Report on arms sales of the People’s Republic of China

(a) In general Not later than 180 days after the date of the enactment of this Act, and annually thereafter, the Secretary of Defense, in coordination with the Secretary of State, shall submit to the appropriate congressional committees a report on arms sales facilitated by entities in the People’s Republic of China. (b) Contents The report required by subsection (a) shall include an analysis of— (1) the weapons systems and defense equipment originating from the People’s Republic of China available for purchase; (2) the technical aspects and capabilities of such weapons systems and defense equipment; (3) how such weapons systems and defense equipment may impact the balance of power in the area of responsibility of each United States Combatant Command, when applicable; (4) the weapons systems and defense equipment originating from the People’s Republic of China that are considered direct alternatives to weapons systems and defense equipment originating from the United States; (5) the weapons systems and defense equipment originating from the People’s Republic of China that present the greatest security risks regarding the potential to collect intelligence on or compromise assets, weapons, or platforms of the United States; (6) the countries mostly likely to procure weapons systems and defense equipment originating from the People’s Republic of China, including the specific type, quantity, and estimated value in United States dollars of weapons, during the 1-year period following the date of the submission of the report; (7) the weapons systems and defense equipment in development as of the date of the submission of the report by entities in the People’s Republic of China that could be available on the global market not later than 5 years after such date; (8) the factors that incentivize countries to procure such weapons systems and defense equipment, including costs, flexible payment conditions and financing, a lack of end-user agreements, and speed of sale and delivery; and (9) the strategy of the People’s Republic of China regarding arms sales and variables that could influence such strategy. (c) Form (1) In general The report required by subsection (a) shall be submitted in unclassified form, but shall include a classified annex. (2) Classified annex The classified annex required by paragraph (1) shall contain— (A) an assessment by the National Intelligence Council of the contents required by subsection (b); and (B) an assessment by the Director of National Intelligence of the counterintelligence risks and risks of onward proliferation of technology and defense systems originating in the United States and created through the purchase, deployment, and use of weapons systems and defense equipment originating from the People’s Republic of China by United States allies and partners. (d) Appropriate congressional committees defined In this section, the term appropriate congressional committees means— (1) the Committee on Armed Services, the Committee on Foreign Relations, and the Select Committee on Intelligence of the Senate; and (2) the Committee on Armed Services, the Committee on Foreign Affairs, and the Permanent Select Committee on Intelligence of the House of Representatives.