[House Report 117-454]
[From the U.S. Government Publishing Office]


117th Congress   }                                      {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                      {      117-454

======================================================================



 
   DHS RESTRICTIONS ON CONFUCIUS INSTITUTES AND CHINESE ENTITIES OF 
                              CONCERN ACT

                                _______
                                

August 19, 2022.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Thompson of Mississippi, from the Committee on Homeland Security, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 7779]

    The Committee on Homeland Security, to whom was referred 
the bill (H.R. 7779) to establish Department of Homeland 
Security funding restrictions on institutions of higher 
education that have a relationship with Confucius Institutes, 
and for other purposes, having considered the same, reports 
favorably thereon with an amendment and recommends that the 
bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     3
Background and Need for Legislation..............................     3
Hearings.........................................................     5
Committee Consideration..........................................     5
Committee Votes..................................................     5
Committee Oversight Findings.....................................     5
C.B.O. Estimate, New Budget Authority, Entitlement Authority, and 
  Tax Expenditures...............................................     5
Federal Mandates Statement.......................................     5
Statement of General Performance Goals and Objectives............     5
Duplicative Federal Programs.....................................     5
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     6
Advisory Committee Statement.....................................     6
Applicability to Legislative Branch..............................     6
Section-by-Section Analysis of the Legislation...................     6

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``DHS Restrictions on Confucius 
Institutes and Chinese Entities of Concern Act''.

SEC. 2. LIMITATIONS ON CONFUCIUS INSTITUTES' HOST SCHOOLS.

  (a) Definitions.--In this section:
          (1) Chinese entity of concern.--The term ``Chinese entity of 
        concern'' means any university or college in the People's 
        Republic of China that--
                  (A) is involved in the implementation of military-
                civil fusion;
                  (B) participates in the Chinese defense industrial 
                base;
                  (C) is affiliated with the Chinese State 
                Administration for Science, Technology and Industry for 
                the National Defense;
                  (D) receives funding from any organization 
                subordinate to the Central Military Commission of the 
                Chinese Communist Party; or
                  (E) provides support to any security, defense, 
                police, or intelligence organization of the Government 
                of the People's Republic of China or the Chinese 
                Communist Party.
          (2) Confucius institute.--The term ``Confucius Institute'' 
        means a cultural institute funded by the Government of the 
        People's Republic of China.
          (3) Institution of higher education.--The term ``institution 
        of higher education'' has the meaning given such term in 
        section 102 of the Higher Education Act of 1965 (20 U.S.C. 
        1002).
          (4) Relationship.--The term ``relationship'' means, with 
        respect to an institution of higher education, any contract 
        awarded, or agreement entered into, as well as any in-kind 
        donation or gift, received from a Confucius Institute or 
        Chinese entity of concern.
  (b) Restrictions on Institutions of Higher Education.--Beginning with 
the first fiscal year that begins after the date that is 12 months 
after the date of the enactment of this Act, the Secretary of Homeland 
Security shall ensure that an institution of higher education (referred 
to in this section as an ``institution'') which has a relationship with 
a Confucius Institute is ineligible to receive any Science and 
Technology or Research and Development funds from the Department of 
Homeland Security, unless the institution terminates the relationship 
between the institution and such Confucius Institute. Upon the 
termination of such a relationship, the institution at issue shall be 
eligible to receive Science and Technology or Research and Development 
funds from the Department of Homeland Security.
  (c) Chinese Entities of Concern Relationship Disclosures.--Beginning 
on the date that is 12 months after the date of the enactment of this 
Act, the Secretary of Homeland Security shall require each institution 
of higher education which has a relationship with a Chinese entity of 
concern that is seeking or receives Science and Technology or Research 
and Development funds from the Department of Homeland Security to 
notify the Secretary of such relationship. Such notification shall 
include the following with respect to such relationship:
          (1) An identification of the Chinese entity of concern.
          (2) Information relating to the length of such relationship.
          (3) A description of the nature of such institution's 
        relationship with such Chinese entity of concern, including the 
        monetary value of any contract awarded, or agreement entered 
        into, as well as any in-kind donation or gift, from such 
        Chinese entity of concern.
  (d) Assistance.--The Secretary of Homeland Security shall provide 
outreach and, upon request, technical assistance to institutions of 
higher education relating to compliance with this Act. In carrying out 
this subsection, the Secretary shall provide particular attention to 
institutions assisting historically Black colleges and universities (as 
such term is defined in part B of section 322(2) of the Higher 
Education Act of 1965 (22 U.S.C. 1061(2)), Hispanic serving 
institutions (as such term is defined in section 502 of the Higher 
Education Act of 1965 (20 U.S.C. 1101a)), Tribal colleges and 
universities (as such term is defined in section 316(b) of the Higher 
Education Act of 1965 (20 U.S.C. 1059c(b)), and other minority serving 
institutions (as such defined in section 371(a) of the Higher Education 
Act of 1965 (20 U.S.C. 1067q(a))).
  (e) Waiver.--
          (1) In general.--The Secretary of Homeland Security may 
        waive, on a case-by-case basis, and for a period of not more 
        than one year, the application of subsection (b) to an 
        institution of higher education if the Secretary determines 
        such is in the national security interests of the United 
        States.
          (2) Renewal.--The Secretary of Homeland Security may annually 
        renew a waiver issued pursuant to paragraph (1) if the 
        Secretary determines such is in the national security interests 
        of the United States.
          (3) Notification.--If the Secretary of Homeland Security 
        issues or renews a waiver pursuant to paragraph (1) or (2), 
        respectively, not later than 30 days after such issuance or 
        renewal, as the case may be, the Secretary shall provide 
        written notification to the Committee on Homeland Security of 
        the House of Representatives and the Committee on Homeland 
        Security and Governmental Affairs of the Senate regarding such 
        issuance or renewal, including a justification relating 
        thereto.
  (f) Reports.--Not later than 18 months after the date of the 
enactment of this Act and annually thereafter, the Secretary of 
Homeland Security shall report to the Committee on Homeland Security of 
the House of Representatives and the Committee on Homeland Security and 
Governmental Affairs of the Senate regarding implementation of this Act 
during the immediately preceding 12 month period. Each such report 
shall include information relating to--
          (1) the implementation of subsections (b) and (c), including 
        the information disclosed pursuant to such subsection (c); and
          (2) outreach and the provision of technical assistance 
        pursuant to subsection (d).

