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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8043 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 8043
To impose certain sanctions relating to the People's Republic of China
and support for the Russian invasion of Ukraine, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 17, 2024
Mr. Gallagher (for himself, Mr. Panetta, Mr. Moolenaar, and Mr. Golden
of Maine) introduced the following bill; which was referred to the
Committee on Foreign Affairs
_______________________________________________________________________
A BILL
To impose certain sanctions relating to the People's Republic of China
and support for the Russian invasion of Ukraine, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``NO LIMITS Act of 2024''.
SEC. 2. FINDINGS; SENSE OF CONGRESS.
(a) Findings.--Congress finds the following:
(1) On September 30, 2022, the Office of Foreign Assets
Control of the Department of the Treasury designated People's
Republic of China entity Sinno Electronics Co. Limited (Sinno)
for providing material support to the defense industrial base
of the Russian Federation.
(2) On January 26, 2023, the Office of Foreign Assets
Control of the Department of the Treasury sanctioned People's
Republic of China entity Changsha Tianyi Space Science and
Technology Research Institute Co. LTD (Spacety China) for
providing material support to entities of the Russian
Federation involved in combat operations in Ukraine.
(3) There is clear and increasing evidence that People's
Republic of China entities continue to evade United States
sanctions to provide material support to the defense and
military industrial base of the Russian Federation.
(4) Under Executive Order 13959 (85 Fed. Reg. 73185;
related to addressing the threat from securities investments
that finance Communist Chinese military companies), the
President found that the People's Republic of China ``increases
the size of the country's military-industrial complex by
compelling civilian Chinese companies to support its military
and intelligence activities. Those companies, though remaining
ostensibly private and civilian, directly support the PRC's
military, intelligence, and security apparatuses and aid in
their development and modernization.''.
(5) Evidence of industrial support for the Russian
Federation by the People's Republic of China, combined with
inherent blurred lines between the civilian versus governmental
defense apparatus in the People's Republic of China, requires
new authorities to protect the national security of the United
States.
(b) Sense of Congress.--It is the sense of Congress that the
Russian Federation's continued invasion of Ukraine is directly enabled
by the People's Republic of China. It is therefore time for the
President to--
(1) more fully cut off financing avenues for People's
Republic of China entities providing materiel support to the
defense and related materiel sector of the economy of the
Russian Federation;
(2) more fully cut off financing avenues for People's
Republic of China entities involved in military modernization
activities;
(3) impose country-wide export control restrictions on
dual-use technology exported to the PRC over concerns of
diversion to the Russian Federation; and
(4) impose sanctions on PRC entities involved in the export
of weapons and dual-use technology to the Russian Federation,
including microelectronics, aerospace, automobiles, among
others.
SEC. 3. IMPOSITION OF SANCTIONS RELATING TO THE PEOPLE'S REPUBLIC OF
CHINA AND SUPPORT FOR RUSSIAN INVASION OF UKRAINE.
(a) In General.--On and after the date that is 90 days after the
date of the enactment of this Act, the President--
(1) may impose the sanction described in subsection (c)
with respect to a foreign person the President determines--
(A) is located or headquartered within, or is
organized under the laws of, the People's Republic of
China; and
(B) operates in the technology sector of the
economy of the Russian Federation, the defense and
related materiel sector of such economy, or any other
sector of such economy as may be determined by the
Secretary of the Treasury or the Secretary of State, as
the case may be; and
(2) may impose the sanction described in subsection (c)
with respect to a foreign person the President determines that,
in acting for or on behalf of, or for the benefit of, directly
or indirectly, the armed forces or intelligence services of the
People's Republic of China, is responsible for or engages in--
(A) malicious cyber-enabled activities;
(B) the production, or research and development, of
dual-use technology or defense or related materiels; or
(C) facilitating the evasion, circumvention, or
direct violation of United States export controls or
sanctions.
(b) People's Republic of China Military Companies Operating in
Russian Federation.--On and after the date that is 180 days after the
date of the enactment of this Act, the President shall impose the
sanctions described in subsection (c) with respect to a foreign person
that--
(1) has business operations in the Russian Federation; and
(2) is--
(A) a known Chinese military company; or
(B) a covered exporter of automobiles to the
Russian Federation.
(c) Sanction Described.--
(1) In general.--The sanction described in this paragraph
is the exercise all of the powers granted to the President
under the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.) to the extent necessary to block and
prohibit all transactions in property and interests in property
of a foreign person if such property or interests in property
are in the United States, come within the United States, or are
or come within the possession or control of a United States
person.
(2) Implementation.--The President may exercise the
authorities provided to the President under sections 203 and
205 of the International Emergency Economic Powers Act (50
U.S.C. 1702 and 1704) to the extent necessary to carry out this
section.
