To place temporary restrictions on acquisitions by the People's Republic of China, and for other purposes.

I 116TH CONGRESS 2D SESSION H. R. 6706 To place temporary restrictions on acquisitions by the People’s Republic of China, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 5, 2020 Mr. BANKS introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committees on Energy and Commerce, and Foreign Affairs, for a period to be subsequently deter- mined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To place temporary restrictions on acquisitions by the People’s Republic of China, 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. RESTRICTION ON ACQUISITIONS BY THE PEO- 3 PLE’S REPUBLIC OF CHINA. 4 (a) IN GENERAL.—The Committee on Foreign In- 5 vestment in the United States shall review, and the Presi- 6 dent shall deny, any purchase of a controlling interest in 7 a covered company by a covered foreign interest, except 8 as provided by subsection (b). 9 VerDate Sep 11 2014 04:35 May 14, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6706.IH H6706 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 6706 IH (b) WAIVER.—The President may approve the pur- 1 chase of a controlling interest in a covered company by 2 a covered foreign interest if the President, acting through 3 the Committee on Foreign Investment in the United 4 States, determines— 5 (1) that it is not in the interest of the United 6 States to take further action under section 721 of 7 the Defense Production Act of 1950 (50 U.S.C. 8 4565) with respect to such purchase; 9 (2) that the purchase price was not significantly 10 affected by the COVID–19 pandemic; and 11 (3) that sale of the covered company to a cov- 12 ered foreign interest will not permit the covered for- 13 eign interest additional access to distribute propa- 14 ganda or otherwise alter U.S. news and media con- 15 sumption. 16 (c) SUNSET.—This section shall cease to have any 17 force or effect on and after the date on which the Presi- 18 dent— 19 (1) determines that the United States has sub- 20 stantially recovered from the economic impacts of 21 COVID–19; and 22 (2) notifies the Committee on Foreign Invest- 23 ment in the United States, the Congress, and the 24 public of such determination. 25 VerDate Sep 11 2014 04:35 May 14, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6706.IH H6706 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 6706 IH (d) DEFINITIONS.—In this section: 1 (1) COVERED COMPANY.—The term ‘‘covered 2 company’’ means any company registered and doing 3 business in the United States that is— 4 (A) critical infrastructure, as described 5 section 721(a)(4)(D)(ii)(II) of the Defense Pro- 6 duction Act of 1950 (50 U.S.C. 7 4565(a)(4)(D)(iii)(II)); 8 (B) engaged in the production and dis- 9 semination of news media; or 10 (C) otherwise determined to be critical to 11 national security, critical infrastructure, or cul- 12 turally significant by the President. 13 (2) COVERED FOREIGN INTEREST.—The term 14 ‘‘covered foreign interest’’ shall mean— 15 (A) the Government of the People’s Repub- 16 lic of China; 17 (B) any entity partially or wholly owned or 18 controlled by the Government of the People’s 19 Republic of China, and any subsidiaries of such 20 an entity; 21 (C) any other entity registered in the Peo- 22 ple’s Republic of China with substantial ties to 23 the Government of the People’s Republic of 24 China; and 25 VerDate Sep 11 2014 04:35 May 14, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6706.IH H6706 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 6706 IH (D) any other entity that the President de- 1 termines to be subject to the control (as defined 2 under section 721(a)(3) of the Defense Produc- 3 tion Act of 1950 (50 U.S.C. 4565(a)(3))), 4 whether direct or indirect, of the Government of 5 the People’s Republic of China. 6 Æ VerDate Sep 11 2014 04:35 May 14, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H6706.IH H6706 kjohnson on DSK79L0C42PROD with BILLS