                          PURPOSE AND SUMMARY

    H.R. 7779, the ``DHS Restrictions on Confucius Institutes 
and Chinese Entities of Concern Act,'' prohibits the Department 
of Homeland Security (DHS) from providing Science and 
Technology (S&T) or Research and Development (R&D) funds to any 
United States institution of higher education that has a 
relationship with a Confucius Institute funded by the 
Government of the People's Republic of China (PRC). It also 
requires any U.S. institution of higher education seeking or 
receiving S&T or R&D funds from DHS to notify the Department of 
any relationship with a ``Chinese Entity of Concern.''

                  BACKGROUND AND NEED FOR LEGISLATION

    Starting in the early 2000s, the PRC created Confucius 
Institutes where Chinese language instruction was offered at 
U.S. institutions of higher education as well as academic 
institutions in 160 countries. While these institutes were 
marketed as a mechanism to promote Chinese language and 
culture, support local Chinese teaching internationally, and 
facilitate cultural exchanges, evidence emerged that the 
Chinese government sought to leverage the Institutes in ways 
that pose risks to United States national security.\1\ 
Confucius Institutes are almost entirely controlled by the 
Chinese government and pose risks in a variety of ways from 
stifling academic freedom to aggressive talent-recruitment 
programs, among others.\2\ For example, in 2019, the Department 
of Justice lodged a complaint against Zhongsan Liu, along with 
several accomplices, for attempting to convince at least 7 U.S. 
universities to sponsor visas for purported Chinese research 
scholars who in reality aimed to recruit American science 
talent. The group of conspirators were successful in at least 
one attempt to defraud a targeted university. The complaint 
also alleged that the head of the University of Massachusetts 
Boston's Confucius Institute offered to assist Mr. Liu in the 
alleged fraud.\3\ In March 2022, Mr. Liu was convicted of 
participating in a conspiracy to defraud the United States by 
obstructing the lawful functions of the U.S. Departments of 
State and Homeland Security and with committing visa fraud.\4\
---------------------------------------------------------------------------
    \1\Thomas Lum and Hannah Fischer, ``Confucius Institutes in the 
United States: Selected Issues,'' Congressional Research Service, (May 
20, 2022), available at https://crsreports.congress.gov/product/pdf/IF/
IF11180.
    \2\``Senators Portman & Carper Unveil Bipartisan Report on 
Confucius Institutes at U.S. Universities & K-12 Classrooms,'' Senate 
Committee on Homeland Security and Governmental Affairs Permanent 
Subcommittee on Investigations, Press Release, (Feb. 27, 2019), 
available at https://www.hsgac.senate.gov/subcommittees/investigations/
media/senators-portman-and-carper-unveil-bipartisan-report-on-
confucius-institutes-at-us-universities_k-12-classrooms; ``Agreements 
Establishing Confucius Institutes at U.S. Universities Are Similar, but 
Institute Operations Vary,'' U.S. Government Accountability Office, 
GAO-19-278, (Feb. 2019), available at https://www.gao.gov/assets/gao-
19-278.pdf.
    \3\Kate O'Keefe and Aruna Viswanatha, ``Chinese Official Charged in 
Alleged Visa Scheme to Recruit U.S. Science Talent,'' Wall Street 
Journal, (Sept. 24, 2019), available at https://www.wsj.com/articles/
chinese-official-charged-in-alleged-visa-scheme-to-recruit-u-s-science-
talent-11569332862.
    \4\``Chinese Government Employee Convicted Of Participating In 
