[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8329 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 8329
To eliminate or substantially reduce the global availability of
critical technologies to United States arms embargoed countries, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 21, 2020
Mr. McCaul introduced the following bill; which was referred to the
Committee on Foreign Affairs
_______________________________________________________________________
A BILL
To eliminate or substantially reduce the global availability of
critical technologies to United States arms embargoed countries, and
for other purposes.
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 ``Revitalizing Multilateral Export
Control Diplomacy for Critical Technologies Act''.
SEC. 2. FINDINGS AND SENSE OF CONGRESS.
(a) Findings.--Congress finds the following:
(1) United States arms embargoed countries are implementing
malign and aggressive industrial policies using non-market
means and engaging in predatory investment to gain control of
critical technologies in order to achieve market dominance and
control supply chains.
(2) These countries integrate their industrial policies
into initiatives that break down the barriers and distinctions
between the commercial sector and the military to ensure that
critical technologies support the development of their
military.
(3) These countries seek to obtain critical technologies
from the United States and covered United States allies and
partners.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the fast-paced nature of technological innovation and
the systemic diversion of technological innovation and know-how
by United States arms embargoed countries for the benefit of
developing and enhancing their militaries, challenges the
effectiveness of existing multilateral fora established
specifically to prevent such export control risks, such as the
Wassenaar Arrangement; and
(2) the ability of United States arms embargoed countries
to access critical technologies that affect the national
security of the United States should spur the United States to
work with covered United States allies and partners to develop
unified export control policies to eliminate or substantially
reduce the global availability of critical technologies to
United States arms embargoed countries.
SEC. 3. STRATEGY TO CONTROL THE AVAILABILITY OF CRITICAL TECHNOLOGIES.
(a) Statement of Policy.--It is the policy of the United States
to--
(1) work with covered United States allies and partners to
develop unified export control policies to eliminate or
substantially reduce the global availability of critical
technologies to United States arms embargoed countries,
including by--
(A) leading regular and rapid bilateral and
plurilateral negotiations with respect to specific
critical technologies with different groupings of such
allies and partners;
(B) using policy instruments, including tax,
investment, licensing, lending, and trade, to provide
incentives to such allies and partners; and
(C) using, if necessary, existing authorities,
including trade remedies, the United States Munitions
List, the Entity List, economic sanctions, and other
authorities available under the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.);
(2) ensure critical technologies do not advance the
economic strategies, industrial policy goals, or military
capabilities of United States arms embargoed countries;
(3) carry out joint research and development projects with
covered United States allies and partners, with adequate
safeguards for the protection and promotion of any resulting
intellectual property, to--
(A) advance a broad range of scientific and
technical disciplines, including with respect to
critical technologies that may be affected by the
implementation of the strategy required by subsection
(b); and
(B) develop alternative markets to compensate for
lost sales opportunities; and
(4) enhance the sharing of information with covered United
States allies and partners that have entered into a
multilateral export control agreement with the United States
described in section 4(d).
(b) Strategy.--
(1) In general.--The President, in consultation with the
Secretary of Commerce, the Secretary of Defense, the Secretary
of State, the Director of National Intelligence, the Secretary
of the Treasury, and the Secretary of Energy, shall develop a
strategy to work with covered United States allies and partners
to develop unified export control policies to eliminate or
substantially reduce the global availability of critical
technologies to United States arms embargoed countries.
(2) Industry consultation.--
(A) In general.--The President shall--
(i) inform and solicit input in writing
from representatives of relevant United States
industries in developing the strategy required
by paragraph (1); and
(ii) submit to the appropriate
congressional committees input received
pursuant to clause (i).
(B) Disclosure of confidential information
prohibited.--No such committee, or member thereof, may
disclose any information made available under
subparagraph (A)(ii) that is submitted on a
confidential basis unless the committee determines that
the withholding of that information is contrary to the
national interest of the United States.
(3) Matters to be included.--The strategy required by this
subsection shall include the following:
(A) An identification of critical technologies that
are priorities for--
(i) the national security and the defense
industrial base of the United States; and
(ii) the economic strategies, industrial
policies, and military development of United
States arms embargoed countries.
(B) An identification of United States export
control policies for critical technologies identified
under subparagraph (A).
(C) An identification of covered United States
allies and partners and their share of the global
market with respect to critical technologies identified
under subparagraph (A).
