Audit of Chinese Communist Party-linked participation in Department of Defense contracts and supply chains

(a) In general The Comptroller General of the United States shall conduct an audit of the extent to which entities owned, controlled by, affiliated with, or subject to the influence of the Chinese Communist Party participate in Department of Defense contracts and supply chains. (b) Matters included The audit required under subsection (a) shall include— (1) an assessment of the extent to which covered entities participate in Department of Defense contracts as prime contractors; (2) an assessment of the extent to which covered entities participate in Department of Defense contracts as subcontractors, suppliers, affiliates, subsidiaries, or joint venture partners; (3) identification of sectors of the defense industrial base with significant exposure to covered entities; (4) an assessment of risks posed to military readiness, supply chain resilience, operational security, and national security; (5) identification of any known relationships between covered entities and the People’s Liberation Army, Chinese intelligence services, or Chinese state-owned enterprises; and (6) recommendations to reduce identified risks. (c) Report Not later than one year after the date of the enactment of this Act, the Comptroller General shall submit to the congressional defense committees a report containing the findings of the audit required under subsection (a). (d) Covered entity In this section, the term covered entity means any entity that is— (1) owned or controlled by the Government of the People’s Republic of China; (2) owned or controlled by the Chinese Communist Party; (3) identified on a list maintained pursuant to section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283); or (4) otherwise determined by the Comptroller General to be subject to the direction, ownership, control, or influence of the Chinese Communist Party.