I 
118TH CONGRESS 
1ST SESSION 
H. R. 499 
To amend the Securities Exchange Act of 1934 to require certain additional 
annual disclosures by public companies and exchange-traded funds invest-
ing in companies with ties to the People’s Republic of China, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 25, 2023 
Mr. FALLON (for himself, Mr. ELLZEY, Mr. JACKSON of Texas, and Mr. 
AMODEI) introduced the following bill; which was referred to the Com-
mittee on Financial Services 
A BILL 
To amend the Securities Exchange Act of 1934 to require 
certain additional annual disclosures by public companies 
and exchange-traded funds investing in companies with 
ties to 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, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Securing American 
Families and Enterprises from People’s Republic of China 
Investments Act’’ or the ‘‘SAFE from PRC Investments 
Act’’. 
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SEC. 2. ADDITIONAL DISCLOSURES TO PROTECT AMERICAN 
INVESTORS AND BUSINESSES. 
Section 13 of the Securities Exchange Act of 1934 
(15 U.S.C. 78m) is amended by adding at the end the 
following: 
‘‘(s) ADDITIONAL DISCLOSURES TO PROTECT AMER-
ICAN INVESTORS AND BUSINESSES.— 
‘‘(1) IN GENERAL.—Each covered issuer that is 
required to file an annual report under section 13(a) 
or 15(d) shall disclose in that report the following: 
‘‘(A) Whether a senior official of the 
national- or provincial-level governments of the 
People’s Republic of China (‘PRC’) sits on the 
board of directors of the issuer or any sub-
sidiary of the issuer. 
‘‘(B) Whether executive-level employees, 
senior directors, and board members of the 
issuer are members of the Communist Party of 
China. 
‘‘(C) Whether executive-level employees, 
senior directors, and board members of the 
issuer have immediate family members that are 
senior officials of the Communist Party of 
China or the Government of the People’s Re-
public of China. 
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‘‘(D) Whether the issuer has a party 
branch or committee as part of the issuer’s cor-
porate structure. 
‘‘(E) With respect to the operations of the 
issuer located in the PRC— 
‘‘(i) the amount of cash held; 
‘‘(ii) any limits imposed by the Com-
munist Party of China or the Government 
of the People’s Republic of China on the 
ability to take such cash out of the coun-
try; and 
‘‘(iii) disclosure of investments, assets 
and liabilities, technology licensed or trans-
ferred, and financing or debt obligations 
involving PRC operations or from a PRC 
entity. 
‘‘(F) The number of times executive-level 
employees of the issuer interact with senior offi-
cials of the Communist Party of China and the 
costs of those meetings and any transfer of 
goods, money, or services between issuer’s em-
ployees. 
‘‘(G) The amount the issuer has expended 
on operations in the People’s Republic of China, 
both in total and for the prior fiscal year. 
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‘‘(H) The amount the issuer has expended 
on operations in the United States, both in 
total and for the prior fiscal year. 
‘‘(I) The amount (both in total and for the 
prior fiscal year) that the issuer has spent on 
lobbying in the United States, including— 
‘‘(i) whether the issuer or any sub-
sidiary of the issuer has reported any sums 
under the Foreign Agents Registration Act 
of 1938; and 
‘‘(ii) whether the issuer or any sub-
sidiary of the issuer has reported any sums 
under the Lobbying Disclosure Act of 
1995. 
‘‘(J) Whether the Public Company Ac-
counting Oversight Board is unable to inspect 
or investigate a registered public accounting 
firm retained by the issuer to prepare an audit 
report on the financial statement of the issuer. 
‘‘(K) The amount of taxes and other fees 
the issuer paid to the Government of the Peo-
ple’s Republic of China on an annual basis. 
‘‘(L) With respect to customer data— 
‘‘(i) who has access to such data; 
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‘‘(ii) disclosure of instances when in-
formation is requested, arrangements that 
may allow passive or continuous access, ef-
forts to protect such data, instances of 
cyber-attack, corporate or personnel dis-
putes that involve potential breaches, and 
notification of other breaches; and 
‘‘(iii) whether such data is stored in 
the United States and, if not, the country 
or territory in which such data is stored. 
‘‘(M) For each subsidiary of the issuer lo-
cated in the PRC, the information described 
under subparagraphs (A) through (L) with re-
spect to such subsidiary. 
