[Congressional Record Volume 169, Number 123 (Tuesday, July 18, 2023)]
[Senate]
[Pages S3072-S3073]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 893. Mr. RUBIO 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 G of title X, add the following:

     SEC. 1083. PRESUMPTION OF DENIAL FOR LICENSES FOR EXPORT, 
                   REEXPORT, OR IN-COUNTRY TRANSFER OF TECHNOLOGY 
                   TO END USERS IN THE PEOPLE'S REPUBLIC OF CHINA 
                   OR THE RUSSIAN FEDERATION.

       Section 1756 of the Export Control Reform Act of 2018 (50 
     U.S.C. 4815) is amended by adding at the end the following:
       ``(e) Presumption of Denial for Licenses for Export, 
     Reexport, or In-country Transfer of Technology to End Users 
     in the People's Republic of China or the Russian 
     Federation.--
       ``(1) In general.--Except as provided by paragraph (2), the 
     Secretary shall deny an application for a license or other 
     authorization for the export, reexport, or in-country 
     transfer of technology if the end user of the technology is a 
     covered person.
       ``(2) Congressional notification and review process.--
       ``(A) In general.--Before approving an application for a 
     license or other authorization described in paragraph (1), 
     the Secretary shall submit to the appropriate congressional 
     committees a report--
       ``(i) specifying the intended end user of the technology 
     that is the subject of the application;
       ``(ii) specifying the dollar value of the technology;
       ``(iii) describing the technology;
       ``(iv) describing the proposed end use of the technology;

[[Page S3073]]

       ``(v) describing how authorizing the export, reexport, or 
     in-country transfer of the technology to the specific end 
     user advances the national security interests of the United 
     States; and
       ``(vi) describing how authorizing the export, reexport, or 
     in-country transfer of the technology to the specific user 
     does not advance the national security interests of a covered 
     country, including--

       ``(I) the Made in China 2025 industrial strategy of the 
     People's Republic of China;
       ``(II) the military-civil fusion national strategy of the 
     People's Republic of China, including transfer of technology 
     to any entity identified as part of that strategy, 
     including--

       ``(aa) any college or university known as one of the `Seven 
     Sons of National Defense';
       ``(bb) any college or university that receives funding 
     from--
       ``(AA) the People's Liberation Army; or
       ``(BB) the Equipment Development Department, or the Science 
     and Technology Commission, of the Central Military Commission 
     of the People's Republic of China;
       ``(cc) any college or university in the People's Republic 
     of China involved in military training and education, 
     including any such college or university in partnership with 
     the People's Liberation Army;
       ``(dd) any college or university in the People's Republic 
     of China that conducts military research or hosts dedicated 
     military initiatives or laboratories, including such a 
     college or university designated under the `double first-
     class university plan';
       ``(ee) any college or university in the People's Republic 
     of China that is designated by the State Administration for 
     Science, Technology, and Industry for the National Defense to 
     host `joint construction' programs;
       ``(ff) any college or university in the People's Republic 
     of China that has launched a platform for military-civil 
     fusion or created national defense laboratories;
       ``(gg) any college or university in the People's Republic 
     of China that conducts research or hosts dedicated 
     initiatives or laboratories for any other related security 
     entity beyond the People's Liberation Army, including the 
     People's Armed Police, the Ministry of Public Security, and 
     the Ministry of State Security;
       ``(hh) any enterprise for which the majority shareholder or 
     ultimate parent entity is the Government of the People's 
     Republic of China at any level of that government;
       ``(ii) any privately owned company in the People's Republic 
     of China that--
       ``(AA) has received a military production license, such as 
     the Weapons and Equipment Research and Production 
     Certificate, the Equipment Manufacturing Unit Qualification, 
     the Weapons and Equipment Quality Management System 
     Certificate, or the Weapons and Equipment Research and 
     Production Unit Classified Qualification Permit;
       ``(BB) is otherwise known to materially support the 
     military initiatives of the People's Republic of China;
       ``(CC) has a history of subcontracting for the People's 
     Liberation Army or its affiliates;
       ``(DD) is participating in, or receiving benefits under, a 
     military-civil fusion demonstration base; or
       ``(EE) has an owner, director, or a senior management 
     official who has served as a delegate to the National 
     People's Congress, a member of the Chinese People's Political 
     Consultative Conference, or a member of the Central Committee 
     of the Chinese Communist Party; or

       ``(III) the Science and Technology Foresight 2030 policy of 
     the Russian Federation, including transfer of technology to 
     any entity identified as part of that strategy, including--

