Title: China Technology Transfer Control Act of 2019
Policy area: Foreign Trade and International Finance

Summary:
China Technology Transfer Control Act of 2019
This bill controls exports of certain national interest technology and intellectual property to China.
Specifically, covered technology or intellectual property includes items that (1) would contribute significantly to the Chinese military to the detriment of U.S. national security, (2) are necessary to protect the U.S. economy from the drain of scarce materials by demand from China, (3) are included in a designated list of product components compiled by the U.S. Trade Representative (USTR), or (4) are used by China to violate human rights or religious liberties.
The bill requires the President to control exports to China of any covered technology or intellectual property. Additionally, the President must sanction (1) any foreign person who sells to, or purchases from, China any covered item; and (2) any Chinese person who knowingly uses a covered item provided to them in violation of U.S. export control law.
In addition to a specified list of industries subject to the bill, the USTR must identify products manufactured or produced in, or exported from, China that either receive certain support from China or are used by China to violate human rights or religious liberties.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1459 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 1459

  To control the export to the People's Republic of China of certain 
technology and intellectual property important to the national interest 
             of the United States, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 14, 2019

  Mr. Hawley introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To control the export to the People's Republic of China of certain 
technology and intellectual property important to the national interest 
             of the United States, 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.

    This Act may be cited as the ``China Technology Transfer Control 
Act of 2019''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Chinese person.--The term ``Chinese person'' means--
                    (A) an individual who is a citizen or national of 
                the People's Republic of China; or
                    (B) an entity 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.
            (2) Covered national interest technology or intellectual 
        property.--The term ``covered national interest technology or 
        intellectual property'' includes the following:
                    (A) Technology or intellectual property that would 
                make a significant contribution to the military 
                potential of the People's Republic of China that would 
                prove detrimental to the national security of the 
                United States.
                    (B) Technology or intellectual property necessary 
                to protect the economy of the United States from the 
                excessive drain of scarce materials and to reduce the 
                serious inflationary impact of demand from the People's 
                Republic of China.
                    (C) Technology or intellectual property that is a 
                component of the production of products included in the 
                most recent list required under section 183 of the 
                Trade Act of 1974, as added by section 6(a), determined 
                in consultation with the United States Trade 
                Representative.
                    (D) Technology used by the Government of the 
                People's Republic of China to carry out violations of 
                human rights or religious liberties.
            (3) Foreign person.--The term ``foreign person'' means any 
        person that is not a United States person.
            (4) Knowingly.--The term ``knowingly'', with respect to 
        conduct, a circumstance, or a result, means that a person has 
        actual knowledge, or should have known, of the conduct, the 
        circumstance, or the result.
            (5) Intellectual property.--The term ``intellectual 
        property'' means--
                    (A) any work protected by a copyright under title 
                17, United States Code;
                    (B) any property protected by a patent granted by 
                the United States Patent and Trademark Office under 
                title 35, United States Code;
                    (C) any word, name, symbol, or device, or any 
                combination thereof, that is registered as a trademark 
                with the United States Patent and Trademark Office 
                under the Act entitled ``An Act to provide for the 
                registration and protection of trademarks used in 
                commerce, to carry out the provisions of certain 
                international conventions, and for other purposes'', 
                approved July 5, 1946 (commonly known as the ``Lanham 
                Act'' or the ``Trademark Act of 1946'') (15 U.S.C. 1051 
                et seq.);
                    (D) a trade secret (as defined in section 1839 of 
                title 18, United States Code); or
                    (E) any other form of intellectual property.
            (6) Technology.--The term ``technology'' includes goods or 
        services relating to information systems, Internet-based 
        services, production-enhancing logistics, robotics, artificial 
        intelligence, biotechnology, or computing.
            (7) United states person.--The term ``United States 
        person'' means--
                    (A) a United States citizen or an alien lawfully 
                admitted for permanent residence to the United States; 
                or
                    (B) an entity organized under the laws of the 
                United States or of any jurisdiction within the United 
                States, including a foreign branch of such an entity.

SEC. 3. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) while the United States is committed to promoting 
        cultural and technological exchange with other countries, it is 
        our responsibility to protect the United States when channels 
        for such exchange are exploited by adversaries; and
            (2) the People's Republic of China consistently seeks to 
        exploit those channels, not only in its theft of intellectual 
        property but also in its manipulation of lawful transfer and 
        uses of technology in ways that directly support its military 
        objectives and threaten the United States.

SEC. 4. CONTROL OF EXPORT OF COVERED NATIONAL INTEREST TECHNOLOGY AND 
              INTELLECTUAL PROPERTY TO THE PEOPLE'S REPUBLIC OF CHINA.

    (a) In General.--On and after the date that is 180 days after the 
date of the enactment of this Act, the President shall control the 
export or re-export to, or transfer in, the People's Republic of China 
of any covered national interest technology or intellectual property 
subject to the jurisdiction of the United States or exported by any 
United States person.
    (b) Report Required.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of State and the Secretary of 
Commerce shall jointly submit to Congress a report assessing whether 
covered national interest technology or intellectual property should be 
controlled as required by subsection (a) under--
            (1) the International Traffic in Arms Regulations under 
        subchapter M of chapter I of title 22, Code of Federal 
        Regulations; or
            (2) the Export Administration Regulations under subchapter 
        C of chapter VII of title 15, Code of Federal Regulations.
    (c) Regulations.--Not later than 180 days after the date of the 
enactment of this Act, the President shall prescribe such regulations 
as are necessary to carry out subsection (a).

