[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5050 Introduced in Senate (IS)]
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117th CONGRESS
2d Session
S. 5050
To impose sanctions on certain foreign flash memory integrated circuit
companies that threaten the interests of the United States.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 29, 2022
Mr. Cotton introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To impose sanctions on certain foreign flash memory integrated circuit
companies that threaten the interests of the United States.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Defending Memory Chip Supply Chains
from the Chinese Communist Party Act''.
SEC. 2. IMPOSITION OF SANCTIONS ON CERTAIN FOREIGN ENTITIES.
(a) In General.--
(1) Asset blocking.--On and after the date that is 30 days
after the date of the enactment of this Act, the President
shall exercise all the powers granted to the President under
the International Emergency Economic Powers Act (50 U.S.C. 1701
et seq.) to the extent necessary to block and prohibit all
significant transactions in property and interests in property
of an entity described in subsection (b), if such property and
interests in 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) Determination of significance.--For the purposes of
this subsection, in determining if transactions are
significant, the President may consider the totality of the
facts and circumstances, including the factors set forth in
section 561.404 of title 31, Code of Federal Regulations (or
any corresponding similar regulation or ruling).
(3) Rule of construction.--For purposes of this section,
participation in an international standards-setting
organization or in the activities of such an organization may
not be construed to be transactions.
(b) Entities Affiliated With a Country of Concern Described.--An
entity is described in this subsection if the entity is--
(1) Yangtze Memory Technologies Corporation (YMTC), any of
its subsidiaries, or any company in which YMTC or its
subsidiaries own at least 5 percent; or
(2) an entity--
(A) that is engaged in the production of flash
memory integrated circuits of at least 128 layers; and
(B)(i) that receives or has received subsidies or
investments from any national, provincial, county,
municipal, or other government, quasi-government, or
party body of a country of concern, including the
Chinese Communist Party;
(ii) that has links to the sale, transfer, or
research and development of technology for the Armed
Forces of a country of concern, including the People's
Liberation Army;
(iii) that is directly or indirectly owned or
controlled by the government or ruling party of a
country of concern or by another entity described in
this subsection;
(iv) five percent or more of the outstanding voting
stock or shares of which are owned, controlled, or held
by the government or ruling party of a country of
concern or by another entity described in this
subsection;
(v) that is subject to substantial influence from
either a country of concern or another entity described
in this subsection;
(vi) that is domiciled in a country of concern and
shares with another entity described in this subsection
an employee in a position of material decisionmaking
authority;
(vii) that is part of another entity that is
headquartered in a country of concern, including a
subsidiary, a holding company, a contract affiliate, or
a variable interest entity; or
(viii) that is otherwise substantially influenced
by a national of a country of concern or by another
entity domiciled in the country of concern.
(c) Exceptions.--
(1) Intelligence activities.--Sanctions under this section
shall not apply to any activity subject to the reporting
requirements under title V of the National Security Act of 1947
(50 U.S.C. 3091 et seq.) or any authorized intelligence
activities of the United States.
(2) Exception relating to importation of goods.--
(A) In general.--The authorities and requirements
to impose sanctions authorized under this section shall
not include the authority or requirement to impose
sanctions on the importation of goods.
(B) Good defined.--In this paragraph, the term
``good'' means any article, natural or manmade
substance, material, supply or manufactured product,
including inspection and test equipment, and excluding
technical data.
(d) Waiver.--The President may waive the application of sanctions
under this section with respect to a foreign person for renewable
periods of not more than 30 days each if the President determines and
reports to Congress that such a waiver is vital to the national
security interests of the United States.
(e) Implementation; Penalties.--
(1) Implementation.--The President shall exercise the
authorities provided to the President under sections 203 and
205 of the International Emergency Economic Powers Act (50
U.S.C. 1702 and 1704) to the extent necessary to carry out this
section.
(2) 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 that subsection 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.
(f) Definitions.--
(1) In general.--In this section:
(A) Country of concern.--The term ``country of
concern''--
(i) has the meaning given the term
``foreign adversary'' in section 8(c)(2) of the
Secure and Trusted Communications Networks Act
of 2019 (47 U.S.C. 1607(c)(2)); and
(ii) includes the People's Republic of
China, Russia, Iran, North Korea, Cuba, and
Venezuela.
(B) United states person.--The term ``United States
person'' means--
(i) a United States citizen or an alien
lawfully admitted for permanent residence to
the United States; or
(ii) an entity organized under the laws of
the United States or any jurisdiction within
the United States, including a foreign branch
of such an entity.
(g) Severability.--If any provision of this Act or its application
to any person or circumstance is held invalid, the invalidity does not
affect other provisions or applications of this Act that can be given
effect without the invalid provision or application, and to this end
the provisions of this Act are severable.
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