Presumption of denial for licenses for export, reexport, or in-country transfer of technology to end users in the People's Republic of China or the Russian Federation

Section 1756 of the Export Control Reform Act of 2018 (50 U.S.C. 4815) is amended by adding at the end the following:

(e)

Presumption of denial for licenses for export, reexport, or in-Country transfer of technology To end users in the People's Republic of China or the Russian Federation

(1)

In general

Except as provided by paragraph (2), the Secretary shall deny an application for a license or other authorization for the export, reexport, or in-country transfer of technology if the end user of the technology is a covered person. (2)

Congressional notification and review process

(A)

In general

Before approving an application for a license or other authorization described in paragraph (1), the Secretary shall submit to the appropriate congressional committees a report— (i)specifying the intended end user of the technology that is the subject of the application; (ii)specifying the dollar value of the technology; (iii)describing the technology; (iv)describing the proposed end use of the technology; (v)describing how authorizing the export, reexport, or in-country transfer of the technology to the specific end user advances the national security interests of the United States; and (vi)describing how authorizing the export, reexport, or in-country transfer of the technology to the specific user does not advance the national security interests of a covered country, including— (I)the Made in China 2025 industrial strategy of the People's Republic of China; (II)the military-civil fusion national strategy of the People’s Republic of China, including transfer of technology to any entity identified as part of that strategy, including— (aa)any college or university known as one of the Seven Sons of National Defense; (bb)any college or university that receives funding from— (AA)the People’s Liberation Army; or (BB)the Equipment Development Department, or the Science and Technology Commission, of the Central Military Commission of the People's Republic of China; (cc)any college or university in the People’s Republic of China involved in military training and education, including any such college or university in partnership with the People’s Liberation Army; (dd)any college or university in the People’s Republic of China that conducts military research or hosts dedicated military initiatives or laboratories, including such a college or university designated under the double first-class university plan; (ee)any college or university in the People’s Republic of China that is designated by the State Administration for Science, Technology, and Industry for the National Defense to host joint construction programs; (ff)any college or university in the People’s Republic of China that has launched a platform for military-civil fusion or created national defense laboratories; (gg)any college or university in the People’s Republic of China that conducts research or hosts dedicated initiatives or laboratories for any other related security entity beyond the People’s Liberation Army, including the People’s Armed Police, the Ministry of Public Security, and the Ministry of State Security; (hh)any enterprise for which the majority shareholder or ultimate parent entity is the Government of the People’s Republic of China at any level of that government; (ii)any privately owned company in the People’s Republic of China that— (AA)has received a military production license, such as the Weapons and Equipment Research and Production Certificate, the Equipment Manufacturing Unit Qualification, the Weapons and Equipment Quality Management System Certificate, or the Weapons and Equipment Research and Production Unit Classified Qualification Permit; (BB)is otherwise known to materially support the military initiatives of the People’s Republic of China; (CC)has a history of subcontracting for the People’s Liberation Army or its affiliates; (DD)is participating in, or receiving benefits under, a military-civil fusion demonstration base; or (EE)has an owner, director, or a senior management official who has served as a delegate to the National People’s Congress, a member of the Chinese People’s Political Consultative Conference, or a member of the Central Committee of the Chinese Communist Party; or (III)the Science and Technology Foresight 2030 policy of the Russian Federation, including transfer of technology to any entity identified as part of that strategy, including— (aa)the Advanced Research Foundation; (bb)the Era Military Innovation Technopolis; (cc)any college or university that receives funding from the Ministry of Defense of the Russian Federation; (dd)any entity for which the majority shareholder or ultimate parent entity is the Government of the Russian Federation at any level of that government; or (ee)any privately owned company in the Russian Federation that— (AA)is otherwise known to materially support the military initiatives of the Russian Federation; or (BB)has subcontracted for the Ministry of Defense of the Russian Federation or its affiliates. (B)

Limitation on approval during review period

The Secretary may not approve an application for a license or other authorization described in paragraph (1) during the 30-day period beginning on the date on which the appropriate congressional committees receive the report required by subparagraph (A) unless the Secretary, in the report— (i)states that the Secretary has determined that a pressing national security imperative exists, such that the national security interests of the United States necessitate the immediate approval of the license or other authorization; and (ii)provides a detailed justification for that determination, including— (I)a description of the emergency circumstances that necessitate the immediate approval of the license or other authorization; and (II)a discussion of the national security interests involved. (C)

Prohibition on approval if joint resolution of disapproval enacted

The Secretary may not approve an application for a license or other authorization described in paragraph (1) if, during the 30-day period described in subparagraph (B), there is enacted into law a joint resolution prohibiting the approval of the application. (D)

Consideration of joint resolution

(i)

Senate

Any joint resolution under this paragraph shall be considered in the Senate in accordance with the provisions of section 601(b) of the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94–329; 90 Stat. 765). (ii)

House of Representatives

For the purpose of expediting the consideration and enactment of joint resolutions under this paragraph, a motion to proceed to the consideration of any such joint resolution after it has been reported by the appropriate committee shall be treated as highly privileged in the House of Representatives. (iii)

Rules of house of representatives and senate

This subparagraph is enacted by Congress— (I)as an exercise of the rulemaking power of the Senate and the House of Representatives, respectively, and as such is deemed a part of the rules of each House, respectively, and supersedes other rules only to the extent that it is inconsistent with such rules; and (II)with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner, and to the same extent as in the case of any other rule of that House. (3)

Definitions

In this subsection: (A)

Appropriate congressional committees

The term appropriate congressional committees means— (i)the Committee on Banking, Housing, and Urban Affairs, the Committee on Foreign Relations, and the Select Committee on Intelligence of the Senate; and (ii)the Committee on Financial Services, the Committee on Foreign Affairs, and the Permanent Select Committee on Intelligence of the House of Representatives. (B)

Covered country

The term covered country means— (i)the People's Republic of China (including the Hong Kong Special Administrative Region and the Macau Special Administrative Region); and (ii)the Russian Federation. (C)

Covered person

The term covered person means— (i)an individual who is a citizen or national of a covered country; or (ii)an entity organized under the laws of a covered country or otherwise subject to the jurisdiction of the government of a covered country.