II Calendar No. 98 118th CONGRESS 1st Session S. 1074 IN THE SENATE OF THE UNITED STATES March 30, 2023 Mr. Rubio (for himself and Mr. Peters ) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations June 13, 2023 Reported by Mr. Menendez , with an amendment Strike out all after the enacting clause and insert the part printed in italic A BILL To require a strategy for countering the People's Republic of China.

1. Short title This Act may be cited as the Taiwan Protection and National Resilience Act of 2023 . 2. Strategy for countering the People's Republic of China (a) Identification of vulnerabilities and leverage Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense, in consultation with the Secretary of State, the Secretary of Commerce, the Secretary of the Treasury, the Director of the Office of Federal Procurement Policy, and the Director of the Office of Science and Technology Policy, shall submit to the appropriate committees of Congress a report that identifies— (1) goods and services from the United States that are relied on by the People’s Republic of China such that that reliance presents a strategic opportunity and source of leverage against the People’s Republic of China; and (2) procurement practices of the United States Armed Forces and other Federal agencies that are reliant on trade with the People’s Republic of China and other inputs from the People’s Republic of China, such that that reliance presents a strategic vulnerability and source of leverage that the Chinese Communist Party could exploit. (b) Strategy To respond to coercive action (1) In general Not later than 180 days after the submission of the report required by subsection (a), the Secretary of the Treasury, in consultation with the Secretary of the Defense, the Secretary of Commerce, the Secretary of State, the Director of the Office of Federal Procurement Policy, and the Director of the Office of Science and Technology Policy, shall submit to the appropriate committees of Congress a report, utilizing the findings of the report required by subsection (a), that describes a comprehensive sanctions strategy to advise policymakers on policies the United States and allies and partners of the United States could adopt with respect to the People’s Republic of China in response to any coercive action, including an invasion, by the People’s Republic of China that infringes upon the territorial sovereignty of Taiwan by preventing access to international waterways, airspace, or telecommunications networks. (2) Elements The strategy required by paragraph (1) shall include policies that— (A) restrict the access of the People’s Liberation Army to oil, natural gas, munitions, and other supplies needed to conduct military operations against Taiwan, United States facilities in the Pacific and Indian Oceans, and allies and partners of the United States in the region; (B) diminish the capacity of the industrial base of the People’s Republic of China to manufacture and deliver defense articles to replace those lost in operations of the People’s Liberation Army against Taiwan, the United States, and allies and partners of the United States; (C) inhibit the ability of the People’s Republic of China to evade United States and multilateral sanctions through third parties, including through secondary sanctions; and (D) identify specific sanctions-related tools that may be effective in responding to coercive action described in paragraph (1) and assess the feasibility of the use and impact of the use of those tools. (c) Recommendations for reduction of vulnerabilities and leverage Not later than 180 days after the submission of the report required by subsection (a), the Secretary of Commerce, in consultation the Secretary of Defense, the Secretary of State, the Director of National Intelligence, the United States Trade Representative, the Director of the Office of Federal Procurement Policy, and the Director of the Office of Science and Technology Policy, shall submit to the appropriate committees of Congress a report that— (1) identifies critical sectors within the United States economy that rely on trade with the People’s Republic of China and other inputs from the People’s Republic of China (including active pharmaceutical ingredients, rare earth minerals, and metallurgical inputs), such that those sectors present a strategic vulnerability and source of leverage that the Chinese Communist Party could exploit; and (2) makes recommendations to Congress on steps that can be taken to reduce the sources of leverage described in paragraph (1) and subsection (a)(1), including through— (A) provision of economic incentives and making other trade and contracting reforms to support United States industry and job growth in critical sectors and to indigenize production of critical resources; and (B) policies to facilitate near- or friend-shoring , or otherwise developing strategies to facilitate that process with allies and partners of the United States, in other sectors for which domestic reshoring would prove infeasible for any reason. (d) Form The reports required by subsections (a), (b), and (c) shall be submitted in unclassified form but may include a classified annex. (e) Appropriate committees of congress defined In this section, the term appropriate committees of Congress means— (1) the Committee on Foreign Relations, the Committee on Armed Services, the Select Committee on Intelligence, the Committee on Finance, the Committee on Banking, Housing, and Urban Affairs, and the Committee on Commerce, Science, and Transportation of the Senate; and (2) the Committee on Foreign Affairs, the Committee on Armed Services, the Committee on Financial Services, the Committee on Energy and Commerce, and the Permanent Select Committee on Intelligence of the House of Representatives.

