To amend the Better Utilization of Investments Leading to Development Act of 2018 to establish restrictions relating to the People's Republic of China with respect to the provision of support under title II of that Act.
Bill: H.R.5614 | Sponsor: Rep. Cloud, Michael (R-TX)
Policy area: International Affairs

Summary:
This bill prohibits the U.S. International Development Finance Corporation from engaging in certain activities involving a covered Chinese entity (i.e., an entity subject to the jurisdiction or control of China's government).
Specifically, the corporation may not accept funds (or goods or services) provided by China's government or a covered Chinese entity. Also, the corporation may not provide support to any individual who advises, is on the board of, or has influence with a covered Chinese entity or specified entities, including the Chinese Development Bank.
An entity receiving support from the corporation must certify that it will abide by these restrictions.

To amend the Better Utilization of Investments Leading to Development 
Act of 2018 to establish restrictions relating to the People's Republic 
  of China with respect to the provision of support under title II of 
                               that Act.

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

SECTION 1. RESTRICTIONS RELATING TO THE PEOPLE'S REPUBLIC OF CHINA WITH 
              RESPECT TO THE PROVISION OF SUPPORT UNDER TITLE II OF THE 
              BETTER UTILIZATION OF INVESTMENTS LEADING TO DEVELOPMENT 
              ACT OF 2018.

    (a) Purpose.--The purpose of this section and the amendments made 
by this section is to prevent the People's Republic of China from being 
involved in financing or carrying out projects that would directly or 
indirectly benefit the People's Republic of China.
    (b) In General.--Title V of the Better Utilization of Investments 
Leading to Development Act of 2018 (22 U.S.C. 9671 et seq.) is 
amended--
            (1) by redesignating section 1454 as section 1455; and
            (2) by inserting after section 1453 the following:

``SEC. 1454. RESTRICTIONS RELATING TO THE PEOPLE'S REPUBLIC OF CHINA 
              WITH RESPECT TO THE PROVISION OF SUPPORT UNDER TITLE II.

    ``(a) In General.--In providing support under title II, the 
Corporation may not--
            ``(1) accept or use funds or goods or services that are 
        provided directly or indirectly by the Government of the 
        People's Republic of China or any covered Chinese entity; or
            ``(2) provide support to any individual who advises, sits 
        on the board of directors of, or has influence in decisions of, 
        a covered Chinese entity or the Chinese Development Bank, the 
        China ExIM Bank, Sinosure, China's State Administration of 
        Foreign Exchange (SAFE), or the China Investment Corporation 
        (CIC).
    ``(b) Certification.--
            ``(1) In general.--The Corporation shall require each 
        entity receiving funds for projects supported by the 
        Corporation under title II to certify, in good faith and in 
        writing, that--
                    ``(A) it will not use such funds in violation of 
                the restrictions described in subsection (a); and
                    ``(B) it will return any such funds to the 
                Corporation if the Corporation determines that the 
                entity is in violation of any such restrictions.
            ``(2) Penalties.--If the Corporation determines that a 
        certification of an entity required by paragraph (1) is 
        inaccurate, the entity shall be prohibited from receiving any 
        additional funds for projects supported by the Corporation 
        under title II for a period of not less than 12 months, or 
        until such time as the entity provides assurances to the 
        Corporation in writing that it will not submit a certification 
        that is inaccurate in the future, whichever occurs earlier. If 
        the Corporation determines that any subsequent certification of 
        an entity required by paragraph (1) is inaccurate, the entity 
        shall be prohibited from receiving any additional funds for 
        projects supported by the Corporation under title II for a 
        period of not less than 24 months.
            ``(3) Policies and procedures.--The Corporation, in 
        consultation with the appropriate congressional committees, 
        shall--
                    ``(A) develop policies and procedures to implement 
                the requirements of this subsection; and
                    ``(B) publish such policies and procedures on the 
                Corporation's website.
    ``(c) Consideration.--The Corporation and each entity receiving 
funds for projects supported by the Corporation under title II shall, 
for purposes of meeting the requirements of this section, take into 
account the nature and extent to which the Government of the People's 
Republic of China controls or otherwise influences covered Chinese 
entities.
    ``(d) Definitions.--In this subsection:
            ``(1) Covered chinese entity.--The term `covered Chinese 
        entity' means--
                    ``(A) an entity that is organized under the laws of 
                the People's Republic of China or otherwise subject to 
                the jurisdiction of the Government of the People's 
                Republic of China;
                    ``(B) an entity that is controlled by or affiliated 
                with another entity that is subject to the jurisdiction 
                of the Government of the People's Republic of China or 
                a national of the People's Republic of China, including 
                an entity in which such other entity or national 
                determines, directs, or decides for the entity 
                important matters with respect to the business 
                operations of the entity; or
                    ``(C) any other entity of the People's Republic of 
                China that the Corporation determines to be 
                appropriate.
            ``(2) Funds.--The term `funds' includes financial support, 
        technical support, or other support.''.
    (c) Clerical Amendment.--The table of contents for the FAA 
Reauthorization Act of 2018 (49 U.S.C. 40101 note) is amended by 
striking the item relating to section 1454 and inserting the following:

``Sec. 1454. Restrictions relating to the People's Republic of China 
                            with respect to the provision of support 
                            under title II.
``Sec. 1455. Applicability of certain provisions of law.''.
    (d) Effective Date.--The amendments made by this section--
            (1) take effect on the date of the enactment of this Act; 
        and
            (2) apply with respect to support under title II of the 
        Better Utilization of Investments Leading to Development Act of 
        2018 provided on or after such date of enactment.
                                 <all>