Protecting Americans from Corporate Human Rights Abusers Act
Bill: H.R.5286 | Sponsor: Rep. Perry, Scott (R-PA)
Policy area: International Affairs

Summary:
Protecting Americans from Corporate Human Rights Abusers Act
This bill prohibits transactions in the securities of certain Chinese entities.
The Department of State must report to Congress a list identifying entities incorporated in China that have a presence in U.S. capital markets and (1) are responsible for or complicit in gross violations of human rights in China; (2) pose an unusual or extraordinary threat to U.S. national security, foreign policy, or economic interests; or (3) pose an increased financial risk exposure to U.S.-based investors.
A U.S. entity or individual may not purchase or sell the publicly traded securities (or derivatives of such securities) of (1) the entities on the above list; or (2) certain entities that have been designated as Communist Chinese military companies or Chinese military-industrial complex companies.
The bill provides certain exceptions for transactions that are made solely for the purpose of divesting in such securities.
The bill prohibits judicial review of certain actions related to this bill, including a decision by the State Department to list a company as one that is responsible for gross human rights violations in China.

To establish a Chinese Corporate Human Rights Abusers List, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS; PURPOSE.

    (a) Short Title.--This Act may be cited as the ``Protecting 
Americans from Corporate Human Rights Abusers Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents; purpose.
          TITLE I--CHINESE CORPORATE HUMAN RIGHTS ABUSERS LIST

Sec. 101. Findings.
Sec. 102. Definitions; report on Chinese corporate human rights abusers 
                            with securities traded by United States 
                            persons.
Sec. 103. Chinese Corporate Human Rights Abusers List; sanctions.
   TITLE II--SANCTIONS AGAINST COMMUNIST CHINESE MILITARY COMPANIES, 
  CHINESE MILITARY COMPANIES, AND CHINESE MILITARY-INDUSTRIAL COMPLEX 
                               COMPANIES

Sec. 201. Definitions.
Sec. 202. Sanctions for communist Chinese military companies and 
                            Chinese military companies.
Sec. 203. Limitation on judicial review.
    (c) Purpose.--The purpose of this Act is to codify into law the 
provisions of Executive Order 14032 of June 3, 2021 (86 Fed. Reg. 
30145; relating to Addressing the Threat From Securities Investments 
That Finance Certain Companies of the People's Republic of China), as 
in effect on the date of the enactment of this Act.

          TITLE I--CHINESE CORPORATE HUMAN RIGHTS ABUSERS LIST

SEC. 101. FINDINGS.

