[Congressional Record Volume 169, Number 123 (Tuesday, July 18, 2023)]
[Senate]
[Pages S3074-S3075]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 897. 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 appropriate place, insert the following:

     SEC. _. COUNTERING THE MILITARY-CIVIL FUSION STRATEGY OF THE 
                   CHINESE COMMUNIST PARTY.

       (a) Definitions.--In this section:
       (1) Chinese entity of concern.--The term ``Chinese entity 
     of concern'' means--
       (A) any college or university in the People's Republic of 
     China that is determined by the Secretary of Defense to be 
     involved in the implementation of the military-civil fusion 
     strategy, including--
       (i) any college or university known as the ``Seven Sons of 
     National Defense'';
       (ii) any college or university that receives funding from--

       (I) the People's Liberation Army; or
       (II) the Equipment Development Department, or the Science 
     and Technology Commission, of the Central Military 
     Commission;

       (iii) 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;
       (iv) 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'';
       (v) 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;
       (vi) 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; and
       (vii) 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;
       (B) 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;
       (C) any privately owned company in the People's Republic of 
     China--
       (i) that 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;
       (ii) that is otherwise known to have set up mechanisms for 
     engaging in activity in support of military initiatives;
       (iii) that has a history of subcontracting for the People's 
     Liberation Army or its affiliates;
       (iv) that is participating in, or receiving benefits under, 
     a military-civil fusion demonstration base; or
       (v) that 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; and
       (D) any entity that--
       (i) is identified by the Secretary of Defense under section 
     1260H(a) of the William M. (Mac) Thornberry National Defense 
     Authorization Act for Fiscal Year 2021 (10 U.S.C. 113 note) 
     as a Chinese military company; and
       (ii) is included in the Non-SDN Chinese Military-Industrial 
     Complex Companies List published by the Department of the 
     Treasury.
       (2) Covered entity.--The term ``covered entity'' means--
       (A) any Federal agency that engages in research or provides 
     funding for research, including the National Science 
     Foundation and the National Institutes of Health;
       (B) any institution of higher education, or any other 
     private research institution, that

[[Page S3075]]

     receives any Federal financial assistance; and
       (C) any private company headquartered in the United States 
     that receives Federal financial assistance.
       (3) Federal financial assistance.--The term ``Federal 
     financial assistance'' has the meaning given the term in 
     section 200.1 of title 2, Code of Federal Regulations (or 
     successor regulations).
       (4) Military-civil fusion strategy.--The term ``military-
     civil fusion strategy'' means the strategy of the Chinese 
     Communist Party aiming to mobilize non-military resources and 
     expertise for military application, including the development 
     of technology, improvements in logistics, and other uses by 
     the People's Liberation Army.
       (b) Prohibitions.--
       (1) In general.--No covered entity may engage with a 
     Chinese entity of concern in any scientific research or 
     technical exchange that has a direct bearing on, or the 
     potential for dual use in, the development of technologies 
     that the Chinese Communist Party has identified as a priority 
     of its national strategy of military-civil fusion and that 
     are listed on the website under subsection (c)(1)(A).
       (2) Private partnerships.--No covered entity described in 
     subsection (a)(2)(C) may form a partnership or joint venture 
     with another such covered entity for the purpose of engaging 
     in any scientific research or technical exchange described in 
     paragraph (1).
       (c) Website.--
       (1) In general.--The Secretary of Defense, in consultation 
     with the Secretary of State, the Director of National 
     Intelligence, the Director of the Federal Bureau of 
     Investigation, the Secretary of Energy, the Secretary of 
     Education, the Secretary of the Treasury, and the Secretary 
     of Commerce, shall establish, and periodically update not 
     less than twice a year, a website that includes--
       (A) a list of the specific areas of scientific research or 
     technical exchange for which the prohibitions under 
     subsection (b) apply, which shall initially include some or 
     all aspects of the fields of quantum computing, photonics and 
     lasers, robotics, big data analytics, semiconductors, new and 
     advanced materials, biotechnology (including synthetic 
     biology and genetic engineering), 5G and all future 
     generations of telecommunications, advanced nuclear 
     technology (including nuclear power and energy storage), 
     aerospace technology, and artificial intelligence; and
       (B) to the extent practicable, a list of all Chinese 
     entities of concern.
       (2) List of specific areas.--In developing the list under 
     paragraph (1)(A), the Secretary of Defense shall monitor and 
     consider the fields identified by the State Administration 
     for Science, Technology, and Industry for the National 
     Defense of the People's Republic of China as defense-relevant 
     and consider, including the more than 280 fields of study 
     designated as of the date of enactment of this Act, and any 
     others designated thereafter, as disciplines with national 
     defense characteristics that have the potential to support 
     military-civil fusion.
       (3) Resources.--In establishing the website under paragraph 
     (1), the Secretary of Defense may use as a model any existing 
     resources, such as the China Defense Universities Tracker 
     maintained by the Australian Strategic Policy Institute, 
     subject to any other laws applicable to such resources.
       (d) Exception.--The prohibitions under subsection (b) shall 
     not apply to any collaborative study or research project in 
     fields involving information that would not contribute 
     substantially to the goals of the military-civil fusion 
     strategy, as determined by regulations issued by the 
     Secretary of Defense.
       (e) Annual Reporting Requirements.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, and December 31 of each year 
     thereafter, each covered entity shall submit to the Secretary 
     of Defense a report that discloses--
       (A) any research relationships the covered entity has with 
     a Chinese entity of concern or has had during the previous 
     year;
       (B) any research relationships the covered entity has 
     considered with a Chinese entity of concern during the 
     previous year and declined; and
       (C) any research relationships the covered entity has 
     terminated with a Chinese entity of concern during the 
     previous year because the relationship violates subsection 
     (b) or as a result of related concerns.
       (2) Audit.--The Secretary of Defense may enter into a 
     contract with an independent entity to conduct an audit of 
     any report submitted under paragraph (1) to ensure compliance 
     with the requirements of such paragraph.
       (f) Enforcement.--
       (1) In general.--Notwithstanding any other provision of 
     law, a covered entity described in subparagraph (B) or (C) of 
     subsection (a)(2) that violates a prohibition under 
     subsection (b), or violates subsection (e), on or after the 
     date of enactment of this Act shall be precluded from 
     receiving any Federal financial assistance on or after the 
     date of such violation.
       (2) Regulations.--The Secretary of Defense, in consultation 
     with the Secretary of State, the Director of National 
     Intelligence, the Director of the Federal Bureau of 
     Investigation, the Secretary of Energy, the Secretary of 
     Education, the Secretary of the Treasury, and the Secretary 
     of Commerce, shall--
       (A) promulgate regulations to enforce the prohibitions 
     under subsection (b), the auditing requirements under 
     subsection (e), and the requirement under paragraph (1); and
       (B) coordinate with the heads of other Federal agencies to 
     ensure the enforcement of such prohibitions and requirements.
                                 ______