<enum>VIII</enum><header>Prohibition and notification on investments relating to covered national security transactions</header><section id="H9F32FA3D352C494AAFB4174ABC3B77EE"><enum>801.</enum><header>Prohibition on investments</header><subsection id="H79D29590CBAD4B348DC1026B21842519"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary may prohibit, in accordance with regulations issued under subsection (e), a United States person from knowingly engaging in a covered national security transaction in a prohibited technology.</text></subsection><subsection id="HB50AADD283394C15A8AEFDDA0D7C072D"><enum>(b)</enum><header>Evasion</header><text display-inline="yes-display-inline">Any transaction by a United States person or within the United States that evades or avoids, has the purpose of evading or avoiding, causes a violation of, or attempts to violate the prohibition set forth in subsection (a) is prohibited.</text></subsection><subsection id="HEA8A1534F0F040248125F7F2DED97061"><enum>(c)</enum><header>Waiver</header><text display-inline="yes-display-inline">Subject to subsection (d), the Secretary is authorized to exempt from the prohibition set forth in subsection (a) any activity determined by the President, in consultation with the Secretary, the Secretary of Commerce and, as appropriate, the heads of other relevant Federal departments and agencies, to be in the national interest of the United States.</text></subsection><subsection id="HDDB58D73781A4B4481C3B601A4761049"><enum>(d)</enum><header>Congressional notification</header><text display-inline="yes-display-inline">The Secretary shall—</text><paragraph id="H8ECFD8CC06A449D5BDCD80ED1AF97202"><enum>(1)</enum><text>notify the appropriate congressional committees not later than 5 business days after issuing a waiver under subsection (c); and</text></paragraph><paragraph id="HA575F40050924A49841C548D4FDC62C2"><enum>(2)</enum><text>include in such notification an identification of the national interest justifying the use of the waiver.</text></paragraph></subsection><subsection commented="no" id="H896F7E43B6A04EE793BCD599FC526270"><enum>(e)</enum><header>Regulations</header><paragraph commented="no" id="H264AF7A4A1734071A4041FCCA5C66C87"><enum>(1)</enum><header>In general</header><text>The Secretary, in consultation with the Secretary of Commerce and, as appropriate, the heads of other relevant Federal departments and agencies, may issue regulations to carry out this section in accordance with subchapter II of chapter 5 and <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/7">chapter 7</external-xref> of title 5, United States Code (commonly known as <quote>Administrative Procedure Act</quote>). </text></paragraph><paragraph commented="no" id="HAFFE2888A11F4A009610A3B2D845EE73"><enum>(2)</enum><header>Non-binding feedback</header><subparagraph id="HE9270AA8910A414AB612D998B02E2E25"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The regulations issued under paragraph (1) shall include a process under which a person can request non-binding feedback on a confidential basis as to whether a transaction would constitute a covered national security transaction in a prohibited technology.</text></subparagraph><subparagraph id="H5C20E9CD299341D4B6F7970B220A81FA"><enum>(B)</enum><header>Authority to limit frivolous feedback requests</header><text display-inline="yes-display-inline">In establishing the process required by subparagraph (A), the Secretary may prescribe limitations on requests for feedback identified as frivolous for purposes of this subsection.</text></subparagraph></paragraph><paragraph commented="no" id="H0FE17D17478D4BCB97F8E9E2F7E1E877"><enum>(3)</enum><header>Notice and opportunity to cure</header><subparagraph commented="no" id="HE1DCA51697D34945A433F3495518082D"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The regulations issued under paragraph (1) shall account for whether a United States person has self-identified a violation of the prohibition set forth in subsection (a) in determining the legal consequences of that violation.</text></subparagraph><subparagraph commented="no" id="H03F4127674054900A935C09B7F5357F6"><enum>(B)</enum><header>Self-disclosure letters</header><text display-inline="yes-display-inline">The regulations issued under paragraph (1) shall dictate the form and content of a letter of self-disclosure, which shall include relevant facts about the violation, why the United States person believes its activity to have violated the prohibition set forth in subsection (a), and a proposal for mitigation of the harm of such action.</text></subparagraph></paragraph><paragraph commented="no" id="H34C4422E799B459191C6D4F5F0D25F86"><enum>(4)</enum><header>Public notice and comment</header><text>The regulations issued under paragraph (1) shall be subject to public notice and comment.</text></paragraph><paragraph commented="no" id="HC37077373D434A1BA2FC1A34E314779C"><enum>(5)</enum><header>Low-burden regulations</header><text>In issuing regulations under paragraph (1), the Secretary shall balance the priority of protecting the national security interest of the United States while, to the extent practicable—</text><subparagraph commented="no" id="HA44B301FD3464368866E12E34F0ABEA3"><enum>(A)</enum><text display-inline="yes-display-inline">minimizing the cost and complexity of compliance for affected parties, including the duplication of reporting requirements under current regulations;</text></subparagraph><subparagraph commented="no" id="HD3DB3021A77240869A92AA31F1ED3590"><enum>(B)</enum><text display-inline="yes-display-inline">adopting the least burdensome alternative that achieves regulatory objectives; and</text></subparagraph><subparagraph commented="no" id="H110E0D0F2C4C46C8B7E1508710D75B04"><enum>(C)</enum><text>prioritizing transparency and stakeholder involvement in the process of issuing the rules.</text></subparagraph></paragraph><paragraph commented="no" id="H855CE383118745418C7DE0342162829B"><enum>(6)</enum><header>Penalties</header><subparagraph id="HCE44D8295E154EAC946B01178FEBE28E"><enum>(A)</enum><header>In general</header><text>The regulations issued under paragraph (1) shall provide for the imposition of civil penalties described in subparagraph (B) for violations of the prohibition set forth in subsection (a).</text></subparagraph><subparagraph id="H82177E11950047A18FC700C6327013ED"><enum>(B)</enum><header>Penalties described</header><clause id="HB34C735B223147E4A70F54B8473C2B27"><enum>(i)</enum><header>Unlawful acts</header><text>It shall be unlawful for a person to violate, attempt to violate, conspire to violate, or cause a violation of any license, order, regulation, notification requirement, or prohibition issued under this section.</text></clause><clause id="H8E5D991D7949437F92E7FEE915733543"><enum>(ii)</enum><header>Civil penalty</header><text>The Secretary may impose a civil penalty on any person who commits an unlawful act described in clause (i) in an amount not to exceed the greater of—</text><subclause id="HF536972FEA1F4470A594EEF35EF6654E"><enum>(I)</enum><text>$250,000; or</text></subclause><subclause id="HA7908CFD5C504BFBABCC491B91144DAF"><enum>(II)</enum><text>an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.</text></subclause></clause><clause id="HBD11E44F76BE43569CB4DE75AFB7118A"><enum>(iii)</enum><header>Divestment</header><text display-inline="yes-display-inline">The Secretary may compel the divestment of a covered national security transaction in a prohibited technology determined to be in violation of this title.</text></clause><clause id="HD5D0A9EAE99A4E7FAC7E8CF2A820B903"><enum>(iv)</enum><header>Relief</header><text display-inline="yes-display-inline">The President may direct the Attorney General of the United States to seek appropriate relief, including divestment relief, in the district courts of the United States, in order to implement and enforce this title.