    Congress finds the following:
            (1) In its 2020 report to Congress, the bipartisan United 
        States-China Economic and Security Review Commission issued the 
        following key findings:
                    (A) As Beijing strategically opens its financial 
                sector to secure foreign capital and global investment 
                indices shift asset allocations toward Chinese 
                securities, United States investors' exposure to the 
                unique and significant risks accumulated in China's 
                capital markets rises. These risks center around the 
                opacity of China's financial system and Beijing's 
                interference in market activity to advance its 
                political objectives.
                    (B) Increased financial exposure to China threatens 
                to undermine the efforts of the United States to defend 
                against China's unfair economic practices and protect 
                the policy interests of the United States. Several 
                Chinese companies included in global investment indices 
                are subject to United States export controls but not 
                investment restrictions. This mismatch enables 
                problematic Chinese companies to continue raising 
                United States capital and reduces the strength with 
                which the United States can defend against companies 
                that threaten national security.
                    (C) Beijing continues to deny United States audit 
                regulators full visibility into the financials of U.S.-
                listed Chinese companies in line with United States 
                accounting standards. These evasions from effective 
                regulation and oversight, together with United States-
                listed Chinese companies' complex ownership structures, 
                deprive United States investors of both full 
                transparency and the opportunity for legal redress in 
                cases of accounting fraud, eroding the integrity of 
                United States capital markets.
            (2) The Chinese Communist Party's commitment to their 
        Military-Civil Fusion development strategy, which supports the 
        modernization goals of the People's Liberation Army (PLA) by 
        ensuring its access to advanced technologies and expertise 
        acquired and developed by even those Chinese companies, 
        universities, and research programs that appear to be civilian 
        entities, remains a grave threat to the national security of 
        the United States.
            (3) The efforts of the Government of the United States to 
        stymie China's utilization of United States capital markets is 
        an ongoing, multi-agency, and decades-long effort. The 
        colloquially titled Section 1237 List of the Strom Thurmond 
        National Defense Authorization Act for Fiscal Year 1999, as 
        well as the Section 1260H List of the William M. (Mac) 
        Thornberry National Defense Authorization Act for Fiscal Year 
        2021, both highlight companies who pose a serious threat to the 
        national security of the United States.
            (4) On June 3, 2021, the Department of Defense released a 
        list of 47 entities identified as Chinese military companies 
        operating in the United States in accordance with section 1260H 
        of the William M. (``Mac'') Thornberry National Defense 
        Authorization Act for Fiscal Year 2021 (Public Law 116-283).
            (5) On January 14, 2021, the Department of Defense released 
        the names of additional ``Communist Chinese military 
        companies'' operating directly or indirectly in the United 
        States in accordance with the statutory requirement of section 
        1237 of the National Defense Authorization Act for Fiscal Year 
        1999. Those companies included: Advanced Micro-Fabrication 
        Equipment Inc. (AMEC), Luokung Technology Corp. (LKCO), Xiaomi 
        Corporation, Beijing Zhongguancun Development Investment 
        Center, GOWIN Semiconductor Corp, Grand China Air Co. Ltd. 
        (GCAC), Global Tone Communication Technology Co. Ltd. (GTCOM), 
        China National Aviation Holding Co. Ltd. (CNAH), and Commercial 
        Aircraft Corporation of China, Ltd. (COMAC).
            (6) On March 12, 2021, the United States District Court for 
        the District of Columbia issued an order in Xiaomi Corporation 
        v. Department of Defense (Case No. 1:21-cv-00280-RC) that 
        forestalled the Defense Department's designation of the Xiaomi 
        Corporation as a Communist Chinese military company. On May 6, 
        2021, the Nasdaq-listed Luokung Technology Corporation became 
        the second China-based company to avoid sanctions imposed under 
        Executive Order 13959. These companies have been able to avoid 
        sanctions because the Chinese Communist Party actively blocks 