(D) A description of ongoing and future efforts to
work with covered United States allies and partners to
develop unified export control policies in accordance
with the United States policy described in subsection
(a).
(E) An assessment of the effectiveness and methods
of past efforts by United States arms embargoed
countries to circumvent export control policies
relating to critical technologies identified under
subparagraph (A).
(F) The establishment of a working group, to
include appropriate representatives from the Department
of Commerce, the Department of Defense, the Department
of State, the Office of the Director of National
Intelligence, the Department of the Treasury, the
Department of Energy, and other relevant Federal
agencies, to implement the strategy.
(c) Report.--
(1) In general.--Not later than 120 days after the date of
the enactment of this Act, and annually thereafter for 4 years,
the President shall submit to the appropriate congressional
committees a report in writing that contains--
(A) the strategy required by subsection (b); and
(B) a summary of input solicited and received from
representatives of relevant United States industries in
developing the strategy required by subsection (b).
(2) Form.--The report required by this subsection shall--
(A) be submitted in unclassified form but may
contain a classified annex; and
(B) be made available on a publicly accessible
government website.
SEC. 4. ACTIONS TO SECURE THE GLOBAL SEMICONDUCTOR SUPPLY CHAIN.
(a) Finding.--Congress finds that, according to the Second Quarter
Recommendations of the congressionally-established National Security
Commission on Artificial Intelligence, high-end semiconductor chips
with feature sizes 45 nanometers and below are the most useful for
advanced artificial intelligence capabilities.
(b) Statement of Policy.--It is the policy of the United States--
(1) to work with covered United States allies and partners
to secure the semiconductor supply chain in a manner that
eliminates or substantially reduces its presence in or reliance
on United States arms embargoed countries;
(2) to ensure United States semiconductor manufacturing
equipment, design tools, and technical data are not made
available to United States arms embargoed countries in
achieving their industrial policy goals that threaten United
States national security interests; and
(3) to proceed expeditiously in diplomatic efforts with
covered United States allies and partners to develop unified
export control policies to eliminate or substantially reduce
the global availability of critical technologies to United
States arms embargoed countries.
(c) Identification Provisions.--
(1) Identification of semiconductor manufacturing
equipment, design tools, and related technical data.--Not later
than 180 days after the date of the enactment of this Act, and
on a periodic basis thereafter, the Secretary of Commerce shall
identify semiconductor manufacturing equipment, design tools,
and related technical data that--
(A) are not manufactured or produced in United
States arms embargoed countries; and
(B) are used to fabricate high-end semiconductor
chips with feature sizes of 45 nanometers and below
that the Secretary determines threaten the national
security and foreign policy interests of the United
States.
(2) Identification of entities that fabricate semiconductor
chips with feature sizes of 45 nanometers and below.--Not later
than 180 days after the date of the enactment of this Act, and
on a periodic basis thereafter, the Secretary of Commerce shall
identify entities in United States arms embargoed countries
that--
(A) own or control semiconductor manufacturing
equipment, design tools, and related technical data
that are identified pursuant to paragraph (1); and
(B) are required under the laws of United States
arms embargoed countries to cooperate with the
militaries of such countries relating to the use of
such semiconductor manufacturing equipment, design
tools, and related technical data to fabricate high-end
semiconductor chips described in paragraph (1)(B).
(3) Industry consultation.--
(A) In general.--The President shall--
(i) inform and solicit input in writing
from representatives of relevant United States
industries in--
(I) identifying semiconductor
manufacturing equipment, design tools,
and related technical data pursuant to
paragraph (1); and
(II) identifying entities pursuant
to paragraph (2); and
(ii) submit to the appropriate
congressional committees input received
pursuant to clause (i).
(B) Disclosure of confidential information
prohibited.--No such committee, or member thereof, may
disclose any information made available under
subparagraph (A)(ii) that is submitted on a
confidential basis unless the committee determines that
the withholding of that information is contrary to the
national interest of the United States.
(d) Multilateral Agreement.--
(1) In general.--The working group established pursuant to
section 3(b)(3)(F) shall, as soon as practicable after the date
of the enactment of this Act, seek to establish a multilateral
agreement with covered United States allies and partners to
develop unified export control policies to eliminate or
substantially reduce the global availability of semiconductor
manufacturing equipment, design tools, and related technical
data identified pursuant to subsection (c)(1) to United States
arms embargoed countries, including entities in United States
arms embargoed countries identified pursuant to subsection
(c)(2).
