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I
116TH CONGRESS
2D SESSION
H. R. 8329
To eliminate or substantially reduce the global availability of critical tech-
nologies to United States arms embargoed countries, and for other pur-
poses.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 21, 2020
Mr. MCCAUL introduced the following bill; which was referred to the
Committee on Foreign Affairs
A BILL
To eliminate or substantially reduce the global availability
of critical technologies to United States arms embargoed
countries, 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 ‘‘Revitalizing Multilat-
4
eral Export Control Diplomacy for Critical Technologies
5
Act’’.
6
SEC. 2. FINDINGS AND SENSE OF CONGRESS.
7
(a) FINDINGS.—Congress finds the following:
8
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(1) United States arms embargoed countries
1
are implementing malign and aggressive industrial
2
policies using non-market means and engaging in
3
predatory investment to gain control of critical tech-
4
nologies in order to achieve market dominance and
5
control supply chains.
6
(2) These countries integrate their industrial
7
policies into initiatives that break down the barriers
8
and distinctions between the commercial sector and
9
the military to ensure that critical technologies sup-
10
port the development of their military.
11
(3) These countries seek to obtain critical tech-
12
nologies from the United States and covered United
13
States allies and partners.
14
(b) SENSE OF CONGRESS.—It is the sense of Con-
15
gress that—
16
(1) the fast-paced nature of technological inno-
17
vation and the systemic diversion of technological in-
18
novation and know-how by United States arms em-
19
bargoed countries for the benefit of developing and
20
enhancing their militaries, challenges the effective-
21
ness of existing multilateral fora established specifi-
22
cally to prevent such export control risks, such as
23
the Wassenaar Arrangement; and
24
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(2) the ability of United States arms embargoed
1
countries to access critical technologies that affect
2
the national security of the United States should
3
spur the United States to work with covered United
4
States allies and partners to develop unified export
5
control policies to eliminate or substantially reduce
6
the global availability of critical technologies to
7
United States arms embargoed countries.
8
SEC. 3. STRATEGY TO CONTROL THE AVAILABILITY OF
9
CRITICAL TECHNOLOGIES.
10
(a) STATEMENT OF POLICY.—It is the policy of the
11
United States to—
12
(1) work with covered United States allies and
13
partners to develop unified export control policies to
14
eliminate or substantially reduce the global avail-
15
ability of critical technologies to United States arms
16
embargoed countries, including by—
17
(A) leading regular and rapid bilateral and
18
plurilateral negotiations with respect to specific
19
critical technologies with different groupings of
20
such allies and partners;
21
(B) using policy instruments, including
22
tax, investment, licensing, lending, and trade, to
23
provide incentives to such allies and partners;
24
and
25
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(C) using, if necessary, existing authori-
1
ties, including trade remedies, the United
2
States Munitions List, the Entity List, eco-
3
nomic sanctions, and other authorities available
4
under the International Emergency Economic
5
Powers Act (50 U.S.C. 1701 et seq.);
6
(2) ensure critical technologies do not advance
7
the economic strategies, industrial policy goals, or
8
military capabilities of United States arms embar-
9
goed countries;
10
(3) carry out joint research and development
11
projects with covered United States allies and part-
12
ners, with adequate safeguards for the protection
13
and promotion of any resulting intellectual property,
14
to—
15
(A) advance a broad range of scientific and
16
technical disciplines, including with respect to
17
critical technologies that may be affected by the
18
implementation of the strategy required by sub-
19
section (b); and
20
(B) develop alternative markets to com-
21
pensate for lost sales opportunities; and
22
(4) enhance the sharing of information with
23
covered United States allies and partners that have
24
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entered into a multilateral export control agreement
1
with the United States described in section 4(d).
2
(b) STRATEGY.—
3
(1) IN GENERAL.—The President, in consulta-
4
tion with the Secretary of Commerce, the Secretary
5
of Defense, the Secretary of State, the Director of
6
National Intelligence, the Secretary of the Treasury,
7
and the Secretary of Energy, shall develop a strat-
8
egy to work with covered United States allies and
9
partners to develop unified export control policies to
10
eliminate or substantially reduce the global avail-
11
ability of critical technologies to United States arms
12
embargoed countries.