</text></clause></subparagraph></paragraph><paragraph id="HCBA6742D98B047029530467CBFC0F560"><enum>(7)</enum><header>Burden of proof</header><text>In accordance with section 556(d) of title 5, United States Code, in an enforcement action for a violation of the prohibition set forth in subsection (a), the burden of proof shall be upon the Secretary.</text></paragraph></subsection></section><section id="HC437B0137F5F4304AC2FE81257B0939F"><enum>802.</enum><header>Notification on investments</header><subsection id="HE2B5C5DBB8384739830974B8D807BEC1"><enum>(a)</enum><header>Mandatory notification</header><text display-inline="yes-display-inline">Not later than 450 days after the date of the enactment of this title, the Secretary shall issue regulations prescribed in accordance with subsection (b), to require a United States person that engages in a covered national security transaction in a prohibited technology (unless the Secretary has exercised the authority provided by section 801(a) to prohibit knowingly engaging in such covered national security transaction) or a notifiable technology to submit to the Secretary a written notification of the transaction not later than 30 days after the completion date of the transaction.</text></subsection><subsection id="HCF3055BB82974EB483F5F83800B5FB45"><enum>(b)</enum><header>Regulations</header><paragraph id="H537C362E3A744D20A0FC997D4E1CEEBC"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 450 days after the date of the enactment of this title, the Secretary, in consultation with the Secretary of Commerce and, as appropriate, the heads of other relevant Federal departments and agencies, shall issue regulations to carry out this section in accordance with subchapter II of chapter 5 and <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/7">chapter 7</external-xref> of title 5, United States Code (commonly known as <quote>Administrative Procedure Act</quote>).</text></paragraph><paragraph id="HEEACCA71A31A402583B17EB090175BCA"><enum>(2)</enum><header>Public notice and comment</header><text display-inline="yes-display-inline">The regulations issued under paragraph (1) shall be subject to public notice and comment.</text></paragraph><paragraph id="HDA3886E61E174D10AB97C659BF6E8348"><enum>(3)</enum><header>Low-burden regulations</header><text>In issuing regulations under paragraph (1), the Secretary shall balance the priority of protecting the national security interest of the United States while, to the extent practicable—</text><subparagraph id="H6A48880D660A43A6BAAE1E25C60678DA"><enum>(A)</enum><text>minimizing the cost and complexity of compliance for affected parties, including the duplication of reporting requirements under current regulation;</text></subparagraph><subparagraph id="H725AD95B84234418839B51CF426849B6"><enum>(B)</enum><text>adopting the least burdensome alternative that achieves regulatory objectives; and</text></subparagraph><subparagraph id="H928C55EC833E4B0FA36EF756D2E868AD"><enum>(C)</enum><text>prioritizing transparency and stakeholder involvement in the process of issuing the rules.</text></subparagraph></paragraph><paragraph id="H19CC59B679DE496D9F26F131ADA9168D"><enum>(4)</enum><header>Penalties</header><subparagraph id="HE91DEC234F254F60B0ECF97949364E01"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The regulations issued under paragraph (1) shall provide for the imposition of civil penalties described in subparagraph (B) for violations of the notification requirement set forth in subsection (a).</text></subparagraph><subparagraph id="HC3F0470BE43048BAA80FD012307B2994"><enum>(B)</enum><header>Penalties described</header><clause id="H8DD3DFBA49884A96B209845BCDCF5607"><enum>(i)</enum><header>Unlawful acts</header><text>It shall be unlawful for a person to violate, attempt to violate, conspire to violate, or cause a violation of any license, order, regulation, notification requirement, or prohibition issued under this section.</text></clause><clause id="HEF157382C0184B8AB1BC2129BD5D01AC"><enum>(ii)</enum><header>Civil penalty</header><text>A civil penalty may be imposed on any person who commits an unlawful act described in clause (i) in an amount not to exceed the greater of—</text><subclause id="H2ACA20A2E95A4618BA89AF05ACA0A609"><enum>(I)</enum><text>$250,000; or</text></subclause><subclause id="H90AA9DD71B9F4CD4BC6799B224654017"><enum>(II)</enum><text>an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.</text></subclause></clause></subparagraph></paragraph><paragraph id="H33B0D16279824E5DA8F3E47B062B896A"><enum>(5)</enum><header>Burden of proof</header><text display-inline="yes-display-inline">In accordance with section 556(d) of title 5, United States Code, in an enforcement action for a violation of the prohibition set forth in subsection (a), the burden of proof shall be upon the Secretary.</text></paragraph><paragraph id="H5F72B140A8304E64A364A887703BC94D"><enum>(6)</enum><header>Completeness of notification</header><subparagraph id="H56E396736ED44716B636262E11AAC1A5"><enum>(A)</enum><header>In general</header><text>The Secretary shall, upon receipt of a notification under subsection (a), and in consultation with the Secretary of Commerce, promptly inspect the notification for completeness.</text></subparagraph><subparagraph id="H381602887C6C494EB3B95489A81EA402"><enum>(B)</enum><header>Incomplete notifications</header><text>If a notification submitted under subsection (a) is incomplete, the Secretary shall promptly inform the United States person that submits the notification that the notification is not complete and provide an explanation of relevant material respects in which the notification is not complete.</text></subparagraph></paragraph><paragraph id="H04E80BF35BA44EB7A0469AADC7847876"><enum>(7)</enum><header>Identification of non-notified activity</header><text>The Secretary, in coordination with the Secretary of Commerce, shall establish a process to identify covered national security transactions in a prohibited technology or a notifiable technology for which—</text><subparagraph id="H7FABB08A57604D1E9B0685B37C78B973"><enum>(A)</enum><text>a notification is not submitted to the Secretary under subsection (a); and</text></subparagraph><subparagraph id="H30AA34F04E0D402788CB45D2FF4F92C1"><enum>(B)</enum><text>information is reasonably available.</text></subparagraph></paragraph></subsection><subsection id="H7EF74CF621B14DA6B9C91EDDB05568AB"><enum>(c)</enum><header>Confidentiality of information</header><paragraph id="H06252DE7E1F840FA82C37F5E112C80EE"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), any information or documentary material filed with the Secretary pursuant to this section shall be exempt from disclosure under section 552(b)(3) of title 5, United States Code, and no such information or documentary material may be made public by any government agency or Member of Congress.</text></paragraph><paragraph id="H283FF3AE02B6456FB2EE685D74D2F1CB"><enum>(2)</enum><header>Exceptions</header><text>The exemption from disclosure provided by paragraph (1) shall not prevent the disclosure of the following:</text><subparagraph id="H7F2AFE956F494494945AA7B6CB2065B3"><enum>(A)</enum><text>Information relevant to any administrative or judicial action or proceeding.</text></subparagraph><subparagraph id="H94AAF14B9EF047A3A40C88B7E30B9D79"><enum>(B)</enum><text>Information provided to Congress or any of the appropriate congressional committees.