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 
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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— 
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‘‘(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; 
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‘‘(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 
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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 
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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.’’. 
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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). 
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(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 
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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 
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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’’— 
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(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 
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(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 
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