[Congressional Record Volume 167, Number 87 (Wednesday, May 19, 2021)]
[Senate]
[Pages S3140-S3142]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1625. Mr. KENNEDY submitted an amendment intended to be proposed
by him to the bill S. 1260, to establish a new Directorate for
Technology and Innovation in the National Science Foundation, to
establish a regional technology hub program, to require a strategy and
report on economic security, science, research, innovation,
manufacturing, and job creation, to establish a critical supply chain
resiliency program, and for other purposes; which was ordered to lie on
the table; as follows:
At the appropriate place, insert the following:
TITLE __--REVITALIZING MULTILATERAL EXPORT CONTROL DIPLOMACY FOR
CRITICAL TECHNOLOGIES ACT
SEC. __01. SHORT TITLE.
This title may be cited as the ``Revitalizing Multilateral
Export Control Diplomacy for Critical Technologies Act''.
SEC. __02. FINDINGS; SENSE OF CONGRESS.
(a) Findings.--Congress finds the following:
(1) United States arms embargoed countries are implementing
malign and aggressive industrial policies using non-market
means and engaging in predatory investment to gain control of
critical technologies in order to achieve market dominance
and control supply chains.
(2) These countries integrate their industrial policies
into initiatives that break down the barriers and
distinctions between the commercial sector and the military
to ensure that critical technologies support the development
of their military.
(3) These countries seek to obtain critical technologies
from the United States and covered United States allies and
partners.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the fast-paced nature of technological innovation and
the systemic diversion of technological innovation and know-
how by United States arms embargoed countries for the benefit
of developing and enhancing their militaries, challenges the
effectiveness of existing multilateral fora established
specifically to prevent such export control risks, such as
the Wassenaar Arrangement; and
(2) the ability of United States arms embargoed countries
to access critical technologies that affect the national
security of the United States should spur the United States
to work with covered United States allies and partners to
develop unified export control policies to eliminate or
substantially reduce the global availability of critical
technologies to United States arms embargoed countries.
SEC. __03. STRATEGY TO CONTROL THE AVAILABILITY OF CRITICAL
TECHNOLOGIES.
(a) Statement of Policy.--It is the policy of the United
States to--
(1) work with covered United States allies and partners to
develop unified export control policies to eliminate or
substantially reduce the global availability of critical
technologies to United States arms embargoed countries,
including by--
(A) leading regular and rapid bilateral and plurilateral
negotiations with respect to specific critical technologies
with different groupings of such allies and partners;
(B) using policy instruments, including tax, investment,
licensing, lending, and trade, to provide incentives to such
allies and partners; and
(C) using, if necessary, existing authorities, including
trade remedies, the United States Munitions List, the Entity
List, economic sanctions, and other authorities available
under the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.);
(2) ensure critical technologies do not advance the
economic strategies, industrial policy goals, or military
capabilities of United States arms embargoed countries;
(3) carry out joint research and development projects with
covered United States allies and partners, with adequate
safeguards for the protection and promotion of any resulting
intellectual property, to--
(A) advance a broad range of scientific and technical
disciplines, including with respect to critical technologies
that may be affected by the implementation of the strategy
required by subsection (b); and
(B) develop alternative markets to compensate for lost
sales opportunities; and
(4) enhance the sharing of information with covered United
States allies and partners that have entered into a
multilateral export control agreement with the United States
described in section __04(d).
(b) Strategy.--
(1) In general.--The President, in consultation with the
Secretary of Commerce, the Secretary of Defense, the
Secretary of State, the Director of National Intelligence,
the Secretary of the Treasury, and the Secretary of Energy,
shall develop a strategy to work with covered United States
allies and partners to develop unified export control
policies to eliminate or substantially reduce the global
availability of critical technologies to United States arms
embargoed countries.
(2) Industry consultation.--
(A) In general.--The President shall--
(i) inform and solicit input in writing from
representatives of relevant United States industries in
developing the strategy required by paragraph (1); and
(ii) submit to the appropriate congressional committees
input received pursuant to clause (i).
