I 
116TH CONGRESS 
2D SESSION 
H. R. 7064 
To prohibit financial investment by a United States person in foreign indus-
trial defense corporations with substantial contracts with, ties to, or 
support from, the Chinese military and affiliated entities, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 1, 2020 
Mr. BANKS (for himself, Mr. GALLAGHER, and Mr. LAMALFA) introduced the 
following bill; which was referred to the Committee on Financial Services, 
and in addition to the Committee on Foreign Affairs, 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 con-
cerned 
A BILL 
To prohibit financial investment by a United States person 
in foreign industrial defense corporations with substantial 
contracts with, ties to, or support from, the Chinese 
military and affiliated entities, 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 ‘‘Stop Funding the PLA 
Act’’. 
VerDate Sep 11 2014 
20:03 Jun 20, 2020
Jkt 099200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H7064.IH
H7064
pamtmann on DSKBC07HB2PROD with BILLS
SEC. 2. SPECIFICATION OF PROHIBITED FOREIGN INDUS-
TRIAL DEFENSE CORPORATIONS. 
(a) SPECIFICATION REQUIRED.—Not later than 90 
days after the date of the enactment of this section, and 
annually thereafter, the Secretary, in consultation with the 
Secretary of State, the Secretary of Defense, and the do-
mestic intelligence community, shall submit to the Com-
mittee on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on Financial Services of the 
House of Representatives a report that specifies each for-
eign industrial defense corporation with substantial con-
tracts with, ties to, or support from, a PLA entity. 
(b) EFFECT OF SPECIFICATION.— 
(1) PURCHASE OF SECURITIES PROHIBITED.— 
Beginning on the date that is 180 days after a re-
port is submitted under subsection (a), a United 
States person may not purchase securities of a for-
eign industrial defense corporation specified in such 
report. 
(2) DIVESTMENT REQUIRED.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), not later than 180 days 
after a report is submitted under subsection 
(a), a United States person that owns a secu-
rity of a foreign industrial defense corporation 
VerDate Sep 11 2014 
20:03 Jun 20, 2020
Jkt 099200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H7064.IH
H7064
pamtmann on DSKBC07HB2PROD with BILLS
specified in such report shall divest themselves 
of such security. 
(B) EXTENDED WIND-DOWN IN CASE OF 
FINANCIAL
HARDSHIP.—The Secretary may 
allow a United States person a 270-day exten-
sion to the 180-day period for compliance under 
subparagraph (A) if the Secretary determines 
that such entity— 
(i) owns a security of a foreign indus-
trial defense corporation specified in a re-
port submitted under subsection (a); and 
(ii) would experience extreme financial 
hardship to comply within the 180-day pe-
riod under subparagraph (A). 
(c) ASSIGNMENT OF AUTHORITY.— 
(1) ENFORCEMENT.—The Secretary shall en-
force the provisions of this section. 
(2) REGULATIONS.—Not later than 90 days 
after the date of the enactment of this section, the 
Secretary shall issue such regulations and guidance 
as necessary to implement and enforce this section. 
(d) REPORT.—Not later than 360 days after the date 
of the enactment of this section, the Secretary shall sub-
mit to the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on Financial 
VerDate Sep 11 2014 
20:03 Jun 20, 2020
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H7064.IH
H7064
pamtmann on DSKBC07HB2PROD with BILLS
Services of the House of Representatives a report on the 
progress of the divestments required under subsection 
(b)(2). 
(e) PETITION FOR REMOVAL FROM DESIGNATION.— 
(1) IN GENERAL.—A foreign industrial defense 
corporation may petition the Secretary to not be in-
cluded or removed from a report under subsection 
(a). 
(2) REQUIREMENTS.—A petition under para-
graph (1) shall include such documentation of the 
assets and liabilities, company financial records, 
ownership and investor records, and past and cur-
rent business contracts of the foreign industrial de-
fense corporation submitting such petition that the 
Secretary determines necessary. 
(f) FINAL REPORT.—Not later than 8 years after the 
date of the enactment of this section, the Secretary shall 
submit to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Finan-
cial Services of the House of Representatives a final report 
on the implementation of this section, including— 
(1) an analysis of the effectiveness of this sec-
tion; 
(2) the development and maintenance of the re-
ports required under subsection (a); and 
VerDate Sep 11 2014 
20:03 Jun 20, 2020
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H7064.IH
H7064
pamtmann on DSKBC07HB2PROD with BILLS
(3) a description of completed and ongoing civil 
and criminal cases related to securities of foreign in-
dustrial defense corporations. 
(g) SUNSET.—This section and the authority under 
this section shall expire on the date that is 10 years after 
the date of the enactment of this section. 
(h) DEFINITIONS.—In this section: 
(1) PLA ENTITY.—The term ‘‘PLA entity’’ 
means any entity of the Chinese military, including 
the People’s Liberation Army, Navy, Air Force, 
Rocket Force, Strategic Support Force, and Joint 
Logistics Force, and the Chinese intelligence com-
munity. 
(2) FOREIGN INDUSTRIAL DEFENSE CORPORA-
TION.—The term ‘‘foreign industrial defense cor-
poration’’ means any corporation based— 
(A) outside of the United States; and 
(B) in a country that the Secretary, in 
consultation with the Secretary of Defense, the 
Secretary of State, and the domestic intel-
ligence community, determines does not possess 
positive economic and military relations with 
the United States. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
VerDate Sep 11 2014 
20:03 Jun 20, 2020
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H7064.IH
H7064
pamtmann on DSKBC07HB2PROD with BILLS
(4) SUBSTANTIAL.—The term ‘‘substantial’’ 
shall, with respect to contracts with, ties to, or sup-
port from, a PLA entity, have the meaning deter-
mined by the Secretary, in consultation with the 
Secretary of State, the Secretary of Defense, and 
the domestic intelligence community. 
Æ 
VerDate Sep 11 2014 
20:03 Jun 20, 2020
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6301
E:\BILLS\H7064.IH
H7064
pamtmann on DSKBC07HB2PROD with BILLS