China Technology Transfer Control Act of 2023

I 118TH CONGRESS 1ST SESSION H. R. 2594 To control the export to the People’s Republic of China of certain technology and intellectual property important to the national interest of the United States, and for other purposes. IN THE HOUSE OF REPRESENTATIVES APRIL 13, 2023 Mr. GREEN of Tennessee introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committee on Ways and Means, 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 control the export to the People’s Republic of China of certain technology and intellectual property important to the national interest of the United States, 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 ‘‘China Technology 4 Transfer Control Act of 2023’’. 5 SEC. 2. DEFINITIONS. 6 In this Act: 7 VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2594.IH H2594 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2594 IH (1) CHINESE PERSON.—The term ‘‘Chinese 1 person’’ means— 2 (A) an individual who is a citizen or na- 3 tional of the People’s Republic of China; or 4 (B) an entity organized under the laws of 5 the People’s Republic of China or otherwise 6 subject to the jurisdiction of the Government of 7 the People’s Republic of China. 8 (2) COVERED NATIONAL INTEREST TECH- 9 NOLOGY OR INTELLECTUAL PROPERTY.—The term 10 ‘‘covered national interest technology or intellectual 11 property’’ includes the following: 12 (A) Technology or intellectual property 13 that would make a significant contribution to 14 the military potential of the People’s Republic 15 of China that would prove detrimental to the 16 national security of the United States. 17 (B) Technology or intellectual property 18 that is a component of the production of prod- 19 ucts included in the most recent list required 20 under section 183 of the Trade Act of 1974, as 21 added by section 6(a), determined in consulta- 22 tion with the United States Trade Representa- 23 tive. 24 VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2594.IH H2594 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 2594 IH (C) Technology used by the Government of 1 the People’s Republic of China to carry out vio- 2 lations of human rights or religious liberties. 3 (3) FOREIGN PERSON.—The term ‘‘foreign per- 4 son’’ means any person that is not a United States 5 person. 6 (4) KNOWINGLY.—The term ‘‘knowingly’’, with 7 respect to conduct, a circumstance, or a result, 8 means that a person has actual knowledge, or should 9 have known, of the conduct, the circumstance, or the 10 result. 11 (5) INTELLECTUAL PROPERTY.—The term ‘‘in- 12 tellectual property’’ means— 13 (A) any work protected by a copyright 14 under title 17, United States Code; 15 (B) any property protected by a patent 16 granted by the United States Patent and 17 Trademark Office under title 35, United States 18 Code; 19 (C) any word, name, symbol, or device, or 20 any combination thereof, that is registered as a 21 trademark with the United States Patent and 22 Trademark Office under the Act entitled ‘‘An 23 Act to provide for the registration and protec- 24 tion of trademarks used in commerce, to carry 25 VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2594.IH H2594 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 2594 IH out the provisions of certain international con- 1 ventions, and for other purposes’’, approved 2 July 5, 1946 (commonly known as the 3 ‘‘Lanham Act’’ or the ‘‘Trademark Act of 4 1946’’) (15 U.S.C. 1051 et seq.); 5 (D) a trade secret (as defined in section 6 1839 of title 18, United States Code); or 7 (E) any other form of intellectual property. 8 (6) TECHNOLOGY.—The term ‘‘technology’’ in- 9 cludes goods or services relating to information sys- 10 tems, internet-based services, production-enhancing 11 logistics, robotics, artificial intelligence, bio- 12 technology, or computing. 13 (7) UNITED STATES PERSON.—The term 14 ‘‘United States person’’ means— 15 (A) a United States citizen or an alien law- 16 fully admitted for permanent residence to the 17 United States; or 18 (B) an entity organized under the laws of 19 the United States or of any jurisdiction within 20 the United States, including a foreign branch of 21 such an entity. 22 SEC. 3. SENSE OF CONGRESS. 