Protecting America From Foreign Investors Compromised by the Chinese Communist Party Act of 2020

II 116TH CONGRESS 2D SESSION S. 3386 To require the Committee on Foreign Investment in the United States to consider whether a foreign person that is a party to a transaction undergoing review by the Committee is connected to a foreign country that has installed information and communications technology designed, developed, manufactured, or supplied by persons owned or controlled by, or subject to the jurisdiction or direction of, a foreign adversary, and for other purposes. IN THE SENATE OF THE UNITED STATES MARCH 4, 2020 Mr. COTTON (for himself, Mr. CRUZ, Mr. HAWLEY, and Mr. RUBIO) intro- duced the following bill; which was read twice and referred to the Com- mittee on Banking, Housing, and Urban Affairs A BILL To require the Committee on Foreign Investment in the United States to consider whether a foreign person that is a party to a transaction undergoing review by the Committee is connected to a foreign country that has installed information and communications technology de- signed, developed, manufactured, or supplied by persons owned or controlled by, or subject to the jurisdiction or direction of, a foreign adversary, and for other pur- poses. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 00:56 Mar 05, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3386.IS S3386 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 3386 IS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Protecting America 2 From Foreign Investors Compromised by the Chinese 3 Communist Party Act of 2020’’. 4 SEC. 2. SENSE OF CONGRESS. 5 It is the sense of Congress that— 6 (1) foreign investment provides substantial eco- 7 nomic benefits to the United States, including the 8 promotion of economic growth, productivity, com- 9 petitiveness, and job creation, thereby enhancing na- 10 tional security; 11 (2) maintaining the commitment of the United 12 States to an open investment policy encourages 13 other countries to reciprocate and helps open new 14 foreign markets for United States businesses; 15 (3) it should continue to be the policy of the 16 United States to enthusiastically welcome and sup- 17 port foreign investment, consistent with the protec- 18 tion of national security; 19 (4) at the same time, the national security land- 20 scape has shifted in recent years, and so has the na- 21 ture of the investments that pose the greatest poten- 22 tial risk to national security; and 23 (5) those shifts warranted the modernization of 24 the authorities of the Committee on Foreign Invest- 25 ment in the United States under the Foreign Invest- 26 VerDate Sep 11 2014 00:56 Mar 05, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3386.IS S3386 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 3386 IS ment Risk Review Modernization Act of 2018 (sub- 1 title A of title XVII of Public Law 115–232; 132 2 Stat. 2173). 3 SEC. 3. MODIFICATION OF REQUIREMENT FOR REGULA- 4 TIONS DEFINING ‘‘FOREIGN PERSON’’ FOR 5 PURPOSES OF COVERED TRANSACTIONS. 6 (a) IN GENERAL.—Section 721(a)(4)(E) of the De- 7 fense Production Act of 1950 (50 U.S.C. 4565(a)(4)(E)) 8 is amended by striking the third sentence and inserting 9 the following: ‘‘Such criteria shall take into consider- 10 ation— 11 ‘‘(i) how a foreign person is connected 12 to a foreign country or foreign government; 13 ‘‘(ii) whether that foreign country or 14 foreign government has installed, or al- 15 lowed others to install, within its territory 16 information and communications tech- 17 nology (including fifth-generation, or fu- 18 ture-generation, mobile telecommunications 19 infrastructure) that is designed, developed, 20 manufactured, or supplied by persons 21 owned or controlled by, or subject to the 22 jurisdiction or direction of, a foreign adver- 23 sary (as defined in Executive Order 13873 24 (50 U.S.C. 1701 note; relating to securing 25 VerDate Sep 11 2014 00:56 Mar 05, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3386.IS S3386 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 3386 IS the information and communications tech- 1 nology and services supply chain)); 2 ‘‘(iii) whether the connection de- 3 scribed in clause (i) may affect the na- 4 tional security of the United States; and 5 ‘‘(iv) how the installation described in 6 clause (ii) may affect the national security 7 of the United States.’’. 8 (b) REGULATIONS.—Not later than 180 days after 9 the date of the enactment of this Act, the Committee on 10 Foreign Investment in the United States shall prescribe 11 regulations to carry out the amendment made by sub- 12 section (a). 13 SEC. 4. REPORT ON ALTERNATIVES TO FUTURE-GENERA- 14 TION MOBILE TELECOMMUNICATIONS INFRA- 15 STRUCTURE SUPPORTED BY THE GOVERN- 16 MENT OF THE PEOPLE’S REPUBLIC OF 17 CHINA. 18 (a) IN GENERAL.—Not later than 180 days after the 19 date of the enactment of this Act, the President shall sub- 20 mit to the appropriate congressional committees a report 21 describing whether and how the United States Govern- 22 ment is coordinating with close trade and investment part- 23 ners of the United States to develop alternatives to fifth- 24 generation, or future-generation, mobile telecommuni- 25 VerDate Sep 11 2014 00:56 Mar 05, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3386.IS S3386 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 3386 IS cations infrastructure supported by the Government of the 1 People’s Republic of China. 2 (b) APPROPRIATE CONGRESSIONAL COMMITTEES 3 DEFINED.—In this section, the term ‘‘appropriate con- 4 gressional committees’’ means— 5 (1) the Committee on Commerce, Science, and 6 Transportation, the Committee on Banking, Hous- 7 ing, and Urban Affairs, and the Committee on For- 8 eign Relations of the Senate; and 9 (2) the Committee on Energy and Commerce, 10 the Committee on Financial Services, and the Com- 11 mittee on Foreign Affairs of the House of Rep- 12 resentatives. 13 Æ VerDate Sep 11 2014 00:56 Mar 05, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S3386.IS S3386 pamtmann on DSKBC07HB2PROD with BILLS