I 117th CONGRESS 2d Session H. R. 9051 IN THE HOUSE OF REPRESENTATIVES September 29, 2022 Mr. Gallagher introduced the following bill; which was referred to the Committee on Foreign Affairs A BILL To impose sanctions on certain foreign flash memory integrated circuit companies that threaten the interests of the United States.

1. Short title This Act may be cited as the Defending Memory Chip Supply Chains from the Chinese Communist Party Act . 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.