[Congressional Record Volume 170, Number 115 (Thursday, July 11, 2024)]
[Senate]
[Pages S4970-S4972]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2660. Mr. RISCH submitted an amendment intended to be proposed by 
him to the bill S. 4638, to authorize appropriations for fiscal year 
2025 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 F of title XII, add the following:

[[Page S4971]]

  


     SEC. 1291. DEVELOPMENT OF ECONOMIC TOOLS AND STRATEGY TO 
                   DETER AGGRESSION BY PEOPLE'S REPUBLIC OF CHINA 
                   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 PRC or the Chinese 
     Communist Party that are supporting actions by the Government 
     of the PRC or the Chinese Communist Party to--
       (1) overthrow or dismantle the governing institutions in 
     Taiwan;
       (2) occupy any territory controlled or administered by 
     Taiwan;
       (3) violate the territorial integrity of Taiwan; or
       (4) take significant action against Taiwan, including--
       (A) conducting a naval blockade of Taiwan;
       (B) seizing any outlying island of Taiwan; or
       (C) perpetrating a significant cyber attack on Taiwan.
       (b) Definitions.--In this section:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means--
       (A) the Committee on Foreign Relations of the Senate;
       (B) the Committee on Armed Services of the Senate;
       (C) the Select Committee on Intelligence of the Senate;
       (D) the Committee on Finance of the Senate;
       (E) the Committee on Banking, Housing, and Urban Affairs of 
     the Senate;
       (F) the Committee on Commerce, Science, and Transportation 
     of the Senate;
       (G) the Committee on Foreign Affairs of the House of 
     Representatives;
       (H) the Committee on Armed Services of the House of 
     Representatives;
       (I) the Committee on Financial Services of the House of 
     Representatives;
       (J) the Committee on Energy and Commerce of the House of 
     Representatives; and
       (K) the Permanent Select Committee on Intelligence of the 
     House of Representatives.
       (2) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on Foreign Relations of the Senate;
       (B) the Committee on Banking, Housing, and Urban Affairs of 
     the Senate;
       (C) the Committee on Commerce, Science, and Transportation 
     of the Senate;
       (D) the Committee on Foreign Affairs of the House of 
     Representatives;
       (E) the Committee on Financial Services of the House of 
     Representatives; and
       (F) the Committee on Energy and Commerce of the House of 
     Representatives.
       (3) PRC.--The term ``PRC'' means the People's Republic of 
     China.
       (c) Task Force.--Not later than 180 days after the date of 
     the enactment of this Act, the Office of Sanctions 
     Coordination of the Department of State and the Office of 
     Foreign Asset Control of the Department of the Treasury, in 
     coordination with the Office of the Director of National 
     Intelligence, shall establish an interagency task force 
     (referred to in this section as the ``Task Force'') to 
     identify military or nonmilitary entities that could be 
     subject to sanctions imposed by the United States immediately 
     following any action or actions taken by the PRC that 
     demonstrate an attempt to achieve, or has the significant 
     effect of achieving, the physical or political control of 
     Taiwan, including by taking any of the actions described in 
     paragraphs (1) through (4) of subsection (a).
       (d) Strategy.--Not later than 180 days after the 
     establishment of the Task Force, the Task Force shall submit 
     a strategy to the appropriate congressional committees for 
     identifying targets under this section, which shall include--
       (1) an assessment of how existing sanctions regimes could 
     be used to impose sanctions with respect to entities 
     identified pursuant to subsection (c);
       (2) a strategy for developing or proposing, as appropriate, 
     new sanctions authorities that might be required to impose 
     sanctions with respect to such entities;
       (3) an analysis of the potential economic consequences to 
     the United States, and to allies and partners of the United 
     States, of imposing various types of sanctions with respect 
     to those entities and assess measures that could be taken to 
     mitigate those consequences, including through the use of 
     licenses, exemptions, carve-outs, and other forms of relief;
       (4) a strategy for working with allies and partners of the 
     United States--
       (A) to leverage sanctions and other economic tools to deter 
     or respond to aggression against Taiwan;
       (B) to identify and resolve potential impediments to 
     coordinating sanctions-related efforts with respect to 
     responding to or deterring aggression against Taiwan; and
       (C) to identify industries, sectors, or goods and services 
     with respect to which the United States and 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 PRC;
       (5) an assessment of the resource gaps and needs at the 
     Department 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 PRC;
       (6) recommendations on how best to target sanctions and 
     other economic tools against individuals, entities, and 
     economic sectors in the PRC, taking into account the role of 
     those targets in supporting policies and activities of the 
     Government of the PRC 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 of those sanctions and tools for that 
     government, including its ability to achieve its objectives 
     with respect to Taiwan, and the potential impact of those 
     sanctions and tools on the stability of the global financial 
     system, including with respect to--
       (A) state-owned enterprises;
       (B) officials of the Government of the PRC;
       (C) financial institutions associated with the Government 
     of the PRC;
       (D) companies in the PRC that are not formally designated 
     by the Government of the PRC as state-owned enterprises; and
       (7) the identification of any foreign military or non-
     military entities that would likely be used to achieve the 
     outcomes specified in subsection (a)(1), including entities 
     in the shipping, logistics, energy (including oil and gas), 
     aviation, ground transportation, and technology sectors.
       (e) Report.--
       (1) In general.--Not later than 60 days after the 
     submission of the strategy required under subsection (d), and 
     semiannually thereafter, the Task Force shall submit a report 
     to the appropriate congressional committees that includes 
     information regarding--
       (A) any entities identified pursuant to subsection (c) or 
     (d)(7);
       (B) any new authorities needed to impose sanctions with 
     respect to such entities;
       (C) potential economic impacts on the PRC, the United 
     States, and allies and partners of the United States of 
     imposing sanctions with respect to those entities, as well as 
     mitigation measures that could be employed to limit 
     deleterious impacts on the United States and allies and 
     partners of the United States;
       (D) the status of coordination with allies and partners of 
     the United States on sanctions and other economic tools 
     identified under this section;
       (E) resource gaps and recommendations to enable the 
     Department of State and the Department of the Treasury to use 
     sanctions to more effectively respond to the malign 
     activities of the Government of the PRC; and
       (F) any additional resources that may be necessary to carry 
     out the strategy.
       (2) Form.--Each report required under paragraph (1) shall 
     be submitted in classified form.
       (f) Identification of Vulnerabilities and Leverage.--Not 
     later than 180 days after the date of the enactment of this 
     Act, the Secretary of State and the Secretary of Defense, in 
     consultation with the Secretary of Commerce, the Secretary of 
     the Treasury, the Director of the Office of Federal 
     Procurement Policy, and the Director of the Office of Science 
     and Technology Policy, shall jointly submit a report to the 
     appropriate committees of Congress that identifies--
       (1) goods and services from the United States that are 
     relied on by the PRC such that reliance presents a strategic 
     opportunity and source of leverage against the PRC, including 
     during a conflict; and
       (2) procurement practices of the United States Government 
     that are reliant on trade with the PRC and other inputs from 
     the PRC, such that reliance presents a strategic 
     vulnerability and source of leverage that the Chinese 
     Communist Party could exploit, including during a conflict.
       (g) Strategy to Respond to Coercive Action.--
       (1) In general.--Not later than 180 days after the 
     submission of the report required under subsection (f), the 
     Secretary of the Treasury, in coordination with the Secretary 
     of State and in consultation with the Secretary of the 
     Defense, the Secretary of Commerce, the Director of the 
     Office of Federal Procurement Policy, and the Director of the 
     Office of Science and Technology Policy, shall submit to the 
     appropriate committees of Congress a report, utilizing the 
     findings of the report required under subsection (f), that 
     describes a comprehensive sanctions strategy to advise 
     policymakers on policies the United States and allies and 
     partners of the United States could adopt with respect to the 
     PRC in response to any coercive action, including an 
     invasion, by the PRC that infringes upon the territorial 
     sovereignty of Taiwan by preventing access to international 
     waterways, airspace, or telecommunications networks.
       (2) Elements.--The strategy required under paragraph (1) 
     shall include policies that--
       (A) restrict the access of the People's Liberation Army to 
     oil, natural gas, munitions, and other supplies needed to 
     conduct military operations against Taiwan, United States 
     facilities in the Pacific and Indian Oceans, and allies and 
     partners of the United States in the region;
       (B) diminish the capacity of the industrial base of the PRC 
     to manufacture and deliver defense articles to replace those 
     lost in operations of the People's Liberation Army against 
     Taiwan, the United States, and allies and partners of the 
     United States;
       (C) inhibit the ability of the PRC to evade United States 
     and multilateral sanctions