1. Short title This Act may be cited as the Taiwan Protection and National Resilience Act of 2023 . 2. Strategy for countering the People's Republic of China (a) Identification of vulnerabilities and leverage Not later than 180 days after the date of the enactment of this Act, the Secretary of State and the Secretary of Defense shall jointly, in consultation with the Secretary of Commerce, the Secretary of the Treasury, the Director of the Office of Federal Procurement Policy, and the Director of the Office of Science and Technology Policy, submit to the appropriate committees of Congress a report that identifies— (1) goods and services from the United States that are relied on by the People’s Republic of China such that that reliance presents a strategic opportunity and source of leverage against the People’s Republic of China, including during a conflict; and (2) procurement practices of the United States Government that are reliant on trade with the People’s Republic of China and other inputs from the People’s Republic of China, such that that reliance presents a strategic vulnerability and source of leverage that the Chinese Communist Party could exploit, including during a conflict. (b) Strategy To respond to coercive action (1) In general Not later than 180 days after the submission of the report required by subsection (a), the Secretary of the Treasury, in coordination with the Secretary of State and in consultation with the Secretary of the Defense, the Secretary of Commerce, the Director of the Office of Federal Procurement Policy, and the Director of the Office of Science and Technology Policy, shall submit to the appropriate committees of Congress a report, utilizing the findings of the report required by subsection (a), that describes a comprehensive sanctions strategy to advise policymakers on policies the United States and allies and partners of the United States could adopt with respect to the People’s Republic of China in response to any coercive action, including an invasion, by the People’s Republic of China that infringes upon the territorial sovereignty of Taiwan by preventing access to international waterways, airspace, or telecommunications networks. (2) Elements The strategy required by paragraph (1) shall include policies that— (A) restrict the access of the People’s Liberation Army to oil, natural gas, munitions, and other supplies needed to conduct military operations against Taiwan, United States facilities in the Pacific and Indian Oceans, and allies and partners of the United States in the region; (B) diminish the capacity of the industrial base of the People’s Republic of China to manufacture and deliver defense articles to replace those lost in operations of the People’s Liberation Army against Taiwan, the United States, and allies and partners of the United States; (C) inhibit the ability of the People’s Republic of China to evade United States and multilateral sanctions through third parties, including through secondary sanctions; (D) identify specific sanctions-related tools that may be effective in responding to coercive action described in paragraph (1) and assess the feasibility of the use and impact of the use of those tools; (E) identify and resolve potential impediments to coordinating sanctions-related efforts with respect to responding to or deterring aggression against Taiwan with allies and partners of the United States; (F) identify industries, sectors, or goods and services with respect to which the United States, working with allies and partners of the United States, can take coordinated action through sanctions or other economic tools that will have a significant negative impact on the economy of the People’s Republic of China; and (G) identify tactics used by the Government of the People's Republic of China to influence the public in the United States and Taiwan through propaganda and disinformation campaigns, including such campaigns focused on delegitimizing Taiwan or legitimizing a forceful action by the People's Republic of China against Taiwan. (c) Recommendations for reduction of vulnerabilities and leverage Not later than 180 days after the submission of the report required by subsection (a), the Secretary of State and the Secretary of Defense shall jointly, in consultation with the Secretary of Commerce, the Secretary of the Treasury, the Director of the Office of Federal Procurement Policy, and the Director of the Office of Science and Technology Policy, submit to the appropriate committees of Congress a report that— (1) identifies critical sectors within the United States economy that rely on trade with the People’s Republic of China and other inputs from the People’s Republic of China (including active pharmaceutical ingredients, rare earth minerals, and metallurgical inputs), such that those sectors present a strategic vulnerability and source of leverage that the Chinese Communist Party or the People's Republic of China could exploit; and (2) makes recommendations to Congress on steps that can be taken to reduce the sources of leverage described in paragraph (1) and subsection (a)(1), including through— (A) provision of economic incentives and making other trade and contracting reforms to support United States industry and job growth in critical sectors and to indigenize production of critical resources; and (B) policies to facilitate near- or friend-shoring , or otherwise developing strategies to facilitate that process with allies and partners of the United States, in other sectors for which domestic reshoring would prove infeasible for any reason. (d) Form The reports required by subsections (a), (b), and (c) shall be submitted in unclassified form but may include a classified annex. (e) Appropriate committees of Congress defined In this section, the term appropriate committees of Congress means— (1) the Committee on Foreign Relations, the Committee on Armed Services, the Select Committee on Intelligence, the Committee on Finance, the Committee on Banking, Housing, and Urban Affairs, and the Committee on Commerce, Science, and Transportation of the Senate; and (2) the Committee on Foreign Affairs, the Committee on Armed Services, the Committee on Financial Services, the Committee on Energy and Commerce, and the Permanent Select Committee on Intelligence of the House of Representatives. 3. Rule of construction on maintaining one China policy Nothing in this Act may be construed as a change to the one China policy of the United States, which is guided by the Taiwan Relations Act ( 22 U.S.C. 3301 et seq. ), the three United States-People's Republic of China Joint Communiqués, and the Six Assurances. 4. Rule of construction regarding not authorizing the use of force Nothing in this Act may be construed as authorizing the use of military force.

June 13, 2023 Reported with an amendment