13
(2) INDUSTRY CONSULTATION.—
14
(A) IN GENERAL.—The President shall—
15
(i) inform and solicit input in writing
16
from representatives of relevant United
17
States industries in developing the strategy
18
required by paragraph (1); and
19
(ii) submit to the appropriate congres-
20
sional committees input received pursuant
21
to clause (i).
22
(B) DISCLOSURE
OF
CONFIDENTIAL
IN-
23
FORMATION PROHIBITED.—No such committee,
24
or member thereof, may disclose any informa-
25
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•HR 8329 IH
tion made available under subparagraph (A)(ii)
1
that is submitted on a confidential basis unless
2
the committee determines that the withholding
3
of that information is contrary to the national
4
interest of the United States.
5
(3) MATTERS TO BE INCLUDED.—The strategy
6
required by this subsection shall include the fol-
7
lowing:
8
(A) An identification of critical tech-
9
nologies that are priorities for—
10
(i) the national security and the de-
11
fense industrial base of the United States;
12
and
13
(ii) the economic strategies, industrial
14
policies, and military development of
15
United States arms embargoed countries.
16
(B) An identification of United States ex-
17
port control policies for critical technologies
18
identified under subparagraph (A).
19
(C) An identification of covered United
20
States allies and partners and their share of the
21
global market with respect to critical tech-
22
nologies identified under subparagraph (A).
23
(D) A description of ongoing and future ef-
24
forts to work with covered United States allies
25
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•HR 8329 IH
and partners to develop unified export control
1
policies in accordance with the United States
2
policy described in subsection (a).
3
(E) An assessment of the effectiveness and
4
methods of past efforts by United States arms
5
embargoed countries to circumvent export con-
6
trol policies relating to critical technologies
7
identified under subparagraph (A).
8
(F) The establishment of a working group,
9
to include appropriate representatives from the
10
Department of Commerce, the Department of
11
Defense, the Department of State, the Office of
12
the Director of National Intelligence, the De-
13
partment of the Treasury, the Department of
14
Energy, and other relevant Federal agencies, to
15
implement the strategy.
16
(c) REPORT.—
17
(1) IN
GENERAL.—Not later than 120 days
18
after the date of the enactment of this Act, and an-
19
nually thereafter for 4 years, the President shall
20
submit to the appropriate congressional committees
21
a report in writing that contains—
22
(A) the strategy required by subsection
23
(b); and
24
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(B) a summary of input solicited and re-
1
ceived from representatives of relevant United
2
States industries in developing the strategy re-
3
quired by subsection (b).
4
(2) FORM.—The report required by this sub-
5
section shall—
6
(A) be submitted in unclassified form but
7
may contain a classified annex; and
8
(B) be made available on a publicly acces-
9
sible government website.
10
SEC. 4. ACTIONS TO SECURE THE GLOBAL SEMICON-
11
DUCTOR SUPPLY CHAIN.
12
(a) FINDING.—Congress finds that, according to the
13
Second Quarter Recommendations of the congressionally-
14
established National Security Commission on Artificial In-
15
telligence, high-end semiconductor chips with feature sizes
16
45 nanometers and below are the most useful for advanced
17
artificial intelligence capabilities.
18
(b) STATEMENT OF POLICY.—It is the policy of the
19
United States—
20
(1) to work with covered United States allies
21
and partners to secure the semiconductor supply
22
chain in a manner that eliminates or substantially
23
reduces its presence in or reliance on United States
24
arms embargoed countries;
25
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(2) to ensure United States semiconductor
1
manufacturing equipment, design tools, and tech-
2
nical data are not made available to United States
3
arms embargoed countries in achieving their indus-
4
trial policy goals that threaten United States na-
5
tional security interests; and
6
(3) to proceed expeditiously in diplomatic ef-
7
forts with covered United States allies and partners
8
to develop unified export control policies to eliminate
9
or substantially reduce the global availability of crit-
10
ical technologies to United States arms embargoed
11
countries.