(B) Disclosure of confidential information prohibited.--No
such committee, or member thereof, may disclose any
information made available under subparagraph (A)(ii) that is
submitted on a confidential basis unless the committee
determines that the withholding of that information is
contrary to the national interest of the United States.
(3) Matters to be included.--The strategy required by this
subsection shall include the following:
(A) An identification of critical technologies that are
priorities for--
(i) the national security and the defense industrial base
of the United States; and
(ii) the economic strategies, industrial policies, and
military development of United States arms embargoed
countries.
(B) An identification of United States export control
policies for critical technologies identified under
subparagraph (A).
(C) An identification of covered United States allies and
partners and their share of the global market with respect to
critical technologies identified under subparagraph (A).
(D) A description of ongoing and future efforts to work
with covered United States allies and partners to develop
unified export control policies in accordance with the United
States policy described in subsection (a).
(E) An assessment of the effectiveness and methods of past
efforts by United States arms embargoed countries to
circumvent export control policies relating to critical
technologies identified under subparagraph (A).
(F) The establishment of a working group, to include
appropriate representatives from the Department of Commerce,
the Department of Defense, the Department of State, the
Office of the Director of National Intelligence, the
Department of the Treasury, the Department of Energy, and
other relevant Federal agencies, to implement the strategy.
(c) Report.--
(1) In general.--Not later than 120 days after the date of
the enactment of this Act, and annually thereafter for 4
years, the President shall submit to the appropriate
congressional committees a report in writing that contains--
(A) the strategy required by subsection (b); and
(B) a summary of input solicited and received from
representatives of relevant United States industries in
developing the strategy required by subsection (b).
(2) Form.--The report required by this subsection shall--
(A) be submitted in unclassified form but may contain a
classified annex; and
(B) be made available on a publicly accessible government
website.
SEC. __04. ACTIONS TO SECURE THE GLOBAL SEMICONDUCTOR SUPPLY
CHAIN.
(a) Finding.--Congress finds that, according to the Second
Quarter Recommendations of the congressionally established
National Security Commission on Artificial Intelligence,
high-end semiconductor chips with feature sizes 45 nanometers
and below are
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the most useful for advanced artificial intelligence
capabilities.
(b) Statement of Policy.--It is the policy of the United
States--
(1) to work with covered United States allies and partners
to secure the semiconductor supply chain in a manner that
eliminates or substantially reduces its presence in or
reliance on United States arms embargoed countries;
(2) to ensure United States semiconductor manufacturing
equipment, design tools, and technical data are not made
available to United States arms embargoed countries in
achieving their industrial policy goals that threaten United
States national security interests; and
(3) to proceed expeditiously in diplomatic efforts with
covered United States allies and partners to develop unified
export control policies to eliminate or substantially reduce
the global availability of critical technologies to United
States arms embargoed countries.
(c) Identification Provisions.--
(1) Identification of semiconductor manufacturing
equipment, design tools, and related technical data.--Not
later than 180 days after the date of the enactment of this
Act, and on a periodic basis thereafter, the Secretary of
Commerce shall identify semiconductor manufacturing
equipment, design tools, and related technical data that--
(A) are not manufactured or produced in United States arms
embargoed countries; and
(B) are used to fabricate high-end semiconductor chips with
feature sizes of 45 nanometers and below that the Secretary
determines threaten the national security and foreign policy
interests of the United States.
(2) Identification of entities that fabricate semiconductor
chips with feature sizes of 45 nanometers and below.--Not
later than 180 days after the date of the enactment of this
Act, and on a periodic basis thereafter, the Secretary of
Commerce shall identify entities in United States arms
embargoed countries that--
(A) own or control semiconductor manufacturing equipment,
design tools, and related technical data that are identified
pursuant to paragraph (1); and
(B) are required under the laws of United States arms
embargoed countries to cooperate with the militaries of such
countries relating to the use of such semiconductor
manufacturing equipment, design tools, and related technical
data to fabricate high-end semiconductor chips described in
paragraph (1)(B).
