Bill Summary
The "Space Protection of American Command and Enterprise Act", also known as the "SPACE Act", is a bill that was proposed in the United States to prohibit the purchase of certain telecommunications or aerospace goods or services from entities affiliated with the People's Republic of China or the Russian Federation. The bill also requires reporting on investment by foreign persons in the aerospace industry in the United States. It defines terms such as "certain telecommunications and aerospace goods or service", "covered entity", "foreign person", and "United States person". The bill also requires the National Space Council to submit a report to Congress on space investment competition from China and Russia, and includes elements such as a description of commercial investment activities in these countries and an assessment of military-civil fusion activities. The bill also prohibits the use of funds from the Department of Commerce or the National Aeronautics and Space Administration to purchase certain goods or services from entities associated with the Chinese government or Communist Party. It also requires the Securities and Exchange Commission to require foreign persons who acquire more than 2% of a class of equity security issued by a covered entity to file a report. Additionally, the bill requires the Secretary of Defense to submit an annual report on foreign investment in American space activities.
Possible Impacts
1. Companies in the United States that rely on imports from China or Russia for their telecommunications or aerospace goods and services may face difficulty in sourcing their products and could experience a decline in their competitiveness in the global market.
2. United States citizens or permanent residents working in the aerospace industry may be limited in their employment opportunities if their company has ties to entities affiliated with the People's Republic of China or the Russian Federation.
3. The United States may experience a decrease in research and technology collaborations with China and Russia, which could impact the country's ability to remain a leader in the global space industry.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1483 Introduced in Senate (IS)]
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118th CONGRESS
1st Session
S. 1483
To prohibit the purchase of certain telecommunications or aerospace
goods or service from entities affiliated with the People's Republic of
China or the Russian Federation and to require reporting relating to
investment by foreign persons in the aerospace industry in the United
States, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 9, 2023
Mr. Rubio (for himself, Mr. Cornyn, Mrs. Blackburn, Mr. Braun, and Mr.
Wicker) introduced the following bill; which was read twice and
referred to the Committee on Commerce, Science, and Transportation
_______________________________________________________________________
A BILL
To prohibit the purchase of certain telecommunications or aerospace
goods or service from entities affiliated with the People's Republic of
China or the Russian Federation and to require reporting relating to
investment by foreign persons in the aerospace industry in the United
States, 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 ``Space Protection of American Command
and Enterprise Act'' or the ``SPACE Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Certain telecommunications and aerospace goods or
service.--The term ``certain telecommunications and aerospace
goods or service'' means any equipment, hardware or software,
and services designed specifically to be used in--
(A) offering telecommunications, as defined in
section 3 of the Communications Act of 1934 (47 U.S.C.
153); or
(B) the design, development, and making of
aircraft, spacecraft, and rockets.
(2) Covered entity.--The term ``covered entity'' means an
entity--
(A) that is a United States business; and
(B) the business of which relates to exploration,
manufacturing, telecommunications, or national security
activities involving space.
(3) Foreign person.--The term ``foreign person'' means a
person that is not a United States person.
(4) United states person.--The term ``United States
person'' means--
(A) a United States citizen or an alien lawfully
admitted to the United States for permanent residence;
and
(B) an entity organized under the laws of the
United States or any jurisdiction within the United
States (including any foreign branch of such an
entity).
SEC. 3. REPORT ON SPACE INVESTMENT COMPETITION FROM THE PEOPLE'S
REPUBLIC OF CHINA AND THE RUSSIAN FEDERATION.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the National Space Council shall submit to
Congress a report on space investment competition from the People's
Republic of China and the Russian Federation.
(b) Elements.--The report required by subsection (a) shall include
the following:
(1) A description of commercial investment activities used
by the People's Republic of China and the Russian Federation to
produce technologies and devices for space activities and
programs, including--
(A) launch vehicles and technologies;
(B) satellites and telecommunications equipment and
services;
(C) manned spaceships, cargo spaceships, deep space
explorers, and space stations;
(D) nuclear missiles, conventional ground-to-ground
missiles, and air and missile defense equipment;
(E) space and zero-gravity manufacturing;
(F) space-based precious minerals excavation and
exploration technologies;
(G) space-based solar power technologies; and
(H) any other critical technologies and investment
activities as determined by the National Space Council,
particularly activities conducted by--
(i) China Aerospace Science and Industry
Corporation Limited;
(ii) China Aerospace Science and Technology
Corporation;
(iii) the China National Space
Administration;
(iv) the BeiDou Satellite Navigation
Experimental System;
(v) the Government of the People's Republic
of China; or
(vi) the People's Liberation Army.