</text></subparagraph><subparagraph id="H47D37D294CF84DD9AAB72100273980C9"><enum>(C)</enum><text>Information important to the national security analysis or actions of the Secretary to any domestic governmental entity, or to any foreign governmental entity of an ally or partner of the United States, under the direction and authorization of the Secretary, only to the extent necessary for national security purposes, and subject to appropriate confidentiality and classification requirements.</text></subparagraph><subparagraph id="H46EF111CA91C48AB9687FC24AE685F18"><enum>(D)</enum><text display-inline="yes-display-inline">Information that the parties have consented to be disclosed to third parties.</text></subparagraph><subparagraph id="H1F355892E08C45B0B73AEDE189B4DB47"><enum>(E)</enum><text display-inline="yes-display-inline">Information where the disclosure of such information is determined by the Secretary to be in the national security interest.</text></subparagraph></paragraph></subsection><subsection commented="no" id="H45517EF4211B49FD8977A0E432B93105"><enum>(d)</enum><header>Inapplicability</header><text>If the Secretary prohibits a covered national security transaction in a prohibited technology under section 801, the requirements of this section shall not apply with respect to the covered national security transaction.</text></subsection></section><section id="H5BC7A65EF0804460856EED5FA39EC06E"><enum>803.</enum><header>Report</header><subsection commented="no" id="HF3001E314C704E1F8906F574E2978100"><enum>(a)</enum><header>In general</header><text>Not later than one year after the date on which the regulations issued under section 801(e) take effect, and not less frequently than annually thereafter for 7 years, the Secretary, in consultation with the Secretary of Commerce, shall submit to the appropriate congressional committees a report that—</text><paragraph commented="no" id="H54E09756A7F845C2A000802201A07FD3"><enum>(1)</enum><text>lists all enforcement actions taken subject to the regulations during the year preceding submission of the report, which includes, with respect to each such action, a description of—</text><subparagraph commented="no" id="H388DADFEF85444D4AB85EABEAABE0D03"><enum>(A)</enum><text>the prohibited technology or notifiable technology;</text></subparagraph><subparagraph commented="no" id="H4E492746F312494BB2027E95C87CE968"><enum>(B)</enum><text>the covered national security transaction; and</text></subparagraph><subparagraph commented="no" id="HF19CE3D4654D405798199CF0210B95C4"><enum>(C)</enum><text>the covered foreign person;</text></subparagraph></paragraph><paragraph commented="no" id="HC01BB709F33B4D95BDA7B6B94BE0CE9F"><enum>(2)</enum><text>provides an assessment of whether Congress should amend the definition of the term <term>prohibited technology</term> by—</text><subparagraph commented="no" id="HB74745F5E4EA4F22BAD0DAEE96FB8C68"><enum>(A)</enum><text display-inline="yes-display-inline">identifying additional technologies, not currently listed as a prohibited technology, that the Secretary, in consultation with the Secretary of Commerce and, as applicable, the Secretary of Defense, the Secretary of State, the Secretary of Energy, the Director of National Intelligence, and the heads of any other relevant Federal agencies, determines may pose an acute threat to the national security of the United States if developed or acquired by a country of concern;</text></subparagraph><subparagraph commented="no" id="H114E3BE0772B4EF8913D4D9F01700731"><enum>(B)</enum><text>explaining why each technology identified in subparagraph (A) may pose an acute threat to the national security of the United States if developed or acquired by a country of concern; and</text></subparagraph><subparagraph commented="no" id="H4FC2C58011FC4197AABD9C648B41E2B3"><enum>(C)</enum><text>recommending the repeal of technologies from the category of prohibited technology to the extent that the technologies no longer pose an acute threat to the national security of the United States if developed or acquired by a country of concern;</text></subparagraph></paragraph><paragraph id="H9C9C7B1317204E33A0E573BA7310E18D"><enum>(3)</enum><text display-inline="yes-display-inline">lists all notifications submitted under section 802 during the year preceding submission of the report and includes, with respect to each such notification—</text><subparagraph id="H7461553286AE451EB5D999DEBF76D507"><enum>(A)</enum><text display-inline="yes-display-inline">basic information on each party to the covered national security transaction with respect to which the notification was submitted; and</text></subparagraph><subparagraph id="H03481C5838AC4BB29AF6FB715AA2F69E"><enum>(B)</enum><text>the nature of the covered national security transaction that was the subject to the notification, including the elements of the covered national security transaction that necessitated a notification;</text></subparagraph></paragraph><paragraph id="HFE74F7B11AB5409EBC8B41B5242E77F0"><enum>(4)</enum><text>includes a summary of those notifications, disaggregated by prohibited technology, notifiable technology, by covered national security transaction, and by country of concern;</text></paragraph><paragraph id="HFA13519B6AE2459CAD9B73F5D73F531A"><enum>(5)</enum><text display-inline="yes-display-inline">provides additional context and information regarding trends in the prohibited technology, notifiable technology, the types of covered national security transaction, and the countries involved in those notifications; and</text></paragraph><paragraph id="HC6EB034D2F2E4AE58AE2CADEC2B78593"><enum>(6)</enum><text>assesses the overall impact of those notifications, including recommendations for—</text><subparagraph id="HB114839E83B14DCDA68945E0A81CE4A5"><enum>(A)</enum><text display-inline="yes-display-inline">expanding existing Federal programs to support the production or supply of prohibited technologies or notifiable technologies in the United States, including the potential of existing authorities to address any related national security concerns;</text></subparagraph><subparagraph id="H29B8DAC8E72947AEA19DDBC94B3C5014"><enum>(B)</enum><text display-inline="yes-display-inline">investments needed to enhance prohibited technologies or notifiable technologies and reduce dependence on countries of concern regarding those technologies; and</text></subparagraph><subparagraph commented="no" id="HB08B7EC149D24259A3908BF260329179"><enum>(C)</enum><text>the continuation, expansion, or modification of the implementation and administration of this title, including recommendations with respect to whether the definition of the term ‘country of concern’ under section 807(2) should be amended to add or remove countries.</text></subparagraph></paragraph></subsection><subsection commented="no" id="H13DDD9A1E41A4261BB362DF77FEFC5F5"><enum>(b)</enum><header>Consideration of certain information</header><text display-inline="yes-display-inline">In preparing the report pursuant to subsection (a), the Secretary—</text><paragraph id="HC9098B5F04FA4957B163B5240C8DE249"><enum>(1)</enum><text>shall consider information provided jointly by the chairperson and ranking member of any of the appropriate congressional committees;</text></paragraph><paragraph id="H8C0C6FA56C8746589D667F48BB4F3788"><enum>(2)</enum><text>may consider credible information obtained by other countries and nongovernmental organizations that monitor the military, surveillance, intelligence, or technology capabilities of a country of concern; and</text></paragraph><paragraph id="H5F1A9C9C06454A7481F3D8C2E9D50CA5"><enum>(3)</enum><text display-inline="yes-display-inline">may consider any other information that the Secretary deems relevant.</text></paragraph></subsection><subsection id="H683C930735F04895A653D1A87ECBD45B"><enum>(c)</enum><header>Form of report</header><text display-inline="yes-display-inline">Each report required by this section shall be submitted in unclassified form, but may include a classified annex.