U.S.–China Economic and Security Review Act of 2019

II 116TH CONGRESS 1ST SESSION S. 987 To implement the recommendations of the U.S.–China Economic and Security Review Commission, and for other purposes. IN THE SENATE OF THE UNITED STATES APRIL 2, 2019 Mr. COONS (for himself, Mr. ROMNEY, and Mr. KAINE) introduced the fol- lowing bill; which was read twice and referred to the Committee on For- eign Relations A BILL To implement the recommendations of the U.S.–China Eco- nomic and Security Review Commission, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘U.S.–China Economic 4 and Security Review Act of 2019’’. 5 VerDate Sep 11 2014 19:02 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S987.IS S987 pbinns on DSK79D2C42PROD with BILLS 2 •S 987 IS SEC. 2. ANNUAL REPORT ON SUPPLY CHAIN 1 VULNERABILITIES RELATED TO THE PEO- 2 PLE’S REPUBLIC OF CHINA. 3 Section 3603 of title 44, United States Code, is 4 amended by adding at the end the following: 5 ‘‘(g)(1) In this subsection, the term ‘Internet of 6 Things’ means physical devices embedded with sensors 7 that can collect data and connect to each other and the 8 broader internet. 9 ‘‘(2) Not later than 180 days after the date of the 10 enactment of this subsection, and not less frequently than 11 annually thereafter, the Chief Information Officers Coun- 12 cil shall submit to Congress a report on supply chain 13 vulnerabilities related to the People’s Republic of China 14 that includes the following: 15 ‘‘(A) An assessment of the supply chain risk 16 posed by the People’s Republic of China to each 17 Federal agency. 18 ‘‘(B) A description of how each Federal agency 19 is mitigating the supply chain risk posed by the Peo- 20 ple’s Republic of China. 21 ‘‘(C) An assessment of the existing procurement 22 and security policies and guidance of each Federal 23 agency with respect to cybersecurity, operations se- 24 curity, physical security, information security, and 25 data security that may affect information and com- 26 VerDate Sep 11 2014 19:02 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S987.IS S987 pbinns on DSK79D2C42PROD with BILLS 3 •S 987 IS munications technology, fifth generation mobile net- 1 works (commonly known as ‘5G networks’), and the 2 Internet of Things, that describes the following: 3 ‘‘(i) Areas for which new policies and guid- 4 ance may be needed, including for specific in- 5 formation and communications technology, 5G 6 networks, and the Internet of Things, including 7 applications or procedures related to the Inter- 8 net of Things. 9 ‘‘(ii) Areas for which existing security poli- 10 cies and guidance can be updated to address 11 vulnerabilities with respect to supply chain se- 12 curity, cybersecurity, operations security, phys- 13 ical security, information security, and data se- 14 curity.’’. 15 SEC. 3. REPORT ON WTO PROCEEDINGS. 16 (a) IN GENERAL.—Not later than 180 days after the 17 date of the enactment of this Act, the United States Trade 18 Representative shall submit to Congress a report assessing 19 whether it is in the national interests of the United States 20 to file, in coordination with allies and partners of the 21 United States, a complaint against the People’s Republic 22 of China at the World Trade Organization under section 23 1 of Article XXIII of GATT 1994 alleging that the Peo- 24 ple’s Republic of China has— 25 VerDate Sep 11 2014 19:02 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S987.IS S987 pbinns on DSK79D2C42PROD with BILLS 4 •S 987 IS (1) nullified or impaired a benefit accruing to 1 the United States under the WTO Agreement with- 2 out violating that Agreement; and 3 (2) committed other specific violations of com- 4 mitments under that Agreement. 5 (b) DEFINITIONS.—In this section, the terms ‘‘GATT 6 1994’’ and ‘‘WTO Agreement’’ have the meanings given 7 those terms in section 2 of the Uruguay Round Agree- 8 ments Act (19 U.S.C. 3501). 9 SEC. 4. REPORT ON INTIMIDATION OF UNITED STATES 10 RESIDENTS. 11 Not later than 180 days after the date of the enact- 12 ment of this Act, the Attorney General shall submit to 13 Congress a report explaining whether, and if so, how, the 14 Department of Justice is utilizing Federal criminal law, 15 including section 241 of title 18, United States Code (re- 16 lating to conspiracy against rights), to prosecute affiliates 17 of the Chinese Communist Party who threaten, coerce, or 18 otherwise intimidate United States residents. 19 SEC. 5. CLEAR LABELING FOR INFORMATIONAL MATE- 20 RIALS DISTRIBUTED ON BEHALF OF FOREIGN 21 PRINCIPALS. 