        United States Government agencies from obtaining information 
        relevant to determining the ownership and control of China-
        based enterprises.
            (7) Several Chinese military or military related companies, 
        as well as surveillance and technology companies, including 
        Hikvision, a major manufacturer of video surveillance 
        equipment, materially contribute to either the ongoing genocide 
        in Xinjiang or to other gross violations of internationally 
        recognized human rights across the People's Republic of China 
        (PRC).
            (8) On January 19, 2021, then-Secretary of State Michael R. 
        Pompeo determined that the Chinese Communist Party (CCP) has 
        committed genocide against the predominantly Muslim Uyghurs and 
        other ethnic and religious minority groups in Xinjiang.
            (9) Then-Secretary Pompeo's designation cited the State 
        Department's exhaustive documentation of CCP human rights 
        abuses in Xinjiang, indicating that ``since at least March 
        2017, local authorities dramatically escalated their decades-
        long campaign of repression against Uyghur Muslims and members 
        of other ethnic and religious minority groups, including ethnic 
        Kazakhs and ethnic Kyrgyz''.
            (10) The genocide determination also cited the CCP's 
        regular dehumanization of the Uyghur people in Xinjiang, 
        including by labeling them as ``malignant tumors'', citing the 
        Islamic faith as a ``communicable plague'', and justifying the 
        grotesque treatment of the Uyghur people in stark, unsettling 
        terms: ``you can't uproot all the weeds hidden among the crops 
        in the field one-by-one; you need to spray chemicals to kill 
        them all''.
            (11) On April 21, 2021, the United States House Committee 
        on Foreign Affairs approved without objection H.R. 1155, which 
        affirmed that the PRC, since 2017, has arbitrarily detained as 
        many as 1.8 million Uyghurs, Kazakhs, Kyrgyz, and members of 
        other Muslim minority groups in a system of extrajudicial mass 
        internment camps, in addition to arbitrarily detaining many in 
        formal prisons and detention centers, and has subjected 
        detainees to forced labor, torture, political indoctrination, 
        and other severe human rights abuses.
            (12) The State Department's January 2021 genocide 
        designation further cited the forced sterilization of Uyghur 
        and other minority women, with the purpose of eliminating the 
        minority population in Xinjiang.
            (13) Media reporting has documented widespread and systemic 
        efforts by PRC authorities to force Uyghur women to take 
        contraceptives or to subject them to sterilization or abortion, 
        threatening to detain those who do not comply.
            (14) In many detention facilities and labor camps across 
        the PRC, Falun Gong prisoners of conscience have at times 
        comprised the majority of the population, and have been said to 
        receive the longest sentences and the worst treatment, 
        including torture.
            (15) The persecution and killing of religious and political 
        prisoners for any purpose, including for the purpose of selling 
        their organs for transplant, is an egregious and intolerable 
        violation of the fundamental right to life.
            (16) On November 18, 2020, the United States House of 
        Representatives approved without objection H. Res. 697, which 
        ``affirms the cultural and religious significance of the goal 
        of genuine autonomy for the people of Tibet and the deep bond 
        between the American and Tibetan people''.
            (17) The Foreign Relations Authorization Act, Fiscal Years 
        1992 and 1993 established, with respect to Tibet, the following 
        sense of Congress: ``It is the policy of the United States to 
        oppose aggression and other illegal uses of force by one 
        country against the sovereignty of another as a manner of 
        acquiring territory, and to condemn violations of international 
        law, including the illegal occupation of one country by 
        another.''.
            (18) Protecting United States capital markets against PRC-
        based companies that support the PLA's modernization efforts or 
        else aid and abet grotesque and barbaric violations of 
        internationally recognized human rights is a national security 
        imperative.
            (19) As argued by the Uyghur Human Rights Project: ``[It 
        is] still legal for shareholders to make profits from ownership 
        of these complicit Chinese companies, some of which are 
        publicly traded, including through `emerging markets' indexes. 
        It is time for much more serious action: no U.S. persons should 
        be permitted to hold the stocks and bonds of the Chinese 
        companies that are under U.S. human rights sanctions.''.

