Imposition of sanctions related to the theft of intellectual property

(a)

In general

The President shall impose the sanctions described in subsection (b) with respect to each person described in subsection (c) the President determines, on or after the date of enactment of this Act, operates in a sector of the People’s Republic of China’s economy in which the person—(1)has engaged in a pattern of significant theft of the intellectual property of a United States person; or(2)has received the intellectual property of a United States person through a pattern of significant theft engaged in by other persons.(b)

Sanctions imposed

The sanctions described in this subsection are the following:(1)

Asset blocking

The exercise of all powers granted to the President by the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all transactions in all property and interests in property of a person described in subsection (a) if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person. (2)

Aliens ineligible for visas, admission, or parole

(A)

Visas, admission, or parole

An alien described in subsection (a) is—(i)inadmissible to the United States; (ii)ineligible to receive a visa or other documentation to enter the United States; and (iii)otherwise ineligible to be admitted or paroled into the United States or to receive any other benefit under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.). (B)

Current visas revoked

(i)

In general

The issuing consular officer, the Secretary of State, or the Secretary of Homeland Security (or a designee of one of such Secretaries) shall, in accordance with section 221(i) of the Immigration and Nationality Act (8 U.S.C. 1201(i)), revoke any visa or other entry documentation issued to an alien who the Secretary of State or the Secretary of Homeland Security (or a designee of one of such Secretaries) determines is described in subsection (a), regardless of when the visa or other documentation is issued. (ii)

Effect of revocation

A revocation under clause (i) shall take effect immediately and shall automatically cancel any other valid visa or entry documentation that is in the alien’s possession. (c)

Persons described

A person described in this section is one of the following:(1)An individual who—(A)is a national of the People’s Republic of China or acting at the direction of a national or entity of the People’s Republic of China; and (B)is not a United States person.(2)An entity that is—(A)organized under the laws of the People’s Republic of China or of any jurisdiction within the People’s Republic of China; (B)owned or controlled by individuals who are nationals of the People’s Republic of China; or (C)owned or controlled by an entity described in subparagraph (A) and is not a United States person. (d)

Penalties; implementation

(1)

Penalties

A person that violates, attempts to violate, conspires to violate, or causes a violation of subsection (a) or any regulation, license, or order issued to carry out subsection (a) shall be subject to the penalties set forth in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) to the same extent as a person that commits an unlawful act described in subsection (a) of that section. (2)

Implementation

The President may exercise all authorities provided to the President under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) for purposes of carrying out this section. (e)

Waiver

The President may waive the imposition of sanctions under subsection (a) on a case-by-case basis with respect to a person if the President—(1)certifies to the Committee on Foreign Affairs and the Committee on the Judiciary of the House of Representatives and the Committee on Foreign Relations and the Committee on the Judiciary of the Senate that such waiver is in the national security interests of the United States; and (2)includes a justification for such certification.(f)

Termination of sanctions

The President may terminate sanctions imposed under subsection (a) with respect to a person if the President certifies to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate that such person is no longer engaging in efforts to steal United States intellectual property. (g)

Report required

Not later than 180 days after the date of the enactment of this Act, the President shall submit to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate a report that specifies each person the President determines meets the criteria described in subsection (a) for the imposition of sanctions. (h)

Definitions

In this section—(1)the terms admitted and alien have the meanings given those terms in section 101 of the Immigration and Nationality Act (8 U.S.C. 1101); and(2)the term United States person means—(A)an individual who is a United States citizen or an alien lawfully admitted for permanent residence to the United States; or (B)an entity organized under the laws of the United States or of any jurisdiction within the United States.

Restriction on issuance of visas

(a)

Restriction

The Secretary of State may not issue a visa to, and the Secretary of Homeland Security shall deny entry to the United States of, each of the following: (1)Senior officials in the Chinese Communist Party, including the Politburo, the Central Committee, and each delegate to the 19th National Congress of the Chinese Communist Party. (2)The spouses and children of the senior officials described in paragraph (1). (3)Members of the cabinet of the Government of the People’s Republic of China. (4)Active duty members of the People’s Liberation Army of China. (b)

Applicability

The restriction under subsection (a) shall not apply for any year in which the Director of National Intelligence certifies to the Committee on the Judiciary of the House of Representatives and the Committee on the Judiciary of the Senate that the Government of the People’s Republic of China has ceased sponsoring, funding, facilitating, and actively working to support efforts to infringe on the intellectual property rights of citizens and companies of the United States. (c)

Report required

Not later than 180 days after the date of the enactment of this Act, the Secretary of State shall submit to Congress a report that—(1)details the efficacy of visa screening mechanisms to mitigate intellectual property theft by the People’s Republic of China; and(2)includes a list of research institutions associated with the People’s Liberation Army and the Ministry of State Security of the People’s Republic of China.