[Congressional Record Volume 169, Number 123 (Tuesday, July 18, 2023)]
[Senate]
[Pages S3002-S3003]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 818. Mr. RISCH submitted an amendment intended to be proposed by 
him to the bill S. 2226, to authorize appropriations for fiscal year 
2024 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle D of title XII, add the following:

     SEC. 1269. DEVELOPING ECONOMIC TOOLS TO DETER AGGRESSION 
                   AGAINST TAIWAN.

       (a) Sense of Congress.--It is the sense of Congress that 
     the United States must be prepared to take immediate action 
     to impose sanctions with respect to any military or 
     nonmilitary entities owned, controlled, or acting at the 
     direction of the Government of the People's Republic of China 
     or the Chinese Communist Party and that are supporting 
     actions by the Government of the People's Republic of China 
     or the Chinese Communist Party--
       (1) to overthrow or dismantle the governing institutions in 
     Taiwan;
       (2) to occupy any territory controlled or administered by 
     Taiwan;
       (3) to violate the territorial integrity of Taiwan; or
       (4) to take significant action against Taiwan, including 
     conducting a naval blockade, seizing Taiwan's outlying 
     islands, or perpetrating a significant cyber attack on 
     Taiwan.
       (b) Task Force.--Not later than 180 days after the date of 
     the enactment of this Act, the head of the Office of the 
     Sanctions Coordinator of the Department of State and the 
     Director of the Office of Foreign Asset Control of the 
     Department of the Treasury, in coordination with the Director 
     of National Intelligence, shall establish an interagency task 
     force to identify military and nonmilitary entities with 
     respect to which sanctions could be imposed immediately 
     following any action taken by the People's Republic of China 
     that demonstrates an attempt to achieve or has the 
     significant effect of achieving the physical or political 
     control of Taiwan, including by--
       (1) overthrowing or dismantling the governing institutions 
     in Taiwan;
       (2) occupying any territory controlled or administered by 
     Taiwan as of the date of the enactment of this Act;
       (3) violating the territorial integrity of Taiwan; or
       (4) taking significant action against Taiwan, including--
       (A) creation of a naval blockade of Taiwan;
       (B) seizure of the outer lying islands of Taiwan; or
       (C) initiation of a significant cyber attack that threatens 
     civilian or military infrastructure of Taiwan.
       (c) Strategy.--
       (1) In general.--Not later than 180 days after the 
     establishment of the task force required by subsection (b), 
     the task force shall submit to the appropriate congressional 
     committees a strategy for identifying targets for the 
     imposition of sanctions as described in subsection (b).
       (2) Elements.--The strategy required by paragraph (1) 
     shall--
       (A) include an assessment of how existing sanctions regimes 
     could be used in the case of an action by the People's 
     Republic of China described in subsection (b);
       (B) develop or propose, as appropriate, new sanctions 
     authorities that might be required to impose sanctions on 
     targets described in paragraph (1);
       (C) analyze the potential economic consequences to the 
     United States, and to allies and partners of the United 
     States, of various types of sanctions and assess measures 
     that could be taken to mitigate such consequences, including 
     through the use of licenses, exemptions, carve-outs, and 
     other forms of relief;
       (D) develop a strategy for the United States to work with 
     allies and partners--
       (i) to leverage sanctions and other economic tools to deter 
     or respond to aggression against to Taiwan;
       (ii) to identify and resolve potential impediments to 
     coordinating sanctions-related efforts with respect to 
     responding to or deterring aggression against Taiwan; and
       (iii) to identify industries, sectors, or goods and 
     services with respect to which the United States and 
     countries that are allies and partners of the United States 
     can take coordinated action through sanctions or other 
     economic tools that will have a significant negative impact 
     on the economy of the People's Republic of China;
       (E) assess the resource gaps and needs at the Departments 
     of State, the Department of the Treasury, and other Federal 
     agencies, as appropriate, to most effectively use sanctions 
     and other economic tools to respond to the threat posed by 
     the People's Republic of China;
       (F) recommend how best to target sanctions and other 
     economic tools against individuals, entities, and economic 
     sectors in the People's Republic of China, taking into 
     account the role of such individuals, entities, and economic 
     sectors in supporting policies and activities of the 
     Government of the People's Republic of China or the Chinese 
     Communist Party that pose a threat to the national security 
     or foreign policy interests of the United States, the 
     negative economic implications for the People's Republic of 
     China, including its ability to achieve its objectives with 
     respect to Taiwan, and the potential impact of such sanctions 
     on the stability of the global financial system, including 
     with regard to--
       (i) entities--

       (I) owned or controlled by the Government of the People's 
     Republic of China; and
       (II) organized under the laws of or otherwise subject to 
     the jurisdiction of that Government that are not formally 
     owned or controlled by that Government;

       (ii) officials of that Government; and
       (iii) financial institutions associated with that 
     Government; and
       (G) identify any foreign military or nonmilitary entities 
     that would likely be used in actions described in subsection 
     (b), including entities in the following sectors:
       (i) Shipping.
       (ii) Logistics.
       (iii) Energy, including oil and gas.
       (iv) Aviation.
       (v) Ground transportation.
       (vi) Technology.
       (d) Report Required.--
       (1) In general.--Not later 60 days after the submission of 
     the strategy required by subsection (c), and every 180 days 
     thereafter, the task force established under subsection (b) 
     shall submit to the appropriate congressional committees a 
     report that includes information regarding--
       (A) any entities identified pursuant to subparagraph (G) of 
     subsection (c)(2);
       (B) any new authorities needed to impose sanctions with 
     respect to individuals, entities, and economic sectors 
     identified under subparagraph (D) of that subsection;
       (C) potential economic impacts on the People's Republic of 
     China and on the United States and allies and partners of the 
     United States relating to sanctions imposed with respect to 
     such individuals, entities, and economic sectors;
       (D) mitigation measures that could be employed to limit 
     deleterious impacts on the United States and allies and 
     partners of the United States;
       (E) the status of coordination with allies and partners of 
     the United States with respect to the use of sanctions and 
     other economic tools identified under this section;
       (F) resource gaps and recommendations to enable the 
     Department of State and the Department of the Treasury to use 
     sanctions to more effectively to respond to the malign 
     activities of the People's Republic of China; and
       (G) any additional resources that may be necessary to carry 
     out the strategy.
       (2) Form.--Each report required by subsection (b) shall be 
     submitted in classified form.
       (e) Appropriate Congressional Committees.--In this section, 
     the term ``appropriate congressional committees'' means--
       (1) the Committee on Foreign Relations, the Committee on 
     Banking, Housing, and Urban Affairs, and the Committee on 
     Commerce, Science and Transportation of the Senate; and
       (2) the Committee on Foreign Affairs, the Committee on 
     Financial Services, and the Committee on Energy and Commerce 
     of the House of Representatives.

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