SEC. 102. DEFINITIONS; REPORT ON CHINESE CORPORATE HUMAN RIGHTS ABUSERS 
              WITH SECURITIES TRADED BY UNITED STATES PERSONS.

    (a) Definitions.--In this title:
            (1) Affiliate.--The term ``affiliate''--
                    (A) has the meaning given such term in section 
                230.405 of title 17, Code of Federal Regulations (as in 
                effect on the date of the enactment of this Act);
                    (B) means a person that is closely associated with 
                another person typically in a dependent or subordinate 
                position; or
                    (C) means a person that has a common purpose or 
                shared characteristics with another person.
            (2) Appropriate committees of congress.--The term 
        ``appropriate committees of Congress'' means--
                    (A) the Committee on Foreign Relations, the Select 
                Committee on Intelligence, the Committee on Banking, 
                Housing, and Urban Affairs, and the Committee on Armed 
                Services of the Senate; and
                    (B) the Committee on Foreign Affairs, the Permanent 
                Select Committee on Intelligence, the Committee on 
                Financial Services, and the Committee on Armed Services 
                of the House of Representatives.
            (3) Covered entity.--The term ``covered entity''--
                    (A) means an entity identified in the report 
                required by subsection (b); and
                    (B) includes any affiliate of such entity.
            (4) Entity.--The term ``entity'' means a government or 
        instrumentality of such government, partnership, association, 
        trust, joint venture, corporation, group, subgroup, or other 
        organization.
            (5) Person.--The term ``person'' means an individual or 
        entity.
            (6) PRC.--The term ``PRC'' means the People's Republic of 
        China.
            (7) Publicly traded securities.--The term ``publicly traded 
        securities'' includes any security (as defined in section 3(a) 
        of the Securities Exchange Act of 1934 (15 U.S.C. 78)), 
        denominated in any currency that trades on a securities 
        exchange or through the method of trading that is commonly 
        referred to as ``over-the-counter'', in any jurisdiction.
            (8) Transaction.--The term ``transaction'' means the 
        purchase for value, or sale, of any publicly traded security.
            (9) United states person.--The term ``United States 
        person'' means--
                    (A) any United States citizen, permanent resident 
                alien, or entity (including foreign branches) organized 
                under the laws of the United States or any jurisdiction 
                within the United States; or
                    (B) any person in the United States.
    (b) Report.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, and annually thereafter for 5 years, 
        the Secretary of State, in consultation with the Director of 
        National Intelligence and the Secretary of the Treasury, shall 
        submit to the appropriate committees of Congress a report that 
        describes the risks posed to the United States by the presence 
        in United States capital markets of entities incorporated in 
        the PRC, or entities owned, controlled, or are entitled to a 
        share of the profits of entities incorporated in the PRC.
            (2) Matters to be included.--The report required by 
        paragraph (1) shall--
                    (A) identify entities described in paragraph (1)--
                            (i) whose shares are publicly traded by 
                        United States persons;
                            (ii) based on the factors for consideration 
                        described in paragraph (3), have knowingly and 
                        materially contributed to--
                                    (I) activities that both undermine 
                                and pose an unusual and extraordinary 
                                threat to the national security, 
                                foreign policy, or economy of the 
                                United States;
                                    (II) serious abuses of 
                                internationally recognized human 
                                rights; or
                                    (III) a substantially increased 
                                financial risk exposure for United 
                                States-based investors;
                    (B) describe the activities of entities identified 
                pursuant to subparagraph (A) and the implications of 
                such activities for the United States;
                    (C) develop policy recommendations for the United 
                States Government, State governments, United States 
                financial institutions, United States equity and debt 
                exchanges, and other relevant stakeholders to address 
                the risks posed by the presence in United States 
                capital markets of entities identified pursuant to 
                subparagraph (A); and
                    (D) identify entities described in paragraph (1) 
                that are included on the entity list.
            (3) Factors for consideration.--The factors for 
        consideration described in this paragraph, with respect to an 
        entity, are whether or the extent to which the entity--
                    (A) has materially contributed to the development 
                or manufacture, or sold or facilitated procurement by 
                the People's Liberation Army (PLA), of military 
                equipment or component parts of such equipment;
                    (B) has contributed to the construction and 
                militarization of features in the South China Sea;
                    (C) has been sanctioned by the United States or has 
                been determined to have conducted business with 
                sanctioned entities;
                    (D) has engaged in an act or a series of acts of 
                intellectual property theft;
                    (E) has engaged in corporate or economic espionage;
                    (F) has contributed to the proliferation of nuclear 
                or missile technology in violation of United Nations 
                Security Council resolutions or United States 
                sanctions;
                    (G) has contributed to the repression of distinct 
                religious and ethnic groups, including in the Uyghur or 
                Tibet Autonomous Regions;
                    (H) has contributed to the repression of pro-
                democracy activists, journalists, and publishers in 
                Hong Kong and throughout the PRC;
                    (I) has contributed to the development of 
                technologies that enable censorship directed or 
                directly supported by the PRC government;
                    (J) has failed to comply fully with--
                            (i) the securities laws (as defined in 
                        section 3(a) of the Securities Exchange Act of 
                        1934 (15 U.S.C. 78c));
                            (ii) a required audit by the Public Company 
                        Accounting Oversight Board; or
                            (iii) a material risk disclosure 
                        requirement of the Securities and Exchange 
                        Commission; or
                    (K) has contributed to other activities or behavior 
                determined to be relevant by the President.
            (4) Form.--The report required by paragraph (1) shall be 
        submitted in unclassified form, but may include a classified 
        annex.
            (5) Publication.--The unclassified portion of the report 
        required by paragraph (1) shall be made accessible to the 
        public online through publication on a relevant United States 
        Government website and in the Federal Register.
            (6) Entity list defined.--
                    (A) In general.--In paragraph (2)(D), the term 
                ``entity list'' means the list maintained and set forth 
                in Supplement No. 4 to part 744 of the Export 
                Administration Regulations.
                    (B) Export administration regulations defined.--In 
                subparagraph (A), the term ``Export Administration 
                Regulations'' means the regulations set forth in 
                subchapter C of chapter VII of title 15, Code of 
                Federal Regulations, or successor regulations.