</text></subsection><subsection id="H8A5FF6FC1E974C96AC9A41776C686221"><enum>(d)</enum><header>Testimony required</header><text>Not later than one year after the date of the enactment of this title, and annually thereafter for five years, the Secretary and the Secretary of Commerce shall each provide to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives testimony with respect to the national security threats relating to investments by United States persons in countries of concern and broader international capital flows.</text></subsection><subsection commented="no" id="H56E850DA727440829669CC23E5515C76"><enum>(e)</enum><header>Requests by appropriate congressional committees</header><paragraph id="H23C9B7D3DDF74202B05FBE6A5F9A6816"><enum>(1)</enum><header>In general</header><text>After receiving a request that meets the requirements of paragraph (2) with respect to whether a technology should be included in the amendments as described in subsection (a)(2), the Secretary shall, in preparing the report pursuant to subsection (a)—</text><subparagraph id="H68BCC7B9704648A7BA86345FFDD7C9F0"><enum>(A)</enum><text>determine if that technology may pose an acute threat to the national security of the United States if developed or acquired by a country of concern; and</text></subparagraph><subparagraph id="H8200AB46228E4EE3A9AB389AE008B42C"><enum>(B)</enum><text>include in the report pursuant to subsection (a) an explanation with respect to that determination that includes—</text><clause id="HBE8CDB4509F0428BA48146BE125C6CEE"><enum>(i)</enum><text>a statement of whether or not the technology, as determined by the Secretary, may pose an acute threat to the national security of the United States if developed or acquired by a country of concern; and</text></clause><clause id="HEFC4F070F2CA4FE29D3B4A75310496F6"><enum>(ii)</enum><text>if the Secretary determines that—</text><subclause id="H1362A8D2501448F5884BBAC7C54B7578"><enum>(I)</enum><text display-inline="yes-display-inline">the technology may pose an acute threat to the national security of the United States if developed or acquired by a country of concern, an explanation for such determination and a recommendation whether that technology should be named a prohibited technology or a notifiable technology; and</text></subclause><subclause id="H68936B2704794CE7A233D447E2E00976"><enum>(II)</enum><text>the technology would not pose an acute threat to the national security of the United States if developed or acquired by a country of concern, an explanation for such determination.</text></subclause></clause></subparagraph></paragraph><paragraph id="H4F72EF4C2AB34D93B8593460CDEB58C2"><enum>(2)</enum><header>Requirements</header><text>A request under paragraph (1) with respect to whether a technology may pose an acute threat to the national security of the United States if developed or acquired by a country of concern shall be submitted to the Secretary in writing jointly by the chairperson and ranking member of one or more of the appropriate congressional committees.</text></paragraph></subsection></section><section id="H997436321E9B495DB3E923F6E73E0F50"><enum>804.</enum><header>Multilateral engagement and coordination</header><subsection id="HFF281977BC2C4D0A8B43C9B5724D481C"><enum>(a)</enum><header>Authorities</header><text>The Secretary, in coordination with the Secretary of State, the Secretary of Commerce, and the heads of other relevant Federal agencies, should—</text><paragraph id="H0B2E6D03CF904C35AC2830B0B21B5F5E"><enum>(1)</enum><text>conduct bilateral and multilateral engagement with the governments of countries that are allies and partners of the United States to promote and increase coordination of protocols and procedures to facilitate the effective implementation of and appropriate compliance with the prohibitions pursuant to this title;</text></paragraph><paragraph id="HC2DEF7D4015740D485FB9FE9444C248F"><enum>(2)</enum><text>upon adoption of protocols and procedures described in paragraph (1), work with those governments to establish mechanisms for sharing information, including trends, with respect to such activities; and</text></paragraph><paragraph id="HC8108B9880DE456E98D6F67D1AF4A367"><enum>(3)</enum><text display-inline="yes-display-inline">work with and encourage the governments of countries that are allies and partners of the United States to develop similar mechanisms of their own, for the exclusive purpose of preventing the development or acquisition of prohibited technologies by a country of concern.</text></paragraph></subsection><subsection id="H63EF2EDEB692470DB25411C5D2126700"><enum>(b)</enum><header>Strategy for multilateral engagement and coordination</header><text>Not later than 180 days after the date of the enactment of this title, the Secretary, in consultation with the Secretary of State, the Secretary of Commerce, and the heads of other relevant Federal agencies, should—</text><paragraph id="H0D1987949EBB42828E7B312E2D117324"><enum>(1)</enum><text display-inline="yes-display-inline">develop a strategy to work with the governments of countries that are allies and partners of the United States to develop mechanisms that are comparable to the prohibitions pursuant to this title, for the exclusive purpose of preventing the development and acquisition of prohibited technologies by a country of concern; and</text></paragraph><paragraph id="H167B6506C57F4D36838DCC2F77692F85"><enum>(2)</enum><text>assess opportunities to provide technical assistance to those countries with respect to the development of those mechanisms.</text></paragraph></subsection><subsection id="H5AB5DC7FB4E040D8806009D3490F86FB"><enum>(c)</enum><header>Report</header><text>Not later than one year after the date of the enactment of this title, and annually thereafter for four years, the Secretary shall submit to the appropriate congressional committees a report that includes—</text><paragraph id="HAF7799F1E0A848D7831CF79264A3D36F"><enum>(1)</enum><text>a discussion of any strategy developed pursuant to subsection (b)(1), including key tools and objectives for the development of comparable mechanisms by the governments of allies and partners of the United States;</text></paragraph><paragraph id="H055BCDDFF73846AB8F0CE19DCDC412C1"><enum>(2)</enum><text>a list of partner and allied countries to target for cooperation in developing their own prohibitions;</text></paragraph><paragraph id="H0FA50C4054AB4A9CAE5D1FCD5DA7C234"><enum>(3)</enum><text>the status of the strategy’s implementation and outcomes; and</text></paragraph><paragraph id="H1BBC950CA5EB4F49868AD7E6503ACBF4"><enum>(4)</enum><text>a description of impediments to the establishment of comparable mechanisms by governments of allies and partners of the United States.</text></paragraph></subsection><subsection id="H08787CCEFB824C94B8B615D3A209676F"><enum>(d)</enum><header>Appropriate congressional committees defined</header><text display-inline="yes-display-inline">In this section, the term <term>appropriate congressional committees</term> means—</text><paragraph id="H2344651B6C02496EA21E430274A0E7DA"><enum>(1)</enum><text>the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate; and</text></paragraph><paragraph id="H1C8D600809454FB6A9AAF7268630E614"><enum>(2)</enum><text>the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives. </text></paragraph></subsection></section><section id="HBE21F8F73F5741E88BF202DD8017D927"><enum>805.</enum><header>Public database of covered foreign persons</header><subsection id="H503F5011844F43E295F03392D604F65E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary, in consultation with the Secretary of Commerce, may establish a publicly accessible, non-exhaustive database that identifies covered foreign persons in a prohibited technology pursuant to this title.