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

I 116TH CONGRESS 2D SESSION H. R. 6152 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 HOUSE OF REPRESENTATIVES MARCH 9, 2020 Mr. GALLAGHER (for himself, Mr. TURNER, Ms. CHENEY, Mr. MCCAUL, Mr. BANKS, Mr. PERRY, and Mr. TIMMONS) introduced the following bill; which was referred to the Committee on Financial Services, and in addi- tion to the Committees on Foreign Affairs, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 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. VerDate Sep 11 2014 02:47 Mar 14, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H6152.IH H6152 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 6152 IH 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 ‘‘Protecting America 4 From Foreign Investors Compromised by the Chinese 5 Communist Party Act of 2020’’. 6 SEC. 2. SENSE OF CONGRESS. 7 It is the sense of Congress that— 8 (1) foreign investment provides substantial eco- 9 nomic benefits to the United States, including the 10 promotion of economic growth, productivity, com- 11 petitiveness, and job creation, thereby enhancing na- 12 tional security; 13 (2) maintaining the commitment of the United 14 States to an open investment policy encourages 15 other countries to reciprocate and helps open new 16 foreign markets for United States businesses; 17 (3) it should continue to be the policy of the 18 United States to enthusiastically welcome and sup- 19 port foreign investment, consistent with the protec- 20 tion of national security; 21 (4) at the same time, the national security land- 22 scape has shifted in recent years, and so has the na- 23 ture of the investments that pose the greatest poten- 24 tial risk to national security; and 25 VerDate Sep 11 2014 02:47 Mar 14, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6152.IH H6152 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 6152 IH (5) those shifts warranted the modernization of 1 the authorities of the Committee on Foreign Invest- 2 ment in the United States under the Foreign Invest- 3 ment Risk Review Modernization Act of 2018 (sub- 4 title A of title XVII of Public Law 115–232; 132 5 Stat. 2173). 6 SEC. 3. MODIFICATION OF REQUIREMENT FOR REGULA- 7 TIONS DEFINING ‘‘FOREIGN PERSON’’ FOR 8 PURPOSES OF COVERED TRANSACTIONS. 9 (a) IN GENERAL.—Section 721(a)(4)(E) of the De- 10 fense Production Act of 1950 (50 U.S.C. 4565(a)(4)(E)) 11 is amended by striking the third sentence and inserting 12 the following: ‘‘Such criteria shall take into consider- 13 ation— 14 ‘‘(i) how a foreign person is connected 15 to a foreign country or foreign government; 16 ‘‘(ii) whether that foreign country or 17 foreign government has installed, or al- 18 lowed others to install, within its territory 19 information and communications tech- 20 nology (including fifth-generation, or fu- 21 ture-generation, mobile telecommunications 22 infrastructure) that is designed, developed, 23 manufactured, or supplied by persons 24 owned or controlled by, or subject to the 25 VerDate Sep 11 2014 02:47 Mar 14, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6152.IH H6152 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 6152 IH jurisdiction or direction of, a foreign adver- 1 sary (as defined in Executive Order 13873 2 (50 U.S.C. 1701 note; relating to securing 3 the information and communications tech- 4 nology and services supply chain)); 5 ‘‘(iii) whether the connection de- 6 scribed in clause (i) may affect the na- 7 tional security of the United States; and 8 ‘‘(iv) how the installation described in 9 clause (ii) may affect the national security 10 of the United States.’’. 11 (b) REGULATIONS.—Not later than 180 days after 12 the date of the enactment of this Act, the Committee on 13 Foreign Investment in the United States shall prescribe 14 regulations to carry out the amendment made by sub- 15 section (a). 16 SEC. 4. UPDATE TO LIST OF EXCEPTED FOREIGN STATES. 17 At least annually, the Committee on Foreign Invest- 18 ment in the United States shall review and update foreign 19 states included in the definition of ‘‘excepted foreign 20 states’’ as defined under section 800.218 of title 31, Code 21 of Federal Regulations. 22 VerDate Sep 11 2014 02:47 Mar 14, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H6152.IH H6152 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 6152 IH SEC. 5. REPORT ON ALTERNATIVES TO FUTURE-GENERA- 1 TION MOBILE TELECOMMUNICATIONS INFRA- 2 STRUCTURE SUPPORTED BY THE GOVERN- 3 MENT OF THE PEOPLE’S REPUBLIC OF 4 CHINA. 5 (a) IN GENERAL.—Not later than 180 days after the 6 date of the enactment of this Act, the President shall sub- 7 mit to the appropriate congressional committees a report 8 describing whether and how the United States Govern- 9 ment is coordinating with close trade and investment part- 10 ners of the United States to develop alternatives to fifth- 11 generation, or future-generation, mobile telecommuni- 12 cations infrastructure supported by the Government of the 13 People’s Republic of China. 14 (b) APPROPRIATE CONGRESSIONAL COMMITTEES 15 DEFINED.—In this section, the term ‘‘appropriate con- 16 gressional committees’’ means— 17 (1) the Committee on Commerce, Science, and 18 Transportation, the Committee on Banking, Hous- 19 ing, and Urban Affairs, and the Committee on For- 20 eign Relations of the Senate; and 21 (2) the Committee on Energy and Commerce, 22 the Committee on Financial Services, and the Com- 23 mittee on Foreign Affairs of the House of Rep- 24 resentatives. 25 Æ VerDate Sep 11 2014 02:47 Mar 14, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H6152.IH H6152 kjohnson on DSK79L0C42PROD with BILLS