(2) An assessment of military-civil fusion activities in
the People's Republic of China and the Russian Federation
regarding space-related investments, including--
(A) converting space-related technologies and
resources to civilian entities;
(B) increasing commercial enterprise participation
in space-related investments; and
(C) using investment vehicles affiliated with the
People's Republic of China or the Russian Federation to
acquire critical technologies in other countries.
(3) An assessment of and recommendation to strengthen the
ability of the United States to protect the intellectual
property and critical technologies of the United States
regarding space-related investments from export, transfer, and
foreign theft or imitation, particularly from entities
affiliated with the Government of the People's Republic of
China or the Government of the Russian Federation.
(4) A review and assessment of the research, technology,
and commercial ties between the United States and the People's
Republic of China and the Russian Federation regarding space-
related investments to assess exposure and risks that may
contribute to the development or enhancement of the space
capabilities of the People's Republic of China and the Russian
Federation.
(5) An interagency strategy--
(A) to defend supply chains of the United States
that are critical to competitiveness in space; and
(B) to ensure that the United States remains the
preeminent commercial leader in the global space
industry.
SEC. 4. PROHIBITION ON USE OF FUNDS TO PURCHASE CERTAIN
TELECOMMUNICATIONS OR AEROSPACE GOODS OR SERVICE FROM
ENTITIES ASSOCIATED WITH THE GOVERNMENT OF THE PEOPLE'S
REPUBLIC OF CHINA OR THE COMMUNIST PARTY OF CHINA.
No funds made available to the Department of Commerce or the
National Aeronautics and Space Administration may be used to purchase
or lease certain telecommunications or aerospace goods or service from
any telecommunications or aerospace corporation, subsidiary, or
affiliate associated with any of the following:
(1) The Government of the People's Republic of China.
(2) The Communist Party of China.
(3) The People's Liberation Army.
(4) The China National Space Administration.
(5) China Aerospace Science and Industry Corporation
Limited.
(6) China Aerospace Science and Technology Corporation.
(7) The BeiDou Satellite Navigation Experimental System.
(8) Any Communist Chinese military company identified by
the Secretary of Defense under section 1237(b) of the Strom
Thurmond National Defense Authorization Act for Fiscal Year
1999 (50 U.S.C. 1701 note; Public Law 105-261).
SEC. 5. SEC REPORTING.
(a) Definitions.--In this section--
(1) the term ``Commission'' means the Securities and
Exchange Commission;
(2) the term ``Schedule 13D'' means a statement containing
the information required under section 240.13d-101 of title 17,
Code of Federal Regulations, or any successor regulation; and
(3) the term ``Schedule 13G'' means a statement containing
the information required under section 240.13d-102 of title 17,
Code of Federal Regulations, or any successor regulation.
(b) Reporting Required.--Notwithstanding section 240.13d-1 of title
17, Code of Federal Regulations, or any successor regulation, the
Commission shall require any foreign person who, after acquiring
directly or indirectly the beneficial ownership of any equity security
of a class which is specified in paragraph (i) of such section 240.13d-
1 and that is issued by a covered entity, is directly or indirectly the
beneficial owner of more than 2 percent of the class, to file with the
Commission Schedule 13D or Schedule 13G, as determined under such
section 240.13d-1.
(c) Updates to Rules.--The Commission may make any updates to the
rules of the Commission that may be necessary as a result of this
section.
SEC. 6. ANNUAL REPORT ON FOREIGN INVESTMENT IN UNITED STATES
EXPLORATION, MANUFACTURING, TELECOMMUNICATIONS, AND
NATIONAL SECURITY INVOLVING SPACE.
(a) In General.--Not later than 1 year after the date of the
enactment of this Act, and annually thereafter, the Secretary of
Defense, in coordination with the Secretary of Commerce and the
Secretary of the Treasury, shall submit to Congress a report on
investment by foreign persons in activities conducted in the United
States or by United States persons relating to exploration,
manufacturing, telecommunications, or national security activities
involving space.
(b) Elements.--The report required by subsection (a) shall
include--
(1) the country of origin of the foreign person;
(2) the source of funds for investment by the foreign
person in space; and
(3) any other information that the Secretary of Defense
considers appropriate.
(c) Form.--The report required by subsection (a) shall be submitted
in unclassified form but may contain a classified annex.
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