</text></subsection><subsection id="H5B11E2D0432942E09D7CA02E1DAD71A4"><enum>(b)</enum><header>Confidentiality of evidence</header><text display-inline="yes-display-inline">The Secretary shall establish a mechanism for the public, including Congress, stakeholders, investors, and nongovernmental organizations, to submit evidence on a confidential basis regarding whether a foreign person is a covered foreign person in a prohibited technology and should be included in the database described in subsection (a), if any.</text></subsection><subsection id="HA85DA6CD5F5944CB9909B2B4A913F85A"><enum>(c)</enum><header>Exemption from disclosure</header><paragraph id="H274DA821E68D4FBBB9DDC6FDA1E1F2CF"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), any information or documentary material filed with the Secretary pursuant to this section shall be exempt from disclosure under section 552(b)(3) of title 5, United States Code, and no such information or documentary material may be made public (other than the identity of a covered foreign person in accordance with subsection (b)).</text></paragraph><paragraph id="H6332362BD5AF4EEF862E025BC878869B"><enum>(2)</enum><header>Exceptions</header><text display-inline="yes-display-inline">Paragraph (1) shall not prohibit the disclosure of the following:</text><subparagraph id="H2654C7FD35BA46BC97FD9B6CC28186DA"><enum>(A)</enum><text display-inline="yes-display-inline">Information relevant to any administrative or judicial action or proceeding.</text></subparagraph><subparagraph id="HEF8ED2A9166E4FC997780A9850CCC8F6"><enum>(B)</enum><text>Information to Congress or any duly authorized committee or subcommittee of Congress.</text></subparagraph><subparagraph id="HE5E0D34CFFD047F2A6B5D92F1E339078"><enum>(C)</enum><text>Information important to the national security analysis or actions of the Secretary to any domestic governmental entity, or to any foreign governmental entity of a United States ally or partner, under the exclusive direction and authorization of the Secretary, only to the extent necessary for national security purposes, and subject to appropriate confidentiality and classification requirements.</text></subparagraph><subparagraph id="H8BA7E7FAD90A4C15B529C2812580EB19"><enum>(D)</enum><text>Information that the parties have consented to be disclosed to third parties.</text></subparagraph></paragraph></subsection><subsection commented="no" id="H1F38BC25A5704A56BA5C55CBC0DBB2AA"><enum>(d)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">The database described in subsection (a), if any, shall not be considered to be an exhaustive or comprehensive list of covered foreign persons for the purposes of this title.</text></subsection></section><section id="HE0EBF3201E284ADA949AEDC13C7FDA03"><enum>806.</enum><header>Rule of construction</header><text display-inline="no-display-inline">Nothing in this title may be construed to negate the authority of the President under any authority, process, regulation, investigation, enforcement measure, or review provided by or established under any other provision of Federal law, or any other authority of the President or the Congress under the Constitution of the United States.</text></section><section id="HF4661F8C052A43029A9783D2A42E1D66"><enum>807.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text><paragraph display-inline="no-display-inline" id="H3C4A5988804F4F1FB9B357C0E9C60D5D"><enum>(1)</enum><header>Appropriate congressional committees</header><text display-inline="yes-display-inline">Except as provided by section 804(d), the term <term>appropriate congressional committees</term> means—</text><subparagraph id="HC988BDA346C44DD5A1D4530C38A52F63"><enum>(A)</enum><text>the Committee on Financial Services, the Committee on Foreign Affairs, the Committee on Energy and Commerce, and the Committee on Appropriations of the House of Representatives; and</text></subparagraph><subparagraph id="H93800BB1528B45E19F8FA0F6B2F575E8"><enum>(B)</enum><text display-inline="yes-display-inline">the Committee on Banking, Housing, and Urban Affairs and the Committee on Appropriations of the Senate.</text></subparagraph></paragraph><paragraph id="H2235E3A6A4AF42438B0942EBFC1F7578"><enum>(2)</enum><header>Country of concern</header><text display-inline="yes-display-inline">The term <term>country of concern</term>—</text><subparagraph id="H5754580039EA44F78788774BB9A1EB4E"><enum>(A)</enum><text>means the People’s Republic of China; and</text></subparagraph><subparagraph id="HAEC8719587BD4769900FF46B1BC520B0"><enum>(B)</enum><text>includes the Hong Kong Special Administrative Region and the Macau Special Administrative Region.</text></subparagraph></paragraph><paragraph id="HAFF2E4533ED6436B81EFCA38C5C814AB"><enum>(3)</enum><header>Covered foreign person</header><text display-inline="yes-display-inline">Subject to regulations prescribed in accordance with this title, the term <term>covered foreign person</term> means a foreign person that—</text><subparagraph id="H9AA0697ED33142CCA887B83977C97B10"><enum>(A)</enum><text>is incorporated in, has a principal place of business in, or is organized under the laws of a country of concern;</text></subparagraph><subparagraph id="H1CA5A46654F7447785955E689B8903DD"><enum>(B)</enum><text>is a member of the Central Committee of the Chinese Communist Party;</text></subparagraph><subparagraph id="HF6F1417268D54748BC9CA8DA37C477B0"><enum>(C)</enum><text>is subject to the direction or control of a country of concern, an entity described in subparagraph (A) or (B), or the state or the government of a country of concern (including any political subdivision, agency, or instrumentality thereof); or</text></subparagraph><subparagraph id="HD47E7F76CAEA4607A88FA5FDC7C94359"><enum>(D)</enum><text display-inline="yes-display-inline">is owned in the aggregate, directly or indirectly, 50 percent or more by a country of concern, an entity described in subparagraph (A) or (B), or the state or the government of a country of concern (including any political subdivision, agency, or instrumentality thereof).</text></subparagraph></paragraph><paragraph id="HF610569311CB450B94154718A08F0CA3"><enum>(4)</enum><header>Covered national security transaction</header><subparagraph commented="no" display-inline="no-display-inline" id="HBFA7DE9C11224608BFB072BA6AD3A46B"><enum>(A)</enum><header>In general</header><text>Subject to such regulations as may be issued in accordance with this title, the term <term>covered national security transaction</term> means any activity engaged in by a United States person that involves—</text><clause commented="no" id="H2403C4EDB421463BA1E3C04A7E256B9D"><enum>(i)</enum><text>the acquisition of an equity interest or contingent equity interest in a covered foreign person;</text></clause><clause commented="no" id="HAD636930AA3043E98DC5567810EF859C"><enum>(ii)</enum><text>the provision of a loan or similar debt financing arrangement to a covered foreign person, where such debt financing—</text><subclause commented="no" id="H8B82A971F936440D97227BC56CB7ADC8"><enum>(I)</enum><text>is convertible to an equity interest; or</text></subclause><subclause commented="no" id="H78D0D71856934B3EBE5DEBD6E81E6EE0"><enum>(II)</enum><text>affords or will afford the United States person the right to make management decisions with respect to or on behalf of a covered foreign person or the right to appoint members of the board of directors (or equivalent) of the covered foreign person;</text></subclause></clause><clause commented="no" id="H403C5D1ED8474FF89F33BC8BC0306A17"><enum>(iii)</enum><text>the entrance by such United States person into a joint venture with a covered foreign person;</text></clause><clause