SEC. 5. IMPOSITION OF SANCTIONS WITH RESPECT TO PROVISION TO OR 
              PURCHASE FROM THE PEOPLE'S REPUBLIC OF CHINA OF COVERED 
              NATIONAL INTEREST TECHNOLOGY AND INTELLECTUAL PROPERTY.

    (a) In General.--The President shall, pursuant to the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), block and 
prohibit all transactions in all property and interests in property of 
a person described in subsection (b) if such property and interests in 
property are in the United States, come within the United States, or 
are or come within the possession or control of a United States person.
    (b) Persons Described.--A person described in this subsection is--
            (1) a foreign person that, on or after the date of the 
        enactment of this Act, knowingly sells or otherwise provides 
        to, or knowingly purchases from, the People's Republic of China 
        any covered national interest technology or intellectual 
        property subject to the jurisdiction of the United States; or
            (2) a Chinese person that, on or after such date of 
        enactment, knowingly uses covered national interest technology 
        or intellectual property provided to the Chinese person in 
        violation of section 4 or any other export control law of the 
        United States.
    (c) Exception Relating to Importation of Goods.--
            (1) In general.--The requirement to block and prohibit all 
        transactions in all property and interests in property under 
        subsection (a) shall not include the authority to impose 
        sanctions on the importation of goods.
            (2) Good defined.--In this subsection, the term ``good'' 
        means any article, natural or man-made substance, material, 
        supply or manufactured product, including inspection and test 
        equipment, and excluding technical data.
    (d) Waiver.--The President may waive the imposition of sanctions 
under subsection (a) with respect to a person if the President 
determines and reports to Congress that the waiver is in the national 
security interests of the United States.
    (e) Implementation; Penalties.--
            (1) Implementation.--The President may exercise all 
        authorities provided under sections 203 and 205 of the 
        International Emergency Economic Powers Act (50 U.S.C. 1702 and 
        1704) 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.
            (3) Inapplicability of national emergency requirement.--The 
        requirements of section 202 of the International Emergency 
        Economic Powers Act (50 U.S.C. 1701) shall not apply for 
        purposes of this section.

SEC. 6. ESTABLISHMENT OF LIST OF CERTAIN PRODUCTS RECEIVING SUPPORT 
              FROM THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA OR 
              USED BY THAT GOVERNMENT FOR HUMAN RIGHTS VIOLATIONS.

    (a) In General.--Chapter 8 of title I of the Trade Act of 1974 (19 
U.S.C. 2241 et seq.) is amended by adding at the end the following:

``SEC. 183. LIST OF CERTAIN PRODUCTS RECEIVING SUPPORT FROM THE 
              GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA OR USED BY 
              THAT GOVERNMENT FOR HUMAN RIGHTS VIOLATIONS.

    ``(a) In General.--Not later than 120 days after the date of the 
enactment of the China Technology Transfer Control Act of 2019, and 
annually thereafter, the United States Trade Representative shall set 
forth a list of products manufactured or produced in, or exported from, 
the People's Republic of China that are determined by--
            ``(1) the Trade Representative--
                    ``(A) to receive support from the Government of the 
                People's Republic of China pursuant to the Made in 
                China 2025 industrial policy of that Government; or
                    ``(B) to otherwise receive support from that 
                Government and that have or will in the future displace 
                net exports of like products by the United States; or
            ``(2) the Secretary of State to be used by the Government 
        of the People's Republic of China to carry out violations of 
        human rights or religious liberties.
    ``(b) Identification of Products Receiving Support Pursuant to Made 
in China 2025 Policy.--
            ``(1) In general.--The Trade Representative shall include 
        in the list under subsection (a)(1)(A) any product specified in 
        the following documents set forth by the Government of the 
        People's Republic of China:
                    ``(A) Notice on Issuing Made in China 2025.
                    ``(B) China Manufacturing 2025.
                    ``(C) Notice on Issuing the 13th Five-Year National 
                Strategic Emerging Industries Development Plan.
                    ``(D) Guiding Opinion on Promoting International 
                Industrial Capacity and Equipment Manufacturing 
                Cooperation.
                    ``(E) Any other document that expresses a national 
                strategy or stated goal in connection with the Made in 
                China 2025 industrial policy set forth by the 
                Government of the People's Republic of China, the 
                Communist Party of China, or another entity or 
                individual capable of impacting the national strategy 
                of the People's Republic of China.
            ``(2) Included products.--In addition to such products as 
        the Trade Representative shall include pursuant to paragraph 
        (1) in the list under subsection (a)(1)(A), the Trade 
        Representative shall include products in the following 
        industries:
                    ``(A) Civil aircraft.
                    ``(B) Turbine engines.
                    ``(C) Motor car and vehicle.
                    ``(D) Advanced medical equipment.
                    ``(E) Advanced construction equipment.
                    ``(F) Agricultural machinery.
                    ``(G) Railway equipment.
                    ``(H) Diesel locomotive.
                    ``(I) Moving freight.
                    ``(J) Semiconductor.
                    ``(K) Lithium battery manufacturing.
                    ``(L) Artificial intelligence.
                    ``(M) High-capacity computing.
                    ``(N) Quantum computing.
                    ``(O) Robotics.
                    ``(P) Biotechnology.''.
    (b) Clerical Amendment.--The table of contents for the Trade Act of 
1974 is amended by inserting after the item relating to section 182 the 
following:

``Sec. 183. List of certain products receiving support from the 
                            Government of the People's Republic of 
                            China or used by that Government for human 
                            rights violations.''.
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