12
(c) IDENTIFICATION PROVISIONS.—
13
(1) IDENTIFICATION OF SEMICONDUCTOR MAN-
14
UFACTURING EQUIPMENT, DESIGN TOOLS, AND RE-
15
LATED TECHNICAL DATA.—Not later than 180 days
16
after the date of the enactment of this Act, and on
17
a periodic basis thereafter, the Secretary of Com-
18
merce shall identify semiconductor manufacturing
19
equipment, design tools, and related technical data
20
that—
21
(A) are not manufactured or produced in
22
United States arms embargoed countries; and
23
(B) are used to fabricate high-end semi-
24
conductor chips with feature sizes of 45 nano-
25
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•HR 8329 IH
meters and below that the Secretary determines
1
threaten the national security and foreign policy
2
interests of the United States.
3
(2) IDENTIFICATION OF ENTITIES THAT FAB-
4
RICATE
SEMICONDUCTOR
CHIPS
WITH
FEATURE
5
SIZES OF 45 NANOMETERS AND BELOW.—Not later
6
than 180 days after the date of the enactment of
7
this Act, and on a periodic basis thereafter, the Sec-
8
retary of Commerce shall identify entities in United
9
States arms embargoed countries that—
10
(A) own or control semiconductor manu-
11
facturing equipment, design tools, and related
12
technical data that are identified pursuant to
13
paragraph (1); and
14
(B) are required under the laws of United
15
States arms embargoed countries to cooperate
16
with the militaries of such countries relating to
17
the use of such semiconductor manufacturing
18
equipment, design tools, and related technical
19
data to fabricate high-end semiconductor chips
20
described in paragraph (1)(B).
21
(3) INDUSTRY CONSULTATION.—
22
(A) IN GENERAL.—The President shall—
23
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•HR 8329 IH
(i) inform and solicit input in writing
1
from representatives of relevant United
2
States industries in—
3
(I)
identifying
semiconductor
4
manufacturing
equipment,
design
5
tools, and related technical data pur-
6
suant to paragraph (1); and
7
(II) identifying entities pursuant
8
to paragraph (2); and
9
(ii) submit to the appropriate congres-
10
sional committees input received pursuant
11
to clause (i).
12
(B) DISCLOSURE
OF
CONFIDENTIAL
IN-
13
FORMATION PROHIBITED.—No such committee,
14
or member thereof, may disclose any informa-
15
tion made available under subparagraph (A)(ii)
16
that is submitted on a confidential basis unless
17
the committee determines that the withholding
18
of that information is contrary to the national
19
interest of the United States.
20
(d) MULTILATERAL AGREEMENT.—
21
(1) IN GENERAL.—The working group estab-
22
lished pursuant to section 3(b)(3)(F) shall, as soon
23
as practicable after the date of the enactment of this
24
Act, seek to establish a multilateral agreement with
25
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•HR 8329 IH
covered United States allies and partners to develop
1
unified export control policies to eliminate or sub-
2
stantially reduce the global availability of semicon-
3
ductor manufacturing equipment, design tools, and
4
related technical data identified pursuant to sub-
5
section (c)(1) to United States arms embargoed
6
countries, including entities in United States arms
7
embargoed countries identified pursuant to sub-
8
section (c)(2).
9
(2)
ACTIONS
AFTER
AGREEMENT
IMPLE-
10
MENTED.—
11
(A) IN GENERAL.—Not later than 30 days
12
after the date on which a multilateral agree-
13
ment described in paragraph (1) is imple-
14
mented, the Secretary of Commerce—
15
(i) shall exercise the authorities under
16
the Export Control Reform Act of 2018
17
(50 U.S.C. 4801 et seq.)—
18
(I)
to
include
semiconductor
19
manufacturing
equipment,
design
20
tools, and related technical data with
21
respect to which the agreement ap-
22
plies on the Commerce Control List;
23
and
24
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(II) to presumptive
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