(A) The covered telecommunications com-
pany and when acting for or on their behalf, 
their successors, assigns, directors, officers, em-
ployees, representatives, or agents (hereinafter 
each a ‘‘denied person’’), may not, directly or 
indirectly, participate in any way in any trans-
action involving any commodity, software or 
technology (hereinafter collectively referred to 
as ‘‘item’’) exported or to be exported from the 
United States that is subject to the Export Ad-
ministration Regulations (as codified in sub-
chapter C of chapter VII of title 15, Code of 
Federal Regulations, or any successor regula-
tions), or in any other activity subject to the 
Export Administration Regulations. 
(B) No person may, directly or indirectly, 
do any of the following: 
(i) Export or reexport to or on behalf 
of a denied person any item subject to the 
Export Administration Regulations. 
(ii) Take any action that facilitates 
the acquisition or attempted acquisition by 
a denied person of the ownership, posses-
sion, or control of any item subject to the 
Regulations that has been or will be ex-
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ported from the United States, including 
financing or other support activities related 
to a transaction whereby a denied person 
acquires or attempts to acquire such own-
ership, possession or control. 
(iii) Take any action to acquire from 
or to facilitate the acquisition or attempted 
acquisition from a denied person of any 
item subject to the Export Administration 
Regulations that has been exported from 
the United States. 
(iv) Obtain from a denied person in 
the United States any item subject to the 
Export Administration Regulations with 
knowledge or reason to know that the item 
will be, or is intended to be, exported from 
the United States. 
(v) Engage in any transaction to serv-
ice any item subject to the Export Admin-
istration Regulations that has been or will 
be exported from the United States and 
which is owned, possessed or controlled by 
a denied person, or service any item, of 
whatever origin, that is owned, possessed 
or controlled by a denied person if such 
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service involves the use of any item subject 
to the Export Administration Regulations 
that has been or will be exported from the 
United States. 
(3) REPORT.—The President shall submit to 
the appropriate congressional committees an annual 
report on the implementation of this subsection. 
(b) PROHIBITION
ON
MODIFICATION
OF
PEN-
ALTIES.—Notwithstanding any other provision of law, no 
official of an executive agency may modify any penalty, 
including a penalty imposed pursuant to a denial order, 
implemented by the Government of the United States with 
respect to a covered telecommunications company or its 
agents or affiliates pursuant to a determination that the 
company has violated an export control or sanctions law 
of the United States until the date that is 30 days after 
the President certifies to the appropriate congressional 
committees that the company— 
(1) has not, for a period of one year, conducted 
activities in violation of the laws of the United 
States; and 
(2) is fully cooperating with investigations into 
the activities of the company conducted by the Gov-
ernment of the United States, if any. 
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(c) REGULATIONS.—The President is authorized to 
prescribe such regulations as may be necessary to carry 
out this section. 
(d) DEFINITIONS.— 
(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 and the Committee on For-
eign Relations of the Senate. 
(2) 
COVERED
TELECOMMUNICATIONS
COM-
PANY.—The term ‘‘covered telecommunications com-
pany’’ means any of the following: 
(A) Huawei Technologies Company or 
ZTE Corporation (or any subsidiary or affiliate 
of such entities). 
(B) Any other telecommunications com-
pany domiciled in the People’s Republic of 
China (or any subsidiary or affiliate of such en-
tities), excluding any subsidiary of a foreign 
company domiciled in the People’s Republic of 
China. 
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(3) EXECUTIVE AGENCY.—The term ‘‘executive 
agency’’ means— 
(A) an executive department specified in 
section 101 of title 5, United States Code; 
(B) a military department specified in sec-
tion 102 of title 5, United States Code; 
(C) an independent establishment as de-
fined in section 104(1) of title 5, United States 
Code; and 
(D) a wholly-owned Government corpora-
tion fully subject to chapter 91 of title 31, 
United States Code. 
Æ 
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