PRC Sanctions Task Force

(a) Establishment Not later than 180 days after the date of the enactment of this Act, the Coordinator for Sanctions of the Department of State and the Director of the Office of Foreign Assets Control of the Department of the Treasury, in coordination with the Director of National Intelligence and the heads of other Federal agencies, as appropriate, shall establish an interagency task force to identify military and non-military entities that could be subject to sanctions or other economic actions imposed by the United States immediately following any action taken by the PRC that demonstrates an attempt to achieve, or has the significant effect of achieving, the physical or political control of Taiwan, including by taking any of the actions described in paragraphs (1) through (4) of section 2. (b) Strategy Not later than 180 days after the establishment of the PRC Sanctions Task Force, the Task Force shall provide a briefing to the appropriate congressional committees for identifying proposed targets for sanctions or other economic actions referred to in subsection (a), which shall— (1) assess how existing sanctions programs could be used to impose sanctions with respect to entities identified by the Task Force; (2) develop or propose, as appropriate, new sanctions authorities that might be required to impose sanctions with respect to such entities; (3) analyze the potential economic consequences to the United States, and to allies and partners of the United States, of imposing various types of such sanctions with respect to such entities; (4) assess measures that could be taken to mitigate the consequences referred to in paragraph (3), including through the use of licenses, exemptions, carve-outs, and other approaches; (5) include coordination with allies and partners of the United States— (A) to leverage sanctions and other economic tools including actions targeting the PRC’s financial and industrial sectors to deter or respond to aggression against Taiwan; (B) to identify and resolve potential impediments to coordinating sanctions-related efforts or other economic actions with respect to responding to or deterring aggression against Taiwan; (C) to identify industries, sectors, or goods and services where the United States and allies and partners of the United States can take coordinated action through sanctions or other economic tools that will have a significant negative impact on the economy of the PRC; and (D) to coordinate actions with partners and allies to provide economic support to Taiwan and other countries being threatened by the PRC, including measures to counter economic coercion by the PRC; (6) assess the resource gaps and needs at the Department of State, the Department of the Treasury, the Department of Commerce, the United States Trade Representative, and other Federal agencies, as appropriate, to most effectively use sanctions and other economic tools to respond to the threats posed by the PRC; (7) recommend how best to target sanctions and other economic tools against individuals, entities, and economic sectors in the PRC, which shall take into account— (A) the role of such targets in supporting policies and activities of the Government of the PRC, or of the Chinese Communist Party, that pose a threat to the national security or foreign policy interests of the United States; (B) the negative economic implications of such sanctions and tools for the Government of the PRC, including its ability to achieve its objectives with respect to Taiwan; and (C) the potential impact of such sanctions and tools on the stability of the global financial system, including with respect to— (i) state-owned enterprises; (ii) officials of the Government of the PRC and of the Chinese Communist Party; (iii) financial institutions associated with the Government of the PRC; and (iv) companies in the PRC that are not formally designated by the Government of the PRC as state-owned enterprises; and (8) identify any foreign military or non-military entities that would likely be used to achieve the outcomes specified in section 2, including entities in the shipping, logistics, energy (including oil and gas), maritime, aviation, ground transportation, and technology sectors.