SEC. 103. CHINESE CORPORATE HUMAN RIGHTS ABUSERS LIST; SANCTIONS.

    (a) Chinese Corporate Human Rights Abusers List.--
            (1) In general.--The Secretary of State, acting through the 
        Under Secretary of State for Civilian Security, Democracy, and 
        Human Rights and the head of the Office of the Under Secretary 
        of State for Arms Control and International Security, shall, 
        based on the most recent information available, identify each 
        covered entity that--
                    (A) is engaged in, complicit in, or otherwise 
                responsible for, directly or indirectly, gross 
                violations of internationally recognized human rights 
                or serious human rights abuses in the PRC; or
                    (B) undermines or poses an unusual and 
                extraordinary threat to the national security, foreign 
                policy, or economy of the United States, or otherwise 
                presents an increased financial risk exposure for 
                United States-based investors.
            (2) List.--Not later than 180 days after the date of the 
        enactment of this Act, and annually thereafter until December 
        31, 2030, the Secretary of State shall submit to appropriate 
        committees of Congress a list, to be known as the ``Chinese 
        Corporate Human Rights Abusers List'', that--
                    (A) includes each covered entity identified 
                pursuant to paragraph (1); and
                    (B) includes, as applicable, an explanation as to 
                why a covered entity that was previously identified 
                pursuant to paragraph (1) is no longer so identified.
            (3) Form.--The list required by paragraph (2) shall be 
        submitted in unclassified form, but may include a classified 
        annex.
            (4) Publication.--The unclassified portion of the list 
        required by paragraph (2) shall be made accessible to the 
        public online through publication on a relevant United States 
        Government website and in the Federal Register.
            (5) Transmission to other federal officials.--The Secretary 
        of State shall, concurrently with the submission of the list 
        required by paragraph (2), transmit a copy of such list to the 
        Secretary of the Treasury, and the Director of National 
        Intelligence. The Secretary of State shall also transmit a copy 
        of such list to the Director of the Office of Foreign Assets 
        Control of the Department of the Treasury for immediate 
        implementation of the sanctions described in subsection (b) 
        against those covered entities included on such list.
            (6) Revisions to list.--The Secretary of State shall make 
        additions or deletions to the most recent list required by 
        paragraph (2) on an ongoing basis based on the latest 
        information available.
            (7) Consultation.--The Secretary may consult with the head 
        of any appropriate Federal department or agency in making the 
        determinations described in paragraph (1) and shall transmit a 
        copy of the list required by paragraph (2) to the head of any 
        such Federal department or agency for purposes of such 
        consultation.
    (b) Sanctions.--
            (1) In general.--The purchase or sale by a United States 
        person of any publicly traded securities, or any publicly 
        traded securities that are derivative of such securities or are 
        designed to provide investment exposure to such securities, of 
        any covered entity designated by the Secretary of State for 
        placement on the Chinese Corporate Human Rights Abusers List is 
        prohibited.
            (2) Effective date.--The prohibitions in paragraph (1) 
        shall take effect:
                    (A) Beginning at 12:01 a.m. eastern daylight time 
                on August 2, 2021, with respect to any covered entity 
                included on the list required by subsection (a)(2) on 
                such date.
                    (B) Beginning at 12:01 a.m. eastern daylight time 
                on the date that is 60 days after the date of the 
                determination in subsection (a) with respect to any 
                covered entity subsequently included on the list 
                required by subsection (a)(2).
            (3) Divestment.--The purchase or sale of publicly traded 
        securities described in paragraph (1) made solely to effect the 
        divestment, in whole or in part, of such securities by a United 
        States person is permitted prior to:
                    (A) 12:01 a.m. eastern daylight time on June 3, 
                2022, with respect to any covered entity included on 
                the list required by subsection (a)(2) on such date.
                    (B) 12:01 a.m. eastern daylight time on the date 
                that is 365 days after the date of the determination in 
                subsection (a) with respect to any covered entity 
                subsequently included on the list required by 
                subsection (a)(2).
            (4) Rule of application.--This subsection shall apply 
        except to the extent provided by statutes, or in regulations, 
        orders, directives, or licenses that may be issued pursuant to 
        this Act, and notwithstanding any contract entered into or any 
        license or permit granted before the date of this Act.
            (5) Evasion of sanctions.--
                    (A) In general.--The following actions are 
                prohibited:
                            (i) Any transactions by a United States 
                        person or within the United States that evades 
                        or avoids, has the purpose of evading or 
                        avoiding, causes a violation of, or attempts to 
                        violate the prohibitions set forth in this Act.
                            (ii) Any conspiracy formed to violate any 
                        of the prohibitions set forth in this Act.
                    (B) Penalties.--The authorization provided in 
                paragraph (6) may be used to apply penalties provided 
                for in subsections (b) and (c) of section 206 of the 
                International Emergency Economic Powers Act (50 U.S.C. 
                1705) with respect to a person that knowingly violates, 
                attempts to violate, conspires to violate, or causes a 
                violation of regulations promulgated under paragraph 
                (6) to the same extent that such penalties apply to a 
                person that knowingly commits an unlawful act described 
                in section 206(a) of that Act.
            (6) Authorization.--
                    (A) In general.--The Secretary of the Treasury, 
                after consultation with the Secretary of State, the 
                Secretary of Defense, the Director of National 
                Intelligence, and the heads of other executive 
                departments and agencies as deemed appropriate by the 
                Secretary of the Treasury, is hereby authorized to take 
                such actions, including the promulgation of rules and 
                regulations, and to employ all powers granted to the 
                President by the International Emergency Economic 
                Powers Act, to carry out the purposes of this title. 
                The Secretary of the Treasury may, consistent with 
                applicable law, redelegate any of these functions 
                within the Department of the Treasury. All departments 
                and agencies shall take all appropriate measures within 
                their authority to carry out the provisions of this 
                Act.
                    (B) Rules and regulations.--Rules and regulations 
                issued pursuant to this Act may, among other things, 
                establish procedures to license transactions otherwise 
                prohibited pursuant to this Act. But prior to issuing 
                any license under this Act, the Secretary of the 
                Treasury shall consult with the Secretary of State, the 
                Secretary of Defense, and the Director of National 
                Intelligence.

