Requirements relating to the Non-SDN Chinese Military-Industrial Complex Companies List

(a) Report (1) In general Not later than 365 days after the date of the enactment of this Act, and biennially thereafter for 6 years, the Secretary shall submit to the appropriate congressional committees a report that states whether any of the following foreign persons qualifies for inclusion on the Non-SDN Chinese Military-Industrial Complex Companies List: (A) Any PRC person listed on the Military End-User List (Supplement No. 7 to part 744 of the Export Administration Regulations). (B) Any PRC person listed pursuant to section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (10 U.S.C. 113 note). (C) Any PRC person listed on the Department of Commerce’s Entity List (Supplement No. 4 to part 744 of the Export Administration Regulations). (2) Process required To prepare the reports under paragraph (1), the President shall establish a process under which the Federal agencies responsible for administering the lists described in subparagraphs (A), (B), and (C) of paragraph (1) shall share with each other all relevant information that led to the identification of the entities described in such lists. (3) Risk-based prioritization framework In making the initial determinations under paragraph (1), the Secretary may establish a risk-based prioritization framework factoring in prioritization of entity review submitted to the Secretary by the Federal agencies administering the lists described in subparagraphs (A), (B), and (C) of paragraph (1). (4) Annual reports to the appropriate congressional committees The report under paragraph (1) may summarize findings concerning entities previously reviewed pursuant to this section and do not necessitate additional review by the Secretary. (5) Matters to be included The Secretary shall include in the report required by paragraph (1) an overview of the criteria required for listing on Non-SDN Chinese Military-Industrial Complex Companies List. The heads of the Federal agencies administering the lists described in subparagraphs (A), (B), and (C) of paragraph (1) shall provide an overview of the criteria for entity identification or listing on each respective list. (b) Requirement for divestment (1) In general The President shall promulgate rules that prohibit a United States person from knowingly holding securities of entities on the Non-SDN Chinese Military-Industrial Complex Companies List, after the date that is 365 days after the date of enactment of this Act. (2) Authorization The prohibitions on investment imposed under paragraph (1) shall not apply to a transaction in a security that is entered into on or before the date that is 365 days after the date of enactment of this Act by a United States person, if such transaction is entered into solely to divest of the security. (c) Waiver (1) In general The President may establish a process under which the requirements of subsection (b) shall not apply if the President determines to do so is necessary to protect the national security or foreign policy objectives of the United States. (2) Case-by-case requirement Determinations under paragraph (1) shall be issued on a case-by-case basis for each entity on the Non-SDN Chinese Military-Industrial Complex Companies List. (3) Notice and briefing The President shall notify the appropriate congressional committees in writing in advance of issuing a determination under paragraph (1) and shall provide a substantive briefing on the determination to the appropriate congressional committees within 30 days of issuing a determination. (d) Definitions In this section: (1) Appropriate congressional committees The term appropriate congressional committees means— (A) the Committee on Financial Services and the Committee on Foreign Affairs of the House of Representatives; and (B) the Committee on Banking, Housing, and Urban Affairs of the Senate. (2) Country of concern The term country of concern — (A) means the People’s Republic of China; and (B) includes the Hong Kong Special Administrative Region and the Macau Special Administrative Region. (3) Non-SDN Chinese Military-Industrial Complex Companies List The term Non-SDN Chinese Military-Industrial Complex Companies List means the list maintained by the Office of Foreign Assets Control of the Department of the Treasury under Executive Order 13959, as amended by Executive Order 14032 (50 U.S.C. 1701 note; relating to addressing the threat from securities investments that finance certain companies of the People’s Republic of China), and any successor order. (4) PRC person The term “PRC person” means a foreign person that— (A) is incorporated in a principal place of business in, or is organized under the laws of, a country of concern; (B) is a member of the Central Committee of the Chinese Communist Party; (C) is the state or the government of a country of concern, as well as any political subdivision, agency, or instrumentality thereof; or (D) is owned in the aggregate, directly or indirectly, 50 percent or more by an entity or a group of entities described in subparagraph (A), (B), or (C).