Exposing China’s Belt and Road Investment in America Act of 2020

II 116TH CONGRESS 2D SESSION S. 4454 To require the review by the Committee on Foreign Investment in the United States of greenfield investments by the People’s Republic of China, and for other purposes. IN THE SENATE OF THE UNITED STATES AUGUST 5, 2020 Mr. KENNEDY introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To require the review by the Committee on Foreign Invest- ment in the United States of greenfield investments 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. SHORT TITLE. 3 This Act may be cited as the ‘‘Exposing China’s Belt 4 and Road Investment in America Act of 2020’’. 5 VerDate Sep 11 2014 22:47 Aug 22, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4454.IS S4454 kjohnson on DSK79L0C42PROD with BILLS 2 •S 4454 IS SEC. 2. REVIEW BY COMMITTEE ON FOREIGN INVESTMENT 1 IN THE UNITED STATES OF GREENFIELD IN- 2 VESTMENTS BY PEOPLE’S REPUBLIC OF 3 CHINA. 4 (a) INCLUSION IN DEFINITION OF COVERED TRANS- 5 ACTION.—Section 721(a)(4) of the Defense Production 6 Act of 1950 (50 U.S.C. 4565(a)(4)) is amended— 7 (1) in subparagraph (A)— 8 (A) in clause (i), by striking ‘‘; and’’ and 9 inserting a semicolon; 10 (B) in clause (ii), by striking the period at 11 the end and inserting ‘‘; and’’; and 12 (C) by adding at the end the following: 13 ‘‘(iii) any transaction described in 14 subparagraph (B)(vi) proposed or pending 15 on or after the date of the enactment of 16 the Exposing China’s Belt and Road In- 17 vestment in America Act of 2020.’’; and 18 (2) in subparagraph (B), by adding at the end 19 the following: 20 ‘‘(vi) An investment by a foreign per- 21 son that— 22 ‘‘(I) involves— 23 ‘‘(aa) the completed or 24 planned purchase or lease by, or 25 a concession to, the foreign per- 26 VerDate Sep 11 2014 22:47 Aug 22, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4454.IS S4454 kjohnson on DSK79L0C42PROD with BILLS 3 •S 4454 IS son of private or public real es- 1 tate in the United States; and 2 ‘‘(bb) the establishment of a 3 United States business to operate 4 a factory or other facility on that 5 real estate; and 6 ‘‘(II) could result in control, in- 7 cluding through formal or informal 8 arrangements to act in concert, of 9 that United States business by— 10 ‘‘(aa) the Government of the 11 People’s Republic of China; 12 ‘‘(bb) a person owned or 13 controlled by, or acting on behalf 14 of, that Government; 15 ‘‘(cc) an entity in which that 16 Government has, directly or indi- 17 rectly, including through formal 18 or informal arrangements to act 19 in concert, a 5 percent or greater 20 interest; 21 ‘‘(dd) an entity in which 22 that Government has, directly or 23 indirectly, the right or power to 24 appoint, or approve the appoint- 25 VerDate Sep 11 2014 22:47 Aug 22, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4454.IS S4454 kjohnson on DSK79L0C42PROD with BILLS 4 •S 4454 IS ment of, any members of the 1 board of directors, board of su- 2 pervisors, or an equivalent gov- 3 erning body (including external 4 directors and other individuals 5 who perform the duties usually 6 associated with such titles) or of- 7 ficers (including the president, 8 senior vice president, executive 9 vice president, and other individ- 10 uals who perform duties normally 11 associated with such titles) of 12 any other entity that held, di- 13 rectly or indirectly, including 14 through formal or informal ar- 15 rangements to act in concert, a 5 16 percent or greater interest in the 17 entity in the preceding 3 years; 18 or 19 ‘‘(ee) an entity in which any 20 members or officers described in 21 item (dd) of any other entity 22 holding, directly or indirectly, in- 23 cluding through formal or infor- 24 mal arrangements to act in con- 25 VerDate Sep 11 2014 22:47 Aug 22, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4454.IS S4454 kjohnson on DSK79L0C42PROD with BILLS 5 •S 4454 IS cert, a 5 percent or greater inter- 1 est in the entity are members of 2 the Chinese Communist Party or 3 have been members of the Chi- 4 nese Communist Party in the 5 preceding 3 years.’’. 6 (b) DEFINITION OF GOVERNMENT OF PEOPLE’S RE- 7 PUBLIC OF CHINA.—Section 721(a) of the Defense Pro- 8 duction Act of 1950 (50 U.S.C. 4565(a)) is amended— 9 (1) by redesignating paragraphs (8) through 10 (13) as paragraphs (9) through (14), respectively; 11 and 12 (2) by inserting after paragraph (7) the fol- 13 lowing: 14 ‘‘(7) GOVERNMENT OF PEOPLE’S REPUBLIC OF 15 CHINA.—The term ‘Government of the People’s Re- 16 public of China’ includes the national and sub- 17 national governments within the People’s Republic of 18 China, including any departments, agencies, or in- 19 strumentalities of such governments.’’. 20 (c) MANDATORY FILING OF DECLARATIONS.—Sec- 21 tion 721(b)(1)(C)(v)(IV)(bb) of the Defense Production 22 Act of 1950 (50 U.S.C. 4565(b)(1)(C)(v)(IV)(bb)) is 23 amended by adding at the end the following: 24 VerDate Sep 11 2014 22:47 Aug 22, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4454.IS S4454 kjohnson on DSK79L0C42PROD with BILLS 6 •S 4454 IS ‘‘(DD) GREENFIELD 1 INVESTMENTS BY PEOPLE’S 2 REPUBLIC OF CHINA.—The 3 parties to a covered trans- 4 action described in sub- 5 section (a)(4)(B)(vi) shall 6 submit a declaration de- 7 scribed in subclause (I) with 8 respect to the transaction.’’. 9 Æ VerDate Sep 11 2014 22:47 Aug 22, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\S4454.IS S4454 kjohnson on DSK79L0C42PROD with BILLS