Taiwan Protection and National Resilience Act of 2023

I 118TH CONGRESS 1ST SESSION H. R. 2449 To require a strategy for countering the People’s Republic of China. IN THE HOUSE OF REPRESENTATIVES MARCH 30, 2023 Mr. SMITH of New Jersey (for himself and Mr. SCHNEIDER) introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Armed Services, Ways and Means, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 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 SEC. 2. STRATEGY FOR COUNTERING THE PEOPLE’S RE- 6 PUBLIC OF CHINA. 7 (a) IDENTIFICATION OF VULNERABILITIES AND LE- 8 VERAGE.—Not later than 180 days after the date of the 9 VerDate Sep 11 2014 22:08 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2449.IH H2449 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 2449 IH enactment of this Act, the Secretary of Defense, in con- 1 sultation with the Secretary of State, the Secretary of 2 Commerce, the Secretary of the Treasury, the Director of 3 the Office of Federal Procurement Policy, and the Direc- 4 tor of the Office of Science and Technology Policy, shall 5 submit to the appropriate committees of Congress a report 6 that identifies— 7 (1) goods and services from the United States 8 that are relied on by the People’s Republic of China 9 such that that reliance presents a strategic oppor- 10 tunity and source of leverage against the People’s 11 Republic of China; and 12 (2) procurement practices of the United States 13 Armed Forces and other Federal agencies that are 14 reliant on trade with the People’s Republic of China 15 and other inputs from the People’s Republic of 16 China, such that that reliance presents a strategic 17 vulnerability and source of leverage that the Chinese 18 Communist Party could exploit. 19 (b) STRATEGY TO RESPOND TO COERCIVE AC- 20 TION.— 21 (1) IN GENERAL.—Not later than 180 days 22 after the submission of the report required by sub- 23 section (a), the Secretary of the Treasury, in con- 24 sultation with the Secretary of the Defense, the Sec- 25 VerDate Sep 11 2014 22:08 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2449.IH H2449 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 2449 IH retary of Commerce, the Secretary of State, the Di- 1 rector of the Office of Federal Procurement Policy, 2 and the Director of the Office of Science and Tech- 3 nology Policy, shall submit to the appropriate com- 4 mittees of Congress a report, utilizing the findings 5 of the report required by subsection (a), that de- 6 scribes a comprehensive sanctions strategy to advise 7 policymakers on policies the United States and allies 8 and partners of the United States could adopt with 9 respect to the People’s Republic of China in re- 10 sponse to any coercive action, including an invasion, 11 by the People’s Republic of China that infringes 12 upon the territorial sovereignty of Taiwan by pre- 13 venting access to international waterways, airspace, 14 or telecommunications networks. 15 (2) ELEMENTS.—The strategy required by 16 paragraph (1) shall include policies that— 17 (A) restrict the access of the People’s Lib- 18 eration Army to oil, natural gas, munitions, and 19 other supplies needed to conduct military oper- 20 ations against Taiwan, United States facilities 21 in the Pacific and Indian Oceans, and allies and 22 partners of the United States in the region; 23 (B) diminish the capacity of the industrial 24 base of the People’s Republic of China to man- 25 VerDate Sep 11 2014 22:08 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2449.IH H2449 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •HR 2449 IH ufacture and deliver defense articles to replace 1 those lost in operations of the People’s Libera- 2 tion Army against Taiwan, the United States, 3 and allies and partners of the United States; 4 (C) inhibit the ability of the People’s Re- 5 public of China to evade United States and 6 multilateral sanctions through third parties, in- 7 cluding through secondary sanctions; and 8 (D) identify specific sanctions-related tools 9 that may be effective in responding to coercive 10 action described in paragraph (1) and assess 11 the feasibility of the use and impact of the use 12 of those tools. 13 (c) RECOMMENDATIONS FOR REDUCTION OF 14 VULNERABILITIES AND LEVERAGE.—Not later than 180 15 days after the submission of the report required by sub- 16 section (a), the Secretary of Commerce, in consultation 17 the Secretary of Defense, the Secretary of State, the Di- 18 rector of National Intelligence, the United States Trade 19 Representative, the Director of the Office of Federal Pro- 20 curement Policy, and the Director of the Office of Science 21 and Technology Policy, shall submit to the appropriate 22 committees of Congress a report that— 23 (1) identifies critical sectors within the United 24 States economy that rely on trade with the People’s 25 VerDate Sep 11 2014 22:08 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2449.IH H2449 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •HR 2449 IH Republic of China and other inputs from the Peo- 1 ple’s Republic of China (including active pharma- 2 ceutical ingredients, rare earth minerals, and met- 3 allurgical inputs), such that those sectors present a 4 strategic vulnerability and source of leverage that 5 the Chinese Communist Party could exploit; and 6 (2) makes recommendations to Congress on 7 steps that can be taken to reduce the sources of le- 8 verage described in paragraph (1) and subsection 9 (a)(1), including through— 10 (A) provision of economic incentives and 11 making other trade and contracting reforms to 12 support United States industry and job growth 13 in critical sectors and to indigenize production 14 of critical resources; and 15 (B) policies to facilitate ‘‘near- or friend- 16 shoring’’, or otherwise developing strategies to 17 facilitate that process with allies and partners 18 of the United States, in other sectors for which 19 domestic reshoring would prove infeasible for 20 any reason. 21 (d) FORM.—The reports required by subsections (a), 22 (b), and (c) shall be submitted in unclassified form but 23 may include a classified annex. 24 VerDate Sep 11 2014 22:08 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2449.IH H2449 pbinns on DSKJLVW7X2PROD with $$_JOB 6 •HR 2449 IH (e) APPROPRIATE COMMITTEES OF CONGRESS DE- 1 FINED.—In this section, the term ‘‘appropriate commit- 2 tees of Congress’’ means— 3 (1) the Committee on Foreign Relations, the 4 Committee on Armed Services, the Select Committee 5 on Intelligence, the Committee on Finance, the Com- 6 mittee on Banking, Housing, and Urban Affairs, 7 and the Committee on Commerce, Science, and 8 Transportation of the Senate; and 9 (2) the Committee on Foreign Affairs, the 10 Committee on Armed Services, the Committee on Fi- 11 nancial Services, the Committee on Energy and 12 Commerce, and the Permanent Select Committee on 13 Intelligence of the House of Representatives. 14 Æ VerDate Sep 11 2014 22:08 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H2449.IH H2449 pbinns on DSKJLVW7X2PROD with $$_JOB