(3) Penalties.--The penalties provided for in subsections
(b) and (c) of section 206 of the International Emergency
Economic Powers Act (50 U.S.C. 1705) shall apply to any person
who violates, attempts to violate, conspires to violate, or
causes a violation of any prohibition of this section, or an
order or regulation prescribed under this section, to the same
extent that such penalties apply to a person that commits an
unlawful act described in subsection section 206(a) of such Act
(50 U.S.C. 1705(a)).
(4) Exceptions.--
(A) Exception for intelligence and law enforcement
actions.--Sanctions under this section shall not apply
with respect to--
(i) any activity subject to the reporting
requirements under title V of the National
Security Act of 1947 (50 U.S.C. 3091 et seq.);
or
(ii) any authorized intelligence or law
enforcement activities of the United States.
(B) Exception relating to importation of goods.--
(i) In general.--The authorities and
requirements to impose sanctions authorized
under this section shall not include the
authority or requirement to impose sanctions on
the importation of goods.
(ii) Good defined.--In this subparagraph,
the term ``good'' means any article, natural or
manmade substance, material, supply or
manufactured product, including inspection and
test equipment, and excluding technical data.
(d) Waivers.--The President may waive the application of sanctions
under this section with respect to a foreign person for renewable
periods of not more than 90 days each if the President determines and
reports to Congress that such a waiver is vital to the national
interests of the United States.
(e) Definitions.--In this section:
(1) Business operations.--The term ``business operations''
means any participation by any person in a commercial
enterprise or venture, or participation in any association,
institution, organization, or entity, whether of a commercial
nature or otherwise. This includes the production,
distribution, exportation, sale of goods, or provision of
services, regardless of whether a pecuniary benefit or other
assets are derived from such participation.
(2) Foreign person.--The term ``foreign person'' means any
person that is not a United States person.
(3) Knowingly.--The term ``knowingly'', with respect to
conduct, a circumstance, or a result, means that a person has
actual knowledge, or should have known, of the conduct, the
circumstance, or the result (as the case may be).
(4) Person.--The term ``person'' means an individual or
entity.
(5) United states person.--The term ``United States
person'' means any United States citizen, permanent resident
alien, an entity organized under the laws of the United States
or any jurisdiction within the United States (including a
foreign branch of such an entity), or any person in the United
States.
(6) Covered exporter of automobiles.--The term ``covered
exporter of automobiles'' means any of the following persons:
(A) Chery International.
(B) Haval.
(C) Great Wall Motors.
(D) Changan International.
(E) Chery Automobile.
(F) any subsidiary, affiliate, or successor of the
entities in subparagraph (A), (B), (C), (D), or (E).
(7) Known chinese military company.--The term ``known
Chinese military company'' means any of the following persons:
(A) Aviation Industry Corporation of China Ltd
(AVIC).
(B) 360 Security Technology Inc. (Qihoo 360).
(C) Advanced Micro-Fabrication Equipment Inc. China
(AMEC).
(D) Aerospace CH UAV Co., Ltd (S-SEA).
(E) Beijing Megvii Technology Co., Ltd. (Megvii).
(F) BGI Genomics Co. Ltd. (BGI).
(G) MGI Co. Ltd. (MGI).
(F) China Aerospace Science and Industry
Corporation Limited (CASIC).
(G) China Electronics Corporation (CEC).
(H) China Construction Technology Co. Ltd (CCTC).
(I) China Communications Construction Group (CCCG).
(J) China Construction Technology Co. Ltd (CCTC).
(K) China Electronics Technology Group Corporation
(CETC).
(L) Hangzhou Hikvision Digital Technology Co. Ltd
(Hikvision).
(M) China General Nuclear Power Corporation (CGN).
(N) China Mobile Communications Group Co. Ltd.
(China Mobile Comm).
(O) China National Chemical Corporation
(ChemChina).
(P) China National Offshore Oil Corporation
(CNOOC).
(Q) China National Nuclear Corporation (CNNC).
(R) China Railway Construction Corporation Limited
(CRCC).
(S) China South Industries Group Corporation
(CRCC).
(T) China State Construction Engineering
Corporation Limited (CSCEC).
(U) China State Shipbuilding Corporation Limited
(CSSC).
(V) China Telecom Group Co, Ltd. (China Telecom).
(W) China Three Gorges Corporation (CTG).
(X) China United Network Communications Group Co.
Ltd (China Unicom).
(Y) CloudWalk Technology Co. Ltd (CloudWalk).
(Z) Dawning Information Industry Co. Ltd (Sugon).
(AA) Hesai Technology Co. Ltd (Hesai).
(BB) Huawei Technologies Co. Ltd (Huawei).
(CC) Inspur Group Partners Co. Ltd (IDG Capital).
(DD) Semiconductor Manufacturing International
Corporation (SMIC).
(EE) Shenzhen DJI Innovation Technology Co. Ltd
(DJI).
(FF) Yangtze Memory Technologies Co., Ltd. (YMTC).