[[Page S4972]]

     through third parties, including through secondary sanctions;
       (D) identify specific sanctions-related tools that may be 
     effective in responding to coercive action described in 
     paragraph (1) and assess the feasibility of the use and 
     impact of the use of such tools;
       (E) identify and resolve potential impediments to 
     coordinating sanctions-related efforts with respect to 
     responding to or deterring aggression against Taiwan with 
     allies and partners of the United States;
       (F) identify industries, sectors, or goods and services 
     with respect to which the United States, working with 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 PRC; 
     and
       (G) identify tactics used by the Government of the PRC to 
     influence the public in the United States and Taiwan through 
     propaganda and disinformation campaigns, including such 
     campaigns focused on delegitimizing Taiwan or legitimizing a 
     forceful action by the PRC against Taiwan.
       (h) Recommendations for Reduction of Vulnerabilities and 
     Leverage.--Not later than 180 days after the submission of 
     the report required under subsection (g), the Secretary of 
     State and the Secretary of Defense, in consultation with the 
     Secretary of Commerce, the Secretary of the Treasury, the 
     Director of the Office of Federal Procurement Policy, and the 
     Director of the Office of Science and Technology Policy, 
     shall jointly submit to the appropriate committees of 
     Congress a report that--
       (1) identifies critical sectors within the United States 
     economy that rely on trade with the PRC and other inputs from 
     the PRC (including active pharmaceutical ingredients, rare 
     earth minerals, and metallurgical inputs) that present a 
     strategic vulnerability and source of leverage that the 
     Chinese Communist Party or the People's Republic of China 
     could exploit; and
       (2) includes recommendations to Congress regarding the 
     steps that could be taken to reduce the sources of leverage 
     described in paragraph (1) and subsection (f)(1), including 
     through--
       (A) providing economic incentives and making other trade 
     and contracting reforms to support United States industry and 
     job growth in critical sectors and to indigenize production 
     of critical resources; and
       (B) policies for facilitating ``near-shoring or friend-
     shoring'' or otherwise developing strategies to facilitate 
     that process with allies and partners of the United States, 
     in other sectors for which domestic reshoring would prove 
     infeasible for any reason.
       (i) Form.--The reports required under subsections (f), (g), 
     and (h) shall be submitted in unclassified form, but may 
     include a classified annex.
       (j) Rules of Construction.--Nothing in this section may be 
     construed as--
       (1) a change to the One China Policy of the United States, 
     which is guided by the Taiwan Relations Act (22 U.S.C. 3301 
     et seq.), the three United States-People's Republic of China 
     Joint Communiques, and the Six Assurances; or
       (2) authorizing the use of military force.
                                 ______