[Congressional Record Volume 169, Number 128 (Tuesday, July 25, 2023)]
[House]
[Pages H3915-H3916]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
U.S. SUPPLY CHAIN SECURITY REVIEW ACT OF 2023
Mr. JAMES. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 3395) to direct the Chairman of the Federal Maritime Commission
to seek to enter into an agreement with a federally funded research and
development center to evaluate foreign ownership of marine terminals at
the 15 largest United States container ports, and for other purposes,
as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 3395
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``U.S. Supply Chain Security
Review Act of 2023''.
SEC. 2. STUDY ON FOREIGN PORTS.
(a) In General.--Not later than 90 days after the date of
enactment of this Act, the Chairman of the Federal Maritime
Commission shall seek to enter into an agreement with a
federally funded research and development center to evaluate
how foreign ownership of marine terminals at the 15 largest
United States container ports affects or could affect United
States economic security.
(b) Contents.--In carrying out the study under subsection
(a), the center selected under such subsection shall--
(1) consider--
(A) changes in ownership of the 15 largest United States
container ports over the past 10 years as well as announced
ownership changes from 2023 and 2024;
(B) instances of ownership in individual marine terminals
and cumulative ownership by Chinese or Russian entities or
nationals;
(C) instances of ownership in individual marine terminals
and cumulative ownership by any foreign entity;
(D) the amount of--
(i) Port Infrastructure Development Grant funds since
fiscal year 2018 that have gone to ports and marine terminals
that are owned wholly or partially foreign owned; and
(ii) Port Security Grant funds since fiscal year 2003 that
have gone to ports and marine terminals that are owned wholly
or partially foreign owned; and
(E) where ownership exists, a detailed description of
foreign operational control including both affirmative and
negative control; and
(2) offer recommendations on--
(A) policies by ports and marine terminal operators to
prevent excessive foreign ownership that could threaten
United States economic security;
(B) whether ownership affords the foreign owner access to
operational technology and information unique to the United
States and otherwise unavailable; and
(C) whether foreign ownership has or could affect the
supply chain and policies related to the prioritization of
certain cargoes.
(c) Report.--Not later than 1 year after the initiation of
the evaluation under subsection (a), the Chairman of the
Federal Maritime Commission shall submit to the Committee on
Commerce, Science, and Transportation of the Senate and the
Committee on Transportation and Infrastructure of the House
of Representatives the results of such evaluation.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Michigan (Mr. James) and the gentleman from Massachusetts (Mr.
Auchincloss) each will control 20 minutes.
The Chair recognizes the gentleman from Michigan.
General Leave
Mr. JAMES. Mr. Speaker, I ask unanimous consent that Members have 5
legislative days in which to revise and extend their remarks and insert
extraneous material in the Record on H.R. 3395, as amended.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Mr. JAMES. Mr. Speaker, I yield myself such time as I may consume.
H.R. 3395, as amended, requires a study on the implication of foreign
ownership of marine terminals at United States container ports.
[[Page H3916]]
Not only will the study examine the nationality of the firms owning
marine terminals at 15 of the largest United States ports, but it will
also specifically focus on whether ownership is held by entities or
nationals of countries adversarial to our Nation, including
affiliations with China or Russia.
Further, the study will assess whether Port Infrastructure
Development Grant and Port Security Grant funds have been awarded to
ports that are wholly or partially foreign-owned.
These findings will help the Committee on Transportation and
Infrastructure hold the administration accountable for how Federal
funds are allocated and inform the committee's work on the efficient
movement of goods through the supply chain.
I thank the gentleman from Massachusetts (Mr. Auchincloss) for
introducing this bill.
As a supply chain logistics professional in my prior life, I
understand how critical this is to our Nation's infrastructure and to
our economic prosperity moving forward in the future.
Mr. Speaker, I urge support of this legislation, and I reserve the
balance of my time.
Mr. AUCHINCLOSS. Mr. Speaker, I yield myself such time as I may
consume.
Today, I rise in support of my bill, H.R. 3395, the U.S. Supply Chain
Security Review Act. I thank Coast Guard and Maritime Transformation
Committee Chair Webster for his support on this legislation.
Securing our maritime supply chain is critically important to
American consumers and to our economic resilience. COVID-19, Russia's
war of aggression in Ukraine, and the increasing economic and security
challenges from the Chinese Communist Party emphasize the need for the
United States to better understand the influence, incentives, and
dependencies at critical nodes in our supply chains, especially our
ports.
The U.S. Supply Chain Security Review Act would direct the Federal
Maritime Commission to work with an independent academic or federally
funded research center to evaluate the ownership of marine terminals at
the 15 largest U.S. container ports.
This study will consider the changes in ownership of marine terminals
in these ports over the last 10 years, as well as any announced
ownership changes anticipated in 2023 or 2024, with a specific focus on
ownership by Chinese or Russian entities. These ports are critical to
our economic and national security, and it is imperative that we have a
real-time understanding of who is in charge.
The study will also examine the amount of Federal grant funds that
have gone to ports and marine terminals wholly or partially owned by
foreign entities and a detailed analysis on the foreign operational
control of these marine terminals.
Lastly, the study will offer recommendations on policies to prevent
malign foreign ownership of ports and terminal operators, whether
ownership of the port gives the foreign entity unique access to
operational technology and information, or if foreign ownership of the
entity could have an impact on our supply chains.
Understanding how our supply chains are and will be impacted by
foreign ownership of marine terminals is a key aspect of our economic
competition and will help the United States develop supply chains that
are resilient against adversaries.
This bipartisan legislation passed unanimously out of the
Transportation and Infrastructure Committee, and I thank Chair Graves
and Ranking Member Larsen for their leadership and support on this
important issue.
I urge my colleagues to support this legislation so we can begin to
address this critical issue and ensure the security of our maritime
supply chains.
Mr. Speaker, I reserve the balance of my time.
Mr. JAMES. Mr. Speaker, I have no more speakers. I am prepared to
close. I reserve the balance of my time.
Mr. AUCHINCLOSS. Mr. Speaker, I urge my colleagues to support H.R.
3395, and I yield back the balance of my time.
Mr. JAMES. Mr. Speaker, I yield myself the balance of my time.
The report directed by this bill will help inform the committee's
work and protect our ports and supply chains against foreign
adversaries.
As we have seen these past few years, disruptions in the supply chain
have a widespread impact across our Nation. We should take the
necessary steps to understand the potential vulnerabilities in our
supply chain and work to address them.
Mr. Speaker, I again, thank the sponsor of this bill for his work,
and I urge support. I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Michigan (Mr. James) that the House suspend the rules
and pass the bill, H.R. 3395, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. JAMES. Mr. Speaker, I object to the vote on the ground that a
quorum is not present and make the point of order that a quorum is not
present.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this question will be postponed.
The point of no quorum is considered withdrawn.
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