   TITLE II--SANCTIONS AGAINST COMMUNIST CHINESE MILITARY COMPANIES, 
  CHINESE MILITARY COMPANIES, AND CHINESE MILITARY-INDUSTRIAL COMPLEX 
                               COMPANIES

SEC. 201. DEFINITIONS.

    In this title:
            (1) Affiliate.--The term ``affiliate''--
                    (A) has the meaning given such term in section 
                230.405 of title 17, Code of Federal Regulations (as in 
                effect on the date of the enactment of this Act);
                    (B) means a person that is closely associated with 
                another person typically in a dependent or subordinate 
                position; or
                    (C) means a person that has a common purpose or 
                shared characteristics with another person.
            (2) Communist chinese military company.--The term 
        ``Communist Chinese military company''--
                    (A) has the meaning given such term in section 1237 
                of the Strom Thurmond National Defense Authorization 
                Act for Fiscal Year 1999 (Public Law 105-261; 50 U.S.C. 
                1701 note); and
                    (B) includes any affiliate of such company.
            (3) Chinese military company; military-civil fusion 
        contributor.--The terms ``Chinese military company'' and 
        ``military-civil fusion contributor''--
                    (A) have the meanings given such terms in section 
                1260H of the William M. (Mac) Thornberry National 
                Defense Authorization Act for Fiscal Year 2021 (Public 
                Law 116-283); and
                    (B) include any affiliate of such company or 
                contributor.
            (4) Section 102 terms.--The terms ``person'', ``publicly 
        traded security'', and ``United States person'' have the 
        meanings given such terms, respectively, in section 102.
            (5) Section 1237 list.--The term ``Section 1237 List'' 
        means the list required by section 1237 of the Strom Thurmond 
        National Defense Authorization Act for Fiscal Year 1999.
            (6) Section 1260h list.--The term ``Section 1260H List'' 
        means the list required by section 1260H of the William M. 
        (Mac) Thornberry National Defense Authorization Act for Fiscal 
        Year 2021.

SEC. 202. SANCTIONS FOR COMMUNIST CHINESE MILITARY COMPANIES AND 
              CHINESE MILITARY COMPANIES.

    (a) Authorization.--The Secretary of Defense is authorized to 
include a covered entity on the Section 1237 List or the Section 1260H 
List.
    (b) Prohibitions.--
            (1) In general.--
                    (A) Purchase or sale of certain securities 
                prohibited.--The purchase or sale by a United States 
                person of any publicly traded securities, or any 
                publicly traded securities that are derivative of such 
                securities or are designed to provide investment 
                exposure to such securities, of any person described in 
                subparagraph (B) is prohibited.
                    (B) Persons described.--A person described in this 
                subparagraph is--
                            (i) a company designated by the Office of 
                        Foreign Assets Control on the Non-SDN Chinese 
                        Military-Industrial Complex Companies List, 
                        including any affiliate of such company;
                            (ii) a Communist Chinese military company 
                        listed on the Section 1237 List;
                            (iii) any person that was designated as a 
                        Communist Chinese military company on June 2, 
                        2021, in accordance with section 1237(b) of the 
                        Strom Thurmond National Defense Authorization 
                        Act for Fiscal Year 1999 (50 U.S.C. 1701 note); 
                        or
                            (iv) a Chinese military company or a 
                        military-civil fusion contributor listed on the 
                        Section 1260H List.
            (2) Effective date.--The prohibitions in paragraph (1) 
        shall take effect:
                    (A) Beginning at 12:01 a.m. eastern daylight time 
                on August 2, 2021, with respect to a person designated 
                or listed on a List described in paragraph (1)(B) on 
                such date.
                    (B) With respect to a person not described in 
                subparagraph (A), beginning at 12:01 a.m. eastern 
