To codify the denial of export privileges and related provisions under title 15, Code of Federal Regulations.
Bill: H.R.2964 | Sponsor: Rep. Buck, Ken (R-CO)
Policy area: Foreign Trade and International Finance

Summary:
This bill provides statutory authority for specified provisions related to the denial of export privileges, and it requires the Department of Commerce to submit a strategy regarding how these denial orders can be better used to hold certain foreign entities accountable for the theft of U.S. intellectual property.

To codify the denial of export privileges and related provisions under 
                 title 15, Code of Federal Regulations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. FINDINGS.

    Congress finds the following:
            (1) The Founders of the United States viewed intellectual 
        property rights as fundamental rights that must be protected by 
        the government.
            (2) Article I, section 8, clause 8 of the United States 
        Constitution affirmatively defends the individual's right to 
        protect intellectual property by granting Congress power ``to 
        promote the Progress of Science and Useful arts, by securing, 
        for limited Times, to Authors and Inventors, the exclusive 
        Right to their respective Writings and Discoveries''.
            (3) The Commission on the Theft of American Intellectual 
        Property estimates that intellectual property theft costs the 
        United States economy approximately $600 billion annually.
            (4) A March 1, 2019, CNBC poll found that one-in-five 
        United States corporations say that China has stolen 
        proprietary intellectual property within the last year and one-
        in-three United States corporations state that China has stolen 
        their intellectual property within the last decade.
            (5) The Commission on the Theft of American Intellectual 
        Property further reports that China's industrial policies call 
        for the ``absorption, digestion, and re-innovation of foreign 
        intellectual property to meet the Made in China 2025 goal of 40 
        percent self-sufficiency by 2020 and 75 percent by 2025''.
            (6) The Chinese Government remains the world's principle 
        source of intellectual property theft.
            (7) China engages in foreign ownership restrictions that 
        include joint venture requirements and administrative reviews 
        that pressure United States companies to transfer intellectual 
        property and proprietary technology to Chinese companies.
            (8) China imposes harmful contractual obligations on United 
        States companies seeking to license their proprietary 
        technology to Chinese-based firms and is engaged in a 
        purposeful and unfair practice of acquiring United States 
        businesses to generate technology transfers.
            (9) The Chinese Government is engaged in cyberattacks 
        against United States businesses, military installations, and 
        government entities, including the United States Office of 
        Personnel Management, resulting in the theft of untold 
        proprietary information and commercial trade secrets.
            (10) China is undertaking the ``greatest intellectual 
        property theft in human history'' according to former Secretary 
        of Defense Mark Esper.
            (11) Congress must take bold action to combat the Chinese 
        Government's concerted efforts to perpetrate cyber-attacks 
        against United States entities and steal United States 
        intellectual property.
            (12) Denial orders are issued by the Assistant Secretary of 
        Commerce for Export Enforcement of the Bureau of Industry and 
        Security to deny the export privileges of an entity or 
        individual. A denial of export privileges prohibits the person 
        from participating in any way in any transaction subject to the 
        Export Administration Regulations (EAR). Furthermore, it is 
        unlawful for any other entity or individual to participate in 
        any way in an export transaction subject to the EAR with a 
        person subject to a denial order.
            (13) On April 16, 2018, former Secretary of Commerce Wilbur 
        Ross announced that the Bureau of Industry and Security of the 
        Department of Commerce had issued an order to deny the export 
        privileges of Zhongxing Telecommunications Equipment 
        Corporation of Shenzhen, China (``ZTE Corporation'') and ZTE 
        Kangxun Telecommunications Ltd. of Hi-New Shenzhen, China.

SEC. 2. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) denial orders are an important foreign policy tool to 
        use against foreign entities and individuals, especially 
        Chinese persons, with a pattern of violating United States 
        laws, especially laws relating to intellectual property; and
            (2) the Department of Commerce should vigorously utilize 
        denial orders to hold such persons accountable.

SEC. 3. STRATEGY.

    Not later than one year after the date of the enactment of this 
Act, the Secretary of Commerce, in consultation with the Secretary of 
State, the Secretary of Treasury, and Attorney General, shall submit to 
Congress a strategy regarding how denial orders issued by the Bureau of 
Industry and Security of the Department of Commerce to deny the export 
privileges of foreign entities and individuals, especially entities and 
individuals located in China, can be better utilized as part of a 
holistic approach to hold such entities and individuals accountable for 
theft of United States intellectual property.

SEC. 4. CODIFICATION OF DENIAL OF EXPORT PRIVILEGES AND RELATED 
              PROVISIONS UNDER TITLE 15, CODE OF FEDERAL REGULATIONS.

    The provisions of part 730 of title 15, Code of Federal 
Regulations, relating to general information, and section 766.25 of 
such title, relating to administrative action denying export 
privileges, are hereby enacted into law.
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