This bill provides statutory authority for specified provisions related to the denial of export privileges, and it requires the Department of Commerce to submit a strategy regarding how these denial orders can be better used to hold certain foreign entities accountable for the theft of U.S. intellectual property.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8831 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 8831
To codify the denial of export privileges and related provisions under
title 15, Code of Federal Regulations.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 2, 2020
Mr. Buck introduced the following bill; which was referred to the
Committee on Foreign Affairs
_______________________________________________________________________
A BILL
To codify the denial of export privileges and related provisions under
title 15, Code of Federal Regulations.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. FINDINGS.
Congress finds the following:
(1) The Founders of the United States viewed intellectual
property rights as fundamental rights that must be protected by
the government.
(2) Article I, section 8, clause 8 of the United States
Constitution affirmatively defends the individual's right to
protect intellectual property by granting Congress power ``to
promote the Progress of Science and Useful arts, by securing,
for limited Times, to Authors and Inventors, the exclusive
Right to their respective Writings and Discoveries''.
(3) The Commission on the Theft of American Intellectual
Property estimates that intellectual property theft costs the
United States economy approximately $600 billion annually.
(4) A March 1, 2019, CNBC poll found that one-in-five
United States corporations say that China has stolen
proprietary intellectual property within the last year and one-
in-three United States corporations state that China has stolen
their intellectual property within the last decade.
(5) The Commission on the Theft of American Intellectual
Property further reports that China's industrial policies call
for the ``absorption, digestion, and re-innovation of foreign
intellectual property to meet the Made in China 2025 goal of 40
percent self-sufficiency by 2020 and 75 percent by 2025''.
(6) The Chinese Government remains the world's principle
source of intellectual property theft.
(7) China engages in foreign ownership restrictions that
include joint venture requirements and administrative reviews
that pressure United States companies to transfer intellectual
property and proprietary technology to Chinese companies.
(8) China imposes harmful contractual obligations on United
States companies seeking to license their proprietary
technology to Chinese-based firms and is engaged in a
purposeful and unfair practice of acquiring United States
businesses to generate technology transfers.
(9) The Chinese Government is engaged in cyber attacks
against United States businesses, military installations, and
government entities, including the United States Office of
Personnel Management, resulting in the theft of untold
proprietary information and commercial trade secrets.
(10) China is undertaking the ``greatest intellectual
property theft in human history'' according to Secretary of
Defense Mark Esper.
(11) Congress must take bold action to combat the Chinese
Government's concerted efforts to perpetrate cyber attacks
against United States entities and steal United States
intellectual property.
(12) Denial orders are issued by the Assistant Secretary of
Commerce for Export Enforcement of the Bureau of Industry and
Security to deny the export privileges of an entity or
individual. A denial of export privileges prohibits the person
from participating in any way in any transaction subject to the
Export Administration Regulations (EAR). Furthermore, it is
unlawful for any other entity or individual to participate in
any way in an export transaction subject to the EAR with a
person subject to a denial order.
(13) On April 16, 2018, Secretary of Commerce Wilbur Ross
announced that the Bureau of Industry and Security of the
Department of Commerce had issued an order to deny the export
privileges of Zhongxing Telecommunications Equipment
Corporation of Shenzhen, China (``ZTE Corporation'') and ZTE
Kangxun Telecommunications Ltd. of Hi-New Shenzhen, China.
SEC. 2. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) denial orders are an important foreign policy tool to
use against foreign entities and individuals, especially
Chinese persons, with a pattern of violating United States
laws, especially laws relating to intellectual property; and
(2) the Department of Commerce should vigorously utilize
denial orders to hold such persons accountable.
SEC. 3. STRATEGY.
Not later than one year after the date of the enactment of this
Act, the Secretary of Commerce, in consultation with the Secretary of
State, the Secretary of Treasury, and Attorney General, shall submit to
Congress a strategy regarding how denial orders issued by the Bureau of
Industry and Security of the Department of Commerce to deny the export
privileges of foreign entities and individuals, especially entities and
individuals located in China, can be better utilized as part of a
holistic approach to hold such entities and individuals accountable for
theft of United States intellectual property.
SEC. 4. CODIFICATION OF DENIAL OF EXPORT PRIVILEGES AND RELATED
PROVISIONS UNDER TITLE 15, CODE OF FEDERAL REGULATIONS.
The provisions of part 730 of title 15, Code of Federal
Regulations, relating to general information, and section 766.25 of
such title, relating to administrative action denying export
privileges, are hereby enacted into law.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Foreign Affairs.
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