                daylight time on the date that is 60 days after a 
                person is designated or listed on a List described in 
                paragraph (1)(B).
            (3) Divestment.--The purchase or sale of publicly traded 
        securities described in subsection (b)(1) made solely to effect 
        the divestment, in whole or in part, of such securities by a 
        United States person is permitted prior to:
                    (A) 12:01 a.m. eastern daylight time on June 3, 
                2022, with respect to any person described in paragraph 
                (2)(A).
                    (B) 12:01 a.m. eastern daylight time on the date 
                that is 365 days after the date a person is designated 
                or listed on a List described in paragraph (1)(B).
            (4) Rule of application.--This subsection shall apply 
        except to the extent provided by statutes, or in regulations, 
        orders, directives, or licenses that may be issued pursuant to 
        this Act, and notwithstanding any contract entered into or any 
        license or permit granted before the date of this Act.
            (5) Evasion of prohibitions.--
                    (A) In general.--The following actions are 
                prohibited:
                            (i) Any transactions by a United States 
                        person or within the United States that evades 
                        or avoids, has the purpose of evading or 
                        avoiding, causes a violation of, or attempts to 
                        violate the prohibitions set forth in this Act.
                            (ii) Any conspiracy formed to violate any 
                        of the prohibitions set forth in this Act.
                    (B) Penalties.--The authorization provided in 
                subsection (e) may be used to apply penalties provided 
                for in subsections (b) and (c) of section 206 of the 
                International Emergency Economic Powers Act (50 U.S.C. 
                1705) with respect to a person that knowingly violates, 
                attempts to violate, conspires to violate, or causes a 
                violation of regulations promulgated under subsection 
                (e) to the same extent that such penalties apply to a 
                person that knowingly commits an unlawful act described 
                in section 206(a) of that Act.
    (c) Revisions to Lists.--The Secretary of Defense is authorized to 
make additions or deletions to the Section 1237 List and the Section 
1260H List on an ongoing basis based on the latest information 
available.
    (d) Transmission to Other Federal Officials.--The Secretary of 
Defense shall, concurrently with the publication of the Section 1237 
List and the Section 1260H List, transmit a copy of such lists to the 
Secretary of State, the Secretary of the Treasury, and the Director of 
National Intelligence. The Secretary of Defense shall also transmit a 
copy of lists to the Director of the Office of Foreign Assets Control 
of the Department of the Treasury for immediate implementation of the 
prohibitions described in subsection (b) against those covered entities 
included on such lists.
    (e) Authorization.--
            (1) In general.--The Secretary of the Treasury, after 
        consultation with the Secretary of State, the Secretary of 
        Defense, the Director of National Intelligence, and the heads 
        of other executive departments and agencies as deemed 
        appropriate by the Secretary of the Treasury, is hereby 
        authorized to take such actions, including the promulgation of 
        rules and regulations, and to employ all powers granted to the 
        President by the International Emergency Economic Powers Act, 
        to carry out the purposes of this section. The Secretary of the 
        Treasury may, consistent with applicable law, redelegate any of 
        these functions within the Department of the Treasury. All 
        departments and agencies shall take all appropriate measures 
        within their authority to carry out the provisions of this 
        section.
            (2) Rules and regulations.--Rules and regulations issued 
        pursuant to this section may, among other things, establish 
        procedures to license transactions otherwise prohibited 
        pursuant to this section. But prior to issuing any license 
        under this section, the Secretary of the Treasury shall consult 
        with the Secretary of State, the Secretary of Defense, and the 
        Director of National Intelligence.