‘‘(N) If the issuer or any subsidiary of the 
issuer located in the PRC produces goods or 
services that are part of a military-civil fusion 
strategy, whether the issuer has consulted with 
the People’s Liberation Army or the Ministry of 
State Security with regard to industrial policy. 
‘‘(2) DEFINITIONS.—In this subsection: 
‘‘(A) COMMUNIST PARTY OF CHINA.—The 
term ‘Communist Party of China’ means the 
ruling party of the People’s Republic of China, 
including— 
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‘‘(i) party bodies at the national and 
sub-national level; and 
‘‘(ii) any agency or instrumentality of 
the Communist Party of China. 
‘‘(B) COVERED
ISSUER.—The term ‘cov-
ered issuer’ means an issuer— 
‘‘(i) that is— 
‘‘(I) headquartered in the PRC 
(including the Hong Kong and Macau 
Special Administrative Regions); 
‘‘(II) a branch or subsidiary of 
an issuer headquartered in the PRC; 
or 
‘‘(III) a variable interest entity 
or other type of firm structured 
through a series of contracts or over-
lapping personnel— 
‘‘(aa) that are tied to core 
operations in the PRC; or 
‘‘(bb) controlled and owned 
by an issuer headquartered in the 
PRC; or 
‘‘(ii) that— 
‘‘(I) is domiciled in a tax haven 
jurisdiction or self-governing terri-
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tories, including the Cayman Islands, 
British Virgin Islands, Bermuda, the 
Netherlands, 
Switzerland, 
Luxem-
bourg, Singapore, the United Arab 
Emirates, the Bahamas, Cyprus, or 
Mauritius; and 
‘‘(II) has the majority of the 
issuer’s business operations taking 
place or the majority of the issuer’s 
revenue generated in mainland China. 
‘‘(C) GOVERNMENT OF THE PEOPLE’S RE-
PUBLIC OF CHINA.—The term ‘Government of 
the People’s Republic of China’ means any of 
the following: 
‘‘(i) Any national or sub-national gov-
ernmental unit of the People’s Republic of 
China. 
‘‘(ii) Any national or sub-national leg-
islature of the People’s Republic of China. 
‘‘(iii) Any national or sub-national 
People’s Political Consultative Conference 
of the People’s Republic of China. 
‘‘(iv) Any national or sub-national ju-
dicial or prosecutorial body of the People’s 
Republic of China. 
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‘‘(v) Any national or sub-national su-
pervision commission of the People’s Re-
public of China. 
‘‘(vi) Any agency or instrumentality of 
the People’s Republic of China. 
‘‘(D) IMMEDIATE FAMILY MEMBER.—The 
term ‘immediate family member’ shall include a 
spouse, domestic partner, mother, father, aunt, 
uncle, sibling, or child. 
‘‘(E) 
MILITARY-CIVIL
FUSION
STRAT-
EGY.—The term ‘military-civil fusion strategy’ 
means the strategy of the Communist Party of 
China aiming to mobilize non-military resources 
and expertise for military application, includ-
ing— 
‘‘(i) the development of technology, 
improvements in logistics, and other uses 
by the People’s Liberation Army; and 
‘‘(ii) firms which develop and acquire 
advanced dual-use technology for military 
purposes. 
‘‘(F) PRC.—The term ‘PRC’ means the 
People’s Republic of China. 
‘‘(G) SENIOR OFFICIAL.—The term ‘senior 
official’, when used in connection with the Gov-
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ernment of the People’s Republic of China or 
the Communist Party of China, means— 
‘‘(i) an official with the rank of a dep-
uty at the provincial or ministerial level 
(shengbu ji fu zhi) or higher; or 
‘‘(ii) a chief at the bureau level (tingju 
ji zheng zhi) or higher. 
‘‘(H) VARIABLE INTEREST ENTITY.—The 
term ‘variable interest entity’ means an entity 
where an investor has a controlling interest that 
is not based on holding the majority of voting 
rights.’’. 
SEC. 3. DISCLOSURES BY EXCHANGE TRADED FUNDS IN-
VESTING IN CHINESE COMPANIES. 
