[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

[[Page S3141]]

     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

[[Page S3142]]

       (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.
                                 ______