22 Section 4(b) of the Foreign Agents Registration Act 23 of 1938 (22 U.S.C. 614(b)) is amended by adding at the 24 end the following: ‘‘Informational materials which are re- 25 VerDate Sep 11 2014 19:02 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S987.IS S987 pbinns on DSK79D2C42PROD with BILLS 5 •S 987 IS quired to be labeled under this subsection and which are 1 in the form of prints shall be marked or stamped conspicu- 2 ously at the top of the first page of such materials with 3 a statement in the language or languages used therein, 4 setting forth such information as is required under this 5 subsection.’’. 6 SEC. 6. NATIONAL INTELLIGENCE ESTIMATE ON ACCESS 7 AND BASING FACILITIES OF THE PEOPLE’S 8 REPUBLIC OF CHINA. 9 (a) IN GENERAL.—Not later than 180 days after the 10 date of the enactment of this Act, the Director of National 11 Intelligence shall submit to Congress a National Intel- 12 ligence Estimate on the access and basing facilities of the 13 People’s Republic of China. 14 (b) CONTENTS.—The National Intelligence Estimate 15 submitted under subsection (a) shall include a description 16 of the effect of existing and potential access and basing 17 facilities of the People’s Republic of China along the Silk 18 Road Economic Belt and the New Maritime Silk Road on 19 the following: 20 (1) Freedom of navigation and sea control, in 21 peacetime and during periods of conflict. 22 (2) The regional political and security interests 23 of the United States and allies of the United States. 24 VerDate Sep 11 2014 19:02 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S987.IS S987 pbinns on DSK79D2C42PROD with BILLS 6 •S 987 IS (c) FORM.—The National Intelligence Estimate sub- 1 mitted under subsection (a) shall be submitted in unclassi- 2 fied form, but may include a classified annex. 3 SEC. 7. ANNUAL REPORT ON INFLUENCE AND PROPA- 4 GANDA ACTIVITIES OF THE CHINESE COM- 5 MUNIST PARTY IN THE UNITED STATES. 6 (a) IN GENERAL.—Title IX of the Intelligence Au- 7 thorization Act for Fiscal Year 2003 (Public Law 107– 8 306) is amended by adding at the end the following: 9 ‘‘SEC. 905. ANNUAL REPORT ON INFLUENCE AND PROPA- 10 GANDA ACTIVITIES OF THE CHINESE COM- 11 MUNIST PARTY IN THE UNITED STATES. 12 ‘‘(a) ANNUAL REPORT REQUIRED.—Not later than 13 180 days after the date of the enactment of this section, 14 and not less frequently than annually thereafter, the Di- 15 rector of the National Counterintelligence and Security 16 Center shall submit to Congress a report on the influence 17 and propaganda activities of the Chinese Communist 18 Party in the United States. 19 ‘‘(b) FORM.—The report submitted under subsection 20 (a) shall be submitted in unclassified form, but may in- 21 clude a classified annex.’’. 22 (b) CLERICAL AMENDMENT.—The table of contents 23 in section 1(b) of the Intelligence Authorization Act for 24 Fiscal Year 2003 (Public Law 107–306) is amended by 25 VerDate Sep 11 2014 19:02 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S987.IS S987 pbinns on DSK79D2C42PROD with BILLS 7 •S 987 IS inserting after the item relating to section 904 the fol- 1 lowing: 2 ‘‘Sec. 905. Annual report on influence and propaganda activities of the Chinese Communist Party in the United States.’’. SEC. 8. REPORT ON THE CHINA COAST GUARD. 3 (a) IN GENERAL.—Not later than 180 days after the 4 date of the enactment of this Act, the Secretary of Defense 5 and the Secretary of Homeland Security shall jointly sub- 6 mit to the appropriate congressional committees a report 7 on the China Coast Guard (referred to in this section as 8 the ‘‘CCG’’). 9 (b) CONTENTS.—The report submitted under sub- 10 section (a) shall include an assessment of the following: 11 (1) How the change in the command structure 12 of the CCG affects the status of the CCG as a law 13 enforcement entity considering that the CCG now re- 14 ports to the Central Military Commission. 15 (2) The implications of the new command 16 structure of the CCG with respect to the use of the 17 CCG as a coercive tool in ‘‘gray zone’’ activity in the 18 East China Sea and the South China Sea. 19 (3) How the change in the command structure 20 of the CCG may affect interactions between the 21 United States Navy and the United States Coast 22 Guard and the China Coast Guard. 23 VerDate Sep 11 2014 19:02 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S987.IS S987 pbinns on DSK79D2C42PROD with BILLS 8 •S 987 IS (4) Whether the China Coast Guard should be 1 designated as a military force by the Secretary of 2 Defense and the Secretary of Homeland Security. 3 (c) FORM.—The report submitted under subsection 4 (a) shall be submitted in unclassified form, but may in- 5 clude a classified annex. 6 (d) APPROPRIATE CONGRESSIONAL COMMITTEES 7 DEFINED.—In this section, the term ‘‘appropriate con- 8 gressional committees’’ means— 9 (1) the Committee on Foreign Relations, the 10 Committee on Armed Services, the Committee on 11 Homeland Security and Governmental Affairs, and 12 the Committee on Appropriations of the Senate; and 13 (2) the Committee on Foreign Affairs, the 14 Committee on Armed Services, the Committee on 15 Homeland Security, and the Committee on Appro- 16 priations of the House of Representatives. 