(3) Industry consultation.--
(A) In general.--The President shall--
(i) inform and solicit input in writing from
representatives of relevant United States industries in--
(I) identifying semiconductor manufacturing equipment,
design tools, and related technical data pursuant to
paragraph (1); and
(II) identifying entities pursuant to paragraph (2); and
(ii) submit to the appropriate congressional committees
input received pursuant to clause (i).
(B) Disclosure of confidential information prohibited.--No
such committee, or member thereof, may disclose any
information made available under subparagraph (A)(ii) that is
submitted on a confidential basis unless the committee
determines that the withholding of that information is
contrary to the national interest of the United States.
(d) Multilateral Agreement.--
(1) In general.--The working group established pursuant to
section __03(b)(3)(F) shall, as soon as practicable after the
date of the enactment of this Act, seek to establish a
multilateral agreement with covered United States allies and
partners to develop unified export control policies to
eliminate or substantially reduce the global availability of
semiconductor manufacturing equipment, design tools, and
related technical data identified pursuant to subsection
(c)(1) to United States arms embargoed countries, including
entities in United States arms embargoed countries identified
pursuant to subsection (c)(2).
(2) Actions after agreement implemented.--
(A) In general.--Not later than 30 days after the date on
which a multilateral agreement described in paragraph (1) is
implemented, the Secretary of Commerce--
(i) shall exercise the authorities under the Export Control
Reform Act of 2018 (50 U.S.C. 4801 et seq.)--
(I) to include semiconductor manufacturing equipment,
design tools, and related technical data with respect to
which the agreement applies on the Commerce Control List; and
(II) to presumptively disapprove any application for a
license to export, reexport, or provide for an in-country
transfer of such semiconductor manufacturing equipment,
design tools, and related technical data to a United States
arms embargoed country; and
(ii) shall include entities identified pursuant to the
agreement on the Entity List.
(B) Annual meetings.--
(i) In general.--The working group shall seek to meet on an
annual basis with covered United States allies and partners
that are parties to the agreement to--
(I) exchange information to--
(aa) facilitate development of unified export control
policies with respect to trends in technology that could pose
risks to the national security of the United States and such
other parties to the agreement; and
(bb) provide for the sharing of information with respect to
specific technologies and entities acquiring such
technologies as appropriate to address such risks to the
national security of the United States and such other parties
to the agreement;
(II) verify that all parties to the agreement are adhering
to a common standard of controls and licensing and are
otherwise in compliance with the terms of their commitments
under the agreement; and
(III) review the technology controls and licensing policies
for semiconductor manufacturing equipment, design tools, and
related technical data with respect to which the agreement
applies and as necessary update such controls and licensing
policies.
(ii) Industry consultation.--The President shall inform and
solicit input in writing from representatives of relevant
United States industries in advance of the meetings described
in clause (i).
SEC. __05. CRITICAL TECHNOLOGY EXPORT CONTROL FUND.
(a) Establishment.--There is established in the Treasury of
the United States a trust fund, to be known as the ``Critical
Technology Export Control Fund'' (in this section referred to
as the ``Fund''), consisting of--
(1) amounts deposited into the Fund under subsection
(b)(1); and
(2) amounts that may be credited to the Fund under
subsection (b)(2).
(b) Amounts.--
(1) Authorization of appropriations.--There are authorized
to be appropriated $2,000,000,000 to be deposited in the Fund
for fiscal year 2021.
(2) Investment of amounts.--
(A) In general.--The Secretary of the Treasury shall invest
such portion of the Fund as is not required to meet current
withdrawals in interest-bearing obligations of the United
States or in obligations guaranteed as to both principal and
interest by the United States.
(B) Interest and proceeds.--The interest on, and the
proceeds from the sale or redemption of, any obligations held
in the Fund shall be credited to and form a part of the Fund.
(3) Availability of amounts.--
(A) In general.--Amounts in the Fund shall remain available
through the end of the 10th fiscal year beginning after the
date of the enactment of this Act.
