I 
118TH CONGRESS 
2D SESSION H. R. 10453 
To prohibit the Secretary of Defense from entering into information tech-
nology contracts with entities that provide certain services to China, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 17, 2024 
Mr. FALLON (for himself, Mr. ALFORD, and Mr. ELLZEY) introduced the 
following bill; which was referred to the Committee on Armed Services 
A BILL 
To prohibit the Secretary of Defense from entering into 
information technology contracts with entities that pro-
vide certain services to 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. PROHIBITION ON INFORMATION TECHNOLOGY 
CONTRACTS WITH ENTITIES THAT PROVIDE 
CERTAIN SERVICES TO CHINA. 
(a) PROHIBITION.—The Secretary of Defense may 
not enter into, renew, or extend an information technology 
contract with an entity, including a parent, subsidiary, af-
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filiate, or subcontractor (at any tier) of such an entity, 
that— 
(1) owns, operates, substantially funds, or has 
a material interest in a facility or research organiza-
tion located on the mainland of the People’s Repub-
lic of China if such facility or research organization 
has a primary purpose, as determined by the Sec-
retary, of researching or developing artificial intel-
ligence; 
(2) has enabled a covered Chinese entity to ac-
cess a source code of software to be used by or on 
behalf of the United States Government, if such con-
tract is for such software; 
(3) provides software with a military or law en-
forcement application or a dual-use application to a 
covered Chinese entity; or 
(4) operates a data center (as such term is de-
fined in section 453 of the Energy Independence and 
Security Act of 2007 (42 U.S.C. 17112)) in the 
mainland of China, including a data center oper-
ated— 
(A) by a parent, subsidiary, or affiliate of 
an entity seeking to enter into, renew, or extend 
a contract with the Secretary; or 
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(B) on behalf of such an entity by a cov-
ered Chinese entity. 
(b) WAIVER AUTHORITY.—The Secretary may waive 
the prohibition under this section for a contract if the Sec-
retary determines such a waiver is necessary to advance 
the national security interests of the United States. 
(c) APPLICABILITY.—This section shall apply only 
with respect to contracts entered into, renewed, or ex-
tended within three years after the date of the enactment 
of this Act. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘covered Chinese entity’’ means 
an entity that the Secretary of Defense, in consulta-
tion with the Director of National Intelligence or the 
Director of the Federal Bureau of Investigation, de-
termines to be— 
(A) owned, controlled, directed, or subcon-
tracted by, affiliated with, or otherwise con-
nected to, the government of China, or a par-
ent, subsidiary, or affiliate of such an entity; or 
(B) a subcontractor (at any tier) of the 
government of China. 
(2) The term ‘‘material interest’’ means a fi-
nancial or other interest that the Secretary deter-
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