(GG) Zhejiang Dahua Technology Co., Ltd (Dahua).
(HH) AVIC Senyang Aircraft Co., Ltd.
(II) Autel Robotics Co. Ltd (Autel).
(JJ) AVIC Heavy Machinery Company Limited.
(KK) AVIC Xi'An Aircraft Industry Group Company
Ltd.
(LL) ChangXin Memory Technologies (CXMT).
(MM) Dahua Technology.
(NN) Zhejiang Uniview Technologies.
(OO) Guizhou Guihang Automotive Components Co.,
Ltd.
(PP) Changying Xinzhi Technology Co., Ltd.
(QQ) Sichuan Northern Nitrocellulose Co., Ltd.
(RR) Northern Chemistry Industry Co., Ltd.
(SS) Any subsidiary, affiliate, or successor of
entities in subparagraphs (A) through (RR).
(f) Rules of Construction.--Nothing in this section may be
construed to limit the authority of the President to designate or
sanction persons pursuant to an applicable Executive order or otherwise
pursuant to the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.).
SEC. 4. DETERMINATION OF SANCTIONS ON ARMS MANUFACTURERS OF THE
PEOPLE'S REPUBLIC OF CHINA ENGAGED IN OVERSEAS WEAPONS
SALES.
(a) Determination.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of the Treasury, in consultation
with the Secretary of State, and the Secretary of Defense, shall submit
to the appropriate congressional committees a determination of whether,
for each covered person, that covered person meets the criteria for the
imposition of the sanction described in section 3(c).
(b) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Affairs, the Permanent
Select Committee on Intelligence, and the Select
Committee on the Strategic Competition Between the
United States and the Chinese Communist Party of the
House of Representatives; and
(B) the Committee on Foreign Relations, the
Committee on Banking, Housing, and Urban Affairs, and
the Select Committee on Intelligence of the Senate.
(2) Covered person.--The term ``covered person'' means any
of the following persons:
(A) China North Industries Group Corporation.
(B) Aviation Industry Corporation of China.
(C) China Electronics Technology Group Corporation.
(D) China South Industries Group Corporation.
(E) China Aerospace Science and Industry
Corporation.
(F) China General Nuclear Power Group.
(G) China National Nuclear Corporation.
(H) China State Shipbuilding Corporation.
SEC. 5. CLASSIFYING THE PEOPLE'S REPUBLIC OF CHINA AT HIGH RISK OF
FACILITATING DIVERSION OF UNITED STATES TECHNOLOGY TO THE
RUSSIAN FEDERATION.
(a) In General.--Section 1754 of the Export Control Reform Act of
2018 (50 U.S.C. 4813) is amended--
(1) by redesignating subsections (d), (e), and (f) as
subsections (e), (f), and (g), respectively; and
(2) by inserting after subsection (c) the following:
``(d) Anti-Diversion Controls Relating to the People's Republic of
China.--
``(1) In general.--A license shall be required for the
export, reexport, or in-country transfer of items described in
paragraph (2), the control of which is implemented pursuant to
subsection (a) by the Secretary, to--
``(A) the People's Republic of China; or
``(B) any other foreign country the Secretary of
State, in consultation with the Secretary of Defense,
determines is facilitating the diversion of technology
or defense-related materials that are contributing
materially to the ability of the Government of Russia
to undertake military action in Ukraine.
``(2) Items described.--The items described in this
paragraph--
``(A) are items that the Secretary of Defense, in
consultation with the Secretary of Commerce, the
Secretary of State, and the Secretary of Energy,
determines could make a contribution to the military
potential or logistical capability of the Russian
Federation and are at risk of diversion to the Russian
Federation or affiliates through the People's Republic
of China; and
``(B) items that directly or indirectly relate to--
``(i) semiconductors;
``(ii) sensors and lasers;
``(iii) aviation and propulsion;
``(iv) materials processing; or
``(v) other technologies, as defined by the
Secretary of Defense, in consultation with the
Secretary of Commerce, the Secretary of State,
and the Secretary of Energy.
``(3) Rebuttable presumption.--The Secretary shall deny a
license described in paragraph (1) for the export, reexport, or
in-country transfer of an item described in paragraph (2)
unless the person seeking to export the item submits to the
Secretary such documentation as the Secretary may reasonably
require that demonstrates by clear and convincing evidence that
the export of the item will not pose a threat to the national
security of the United States.
``(4) Applications of licensing requirements to
subsidiaries.--Any licensing requirement applied to a PRC or
Russian entity by reason of the entity being included on the
entity list shall also apply to any subsidiary or other entity
over which the listed entity has control.''.
SEC. 6. REGULATIONS.
Not later than 90 days after the date of the enactment of this Act,
the Secretary of Commerce, the Secretary of Defense, and the Secretary
of State, shall issue such regulations as may be necessary to carry out
this Act and the amendments made by this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Foreign Affairs.
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