Rep. Andy Barr’s (KY-06) bipartisan legislation, the Chinese Military and Surveillance Company Sanctions Act of 2023, [HR760] passed unanimously out of the House Financial Services Committee and and will be brought up by the House should it ever return to regular order.
Under this proposed legislation, the President would be "required to sanction Chinese entities that are crucial to China’s defense and surveillance technology sectors."
Unlike standard investment restrictions, these comprehensive sanctions would prohibit nearly all economic interactions with blacklisted firms.
“This bill targets the very core of China’s military-industrial prowess, ensuring that firms integral to their defense and surveillance capabilities are isolated from the global financial system. In a world with intricate economic ties and challenges, this bill utilizes tested sanctions authorities that are targeted but effective while also providing ‘red light, green light’ clarity to global investors.”
H.R. 760 would direct the Administration to block transactions involving foreign persons who knowingly operate in the Chinese defense, defense-related material, or surveillance technology industries. Any transactions involving assets in the United States or assets that come under the control of a person of the United States would be blocked.
The bill also would direct the Departments of Commerce, Defense, State, and the Treasury to consider blocking transactions involving Chinese entities listed on the Military End User List, the Denied Persons or Entities List, and the People’s Republic of China Military-Civil Fusion Contributors List. The agencies would be required to provide their assessment of those entities in a report to the Congress. Additionally, the bill would direct the Department of the Treasury to annually report on its assessment of foreign persons listed in the Annex of Executive Order 14032.
The Administration has existing authority to block transactions involving foreign persons engaged in the Chinese defense, defense-related material, or surveillance technology industries.
Using data about similar sanctions, the Congressional Budget Office (CBO) estimates that any additional blocked transactions would affect a small number of people; would have insignificant effects on revenues and direct spending, and would, on net, reduce deficits by insignificant amounts.
Comments
No comments on this item Please log in to comment by clicking here