(2) Actions after agreement implemented.--
(A) In general.--Not later than 30 days after the
date on which a multilateral agreement described in
paragraph (1) is implemented, the Secretary of
Commerce--
(i) shall exercise the authorities under
the Export Control Reform Act of 2018 (50
U.S.C. 4801 et seq.)--
(I) to include semiconductor
manufacturing equipment, design tools,
and related technical data with respect
to which the agreement applies on the
Commerce Control List; and
(II) to presumptively disapprove
any application for a license to
export, reexport, or provide for an in-
country transfer of such semiconductor
manufacturing equipment, design tools,
and related technical data to a United
States arms embargoed country; and
(ii) shall include entities identified
pursuant to the agreement on the Entity List.
(B) Annual meetings.--
(i) In general.--The working group shall
seek to meet on an annual basis with covered
United States allies and partners that are
parties to the agreement to--
(I) exchange information to--
(aa) facilitate development
of unified export control
policies with respect to trends
in technology that could pose
risks to the national security
of the United States and such
other parties to the agreement;
and
(bb) provide for the
sharing of information with
respect to specific
technologies and entities
acquiring such technologies as
appropriate to address such
risks to the national security
of the United States and such
other parties to the agreement;
(II) verify that all parties to the
agreement are adhering to a common
standard of controls and licensing and
are otherwise in compliance with the
terms of their commitments under the
agreement;
(III) review the technology
controls and licensing policies for
semiconductor manufacturing equipment,
design tools, and related technical
data with respect to which the
agreement applies and as necessary
update such controls and licensing
policies.
(ii) Industry consultation.--The President
shall inform and solicit input in writing from
representatives of relevant United States
industries in advance of the meetings described
in clause (i).
(3) Certification if agreement not implemented.--
(A) In general.--If a multilateral agreement
described in paragraph (1) is not implemented within 1
year after the date of the enactment of this Act, the
President shall certify to the appropriate
congressional committees that it is not in the national
security interest of the United States to--
(i) include semiconductor manufacturing
equipment, design tools, and related technical
data identified pursuant to subsection (c)(1)
on the Commerce Control List; and
(ii) include entities identified pursuant
to subsection (c)(2) on the Entity List.
(B) Actions if certification not made.--If the
President is unable to make the certification described
in subparagraph (A), the President shall direct the
Secretary of Commerce--
(i) to include semiconductor manufacturing
equipment, design tools, and related technical
data identified pursuant to subsection (c)(1)
on the Commerce Control List; and
(ii) to include entities identified
pursuant to subsection (c)(2) on the Entity
List.
SEC. 5. CRITICAL TECHNOLOGY EXPORT CONTROL FUND.
(a) Establishment.--There is established in the Treasury of the
United States a trust fund, to be known as the ``Critical Technology
Export Control Fund'' (in this section referred to as the ``Fund''),
consisting of--
(1) amounts deposited into the Fund under subsection
(b)(1); and
(2) amounts that may be credited to the Fund under
subsection (b)(2).
(b) Amounts.--
(1) Authorization of appropriations.--There are authorized
to be appropriated $2,000,000,000 to be deposited in the Fund
for fiscal year 2021.
(2) Investment of amounts.--
(A) In general.--The Secretary of the Treasury
shall invest such portion of the Fund as is not
required to meet current withdrawals in interest-
bearing obligations of the United States or in
obligations guaranteed as to both principal and
interest by the United States.
(B) Interest and proceeds.--The interest on, and
the proceeds from the sale or redemption of, any
obligations held in the Fund shall be credited to and
form a part of the Fund.
(3) Availability of amounts.--
(A) In general.--Amounts in the Fund shall remain
available through the end of the 10th fiscal year
beginning after the date of the enactment of this Act.
(B) Remainder.--Any amounts remaining in the Fund
after the end of the fiscal year described in
subparagraph (A) shall be deposited in the general fund
of the Treasury.
