Defending Memory Chip Supply Chains from the Chinese Communist Party Act
Bill: H.R.9051 | Sponsor: Rep. Gallagher, Mike (R-WI)
Policy area: International Affairs

Summary:
Defending Memory Chip Supply Chains from the Chinese Communist Party Act
This bill requires the President to impose sanctions on entities that produce flash memory integrated circuits of at least 128 layers and that have financial links to countries of concern. The bill also requires sanctions on the Yangtze Memory Technologies Corporation.

To impose sanctions on certain foreign flash memory integrated circuit 
      companies that threaten the interests of the United States.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Defending Memory Chip Supply Chains 
from the Chinese Communist Party Act''.

SEC. 2. IMPOSITION OF SANCTIONS ON CERTAIN FOREIGN ENTITIES.

    (a) In General.--
            (1) Asset blocking.--On and after the date that is 30 days 
        after the date of the enactment of this Act, the President 
        shall exercise all the powers granted to the President under 
        the International Emergency Economic Powers Act (50 U.S.C. 1701 
        et seq.) to the extent necessary to block and prohibit all 
        significant transactions in property and interests in property 
        of an entity described in subsection (b), if such property and 
        interests in are in the United States, come within the United 
        States, or are or come within the possession or control of a 
        United States person.
            (2) Determination of significance.--For the purposes of 
        this subsection, in determining if transactions are 
        significant, the President may consider the totality of the 
        facts and circumstances, including the factors set forth in 
        section 561.404 of title 31, Code of Federal Regulations (or 
        any corresponding similar regulation or ruling).
            (3) Rule of construction.--For purposes of this section, 
        participation in an international standards-setting 
        organization or in the activities of such an organization may 
        not be construed to be transactions.
    (b) Entities Affiliated With a Country of Concern Described.--An 
entity is described in this subsection if the entity is--
            (1) Yangtze Memory Technologies Corporation (YMTC), any of 
        its subsidiaries, or any company in which YMTC or its 
        subsidiaries own at least 5 percent; or
            (2) an entity--
                    (A) that is engaged in the production of flash 
                memory integrated circuits of at least 128 layers; and
                    (B)(i) that receives or has received subsidies or 
                investments from any national, provincial, county, 
                municipal, or other government, quasi-government, or 
                party body of a country of concern, including the 
                Chinese Communist Party;
                    (ii) that has links to the sale, transfer, or 
                research and development of technology for the Armed 
                Forces of a country of concern, including the People's 
                Liberation Army;
                    (iii) that is directly or indirectly owned or 
                controlled by the government or ruling party of a 
                country of concern or by another entity described in 
                this subsection;
                    (iv) five percent or more of the outstanding voting 
                stock or shares of which are owned, controlled, or held 
                by the government or ruling party of a country of 
                concern or by another entity described in this 
                subsection;
                    (v) that is subject to substantial influence from 
                either a country of concern or another entity described 
                in this subsection;
                    (vi) that is domiciled in a country of concern and 
                shares with another entity described in this subsection 
                an employee in a position of material decisionmaking 
                authority;
                    (vii) that is part of another entity that is 
                headquartered in a country of concern, including a 
                subsidiary, a holding company, a contract affiliate, or 
                a variable interest entity; or
                    (viii) that is otherwise substantially influenced 
                by a national of a country of concern or by another 
                entity domiciled in the country of concern.
    (c) Exceptions.--
            (1) Intelligence activities.--Sanctions under this section 
        shall not apply to any activity subject to the reporting 
        requirements under title V of the National Security Act of 1947 
        (50 U.S.C. 3091 et seq.) or any authorized intelligence 
        activities of the United States.
            (2) Exception relating to importation of goods.--
                    (A) In general.--The authorities and requirements 
                to impose sanctions authorized under this section shall 
                not include the authority or requirement to impose 
                sanctions on the importation of goods.
                    (B) Good defined.--In this paragraph, the term 
                ``good'' means any article, natural or manmade 
                substance, material, supply or manufactured product, 
                including inspection and test equipment, and excluding 
                technical data.
    (d) Waiver.--The President may waive the application of sanctions 
under this section with respect to a foreign person for renewable 
periods of not more than 30 days each if the President determines and 
reports to Congress that such a waiver is vital to the national 
security interests of the United States.
    (e) Implementation; Penalties.--
            (1) Implementation.--The President shall exercise the 
        authorities provided to the President under sections 203 and 
        205 of the International Emergency Economic Powers Act (50 
        U.S.C. 1702 and 1704) to the extent necessary to carry out this 
        section.
            (2) Penalties.--A person that violates, attempts to 
        violate, conspires to violate, or causes a violation of 
        subsection (a) or any regulation, license, or order issued to 
        carry out that subsection shall be subject to the penalties set 
        forth in subsections (b) and (c) of section 206 of the 
        International Emergency Economic Powers Act (50 U.S.C. 1705) to 
        the same extent as a person that commits an unlawful act 
        described in subsection (a) of that section.
    (f) Definitions.--
            (1) In general.--In this section:
                    (A) Country of concern.--The term ``country of 
                concern''--
                            (i) has the meaning given the term 
                        ``foreign adversary'' in section 8(c)(2) of the 
                        Secure and Trusted Communications Networks Act 
                        of 2019 (47 U.S.C. 1607(c)(2)); and
                            (ii) includes the People's Republic of 
                        China, Russia, Iran, North Korea, Cuba, and 
                        Venezuela.
                    (B) United states person.--The term ``United States 
                person'' means--
                            (i) a United States citizen or an alien 
                        lawfully admitted for permanent residence to 
                        the United States; or
                            (ii) an entity organized under the laws of 
                        the United States or any jurisdiction within 
                        the United States, including a foreign branch 
                        of such an entity.
    (g) Severability.--If any provision of this Act or its application 
to any person or circumstance is held invalid, the invalidity does not 
affect other provisions or applications of this Act that can be given 
effect without the invalid provision or application, and to this end 
the provisions of this Act are severable.
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