17 SEC. 9. REPORT ON STEPS TO PROTECT 5G NETWORKS. 18 Not later than 180 days after the date of the enact- 19 ment of this Act, the Assistant Secretary of Commerce 20 for Communications and Information and the Federal 21 Communications Commission shall jointly submit to Con- 22 gress a report that includes the following: 23 (1) The steps required to ensure the rapid and 24 secure deployment of fifth generation mobile net- 25 VerDate Sep 11 2014 19:02 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S987.IS S987 pbinns on DSK79D2C42PROD with BILLS 9 •S 987 IS works (commonly known as ‘‘5G networks’’), with a 1 particular focus on the threat posed by equipment 2 and services designed or manufactured in the Peo- 3 ple’s Republic of China. 4 (2) How the executive branch agencies are im- 5 plementing the steps described in paragraph (1). 6 (3) Any new statutory authorities that may be 7 required to ensure the security of domestic 5G net- 8 works. 9 SEC. 10. GAO REPORT ON UNITED STATES–CHINA TECH- 10 NICAL COOPERATION. 11 (a) ASSESSMENT.— 12 (1) IN GENERAL.—The Comptroller General of 13 the United States shall conduct an assessment of 14 collaborative initiatives between the United States 15 and the People’s Republic of China relating to tech- 16 nical cooperation. 17 (2) DUTIES.—In carrying out the assessment 18 required by paragraph (1), the Comptroller General 19 shall— 20 (A) describe the nature of technical co- 21 operation between the United States and the 22 People’s Republic of China, including funding, 23 participation, and reporting on the outcomes; 24 VerDate Sep 11 2014 19:02 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S987.IS S987 pbinns on DSK79D2C42PROD with BILLS 10 •S 987 IS (B) detail the licensing and regulatory re- 1 gime under which collaborative initiatives de- 2 scribed in paragraph (1) occur; 3 (C) consider whether the intellectual prop- 4 erty rights of researchers and entities of the 5 United States are being adequately protected; 6 (D) examine whether state-owned enter- 7 prises or the military of the People’s Republic 8 of China are benefitting from research funded 9 by the taxpayers of the United States; 10 (E) investigate if any researchers of the 11 People’s Republic of China participating in col- 12 laborative initiatives described in paragraph (1) 13 have ties to the Government or the military of 14 the People’s Republic of China; 15 (F) investigate if any institutions of higher 16 education, laboratories, or other entities of the 17 United States participating in collaboration led 18 by the Government of the United States with 19 the People’s Republic of China have been sub- 20 ject to cyber penetration originating in the Peo- 21 ple’s Republic of China; 22 (G) evaluate the benefits of the collabora- 23 tion for the United States; and 24 VerDate Sep 11 2014 19:02 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S987.IS S987 pbinns on DSK79D2C42PROD with BILLS 11 •S 987 IS (H) examine redundancies, if any, among 1 various government-led collaborative programs 2 between the United States and the People’s Re- 3 public of China, and make suggestions for im- 4 proving technical collaboration. 5 (b) REPORT REQUIRED.—Not later than 180 days 6 after the date of the enactment of this Act, the Comp- 7 troller General shall submit to Congress a report on the 8 assessment required by subsection (a)(1). 9 SEC. 11. REPORT ON CHINESE ENFORCEMENT OF SANC- 10 TIONS AGAINST NORTH KOREA. 11 (a) IN GENERAL.—Not later than 180 days after the 12 date of the enactment of this Act, the Secretary of the 13 Treasury shall submit to Congress a report on the current 14 state of the enforcement by the Government of the Peo- 15 ple’s Republic of China of sanctions imposed by the United 16 Nations with respect to the Democratic People’s Republic 17 of Korea. 18 (b) FORM.—The report submitted under subsection 19 (a) shall be submitted in unclassified form but shall in- 20 clude a classified annex that includes the following: 21 (1) A list of financial institutions, other enti- 22 ties, and officials of the People’s Republic of China 23 for which sanctions may be imposed with respect to 24 the Democratic People’s Republic of Korea. 25 VerDate Sep 11 2014 19:02 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S987.IS S987 pbinns on DSK79D2C42PROD with BILLS 12 •S 987 IS (2) Whether the Government of the United 1 States has imposed sanctions with respect to any in- 2 stitution, entity, or official described paragraph (1) 3 and, if so, an identification of such institution, enti- 4 ty, or official. 5 (3) Whether any foreign country has imposed 6 sanctio [Text truncated for display. 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