Section 13 of the Securities Exchange Act of 1934 
(15 U.S.C. 78m), as amended by section 2, is further 
amended by adding at the end the following: 
‘‘(t) DISCLOSURES BY EXCHANGE TRADED FUNDS 
INVESTING IN CHINESE COMPANIES.— 
‘‘(1) IN GENERAL.—Each exchange traded fund 
required to file an annual report under section 13(a) 
or 15(d) shall, if the fund invested in the securities 
of any PRC company during the reporting period, 
include in such report the following, with respect to 
each such PRC company: 
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‘‘(A) Who owns the company, including 
whether the company is owned by the Govern-
ment of the People’s Republic of China or a 
PRC state-controlled entity. 
‘‘(B) Whether the company operates a 
Communist Party of China branch or com-
mittee within the company’s corporate struc-
ture. 
‘‘(C) Whether the company has any con-
tractual agreements with the Government of the 
People’s Republic of China or the Communist 
Party of China or any agency or instrumen-
tality of either. 
‘‘(D) Whether the company has partici-
pated in the PRC’s industrial policies or has 
military or public security contracts. 
‘‘(E) Whether any funding, direction, or 
other forms of control over the company are ex-
ercised by the Government of the People’s Re-
public of China or the Communist Party of 
China. 
‘‘(F) Whether executive-level employees 
and board members of the company have imme-
diate family members who are senior officials of 
the Communist Party of China or the Govern-
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ment of the People’s Republic of China or are 
themselves senior officials of the Communist 
Party of China or the Government of the Peo-
ple’s Republic of China. 
‘‘(G) Whether the company is part of (in-
cluding by reason of being a branch or sub-
sidiary) or tied to (through a series of contracts 
or parallel corporate incorporations) firms or 
individuals sanctioned, restricted, or identified 
as tied to the People’s Liberation Army by the 
United States Government, including under— 
‘‘(i) the Military End User List main-
tained by the Bureau of Industry and Se-
curity of the Department of Commerce; 
‘‘(ii) the Non-SDN Chinese Military- 
Industrial Complex Companies List; 
‘‘(iii) the Unverified List maintained 
by the Secretary of Commerce; 
‘‘(iv) the List maintained by the Fed-
eral Communications Commission of equip-
ment and services covered by section 2 of 
the Secure and Trusted Communications 
Networks Act of 2019 (47 U.S.C. 1601); 
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‘‘(v) the Uyghur Forced Labor Pre-
vention Act Entity List maintained by the 
Department of Homeland Security; 
‘‘(vi) the list of covered issuers subject 
to a prohibition under section 104 of the 
Sarbanes-Oxley Act of 2002 (15 U.S.C. 
7214) maintained by the Securities and 
Exchange Commission; and 
‘‘(vii) the Withhold Release Orders 
and Findings List maintained by the Com-
missioner of U.S. Customs and Border 
Protection. 
‘‘(H) The types of products and services 
offered by the company. 
‘‘(I) Whether the company has a contract 
with the United States Department of Defense. 
‘‘(J) Whether the company produces a 
product or service that is used in the produc-
tion of aircraft, spacecraft, semiconductor chips 
and equipment, batteries or battery compo-
nents, facial recognition technology, artificial 
intelligence, telecommunications technology, en-
ergy production equipment, advanced medical 
devices, or pharmaceuticals or any such prod-
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ucts related to the national technology and in-
dustrial base in the United States. 
‘‘(K) Whether the company produces goods 
that would violate U.S. environmental law or 
U.S. civil liberties law if the goods were pro-
duced or used in the United States. 
‘‘(L) Any business activities conducted by 
the company— 
‘‘(i) with a privately held firm involved 
in China’s industrial, technology, and mili-
tary modernization efforts based in the 
People’s Republic of China; or 
‘‘(ii) with a Chinese state-controlled 
entity. 
‘‘(M) Whether the company has ever had 
an audit of the same type and quality as typi-
cally used by an issuer of publicly traded securi-
ties. 
‘‘(2) DEFINITIONS.—In this subsection: 
‘‘(A) EXCHANGE
TRADED
FUND.—The 
term ‘exchange traded fund’ has the meaning 
given that term under section 270.6c–11 of title 
17, Code of Federal Regulations. 
‘‘(B) OTHER
DEFINITIONS.—The terms 
‘Communist Party of China’, ‘Government of 
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the People’s Republic of China’, ‘immediate 
family member’, and ‘PRC’ have the meaning 
given those terms, respectively, under sub-
section (s)(2).’’. 
Æ 
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