       ``(aa) the Advanced Research Foundation;
       ``(bb) the Era Military Innovation Technopolis;
       ``(cc) any college or university that receives funding from 
     the Ministry of Defense of the Russian Federation;
       ``(dd) any entity for which the majority shareholder or 
     ultimate parent entity is the Government of the Russian 
     Federation at any level of that government; or
       ``(ee) any privately owned company in the Russian 
     Federation that--
       ``(AA) is otherwise known to materially support the 
     military initiatives of the Russian Federation; or
       ``(BB) has subcontracted for the Ministry of Defense of the 
     Russian Federation or its affiliates.
       ``(B) Limitation on approval during review period.--The 
     Secretary may not approve an application for a license or 
     other authorization described in paragraph (1) during the 30-
     day period beginning on the date on which the appropriate 
     congressional committees receive the report required by 
     subparagraph (A) unless the Secretary, in the report--
       ``(i) states that the Secretary has determined that a 
     pressing national security imperative exists, such that the 
     national security interests of the United States necessitate 
     the immediate approval of the license or other authorization; 
     and
       ``(ii) provides a detailed justification for that 
     determination, including--

       ``(I) a description of the emergency circumstances that 
     necessitate the immediate approval of the license or other 
     authorization; and
       ``(II) a discussion of the national security interests 
     involved.

       ``(C) Prohibition on approval if joint resolution of 
     disapproval enacted.--The Secretary may not approve an 
     application for a license or other authorization described in 
     paragraph (1) if, during the 30-day period described in 
     subparagraph (B), there is enacted into law a joint 
     resolution prohibiting the approval of the application.
       ``(D) Consideration of joint resolution.--
       ``(i) Senate.--Any joint resolution under this paragraph 
     shall be considered in the Senate in accordance with the 
     provisions of section 601(b) of the International Security 
     Assistance and Arms Export Control Act of 1976 (Public Law 
     94-329; 90 Stat. 765).
       ``(ii) House of representatives.--For the purpose of 
     expediting the consideration and enactment of joint 
     resolutions under this paragraph, a motion to proceed to the 
     consideration of any such joint resolution after it has been 
     reported by the appropriate committee shall be treated as 
     highly privileged in the House of Representatives.
       ``(iii) Rules of house of representatives and senate.--This 
     subparagraph is enacted by Congress--

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

       ``(3) Definitions.--In this subsection:
       ``(A) Appropriate congressional committees.--The term 
     `appropriate congressional committees' means--
       ``(i) the Committee on Banking, Housing, and Urban Affairs, 
     the Committee on Foreign Relations, and the Select Committee 
     on Intelligence of the Senate; and
       ``(ii) the Committee on Financial Services, the Committee 
     on Foreign Affairs, and the Permanent Select Committee on 
     Intelligence of the House of Representatives.
       ``(B) Covered country.--The term `covered country' means--
       ``(i) the People's Republic of China (including the Hong 
     Kong Special Administrative Region and the Macau Special 
     Administrative Region); and
       ``(ii) the Russian Federation.
       ``(C) Covered person.--The term `covered person' means--
       ``(i) an individual who is a citizen or national of a 
     covered country; or
       ``(ii) an entity organized under the laws of a covered 
     country or otherwise subject to the jurisdiction of the 
     government of a covered country.''.

     SEC. 1084. EXPORT CONTROL TREATMENT OF SUBSIDIARIES OF 
                   ENTITIES ON THE ENTITY LIST.

       (a) In General.--Not later than 30 days after the date of 
     the enactment of this Act, the Secretary of Commerce shall 
     revise part 744 of title 15, Code of Federal Regulations, to 
     ensure that the same requirements and restrictions that apply 
     to an entity on the Entity List apply to an entity owned or 
     controlled by an entity on the Entity List, including an 
     entity--
       (1) 50 percent or more of the ownership interest in which 
     is held in the aggregate, directly or indirectly, by one or 
     more entities on the Entity List; or
       (2) that the Secretary of Commerce considers to have an 
     interest in all property and interests in property of an 
     entity in which 50 percent or more of the ownership interest 
     is held in the aggregate, directly or indirectly, by one or 
     more entities on the Entity List.
       (b) Entity List Defined.--In this section, the term 
     ``Entity List'' means the list maintained by the Bureau of 
     Industry and Security of the Department of Commerce and set 
     forth in Supplement No. 4 to part 744 of title 15, Code of 
     Federal Regulations.
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