23 It is the sense of Congress that— 24 VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2594.IH H2594 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 2594 IH (1) while the United States is committed to 1 promoting cultural and technological exchange with 2 other countries, it is our responsibility to protect the 3 United States when channels for such exchange are 4 exploited by adversaries; and 5 (2) the People’s Republic of China consistently 6 seeks to exploit those channels, not only in its theft 7 of intellectual property but also in its manipulation 8 of lawful transfer and uses of technology in ways 9 that directly support its military objectives and 10 threaten the United States. 11 SEC. 4. CONTROL OF EXPORT OF COVERED NATIONAL IN- 12 TEREST TECHNOLOGY AND INTELLECTUAL 13 PROPERTY TO PEOPLE’S REPUBLIC OF 14 CHINA. 15 (a) IN GENERAL.—On and after the date that is 180 16 days after the date of the enactment of this Act, the Presi- 17 dent shall control the export or re-export to, or transfer 18 in, the People’s Republic of China of any covered national 19 interest technology or intellectual property subject to the 20 jurisdiction of the United States or exported by any 21 United States person. 22 (b) REPORT REQUIRED.—Not later than 90 days 23 after the date of the enactment of this Act, the Secretary 24 of State and the Secretary of Commerce shall jointly sub- 25 VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2594.IH H2594 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 2594 IH mit to Congress a report assessing whether covered na- 1 tional interest technology or intellectual property should 2 be controlled as required by subsection (a) under— 3 (1) the International Traffic in Arms Regula- 4 tions under subchapter M of chapter I of title 22, 5 Code of Federal Regulations; or 6 (2) the Export Administration Regulations 7 under subchapter C of chapter VII of title 15, Code 8 of Federal Regulations. 9 (c) REGULATIONS.—Not later than 180 days after 10 the date of the enactment of this Act, the President shall 11 prescribe such regulations as are necessary to carry out 12 subsection (a). 13 SEC. 5. IMPOSITION OF SANCTIONS WITH RESPECT TO PRO- 14 VISION TO OR PURCHASE FROM PEOPLE’S 15 REPUBLIC OF CHINA OF COVERED NATIONAL 16 INTEREST TECHNOLOGY AND INTELLECTUAL 17 PROPERTY. 18 (a) IN GENERAL.—The President shall, pursuant to 19 the International Emergency Economic Powers Act (50 20 U.S.C. 1701 et seq.), block and prohibit all transactions 21 in all property and interests in property of a person de- 22 scribed in subsection (b) if such property and interests in 23 property are in the United States, come within the United 24 VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2594.IH H2594 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 2594 IH States, or are or come within the possession or control 1 of a United States person. 2 (b) PERSONS DESCRIBED.—A person described in 3 this subsection is— 4 (1) a foreign person that, on or after the date 5 of the enactment of this Act, knowingly sells or oth- 6 erwise provides to, or knowingly purchases from, the 7 People’s Republic of China any covered national in- 8 terest technology or intellectual property subject to 9 the jurisdiction of the United States; or 10 (2) a Chinese person that, on or after such date 11 of enactment, knowingly uses covered national inter- 12 est technology or intellectual property provided to 13 the Chinese person in violation of section 4 or any 14 other export control law of the United States. 15 (c) EXCEPTION RELATING TO IMPORTATION OF 16 GOODS.— 17 (1) IN GENERAL.—The requirement to block 18 and prohibit all transactions in all property and in- 19 terests in property under subsection (a) shall not in- 20 clude the authority to impose sanctions on the im- 21 portation of goods. 22 (2) GOOD DEFINED.—In this subsection, the 23 term ‘‘good’’ means any article, natural or man- 24 made substance, material, supply or manufactured 25 VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2594.IH H2594 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 2594 IH product, including inspection and test equipment, 1 and excluding technical data. 2 (d) WAIVER.—The President may waive the imposi- 3 tion of sanctions under subsection (a) with respect to a 4 person if the President determines and reports to Con- 5 gress that the waiver is in the national security interests 6 of the United States. 7 (e) IMPLEMENTATION; PENALTIES.— 8 (1) IMPLEMENTATION.—The President may ex- 9 ercise all authorities provided under sections 203 10 and 205 of the International Emergency Economic 11 Powers Act (50 U.S.C. 1702 and 1704) to carry out 12 this section. 13 (2) PENALTIES.