirectly owned or 
controlled by the government or ruling party of 
a country of concern or by another entity de-
scribed in this subsection; 
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(iv) five percent or more of the outstanding 
voting stock or shares of which are owned, con-
trolled, or held by the government or ruling 
party of a country of concern or by another en-
tity described in this subsection; 
(v) that is subject to substantial influence 
from either a country of concern or another en-
tity described in this subsection; 
(vi) that is domiciled in a country of con-
cern and shares with another entity described 
in this subsection an employee in a position of 
material decisionmaking authority; 
(vii) that is part of another entity that is 
headquartered in a country of concern, includ-
ing a subsidiary, a holding company, a contract 
affiliate, or a variable interest entity; or 
(viii) that is otherwise substantially influ-
enced by a national of a country of concern or 
by another entity domiciled in the country of 
concern. 
(c) EXCEPTIONS.— 
(1) 
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. 
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3091 et seq.) or any authorized intelligence activities 
of the United States. 
(2) EXCEPTION RELATING TO IMPORTATION OF 
GOODS.— 
(A) IN GENERAL.—The authorities and re-
quirements to impose sanctions authorized 
under this section shall not include the author-
ity or requirement to impose sanctions on the 
importation of goods. 
(B) GOOD DEFINED.—In this paragraph, 
the term ‘‘good’’ means any article, natural or 
manmade substance, material, supply or manu-
factured product, including inspection and test 
equipment, and excluding technical data. 
(d) WAIVER.—The President may waive the applica-
tion of sanctions under this section with respect to a for-
eign person for renewable periods of not more than 30 
days each if the President determines and reports to Con-
gress that such a waiver is vital to the national security 
interests of the United States. 
(e) IMPLEMENTATION; PENALTIES.— 
(1) IMPLEMENTATION.—The President shall ex-
ercise the authorities provided to the President 
under sections 203 and 205 of the International 
Emergency Economic Powers Act (50 U.S.C. 1702 
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and 1704) to the extent necessary to carry out this 
section. 
(2) PENALTIES.—A person that violates, at-
tempts to violate, conspires to violate, or causes a 
violation of subsection (a) or any regulation, license, 
or order issued to carry out that subsection shall be 
subject to the penalties set forth in subsections (b) 
and (c) of section 206 of the International Emer-
gency Economic Powers Act (50 U.S.C. 1705) to the 
same extent as a person that commits an unlawful 
act described in subsection (a) of that section. 
(f) DEFINITIONS.— 
(1) IN GENERAL.—In this section: 
(A) COUNTRY
OF
CONCERN.—The term 
‘‘country of concern’’— 
(i) has the meaning given the term 
‘‘foreign adversary’’ in section 8(c)(2) of 
the Secure and Trusted Communications 
Networks 
Act 
of 
2019 
(47 
U.S.C. 
1607(c)(2)); and 
(ii) includes the People’s Republic of 
China, Russia, Iran, North Korea, Cuba, 
and Venezuela. 
(B) UNITED STATES PERSON.—The term 
‘‘United States person’’ means— 
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(i) a United States citizen or an alien 
lawfully admitted for permanent residence 
to the United States; or 
(ii) an entity organized under the laws 
of the United States or any jurisdiction 
within the United States, including a for-
eign branch of such an entity. 
(g) SEVERABILITY.—If any provision of this Act or 
its application to any person or circumstance is held in-
valid, the invalidity does not affect other provisions or ap-
plications of this Act that can be given effect without the 
invalid provision or application, and to this end the provi-
sions of this Act are severable. 
Æ 
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