SEC. 203. LIMITATION ON JUDICIAL REVIEW.

    (a) Decision by Secretary of State.--The decision of the Secretary 
of State as to any question regarding the inclusion of a covered entity 
on the list required by section 103(a) shall be final and conclusive 
and may not be reviewed by any other official or by any court, whether 
by action in the nature of mandamus or otherwise.
    (b) Decision by Secretary of Defense.--The decision of the 
Secretary of Defense as to any question regarding the inclusion of a 
Communist Chinese military company, a Chinese military company, or a 
military-civil fusion contributor on either the lists described in 
section 1237 of the Strom Thurmond National Defense Authorization Act 
for Fiscal Year 1999 (Public Law 105-261; 50 U.S.C. 1701 note) or in 
section 1260H of the William M. (Mac) Thornberry National Defense 
Authorization Act for Fiscal Year 2021 (Public Law 116-283) may not be 
reviewed by any official or by any court, whether by action in the 
nature of mandamus or otherwise.
    (c) Decision by Secretary of the Treasury.--The decision of the 
Secretary of Treasury, after consultation with the Secretary of State 
and the Secretary of Defense, as to any question regarding the 
inclusion of an entity on the Office of Foreign Assets Control's Non-
SDN Chinese Military-Industrial Complex Companies List shall be final 
and conclusive and may not be reviewed by any other official or by any 
court, whether by action in the nature of mandamus or otherwise.
    (d) Rules and Regulations Promulgated by the Secretary of the 
Treasury.--The rules and regulations promulgated by the Secretary of 
the Treasury under sections 103(b)(6) and 202(e) shall be final and not 
subject to any further agency review or to judicial review by any court 
(including under chapter 7 of title 5, United States Code).
                                 <all>