(B) Remainder.--Any amounts remaining in the Fund after the
end of the fiscal year described in subparagraph (A) shall be
deposited in the general fund of the Treasury.
(c) Use of Amounts.--
(1) In general.--The Secretary of State, in consultation
with the working group established pursuant to section
__03(b)(3)(F), shall use amounts in the Fund to carry out
projects described in paragraph (2) with one or more covered
United States allies and partners that enter into an
agreement with the Secretary to develop a unified export
control policy to eliminate or substantially reduce the
global availability of a critical technology identified under
section __03(b)(3)(A) to United States arms embargoed
countries.
(2) Projects described.--The projects described in this
paragraph are joint research and development projects carried
out by the United States and the covered United States allies
and partners to develop basic and applied research, develop
regulatory and enforcement capacity building, expand
production capacity, and carry out other related activities
with respect to the critical technology.
(3) Rule of construction.--Nothing in this section may be
construed to authorize the use of amounts in the Fund to
carry out projects described in paragraph (2) that may
benefit directly or indirectly entities in United States arms
embargoed countries.
(d) Report by Secretary of State.--Not later than 1 year
after the date of the enactment of this Act, and annually
thereafter for each fiscal year during which amounts in the
Fund are available under subsection (b)(3), the Secretary of
State shall submit to the appropriate congressional
committees a report on the implementation of this section.
(e) Report by Comptroller General.--Not later than 2 years
after the date of the enactment of this Act, the Comptroller
General of the United States shall submit to the appropriate
congressional committees a report evaluating the
effectiveness of the Fund, including--
(1) the effectiveness of projects supported by the Fund;
and
(2) an assessment of the merits of continuation of the
Fund.
SEC. __06. SENSE OF CONGRESS.
It is the sense of Congress that the working group
established pursuant to section __03(b)(3)(F) should, as soon
as practicable after the date of the enactment of this Act,
seek to establish a multilateral agreement with covered
United States allies and partners to eliminate or
substantially reduce the global availability of other
critical technologies identified under section __03(b)(3)(A)
to United States arms embargoed countries.
SEC. __07. DEFINITIONS.
In this title:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Banking, Housing, and Urban Affairs
and the Committee on Commerce, Science, and Transportation of
the Senate; and
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(B) the Committee on Foreign Affairs and the Committee on
Energy and Commerce of the House of Representatives.
(2) Commerce control list.--The term ``Commerce Control
List'' means the list set forth in Supplement No. 1 to part
774 of the Export Administration Regulations.
(3) Covered united states ally or partner.--The term
``covered United States ally or partner'' means a foreign
country that--
(A) is an ally or partner of the United States; and
(B)(i) produces, designs, tests, manufactures, fabricates,
or develops critical technologies; or
(ii) for purposes of section __04, produces or manufactures
semiconductor manufacturing equipment, design tools, and
related technical data that--
(I) are not manufactured or produced in United States arms
embargoed countries; and
(II) are used to fabricate high-end semiconductor chips
with feature sizes of 45 nanometers and below that the
Secretary of Commerce determines threaten the national
security and foreign policy interests of the United States;
and
(4) Critical technologies.--The term ``critical
technologies'' has the meaning given the term in section
721(a)(6) of the Defense Production Act of 1950 (50 U.S.C.
4565(a)(6)).
(5) Entity list.--The term ``Entity List'' means the list
maintained by the Bureau of Industry and Security and set
forth in Supplement No. 4 to part 744 of the Export
Administration Regulations.
(6) Export administration regulations.--The term ``Export
Administration Regulations'' means subchapter C of chapter
VII of title 15, Code of Federal Regulations.
(7) United states arms embargoed country.--The term
``United States arms embargoed country'' means a country--
(A) identified in column D:5 of Country Group D in
Supplement No. 1 to part 740 of the Export Administration
Regulations; or
(B) determined to be a proscribed country pursuant to
section 126.1 of title 22, Code of Federal Regulations.
______