Conspiracy To Defraud The United States And Fraudulently Obtain U.S. 
Visas,'' U.S. Department of Justice, (Mar. 23, 2022), available at 
https://www.justice.gov/usao-sdny/pr/chinese-government-employee-
convicted-participating-conspiracy-defraud-united-states.
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    In response, the Fiscal Year (FY) 2019 and FY 2021 National 
Defense Authorization Acts restricted Department of Defense 
funding from going to United States institutions of higher 
education that host Confucius Institutes.\5\ Following 
enactment of this legislation, Confucius Institutes began to 
close their doors across America. There were 113 active 
Confucius Institutes in 2018, and 79 were closed between 2018 
and 2021.\6\ As of July 2022, 16 Confucius Institutes remained 
open in the United States.\7\ With this trend toward ending 
Confucius Institutes, there is concern that the PRC has 
alternate potential avenues to influence American academia and 
society.
---------------------------------------------------------------------------
    \5\See supra, at note 1.
    \6\Craig Singleton, ``The Middle Kingdom Meets Higher Education: 
How U.S. Universities Support China's Military-Industrial Complex,'' 
The Foundation for Defense of Democracies, (Dec. 9, 2021), available at 
https://www.fdd.org/analysis/2021/12/09/the-middle-kingdom-meets-
higher-education/.
    \7\``How Many Confucius Institutes Are in the United States?,'' 
National Association of Scholars, (April 5, 2022), available at https:/
/www.nas.org/blogs/article/
how_many_confucius_institutes_are_in_the_united_states.
---------------------------------------------------------------------------
    H.R. 7779 seeks to bolster homeland security against 
potential intelligence, national security, and cyber espionage 
threats posed by Confucius Institutes and is an extension of 
the limitations in place at the Department of Defense since 
2019. H.R. 7779 restricts DHS S&T and R&D funding from United 
States institutions of higher education that have a 
relationship with a Confucius Institute and establishes a 
reporting requirement for institutions that have relationships 
with a ``Chinese Entity of Concern.'' Chinese Entities of 
Concern include Chinese universities that are involved in the 
implementation of Military-Civil Fusion; participates in the 
PRC's military industrial base; or provides support to any 
security, defense, police, or intelligence organization of the 
PRC or the CCP.
    H.R. 7779 recognizes that the Chinese Entity of Concern 
reporting requirement may place an additional burden upon 
universities, so the bill requires DHS to provide technical 
assistance to colleges and universities in carrying out this 
requirement with particular attention to historically Black 
colleges and universities and other minority-serving 
institutions. With respect to the funding restrictions on 
United States institutions with relationships with Confucius 
Institutes, the bill provides the Secretary of Homeland 
Security the authority to issue a waiver from funding 
restrictions for no longer than 1 year, should the Secretary 
deem it is in the interest of America's national security. 
Should such a waiver authority be utilized, the Secretary must 
provide written notification to the Committee on Homeland 
Security of the House of Representatives and the Committee on 
Homeland Security and Governmental Affairs of the Senate 
regarding such issuance or renewal, including a related 
justification.

