Modifications to certain procurements from certain Chinese entities

(a) Modification of prohibition on Department of Defense procurement related to entities identified as Chinese military companies operating in the United States (1) Prohibition on use of loan or grant funds (A) In general Subsection (a)(1) of section 805 of the National Defense Authorization Act for Fiscal Year 2024 (Public Law 118–31; 10 U.S.C. 4651 note prec.) is amended— (i) in subparagraph (A), by striking; or and inserting a semicolon; (ii) in subparagraph (B), by striking the period at the end and inserting; or; and (iii) by adding at the end the following new subparagraph: (C) obligate or expend loan or grant funds to procure or obtain goods and services produced or developed by an entity described in paragraph (2).. (B) Applicability The requirements of subparagraph (C) of section 805(a)(1) of the National Defense Authorization Act for Fiscal Year 2024 (Public Law 118–31; 10 U.S.C. 4651 note prec.), as added by this paragraph, shall apply with respect to loan or grant funds obligated or expended on or after the date of the enactment of this Act. (2) Expansion of entities covered Subsection (a)(2) of such section is amended— (A) in subparagraph (A), by striking; or and inserting a semicolon; (B) in subparagraph (B), by striking the period at the end and inserting; or; and (C) by adding at the end the following new subparagraph: (C) any entity for which the Secretary has submitted a certification to the congressional defense committees for inclusion in this paragraph for national security reasons.. (3) Waiver reporting Subsection (c) of such section is amended by adding at the end the following new paragraph: (4) Reporting The Secretary of Defense shall submit to the congressional defense committees an annual report on waivers granted under this subsection, including the justifications for such waivers.. (4) Rulemaking Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall amend the Department of Defense Supplement to the Federal Acquisition Regulation to implement the prohibitions in section 805 of the National Defense Authorization Act for Fiscal Year 2024 (Public Law 118–31; 10 U.S.C. 4651 note prec.), as amended by this subsection. (b) Designation of certain biotechnology entities as Chinese military companies (1) In general Not later than 180 days after the date of enactment of this Act, the Secretary of Defense shall update the list maintained by the Department of Defense in accordance with section 1260H(b) of the National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283; 10 U.S.C. 113 note) to include biotechnology entities (including any subsidiary, parent, affiliate, or successor of such an entity) engaged in DNA and RNA assembly, synthesis, and manufacturing. (2) Definitoins In this subsection: (A) The term DNA and RNA assembly, synthesis, and manufacturing means the chemical or biological production of RNA and DNA molecules through enzymatic methods or chemical synthesis and involving the construction of longer sequences or entire genomes from smaller DNA or RNA fragments, commonly used in medical research, synthetic biology, gene therapy, and vaccine development. (B) The term biotechnology entity has the meaning given in section 1312(b) of the National Defense Authorization Act for Fiscal Year 2024 (Public Law 118–31). (c) Modification of prohibition on availability of funds for procurement of certain batteries Subsection (b) of section 154 of the National Defense Authorization Act for Fiscal Year 2024 (Public Law 118–31; 10 U.S.C. note preceding section 44651) is amended— (1) by redesignating paragraphs (2) through (7) as paragraphs (3) through (8), respectively; (2) by inserting after paragraph (1) the following: (2) Amperex Technology Limited (also known as ATL).; and (3) by amending paragraph (8) as redesignated by striking paragraphs (1) through (6) and inserting paragraphs (1) through (7).