Countering Communist China Act, Title VII ("Defense"), Sec. 701 ("Emergency Sanctions Regarding Chinese Military Companies")

Summary

Mandates the exercise of emergency sanctions authorities regarding Communist Chinese military companies.

Defines affected companies as those engaged in commercial services, manufacturing, producing, or exporting in the AI sector.

Mandates emergency sanctions on specified Chinese military-affiliated companies engaged in commercial services in the AI sector.

SEC. 701. MODIFICATION TO USE OF EMERGENCY SANCTIONS AUTHORITIES REGARDING COMMUNIST CHINESE MILITARY COMPANIES.

(a) In General.—Section 1237(a)(1) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (50 U.S.C. 1701 note) is amended—

(1) by striking “may exercise” and inserting “shall exercise”;

(2) by striking clause (ii);

(3) in the matter preceding clause (i), by striking “that—” and inserting “that is engaged in providing commercial services, manufacturing, producing, or exporting and—”;

(4) in clause (i), by striking “; and” and inserting “; or”; and

(5) by adding at the end the following new clause:

“(ii) (I) is owned or controlled by, or affiliated with, the Chinese Communist Party or any person who has ever been a delegate of a National People’s Congress of the Chinese Communist Party; and

“(II) is engaged in significant investment in the sectors of fifth-generation wireless communications, artificial intelligence, advanced computing, ‘big data’ analytics, autonomy, robotics, directed energy, hypersonics, or biotechnology.”.

Segment 2

(b) Extension Of List Requirement.—Notwithstanding section 1061(i)(6) of the National Defense Authorization Act for Fiscal Year 2017 (10 U.S.C. 111 note), the submission required by subsection (b) of section 1237 of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999—

(1) shall not terminate on December 31, 2021; and

(2) shall continue in effect until December 31, 2026.