—A person that violates, at- 14 tempts to violate, conspires to violate, or causes a 15 violation of subsection (a) or any regulation, license, 16 or order issued to carry out that subsection shall be 17 subject to the penalties set forth in subsections (b) 18 and (c) of section 206 of the International Emer- 19 gency Economic Powers Act (50 U.S.C. 1705) to the 20 same extent as a person that commits an unlawful 21 act described in subsection (a) of that section. 22 (3) INAPPLICABILITY OF NATIONAL EMER- 23 GENCY REQUIREMENT.—The requirements of section 24 202 of the International Emergency Economic Pow- 25 VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2594.IH H2594 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 2594 IH ers Act (50 U.S.C. 1701) shall not apply for pur- 1 poses of this section. 2 SEC. 6. ESTABLISHMENT OF LIST OF CERTAIN PRODUCTS 3 RECEIVING SUPPORT FROM GOVERNMENT 4 OF PEOPLE’S REPUBLIC OF CHINA OR USED 5 BY THAT GOVERNMENT FOR HUMAN RIGHTS 6 VIOLATIONS. 7 (a) IN GENERAL.—Chapter 8 of title I of the Trade 8 Act of 1974 (19 U.S.C. 2241 et seq.) is amended by add- 9 ing at the end the following: 10 ‘‘SEC. 183. LIST OF CERTAIN PRODUCTS RECEIVING SUP- 11 PORT FROM GOVERNMENT OF PEOPLE’S RE- 12 PUBLIC OF CHINA OR USED BY THAT GOV- 13 ERNMENT FOR HUMAN RIGHTS VIOLATIONS. 14 ‘‘(a) IN GENERAL.—Not later than 120 days after 15 the date of the enactment of the China Technology Trans- 16 fer Control Act of 2023, and annually thereafter, the 17 United States Trade Representative shall set forth a list 18 of products manufactured or produced in, or exported 19 from, the People’s Republic of China that are determined 20 by— 21 ‘‘(1) the Trade Representative— 22 ‘‘(A) to receive support from the Govern- 23 ment of the People’s Republic of China pursu- 24 VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2594.IH H2594 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 2594 IH ant to the Made in China 2025 Industrial policy 1 of that Government; or 2 ‘‘(B) to otherwise receive support from 3 that Government and that have or will in the 4 future displace net exports of like products by 5 the United States; or 6 ‘‘(2) the Secretary of State to be used by the 7 Government of the People’s Republic of China to 8 carry out violations of human rights or religious lib- 9 erties. 10 ‘‘(b) IDENTIFICATION OF PRODUCTS RECEIVING 11 SUPPORT PURSUANT TO MADE IN CHINA 2025 POLICY.— 12 ‘‘(1) IN GENERAL.—The Trade Representative 13 shall include in the list under subsection (a)(1)(A) 14 any product specified in the following documents set 15 forth by the Government of the People’s Republic of 16 China: 17 ‘‘(A) Notice on Issuing Made in China 18 2025. 19 ‘‘(B) China Manufacturing 2025. 20 ‘‘(C) Notice on Issuing the 13th Five-year 21 National Strategic Emerging Industries Devel- 22 opment Plan. 23 VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2594.IH H2594 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 2594 IH ‘‘(D) Guiding Opinion on Promoting Inter- 1 national Industrial Capacity and Equipment 2 Manufacturing Cooperation. 3 ‘‘(E) Any other document that expresses a 4 national strategy or stated goal in connection 5 with the Made in China 2025 industrial policy 6 set forth by the Government of the People’s Re- 7 public of China, the Communist Party of China, 8 or another entity or individual capable of im- 9 pacting the national strategy of the People’s 10 Republic of China. 11 ‘‘(2) INCLUDED PRODUCTS.—In addition to 12 such products as the Trade Representative shall in- 13 clude pursuant to paragraph (1) in the list under 14 subsection (a)(1)(A), the Trade Representative shall 15 include products in the following industries: 16 ‘‘(A) Civil aircraft. 17 ‘‘(B) Turbine engines. 18 ‘‘(C) Motor car and vehicle. 19 ‘‘(D) Advanced medical equipment. 20 ‘‘(E) Advanced construction equipment. 21 ‘‘(F) Agricultural machinery. 22 ‘‘(G) Railway equipment. 23 ‘‘(H) Diesel locomotive. 24 ‘‘(I) Moving freight. 25 VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H2594.IH H2594 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 2594 IH ‘‘(J) Semiconductor. 1 ‘‘(K) Lithium battery manufacturing. 2 ‘‘(L) Artificial intelligence. 3 ‘‘(M) High-capacity computing. 4 ‘‘(N) Quantum computing. 5 ‘‘(O) Robotics. 6 ‘‘(P) Biotechnology.’’. 7 (b) CLERICAL AMENDMENT.—The table of contents 8 for the Trade Act of 1974 is amended by inserting after 9 the item relating to section 182 the following: 10 ‘‘Sec. 183. List of certain products receiving support from Government of Peo- ple’s Republic of China or used by that Government for human rights violations.’’. Æ VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6301 E:\BILLS\H2594.IH H2594 kjohnson on DSK79L0C42PROD with BILLS