(c) Use of Amounts.--
(1) In general.--The Secretary of State, in consultation
with the working group established pursuant to section
3(b)(3)(F), shall use amounts in the Fund to carry out projects
described in paragraph (2) with one or more covered United
States allies and partners that enter into an agreement with
the Secretary to develop a unified export control policy to
eliminate or substantially reduce the global availability of a
critical technology identified under section 3(b)(3)(A) to
United States arms embargoed countries.
(2) Projects described.--The projects described in this
paragraph are joint research and development projects carried
out by the United States and the covered United States allies
and partners to develop basic and applied research, develop
regulatory and enforcement capacity building, expand production
capacity, and carry out other related activities with respect
to the critical technology.
(3) Rule of construction.--Nothing in this section may be
construed to authorize the use of amounts in the Fund to carry
out projects described in paragraph (2) that may benefit
directly or indirectly entities in United States arms embargoed
countries
(d) Report by Secretary of State.--Not later than 1 year after the
date of the enactment of this Act, and annually thereafter for each
fiscal year during which amounts in the Fund are available under
subsection (b)(3), the Secretary of State shall submit to the
appropriate congressional committees a report on the implementation of
this section.
(e) Report by Comptroller General.--Not later than 2 years after
the date of the enactment of this Act, the Comptroller General of the
United States shall submit to the appropriate congressional committees
a report evaluating the effectiveness of the Fund, including--
(1) the effectiveness of projects supported by the Fund;
and
(2) an assessment of the merits of continuation of the
Fund.
SEC. 6. SENSE OF CONGRESS.
It is the sense of Congress that the working group established
pursuant to section 3(b)(3)(F) should, as soon as practicable after the
date of the enactment of this Act, seek to establish a multilateral
agreement with covered United States allies and partners to eliminate
or substantially reduce the global availability of other critical
technologies identified under section 3(b)(3)(A) to United States arms
embargoed countries.
SEC. 7. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Affairs and the
Committee on Energy and Commerce of the House of
Representatives; and
(B) the Committee on Banking, Housing, and Urban
Affairs and the Committee on Commerce, Science, and
Transportation of the Senate.
(2) Commerce control list.--The term ``Commerce Control
List'' means the list set forth in Supplement No. 1 to part 774
of the Export Administration Regulations.
(3) Covered united states ally or partner.--The term
``covered United States ally or partner'' means a foreign
country that--
(A) is an ally or partner of the United States; and
(B)(i) produces, designs, tests, manufactures,
fabricates, or develops critical technologies; or
(ii) for purposes of section 4, produces or
manufactures semiconductor manufacturing equipment,
design tools, and related technical data that--
(I) are not manufactured or produced in
United States arms embargoed countries; and
(II) are used to fabricate high-end
semiconductor chips with feature sizes of 45
nanometers and below that the Secretary of
Commerce determines threaten the national
security and foreign policy interests of the
United States; and
(4) Critical technologies.--The term ``critical
technologies'' has the meaning given the term in section
721(a)(6) of the Defense Production Act of 1950 (50 U.S.C.
4565(a)(6)); and
(5) Entity list.--The term ``Entity List'' means the list
maintained by the Bureau of Industry and Security and set forth
in Supplement No. 4 to part 744 of the Export Administration
Regulations.
(6) Export administration regulations.--The term ``Export
Administration Regulations'' means subchapter C of chapter VII
of title 15, Code of Federal Regulations.
(7) United states arms embargoed country.--The term
``United States arms embargoed country'' means a country--
(A) identified in column D:5 of Country Group D in
Supplement No. 1 to part 740 of the Export
Administration Regulations; or
(B) determined to be a proscribed country pursuant
to section 126.1 of title 22, Code of Federal
Regulations.
<all>
Revitalizing Multilateral Export Control Diplomacy for Critical Technologies Act
#8329 | HR Congress #116
Policy Area: Foreign Trade and International Finance
Subjects: Arms control and nonproliferationCongressional oversightForeign aid and international reliefGovernment studies and investigationsGovernment trust fundsIndustrial policy and productivityInternational organizations and cooperationInternational scientific cooperationLicensing and registrationsManufacturingMetalsMilitary assistance, sales, and agreementsMilitary procurement, research, weapons developmentResearch and developmentTechnology assessmentTrade restrictions
Last Action: Referred to the House Committee on Foreign Affairs. (9/21/2020)
Bill Text Source: Congress.gov
Summary and Impacts
Original Text