Taiwan Protection and National Resilience Act of 2023

II Calendar No. 98 118TH CONGRESS 1ST SESSION S. 1074 To require a strategy for countering the People’s Republic of China. IN THE SENATE OF THE UNITED STATES MARCH 30, 2023 Mr. RUBIO (for himself and Mr. PETERS) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations JUNE 13, 2023 Reported by Mr. MENENDEZ, with an amendment [Strike out all after the enacting clause and insert the part printed in italic] A BILL To require a strategy for countering the People’s Republic of China. 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 ‘‘Taiwan Protection and 4 National Resilience Act of 2023’’. 5 VerDate Sep 11 2014 23:48 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6401 E:\BILLS\S1074.RS S1074 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •S 1074 RS SEC. 2. STRATEGY FOR COUNTERING THE PEOPLE’S RE- 1 PUBLIC OF CHINA. 2 (a) IDENTIFICATION OF VULNERABILITIES AND LE- 3 VERAGE.—Not later than 180 days after the date of the 4 enactment of this Act, the Secretary of Defense, in con- 5 sultation with the Secretary of State, the Secretary of 6 Commerce, the Secretary of the Treasury, the Director of 7 the Office of Federal Procurement Policy, and the Direc- 8 tor of the Office of Science and Technology Policy, shall 9 submit to the appropriate committees of Congress a report 10 that identifies— 11 (1) goods and services from the United States 12 that are relied on by the People’s Republic of China 13 such that that reliance presents a strategic oppor- 14 tunity and source of leverage against the People’s 15 Republic of China; and 16 (2) procurement practices of the United States 17 Armed Forces and other Federal agencies that are 18 reliant on trade with the People’s Republic of China 19 and other inputs from the People’s Republic of 20 China, such that that reliance presents a strategic 21 vulnerability and source of leverage that the Chinese 22 Communist Party could exploit. 23 (b) STRATEGY TO RESPOND TO COERCIVE AC- 24 TION.— 25 VerDate Sep 11 2014 23:48 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6401 E:\BILLS\S1074.RS S1074 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •S 1074 RS (1) IN GENERAL.—Not later than 180 days 1 after the submission of the report required by sub- 2 section (a), the Secretary of the Treasury, in con- 3 sultation with the Secretary of the Defense, the Sec- 4 retary of Commerce, the Secretary of State, the Di- 5 rector of the Office of Federal Procurement Policy, 6 and the Director of the Office of Science and Tech- 7 nology Policy, shall submit to the appropriate com- 8 mittees of Congress a report, utilizing the findings 9 of the report required by subsection (a), that de- 10 scribes a comprehensive sanctions strategy to advise 11 policymakers on policies the United States and allies 12 and partners of the United States could adopt with 13 respect to the People’s Republic of China in re- 14 sponse to any coercive action, including an invasion, 15 by the People’s Republic of China that infringes 16 upon the territorial sovereignty of Taiwan by pre- 17 venting access to international waterways, airspace, 18 or telecommunications networks. 19 (2) ELEMENTS.—The strategy required by 20 paragraph (1) shall include policies that— 21 (A) restrict the access of the People’s Lib- 22 eration Army to oil, natural gas, munitions, and 23 other supplies needed to conduct military oper- 24 ations against Taiwan, United States facilities 25 VerDate Sep 11 2014 23:48 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6401 E:\BILLS\S1074.RS S1074 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •S 1074 RS in the Pacific and Indian Oceans, and allies and 1 partners of the United States in the region; 2 (B) diminish the capacity of the industrial 3 base of the People’s Republic of China to man- 4 ufacture and deliver defense articles to replace 5 those lost in operations of the People’s Libera- 6 tion Army against Taiwan, the United States, 7 and allies and partners of the United States; 8 (C) inhibit the ability of the People’s Re- 9 public of China to evade United States and 10 multilateral sanctions through third parties, in- 11 cluding through secondary sanctions; and 12 (D) identify specific sanctions-related tools 13 that may be effective in responding to coercive 14 action described in paragraph (1) and assess 15 the feasibility of the use and impact of the use 16 of those tools. 17 (c) RECOMMENDATIONS FOR REDUCTION OF 18 VULNERABILITIES AND LEVERAGE.