Rebuttable presumption of prohibition for foreign adversary acquisitions of general aviation companies

Section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565) is further amended by adding at the end the following: (r) Rebuttable presumption of prohibition for covered aviation transactions (1) Presumption Notwithstanding any other provision of this section, a covered aviation transaction shall be prohibited with respect to any covered aviation transaction in which the acquirer— (A) is an entity owned by, controlled by, or subject to the jurisdiction or direction of a country of concern, including any entity in which a government of a country of concern holds, directly or indirectly, a 5-percent or greater equity interest; (B) is an entity on the Non-SDN Chinese Military-Industrial Complex Companies List (NS-CMIC List) maintained by the Office of Foreign Assets Control, or any subsidiary, parent, affiliate, or successor entity thereof; (C) is an entity, based on credible evidence as determined by the Committee, that is acting as a conduit, nominee, or front company for any entity described in subparagraph (A) or (B); or (D) derives 10 percent or more of its operating income, as determined under the General Accepted Accounting Principles published by the Financial Accounting Standards Board, from an entity based in a country of concern. (2) Rebuttal The presumption established under paragraph (1) may be rebutted only by the acquirer, by clear and convincing evidence submitted to the Committee demonstrating that— (A) the transaction does not create any risk of transfer of technology, manufacturing know-how, FAA certification data, or engineering talent to a country of concern; (B) enforceable, verifiable mitigation measures exist that would prevent any such transfer; (C) the transaction does not undermine the availability or integrity of the United States civil aviation supply chain; and (D) approval of the transaction is in the national security interest of the United States. (3) No mitigation for certain entities With respect to any acquirer that is an entity listed on the NS-CMIC List or any entity in which the government of a country of concern holds, directly or indirectly, 25 percent or greater equity or voting interest, no mitigation agreement under subsection (l) shall be considered sufficient to rebut the presumption established under paragraph (1). The President may only approve such a transaction upon a written determination to Congress, included in the reporting required under subsection (m), that approval is in the paramount national security interest of the United States..