                                HEARINGS

    For the purposes of clause 3(c)(6) of rule XIII of the 
Rules of the House of Representatives, no hearings were used to 
develop H.R. 7779.

                        COMMITTEE CONSIDERATION

    The Committee met on May 19, 2022, a quorum being present, 
to consider H.R. 7779 and ordered the measure to be favorably 
reported to the House, as amended, by voice vote.

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII requires the Committee to list the 
recorded votes on the motion to report legislation and 
amendments thereto.
    No recorded votes were requested during consideration of 
H.R. 7779.

                      COMMITTEE OVERSIGHT FINDINGS

    In compliance with clause 3(c)(1) of rule XIII, the 
Committee advises that the findings and recommendations of the 
Committee, based on oversight activities under clause 2(b)(1) 
of rule X, are incorporated in the descriptive portions of this 
report.

CONGRESSIONAL BUDGET OFFICE ESTIMATE, NEW BUDGET AUTHORITY, ENTITLEMENT 
                    AUTHORITY, AND TAX EXPENDITURES

    With respect to the requirements of clause 3(c)(2) of rule 
XIII and section 308(a) of the Congressional Budget Act of 
1974, and with respect to the requirements of clause 3(c)(3) of 
rule XIII and section 402 of the Congressional Budget Act of 
1974, the Committee has requested but not received from the 
Director of the Congressional Budget Office a statement as to 
whether this bill contains any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.

                       FEDERAL MANDATES STATEMENT

    An estimate of Federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chairman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause 3(c)(4) of rule XIII, the objective of 
H.R. 7779 is to increase the security and integrity of science 
and technology and research and development efforts at American 
institutions of higher education which DHS funds.

                      DUPLICATIVE FEDERAL PROGRAMS

    Pursuant to clause 3(c)(5) of rule XIII, the Committee 
finds that H.R. 7779 does not contain any provision that 
establishes or reauthorizes a program known to be duplicative 
of another Federal program.

   CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND LIMITED TARIFF 
                                BENEFITS

    In compliance with rule XXI, this bill, as reported, 
contains no congressional earmarks, limited tax benefits, or 
limited tariff benefits as defined in clause 9(d), 9(e), or 
9(f) of rule XXI.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that H.R. 7779 does not relate to the 
terms and conditions of employment or access to public services 
or accommodations within the meaning of section 102(b)(3) of 
the Congressional Accountability Act.

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title

    This section states that the Act may be cited as the ``DHS 
Restrictions on Confucius Institutes and Chinese Entities of 
Concern Act''.

Sec. 2. Limitations on Confucius Institutes' host schools

    This section establishes the definitions for ``Chinese 
Entity of Concern,'' ``Confucius Institute,'' and 
``relationship.''
    This section requires that an institution of higher 
education which has a relationship with a Confucius Institute 
is ineligible to receive S&T or R&D funds from DHS so long as 
the institution maintains such relationships. It also requires 
institutions of higher education which have relationships with 
a Chinese entity of concern to disclose such relationships to 
the Department when seeking S&T or R&D funds.
    This section further requires the Secretary of Homeland 
Security to provide technical assistance, upon request, to 
institutions of higher education relating to compliance with 
this Act. In carrying out this subsection, the Secretary is 
directed to provide particular attention to historically Black 
colleges and universities and other minority-serving 
institutions who may experience additional burden. It is the 
Committee's intent that the restrictions and reporting 
requirements established in H.R. 7779 are implemented in a 
timely manner.
    Additionally, this section grants the Secretary of Homeland 
Security the authority to waive, on a case-by-case basis, and 
for a period of not more than 1 year, the funding restrictions 
on institutions of higher education if the Secretary determines 
it is in the national security interests of the United States. 
The Secretary shall provide written notification of the waiver, 
and any renewal of the waiver, to the Committee on Homeland 
Security of the House of Representatives and the Committee on 
Homeland Security and Governmental Affairs of the Senate (the 
Committees).
    Finally, not later than 18 months after the date of the 
enactment of this Act, and annually thereafter, the Secretary 
of Homeland Security is required to report to the Committees on 
the implementation of this Act.

                                  [all]