—Not later than 180 19 days after the submission of the report required by sub- 20 section (a), the Secretary of Commerce, in consultation 21 the Secretary of Defense, the Secretary of State, the Di- 22 rector of National Intelligence, the United States Trade 23 Representative, the Director of the Office of Federal Pro- 24 curement Policy, and the Director of the Office of Science 25 VerDate Sep 11 2014 23:48 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6401 E:\BILLS\S1074.RS S1074 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •S 1074 RS and Technology Policy, shall submit to the appropriate 1 committees of Congress a report that— 2 (1) identifies critical sectors within the United 3 States economy that rely on trade with the People’s 4 Republic of China and other inputs from the Peo- 5 ple’s Republic of China (including active pharma- 6 ceutical ingredients, rare earth minerals, and met- 7 allurgical inputs), such that those sectors present a 8 strategic vulnerability and source of leverage that 9 the Chinese Communist Party could exploit; and 10 (2) makes recommendations to Congress on 11 steps that can be taken to reduce the sources of le- 12 verage described in paragraph (1) and subsection 13 (a)(1), including through— 14 (A) provision of economic incentives and 15 making other trade and contracting reforms to 16 support United States industry and job growth 17 in critical sectors and to indigenize production 18 of critical resources; and 19 (B) policies to facilitate ‘‘near- or friend- 20 shoring’’, or otherwise developing strategies to 21 facilitate that process with allies and partners 22 of the United States, in other sectors for which 23 domestic reshoring would prove infeasible for 24 any reason. 25 VerDate Sep 11 2014 23:48 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6401 E:\BILLS\S1074.RS S1074 pbinns on DSKJLVW7X2PROD with $$_JOB 6 •S 1074 RS (d) FORM.—The reports required by subsections (a), 1 (b), and (c) shall be submitted in unclassified form but 2 may include a classified annex. 3 (e) APPROPRIATE COMMITTEES OF CONGRESS DE- 4 FINED.—In this section, the term ‘‘appropriate commit- 5 tees of Congress’’ means— 6 (1) the Committee on Foreign Relations, the 7 Committee on Armed Services, the Select Committee 8 on Intelligence, the Committee on Finance, the Com- 9 mittee on Banking, Housing, and Urban Affairs, 10 and the Committee on Commerce, Science, and 11 Transportation of the Senate; and 12 (2) the Committee on Foreign Affairs, the 13 Committee on Armed Services, the Committee on Fi- 14 nancial Services, the Committee on Energy and 15 Commerce, and the Permanent Select Committee on 16 Intelligence of the House of Representatives. 17 SECTION 1. SHORT TITLE. 18 This Act may be cited as the ‘‘Taiwan Protection and 19 National Resilience Act of 2023’’. 20 SEC. 2. STRATEGY FOR COUNTERING THE PEOPLE’S REPUB- 21 LIC OF CHINA. 22 (a) IDENTIFICATION OF VULNERABILITIES AND LE- 23 VERAGE.—Not later than 180 days after the date of the en- 24 actment of this Act, the Secretary of State and the Secretary 25 VerDate Sep 11 2014 23:48 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\S1074.RS S1074 pbinns on DSKJLVW7X2PROD with $$_JOB 7 •S 1074 RS of Defense shall jointly, in consultation with the Secretary 1 of Commerce, the Secretary of the Treasury, the Director 2 of the Office of Federal Procurement Policy, and the Direc- 3 tor of the Office of Science and Technology Policy, submit 4 to the appropriate committees of Congress a report that 5 identifies— 6 (1) goods and services from the United States 7 that are relied on by the People’s Republic of China 8 such that that reliance presents a strategic oppor- 9 tunity and source of leverage against the People’s Re- 10 public of China, including during a conflict; and 11 (2) procurement practices of the United States 12 Government that are reliant on trade with the Peo- 13 ple’s Republic of China and other inputs from the 14 People’s Republic of China, such that that reliance 15 presents a strategic vulnerability and source of lever- 16 age that the Chinese Communist Party could exploit, 17 including during a conflict. 18 (b) STRATEGY TO RESPOND TO COERCIVE ACTION.— 19 (1) IN GENERAL.—Not later than 180 days after 20 the submission of the report required by subsection 21 (a), the Secretary of the Treasury, in coordination 22 with the Secretary of State and in consultation with 23 the Secretary of the Defense, the Secretary of Com- 24 merce, the Director of the Office of Federal Procure- 25 VerDate Sep 11 2014 23:48 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\S1074.RS S1074 pbinns on DSKJLVW7X2PROD with $$_JOB 8 •S 1074 RS ment Policy, and the Director of the Office of Science 1 and Technology Policy, shall submit to the appro- 2 priate committees of Congress a report, utilizing the 3 findings of the report required by subsection (a), that 4 describes a comprehensive sanctions strategy to advise 5 policymakers on policies the United States and allies 6 and partners of the United States could adopt with 7 respect to the People’s Republic of China in response 8 to any coercive action, including an invasion, by the 9 People’s Republic of China that infringes upon the 10 territorial sovereignty of Taiwan by preventing access 11 to international waterways, airspace, or telecommuni- 12 cations networks. 