commented="no" id="H385AA033E47547109E2769F2ED57BA9E"><enum>(iv)</enum><text display-inline="yes-display-inline">the conversion of a contingent equity interest (or interest equivalent to a contingent equity interest) or conversion of debt to an equity interest in a covered foreign person;</text></clause><clause commented="no" id="H9363FF0437AD4E7D83E0E76D9BDCA17C"><enum>(v)</enum><text>the acquisition, leasing, or other development of operations, land, property, or other assets in a country of concern that will result in, or that the United States person intends to result in—</text><subclause commented="no" id="H8367FEB0A17F4AEF85EECDEB502F2C40"><enum>(I)</enum><text display-inline="yes-display-inline">the establishment of a covered foreign person; or</text></subclause><subclause commented="no" id="HFC01A66CE1F54BB1A88EF62F8EEA3B5F"><enum>(II)</enum><text>the engagement of a person of a country of concern in a prohibited technology where it was not previously engaged in such prohibited technology; </text></subclause></clause><clause commented="no" id="HE341E24586CC42D7A1B970F332F3679A"><enum>(vi)</enum><text display-inline="yes-display-inline">knowingly directing transactions by foreign persons that the United States person has knowledge at the time of the transaction would constitute an activity described in clause (i), (ii), (iii), (iv), or (v), if engaged in by a United States person; or</text></clause><clause commented="no" id="H0CE0EB9071C242A2A887B9AAF9AA990A"><enum>(vii)</enum><text>the acquisition of a limited partner or equivalent interest in a venture capital fund, private equity fund, fund of funds, or other pooled investment fund that the United States person has knowledge at the time of the acquisition, intends to engage in an activity described in clause (i), (ii), (iii), (iv), (v), or (vi).</text></clause></subparagraph><subparagraph id="HFA0EADCC6F4748AF96277C7761BB9FD3"><enum>(B)</enum><header>Exceptions</header><text display-inline="yes-display-inline">Subject to notice and comment regulations prescribed in consultation with Congress and in accordance with this title, the term <term>covered national security transaction</term> does not include—</text><clause id="H13C89A83FE5848B786434C3FAA91A3EA"><enum>(i)</enum><text>any transaction the value of which the Secretary determines is de minimis;</text></clause><clause id="H9CB5A37BA3BB4C5A93C02D2EBE6BD032"><enum>(ii)</enum><text>any category of transactions that the Secretary determines is in the national interest of the United States;</text></clause><clause commented="no" id="H3D0F19591D7742038F27C82EE30CA138"><enum>(iii)</enum><text display-inline="yes-display-inline">an investment—</text><subclause commented="no" id="HE33F8F461D7A43F98DF9F9DADC0C5E27"><enum>(I)</enum><text display-inline="yes-display-inline">in a security (as defined in section 3(a) of the Securities Exchange Act of 1934(<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)</external-xref>)) that is traded on an exchange or the over-the-counter market in any jurisdiction;</text></subclause><subclause id="HFD53235622F542DBB7B5173AA58F3FC6"><enum>(II)</enum><text display-inline="yes-display-inline">in a security issued by an investment company (as defined in section 3 of the Investment Company Act of 1940(<external-xref legal-doc="usc" parsable-cite="usc/15/80a-3">15 U.S.C. 80a–3</external-xref>)) that is registered with the Securities and Exchange Commission;</text></subclause><subclause id="HD32E29C440E34FAAB8C6C93457B0BCA1"><enum>(III)</enum><text display-inline="yes-display-inline">made as a limited partner or equivalent in a venture capital fund, private equity fund, fund of funds, or other pooled investment fund (other than as described in subclause (II)) where—</text><item id="H5D1130C3E0114C62A5F84930A7524AFF"><enum>(aa)</enum><text>the limited partner or equivalent’s committed capital is not more than $2,000,000, aggregated across any investment and co-investment vehicles of the fund; or</text></item><item id="H107E3C2A2E024850BFDACE3E229E978B"><enum>(bb)</enum><text>the limited partner or equivalent has secured a binding contractual assurance that its capital in the fund will not be used to engage in a transaction that would be a covered national security transaction if engaged in by a United States person; or</text></item></subclause><subclause id="HBFEC27DE26D840D4A11AC7D45184289F"><enum>(IV)</enum><text>in a derivative of a security described under subclause (I), (II), or (III);</text></subclause></clause><clause commented="no" id="H8D088837C614404994B0E8313D6C4F40"><enum>(iv)</enum><text display-inline="yes-display-inline">any ancillary transaction undertaken by a financial institution (as defined in section 5312 of title 31, United States Code);</text></clause><clause commented="no" id="H7D4397D6C3F0424499273B5F17E26DD8"><enum>(v)</enum><text display-inline="yes-display-inline">the acquisition by a United States person of the equity or other interest owned or held by a covered foreign person in an entity or assets located outside of a country of concern in which the United States person is acquiring the totality of the interest in the entity held by the covered foreign person;</text></clause><clause commented="no" id="H2ECA0B56DC4C4EEAAE9791CEAA60577E"><enum>(vi)</enum><text>an intracompany transfer of funds, as defined in regulations prescribed in accordance with this title, from a United States parent company to a subsidiary located in a country of concern or a transaction that, but for this clause, would be a covered national security transaction between a United States person and its controlled foreign person that supports operations that are not covered national security transactions or that maintains covered national security transactions that the controlled foreign person was engaged in prior to January 2, 2025;</text></clause><clause id="H0D5922EDC9394579ABB9DF2B29CF1A28"><enum>(vii)</enum><text display-inline="yes-display-inline">a transaction secondary to a covered national security transaction, including—</text><subclause id="HFB99E02668424BDD96075E9D4443CC81"><enum>(I)</enum><text>contractual arrangements or the procurement of material inputs for any covered national security transaction (such as raw materials);</text></subclause><subclause id="H5D67277E66414F62873D75B5DA1463AC"><enum>(II)</enum><text>bank lending;</text></subclause><subclause id="HC95D83114F0440E88BEF2DBF249CD868"><enum>(III)</enum><text>the processing, clearing, or sending of payments by a bank;</text></subclause><subclause id="HC1F8F82D8E7E4DCE9BBB87B4FCF43F3B"><enum>(IV)</enum><text>underwriting services;</text></subclause><subclause id="H6DB8FCFD10F845FEBE5591D9D095A69C"><enum>(V)</enum><text>debt rating services;</text></subclause><subclause id="H67701DF7F7534D578A457B0283FCE3B3"><enum>(VI)</enum><text>prime brokerage;</text></subclause><subclause id="HBABAADDDA7EE43EEAAE95AC6149AA858"><enum>(VII)</enum><text>global custody;</text></subclause><subclause id="H436D5FB4487348BF97945FAEEEADF162"><enum>(VIII)</enum><text>equity research or analysis; or</text></subclause><subclause id="H2534CF647E2540E8BD233BBD207B44B8"><enum>(IX)</enum><text>other similar services;</text></subclause></clause><clause id="H7CBE6FEF4BA044F09BB377C55A1F0896"><enum>(viii)</enum><text>any ordinary or administrative business transaction as may be defined in such regulations; or</text></clause><clause id="HD38C1C0F3D8A4D5BAD27839546E9502A"><enum>(ix)</enum><text>any transaction completed before the date of the enactment of this title.