Transparency in Chinese Government Investment Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 8197 To require the Securities and Exchange Commission to assess whether certain information related to support from the Government of China is nec- essary or appropriate for the purposes of certain reports under the securities laws, and for other purposes. IN THE HOUSE OF REPRESENTATIVES SEPTEMBER 11, 2020 Mr. BARR introduced the following bill; which was referred to the Committee on Financial Services A BILL To require the Securities and Exchange Commission to as- sess whether certain information related to support from the Government of China is necessary or appropriate for the purposes of certain reports under the securities laws, 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 ‘‘Transparency in Chi- 4 nese Government Investment Act of 2020’’. 5 VerDate Sep 11 2014 01:46 Sep 12, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8197.IH H8197 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 8197 IH SEC. 2. ASSESSMENT OF INFORMATION WITH RESPECT TO 1 SUPPORT FROM THE GOVERNMENT OF 2 CHINA. 3 Not later than 360 days following the date of the en- 4 actment of this Act, the Securities and Exchange Commis- 5 sion, in consultation with the Secretary of the Treasury, 6 shall submit to the Committee on Financial Services of 7 the House of Representatives and the Committee on 8 Banking, Housing, and Urban Affairs of the Senate a re- 9 port assessing whether disclosure of any of the following 10 by an issuer organized under the laws of the People’s Re- 11 public of China qualifies as necessary or appropriate for 12 the purposes of section 13(a) of the Securities Exchange 13 Act of 1934: 14 (1) Material financial support by an issuer for 15 the following industrial policies or development plans 16 of the Government of China: 17 (A) Made in China 2025. 18 (B) Military-Civil Fusion. 19 (C) Internet Plus. 20 (D) Guidelines to Promote the National 21 Integrated Circuit Foundry Development Plan. 22 (E) The China Integrated Circuit Invest- 23 ment Industry Fund (or any similar fund at the 24 provincial or local level). 25 VerDate Sep 11 2014 01:46 Sep 12, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8197.IH H8197 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 8197 IH (F) Strategic Emerging Industries Initia- 1 tive. 2 (G) New Generation Artificial Intelligence 3 Development plan. 4 (2) Material financial support an issuer receives 5 from the Government of China in connection with 6 the support described in paragraph (1), including— 7 (A) direct subsidies, grants, loans, or loan 8 guarantees; 9 (B) reduction of taxes or tax exemptions; 10 (C) preferential treatment under the Gov- 11 ernment of China procurement policies; 12 (D) access to research and development; 13 and 14 (E) reduced prices for key inputs, includ- 15 ing land, power, and water. 16 (3) Positions held by any individual as an offi- 17 cer or director of an issuer, if the individual occupies 18 a position with— 19 (A) the Chinese Communist Party; 20 (B) the Government of China; 21 (C) the Central Committee of the Com- 22 munist Party of China; 23 (D) the Central Military Commission of 24 China; 25 VerDate Sep 11 2014 01:46 Sep 12, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H8197.IH H8197 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 8197 IH (E) the Chinese People’s Political Consult- 1 ative Conference; 2 (F) the National People’s Congress of 3 China; or 4 (G) a State Council in China. 5 SEC. 3. DISCLOSURE REQUIREMENT. 6 Not later than 180 days following submission of the 7 report required under section 2, the Securities and Ex- 8 change Commission shall prescribe regulations requiring 9 an issuer to disclose in any annual report required under 10 section 13 of the Securities Exchange Act of 1934, and 11 in any prospectus in connection with an initial public of- 12 fering, the information assessed by the Commission in 13 such report to be necessary or appropriate for the pur- 14 poses of subsection (a) of such section 13. 15 Æ VerDate Sep 11 2014 01:46 Sep 12, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H8197.IH H8197 pamtmann on DSKBC07HB2PROD with BILLS