13 (2) ELEMENTS.—The strategy required by para- 14 graph (1) shall include policies that— 15 (A) restrict the access of the People’s Libera- 16 tion Army to oil, natural gas, munitions, and 17 other supplies needed to conduct military oper- 18 ations against Taiwan, United States facilities 19 in the Pacific and Indian Oceans, and allies and 20 partners of the United States in the region; 21 (B) diminish the capacity of the industrial 22 base of the People’s Republic of China to manu- 23 facture and deliver defense articles to replace 24 those lost in operations of the People’s Liberation 25 VerDate Sep 11 2014 23:48 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6203 E:\BILLS\S1074.RS S1074 pbinns on DSKJLVW7X2PROD with $$_JOB 9 •S 1074 RS Army against Taiwan, the United States, and 1 allies and partners of the United States; 2 (C) inhibit the ability of the People’s Re- 3 public of China to evade United States and mul- 4 tilateral sanctions through third parties, includ- 5 ing through secondary sanctions; 6 (D) identify specific sanctions-related tools 7 that may be effective in responding to coercive 8 action described in paragraph (1) and assess the 9 feasibility of the use and impact of the use of 10 those tools; 11 (E) identify and resolve potential impedi- 12 ments to coordinating sanctions-related efforts 13 with respect to responding to or deterring aggres- 14 sion against Taiwan with allies and partners of 15 the United States; 16 (F) identify industries, sectors, or goods and 17 services with respect to which the United States, 18 working with allies and partners of the United 19 States, can take coordinated action through sanc- 20 tions or other economic tools that will have a sig- 21 nificant negative impact on the economy of the 22 People’s Republic of China; and 23 (G) identify tactics used by the Government 24 of the People’s Republic of China to influence the 25 VerDate Sep 11 2014 23:48 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6203 E:\BILLS\S1074.RS S1074 pbinns on DSKJLVW7X2PROD with $$_JOB 10 •S 1074 RS public in the United States and Taiwan through 1 propaganda and disinformation campaigns, in- 2 cluding such campaigns focused on 3 delegitimizing Taiwan or legitimizing a forceful 4 action by the People’s Republic of China against 5 Taiwan. 6 (c) RECOMMENDATIONS FOR REDUCTION OF 7 VULNERABILITIES AND LEVERAGE.—Not later than 180 8 days after the submission of the report required by sub- 9 section (a), the Secretary of State and the Secretary of De- 10 fense shall jointly, in consultation with the Secretary of 11 Commerce, the Secretary of the Treasury, the Director of 12 the Office of Federal Procurement Policy, and the Director 13 of the Office of Science and Technology Policy, submit to 14 the appropriate committees of Congress a report that— 15 (1) identifies critical sectors within the United 16 States economy that rely on trade with the People’s 17 Republic of China and other inputs from the People’s 18 Republic of China (including active pharmaceutical 19 ingredients, rare earth minerals, and metallurgical 20 inputs), such that those sectors present a strategic vul- 21 nerability and source of leverage that the Chinese 22 Communist Party or the People’s Republic of China 23 could exploit; and 24 VerDate Sep 11 2014 23:48 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6203 E:\BILLS\S1074.RS S1074 pbinns on DSKJLVW7X2PROD with $$_JOB 11 •S 1074 RS (2) makes recommendations to Congress on steps 1 that can be taken to reduce the sources of leverage de- 2 scribed in paragraph (1) and subsection (a)(1), in- 3 cluding through— 4 (A) provision of economic incentives and 5 making other trade and contracting reforms to 6 support United States industry and job growth 7 in critical sectors and to indigenize production 8 of critical resources; and 9 (B) policies to facilitate ‘‘near- or friend- 10 shoring’’, or otherwise developing strategies to fa- 11 cilitate that process with allies and partners of 12 the United States, in other sectors for which do- 13 mestic reshoring would prove infeasible for any 14 reason. 15 (d) FORM.—The reports required by subsections (a), 16 (b), and (c) shall be submitted in unclassified form but may 17 include a classified annex. 18 (e) APPROPRIATE COMMITTEES OF CONGRESS DE- 19 FINED.—In this section, the term ‘‘appropriate committees 20 of Congress’’ means— 21 (1) the Committee on Foreign Relations, the 22 Committee on Armed Services, the Select Committee 23 on Intelligence, the Committee on Finance, the Com- 24 mittee on Banking, Housing, and Urban Affairs, and 25 VerDate Sep 11 2014 23:48 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6203 E:\BILLS\S1074.RS S1074 pbin [Text truncated for display. Full text available on Congress.gov.]