</text></clause></subparagraph><subparagraph id="HCD0E3511079E4B5A83B23640087FA7CF"><enum>(C)</enum><header>Ancillary transaction defined</header><text display-inline="yes-display-inline">In this paragraph, the term <term>ancillary transaction</term> means—</text><clause id="HCAC85F0B6208456AB0F57DC1F4C5F50C"><enum>(i)</enum><text>the processing, settling, clearing, or sending of payments and cash transactions;</text></clause><clause id="H4B5E5E673544411397D13F366E5DACF1"><enum>(ii)</enum><text>underwriting services;</text></clause><clause id="H64983935ACC64EDA9E469A298530E947"><enum>(iii)</enum><text>credit rating services; and</text></clause><clause id="H2B11412DA85C4F6CB6DE6ECA589B945D"><enum>(iv)</enum><text>other services ordinarily incident to and part of the provision of financial services, such as opening deposit accounts, direct custody services, foreign exchange services, remittances services, and safe deposit services.</text></clause></subparagraph></paragraph><paragraph id="H7466807D02DA4EC39174D15447EF9B2C"><enum>(5)</enum><header>Foreign person</header><text display-inline="yes-display-inline">The term <term>foreign person</term> means a person that is not a United States person.</text></paragraph><paragraph id="HA68740DAB19C431E9F674A6E29CF3CE5"><enum>(6)</enum><header>Notifiable technology</header><subparagraph id="H5BF8D8BCAEE4416F9E8DF89E9830EA44"><enum>(A)</enum><header>In general</header><text>The term <term>notifiable technology</term> means a technology with respect to which a covered foreign person—</text><clause id="H5AC48C31BE7447688BFA8415E92E7BEA"><enum>(i)</enum><text display-inline="yes-display-inline">designs any advanced integrated circuit that is not covered under paragraph (8)(A)(iii);</text></clause><clause id="HDD62F29E6E8E4B45BDF2053FA197CF12"><enum>(ii)</enum><text>fabricates any integrated circuit that is not covered under paragraph (8)(A)(iv);</text></clause><clause id="H060AFC3D4325421493022C9ACACB2455"><enum>(iii)</enum><text>packages any integrated circuit that is not covered under paragraph (8)(A)(v); or</text></clause><clause id="H63CCADBB9D5B42FF8E51669AE6A9CD54"><enum>(iv)</enum><text>develops any artificial intelligence system that is not covered under clause (vii), (viii), (ix), or (xvi) of paragraph (8)(A), and that is—</text><subclause id="H42342CB2CD224C39A8F9F2D91AEAF71C"><enum>(I)</enum><text display-inline="yes-display-inline">designed to be used for—</text><item id="H59167C036C8B407B80A43F85CCBC8EFE"><enum>(aa)</enum><text>any military end use (such as for weapons targeting, target identification, combat simulation, military vehicle or weapons control, military decision-making, weapons design (including chemical, biological, radiological, or nuclear weapons), or combat system logistics and maintenance); or</text></item><item id="H740F8D4AEE4844C1BD881DCA95944898"><enum>(bb)</enum><text>any government intelligence or mass-surveillance end use (such as through incorporation of features such as mining text, audio, or video, image recognition, location tracking, or surreptitious listening devices); </text></item></subclause><subclause id="H0ADE2FB553564C2796C80A633801F2B5"><enum>(II)</enum><text display-inline="yes-display-inline">intended by the covered foreign person or joint venture to be used for—</text><item id="HBB38DA0BF6824A0DB5A8761A4608F484"><enum>(aa)</enum><text>cybersecurity applications;</text></item><item id="H68815AAA5BED4C6B8D7A748DCAF61DFA"><enum>(bb)</enum><text>digital forensics tools;</text></item><item id="H1B00576751E1405D8D0A89D4E665BF19"><enum>(cc)</enum><text>penetration testing tools; or</text></item><item id="HF68E24DE1BF44D77A1ACC616C14367C3"><enum>(dd)</enum><text>control of robotic systems; or</text></item></subclause><subclause id="HBC83CDCD2D0E46EBB1D4667AACFB497A"><enum>(III)</enum><text display-inline="yes-display-inline">trained using a quantity of computing power greater than 10<superscript>23</superscript> computational operations (such as integer or floating-point operations).</text></subclause></clause></subparagraph><subparagraph id="H49130B843A1B45689082C1001DB806D4"><enum>(B)</enum><header>Updates</header><text display-inline="yes-display-inline">The Secretary, in consultation with Congress, may prescribe regulations in accordance with this title to refine the technical parameters of technologies described in subparagraph (A) as reasonably needed for national security purposes or to add or remove categories to or from the list in subparagraph (A).</text></subparagraph></paragraph><paragraph id="H5A36DA0C7FDB4AC38480504B85663746"><enum>(7)</enum><header>Party</header><text display-inline="yes-display-inline">The term ‘party’, with respect to a covered national security transaction, has the meaning given that term in regulations prescribed in accordance with this title.</text></paragraph><paragraph id="H9B89AD85711E42488668B9659F516BAD"><enum>(8)</enum><header>Prohibited technology</header><subparagraph id="H27BD74C079684DB38799A9CCFD49A4D2"><enum>(A)</enum><header>In general</header><text>The term <term>prohibited technology</term> means a technology with respect to which a covered foreign person—</text><clause id="H22B219966C1544078B133F1FD4B2ED57"><enum>(i)</enum><text display-inline="yes-display-inline">develops or produces any design automation software for the design of integrated circuits or advanced packaging;</text></clause><clause id="H05E3F06693A5418BBD8F990F9E0D7379"><enum>(ii)</enum><text>develops or produces any—</text><subclause id="H142BBCA511834FE4A18FAA632907A9F7"><enum>(I)</enum><text>electronic design automation software for the design of integrated circuits or advanced packaging;</text></subclause><subclause id="HE8C62A24FD6047BFB898CEA9C1C9D181"><enum>(II)</enum><text display-inline="yes-display-inline">front-end semiconductor fabrication equipment designed for the volume fabrication of integrated circuits, including equipment used in the production stages from a blank wafer or substrate to a completed wafer or substrate; or</text></subclause><subclause id="H6FC5CBB5EDA54404B842ABD646FB69F9"><enum>(III)</enum><text>equipment for performing volume advanced packaging;</text></subclause></clause><clause id="HA627993691234AB4A01A03B64A1C9293"><enum>(iii)</enum><text display-inline="yes-display-inline">designs any integrated circuit designs that meet or exceed the specifications set in Export Control Classification Number (ECCN) 3A090 in Supplement No. 1 to the Export Administration Regulations, or integrated circuits designed for operation at or below 4.5 Kelvin;</text></clause><clause id="H9662DC0730F5448C8FE9AC5F27D8D723"><enum>(iv)</enum><text>fabricates integrated circuits that are—</text><subclause id="H22DE24732BC345C69346AE0100EEDFB4"><enum>(I)</enum><text>logic integrated circuits using a non-planar transistor architecture or with a technology node of 16/14 nanometers or less, including fully depleted silicon-on-insulator (FDSOI) integrated circuits;</text></subclause><subclause id="H6F6A747BA145429CAB634C731EB8AA04"><enum>(II)</enum><text>NOT–AND (NAND) memory integrated circuits with 128 layers or more;</text></subclause><subclause id="HC5A67A6576D442DC86908EFEF7567DD3"><enum>(III)</enum><text>dynamic random-access memory (DRAM) integrated circuits using a technology node of 18 nanometer half-pitch or less;</text></subclause><subclause id="HC63A777948B448B287B1B9AB1B2DB865"><enum>(IV)</enum><text>integrated circuits manufactured from a gallium-based compound semiconductor;</text></subclause><subclause id="HB265578D5E974EAC834EDA56312031B3"><enum>(V)</enum><text>integrated circuits using graphene transistors or carbon nanotubes; or</text></subclause><subclause id="H50E3459414614FBFB2EA5C69FB191098"><enum>(VI)</enum><text>integrated circuits designed for operation at or below 4.5 Kelvin;</text></subclause></clause><clause id="H03A37F4BC06E458DAD3851F454BEBB72"><enum>(v)</enum><text display-inline="yes-display-inline">packages any integrated circuit using advanced packaging techniques;</text></clause><clause id="H5D39659A49074889B4589E99E51073E4"><enum>(vi)</enum><text display-inline="yes-display-inline">develops, designs, or produces any commodity, material, software, or technology designed exclusively for use in or with extreme ultraviolet lithography fabrication equipment;</text></clause><clause id="H546BF84CBA9F4C74B78877E054D36E94"><enum>(vii)</enum><text display-inline="yes-display-inline">develops, designs, or produces any artificial intelligence models trained with at least 10<superscript>25</superscript> floating point operations;</text></clause><clause id="HF1DD6C6F459B442AA8A845B8DFB7C496"><enum>(viii)</enum><text display-inline="yes-display-inline">develops, designs, or produces any artificial intelligence models that rely upon or utilize advanced integrated circuits that meet or exceed the specifications set in Export Control Classification Number (ECCN) 3A090 in Supplement No. 1 to the Export Administration Regulations;</text></clause><clause id="H32590EE459DD4AECADA1C8151C5E26D5"><enum>(ix)</enum><text display-inline="yes-display-inline">develops, designs, or produces any artificial intelligence models designed for use by the Government of the People’s Republic of China, its special administrative regions, or its agencies and instrumentalities;</text></clause><clause id="H347A9CD6836143D0A424348EA5E8F1C4"><enum>(x)</enum><text display-inline="yes-display-inline">develops a quantum computer or produces any critical components required to produce a quantum computer such as a dilution refrigerator or two-stage pulse tube cryocooler;</text></clause><clause id="HAA358D2A54B740669A44989ECBEA78DE"><enum>(xi)</enum><text display-inline="yes-display-inline">develops or produces any quantum sensing platform designed for, or which the relevant covered foreign person intends to be used for, any military, government intelligence, or mass-surveillance end use;</text></clause><clause id="H763FB18E683745FA9FB4E371235E2738"><enum>(xii)</enum><text display-inline="yes-display-inline">develops or produces quantum networks or quantum communication systems designed for or intended to be used for—</text><subclause id="HDF8581F869E8447B8BBD1A41F772F32E"><enum>(I)</enum><text>networking to scale up the capabilities of quantum computers, such as for the purposes of breaking or compromising encryption; </text></subclause><subclause id="HD03FDBAE348D4FDDA55608EF86D6D12D"><enum>(II)</enum><text>secure communications, such as quantum key distribution; or </text></subclause><subclause id="H7FCF46FCF8E84244AE5D81EDD4E0A55B"><enum>(III)</enum><text>any other application that has any military, government intelligence, or mass-surveillance end use;</text></subclause></clause><clause id="H8C6FC91060A2458C8EE1FE9D1F61E908"><enum>(xiii)</enum><text display-inline="yes-display-inline">develops, designs, or produces materials, components, avionics, flight control, propulsion, Global Positioning System (GPS), data relay, and target detection systems designed for use in hypersonic systems or capable of sustainable operations above 1,000 degrees Celsius;</text></clause><clause id="HD2E6E6B64F7C4E379397C2BE95FF9BB5"><enum>(xiv)</enum><text display-inline="yes-display-inline">develops, installs, sells, or produces any supercomputer enabled by advanced integrated circuits that can provide theoretical compute capacity of 100 or more double-precision (64-bit) petaflops or 200 or more single-precision (32-bit) petaflops of processing power within a 41,600 cubic foot or smaller envelope; </text></clause><clause id="HCD6E31BC2247473CB276BD0273511ED7"><enum>(xv)</enum><text display-inline="yes-display-inline">develops, designs, or produces any other technologies in the advanced semiconductors and microelectronics sector, the artificial intelligence sector, the high-performance computing and supercomputing sector, the hypersonic missiles sector, or the quantum information science and technology sector that are— </text><subclause id="HB60F0F82FDEA4EDABCF83F0E94D0F486"><enum>(I)</enum><text>defense articles or defense services included on the United States Munitions List set forth in the International Traffic in Arms Regulations under subchapter M of chapter I of title 22, Code of Federal Regulations;</text></subclause><subclause id="H06FF8EF7A32E4F7AA576E66C03C92FA2"><enum>(II)</enum><text>specially designed and prepared nuclear equipment, parts or components, materials, software, or technologies covered by part 810 of title 10, Code of Federal Regulations (relating to assistance to foreign atomic energy activities);</text></subclause><subclause id="H8B132A79C48B45E7998DC317BE14E7B5"><enum>(III)</enum><text>nuclear facilities, equipment, or materials covered by part 110 of title 10, Code of Federal Regulations (relating to export and import of nuclear equipment and material); or</text></subclause><subclause id="HFB88ACF830C0442399E50FA682BA684A"><enum>(IV)</enum><text>emerging or foundational technologies controlled pursuant to section 1758 of the Export Control Reform Act of 2018 (<external-xref legal-doc="usc" parsable-cite="usc/50/4817">50 U.S.C. 4817</external-xref>); or</text></subclause></clause><clause id="H9EABEE9B1D98487581B403E6BF038562"><enum>(xvi)</enum><text display-inline="yes-display-inline">develops any artificial intelligence system that is designed to be exclusively used for, or which the relevant covered foreign person intends to be used for, any—</text><subclause id="H3482A1B115A14991A91EA1DB0250B47D"><enum>(I)</enum><text>military end use (such as for weapons targeting, target identification, combat simulation, military vehicle or weapon control, military decision-making, weapons design (including chemical, biological, radiological, or nuclear weapons), or combat system logistics and maintenance); or </text></subclause><subclause id="H5D2A7B30C6B34D33B583B2CD1FC12559"><enum>(II)</enum><text display-inline="yes-display-inline">government intelligence or mass-surveillance end (such as through incorporation of features such as mining text, audio, or video, image recognition, location tracking, or surreptitious listening devices).</text></subclause></clause></subparagraph><subparagraph id="HFE8881B0D2B5486F818F98E5FE233C22"><enum>(B)</enum><header>Updates</header><text display-inline="yes-display-inline">The Secretary, in consultation with Congress, may prescribe regulations in accordance with this title to make updates to the technical parameters of technologies described in subparagraph (A) as reasonably needed for national security purposes.</text></subparagraph></paragraph><paragraph id="H0769E4C452374DC4904D4E3606375651"><enum>(9)</enum><header>Secretary</header><text>Except as otherwise provided, the term <term>Secretary</term> means the Secretary of the Treasury. </text></paragraph><paragraph commented="no" id="HF8AAED5BBD244EA599855ECB81BD89CF"><enum>(10)</enum><header>United States person</header><text>The term <term>United States person</term> means—</text><subparagraph commented="no" id="H25F86EEC762346B796B13EDB229178BC"><enum>(A)</enum><text>any United States citizen or an alien lawfully admitted for permanent residence to the United States; </text></subparagraph><subparagraph commented="no" id="H9295EAD8E16D4F91B77DF55D662B1D95"><enum>(B)</enum><text>an entity organized under the laws of the United States or of any jurisdiction within the United States (including any foreign branch of such an entity); or</text></subparagraph><subparagraph commented="no" id="H38F18B98A30043B5A66310034A1EB294"><enum>(C)</enum><text>any person in the United States.</text></subparagraph></paragraph></section>

Prohibition and notification on investments relating to covered national security transactions

The Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) is amended by adding at the end the following: