HR8043-118

1. Short title This Act may be cited as the NO LIMITS Act of 2024.

2. Findings; sense of Congress Congress finds the following: On September 30, 2022, the Office of Foreign Assets Control of the Department of the Treasury designated People’s Republic of China entity Sinno Electronics Co. Limited (Sinno) for providing material support to the defense industrial base of the Russian Federation. On January 26, 2023, the Office of Foreign Assets Control of the Department of the Treasury sanctioned People’s Republic of China entity Changsha Tianyi Space Science and Technology Research Institute Co. LTD (Spacety China) for providing material support to entities of the Russian Federation involved in combat operations in Ukraine. There is clear and increasing evidence that People’s Republic of China entities continue to evade United States sanctions to provide material support to the defense and military industrial base of the Russian Federation. Under Executive Order 13959 (85 Fed. Reg. 73185; related to addressing the threat from securities investments that finance Communist Chinese military companies), the President found that the People’s Republic of China increases the size of the country’s military-industrial complex by compelling civilian Chinese companies to support its military and intelligence activities. Those companies, though remaining ostensibly private and civilian, directly support the PRC’s military, intelligence, and security apparatuses and aid in their development and modernization.. Evidence of industrial support for the Russian Federation by the People’s Republic of China, combined with inherent blurred lines between the civilian versus governmental defense apparatus in the People’s Republic of China, requires new authorities to protect the national security of the United States. It is the sense of Congress that the Russian Federation’s continued invasion of Ukraine is directly enabled by the People’s Republic of China. It is therefore time for the President to— more fully cut off financing avenues for People’s Republic of China entities providing materiel support to the defense and related materiel sector of the economy of the Russian Federation; more fully cut off financing avenues for People’s Republic of China entities involved in military modernization activities; impose country-wide export control restrictions on dual-use technology exported to the PRC over concerns of diversion to the Russian Federation; and impose sanctions on PRC entities involved in the export of weapons and dual-use technology to the Russian Federation, including microelectronics, aerospace, automobiles, among others.

3. Imposition of sanctions relating to the People’s Republic of China and support for Russian invasion of Ukraine On and after the date that is 90 days after the date of the enactment of this Act, the President— may impose the sanction described in subsection (c) with respect to a foreign person the President determines— is located or headquartered within, or is organized under the laws of, the People’s Republic of China; and operates in the technology sector of the economy of the Russian Federation, the defense and related materiel sector of such economy, or any other sector of such economy as may be determined by the Secretary of the Treasury or the Secretary of State, as the case may be; and may impose the sanction described in subsection (c) with respect to a foreign person the President determines that, in acting for or on behalf of, or for the benefit of, directly or indirectly, the armed forces or intelligence services of the People’s Republic of China, is responsible for or engages in— malicious cyber-enabled activities; the production, or research and development, of dual-use technology or defense or related materiels; or facilitating the evasion, circumvention, or direct violation of United States export controls or sanctions. On and after the date that is 180 days after the date of the enactment of this Act, the President shall impose the sanctions described in subsection (c) with respect to a foreign person that— has business operations in the Russian Federation; and is— a known Chinese military company; or a covered exporter of automobiles to the Russian Federation. The sanction described in this paragraph is the exercise all of the powers granted to the President under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all transactions in property and interests in property of a foreign person if such property or interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person. The President may exercise the authorities provided to the President under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to the extent necessary to carry out this section. The penalties provided for in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) shall apply to any person who violates, attempts to violate, conspires to violate, or causes a violation of any prohibition of this section, or an order or regulation prescribed under this section, to the same extent that such penalties apply to a person that commits an unlawful act described in subsection section 206(a) of such Act (50 U.S.C. 1705(a)). Sanctions under this section shall not apply with respect to— any activity subject to the reporting requirements under title V of the National Security Act of 1947 (50 U.S.C. 3091 et seq.); or any authorized intelligence or law enforcement activities of the United States. The authorities and requirements to impose sanctions authorized under this section shall not include the authority or requirement to impose sanctions on the importation of goods. In this subparagraph, the term good means any article, natural or manmade substance, material, supply or manufactured product, including inspection and test equipment, and excluding technical data. The President may waive the application of sanctions under this section with respect to a foreign person for renewable periods of not more than 90 days each if the President determines and reports to Congress that such a waiver is vital to the national interests of the United States. In this section: The term business operations means any participation by any person in a commercial enterprise or venture, or participation in any association, institution, organization, or entity, whether of a commercial nature or otherwise. This includes the production, distribution, exportation, sale of goods, or provision of services, regardless of whether a pecuniary benefit or other assets are derived from such participation. The term foreign person means any person that is not a United States person. The term knowingly, with respect to conduct, a circumstance, or a result, means that a person has actual knowledge, or should have known, of the conduct, the circumstance, or the result (as the case may be). The term person means an individual or entity. The term United States person means any United States citizen, permanent resident alien, an entity organized under the laws of the United States or any jurisdiction within the United States (including a foreign branch of such an entity), or any person in the United States. The term covered exporter of automobiles means any of the following persons: Chery International. Haval. Great Wall Motors. Changan International. Chery Automobile. any subsidiary, affiliate, or successor of the entities in subparagraph (A), (B), (C), (D), or (E). The term known Chinese military company means any of the following persons: Aviation Industry Corporation of China Ltd (AVIC). 360 Security Technology Inc. (Qihoo 360). Advanced Micro-Fabrication Equipment Inc. China (AMEC). Aerospace CH UAV Co., Ltd (S–SEA). Beijing Megvii Technology Co., Ltd. (Megvii). BGI Genomics Co. Ltd. (BGI). MGI Co. Ltd. (MGI). China Aerospace Science and Industry Corporation Limited (CASIC). China Electronics Corporation (CEC). China Construction Technology Co. Ltd (CCTC). China Communications Construction Group (CCCG). China Construction Technology Co. Ltd (CCTC). China Electronics Technology Group Corporation (CETC). Hangzhou Hikvision Digital Technology Co. Ltd (Hikvision). China General Nuclear Power Corporation (CGN). China Mobile Communications Group Co. Ltd. (China Mobile Comm). China National Chemical Corporation (ChemChina). China National Offshore Oil Corporation (CNOOC). China National Nuclear Corporation (CNNC). China Railway Construction Corporation Limited (CRCC). China South Industries Group Corporation (CRCC). China State Construction Engineering Corporation Limited (CSCEC). China State Shipbuilding Corporation Limited (CSSC). China Telecom Group Co, Ltd. (China Telecom). China Three Gorges Corporation (CTG). China United Network Communications Group Co. Ltd (China Unicom). CloudWalk Technology Co. Ltd (CloudWalk). Dawning Information Industry Co. Ltd (Sugon). Hesai Technology Co. Ltd (Hesai). Huawei Technologies Co. Ltd (Huawei). Inspur Group Partners Co. Ltd (IDG Capital). Semiconductor Manufacturing International Corporation (SMIC). Shenzhen DJI Innovation Technology Co. Ltd (DJI). Yangtze Memory Technologies Co., Ltd. (YMTC). Zhejiang Dahua Technology Co., Ltd (Dahua). AVIC Senyang Aircraft Co., Ltd. Autel Robotics Co. Ltd (Autel). AVIC Heavy Machinery Company Limited. AVIC Xi'An Aircraft Industry Group Company Ltd. ChangXin Memory Technologies (CXMT). Dahua Technology. Zhejiang Uniview Technologies. Guizhou Guihang Automotive Components Co., Ltd. Changying Xinzhi Technology Co., Ltd. Sichuan Northern Nitrocellulose Co., Ltd. Northern Chemistry Industry Co., Ltd. Any subsidiary, affiliate, or successor of entities in subparagraphs (A) through (RR). Nothing in this section may be construed to limit the authority of the President to designate or sanction persons pursuant to an applicable Executive order or otherwise pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).

4. Determination of sanctions on arms manufacturers of the People’s Republic of China engaged in overseas weapons sales Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury, in consultation with the Secretary of State, and the Secretary of Defense, shall submit to the appropriate congressional committees a determination of whether, for each covered person, that covered person meets the criteria for the imposition of the sanction described in section 3(c). In this section: The term appropriate congressional committees means— the Committee on Foreign Affairs, the Permanent Select Committee on Intelligence, and the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party of the House of Representatives; and the Committee on Foreign Relations, the Committee on Banking, Housing, and Urban Affairs, and the Select Committee on Intelligence of the Senate. The term covered person means any of the following persons: China North Industries Group Corporation. Aviation Industry Corporation of China. China Electronics Technology Group Corporation. China South Industries Group Corporation. China Aerospace Science and Industry Corporation. China General Nuclear Power Group. China National Nuclear Corporation. China State Shipbuilding Corporation.

5. Classifying the People’s Republic of China at high risk of facilitating diversion of United States technology to the Russian Federation Section 1754 of the Export Control Reform Act of 2018 (50 U.S.C. 4813) is amended— by redesignating subsections (d), (e), and (f) as subsections (e), (f), and (g), respectively; and by inserting after subsection (c) the following: A license shall be required for the export, reexport, or in-country transfer of items described in paragraph (2), the control of which is implemented pursuant to subsection (a) by the Secretary, to— the People’s Republic of China; or any other foreign country the Secretary of State, in consultation with the Secretary of Defense, determines is facilitating the diversion of technology or defense-related materials that are contributing materially to the ability of the Government of Russia to undertake military action in Ukraine. The items described in this paragraph— are items that the Secretary of Defense, in consultation with the Secretary of Commerce, the Secretary of State, and the Secretary of Energy, determines could make a contribution to the military potential or logistical capability of the Russian Federation and are at risk of diversion to the Russian Federation or affiliates through the People’s Republic of China; and items that directly or indirectly relate to— semiconductors; sensors and lasers; aviation and propulsion; materials processing; or other technologies, as defined by the Secretary of Defense, in consultation with the Secretary of Commerce, the Secretary of State, and the Secretary of Energy. The Secretary shall deny a license described in paragraph (1) for the export, reexport, or in-country transfer of an item described in paragraph (2) unless the person seeking to export the item submits to the Secretary such documentation as the Secretary may reasonably require that demonstrates by clear and convincing evidence that the export of the item will not pose a threat to the national security of the United States. Any licensing requirement applied to a PRC or Russian entity by reason of the entity being included on the entity list shall also apply to any subsidiary or other entity over which the listed entity has control. (d)Anti-Diversion controls relating to the people’s republic of china(1)In generalA license shall be required for the export, reexport, or in-country transfer of items described in paragraph (2), the control of which is implemented pursuant to subsection (a) by the Secretary, to—(A)the People’s Republic of China; or(B)any other foreign country the Secretary of State, in consultation with the Secretary of Defense, determines is facilitating the diversion of technology or defense-related materials that are contributing materially to the ability of the Government of Russia to undertake military action in Ukraine.(2)Items describedThe items described in this paragraph—(A)are items that the Secretary of Defense, in consultation with the Secretary of Commerce, the Secretary of State, and the Secretary of Energy, determines could make a contribution to the military potential or logistical capability of the Russian Federation and are at risk of diversion to the Russian Federation or affiliates through the People’s Republic of China; and(B)items that directly or indirectly relate to—(i)semiconductors;(ii)sensors and lasers;(iii)aviation and propulsion;(iv)materials processing; or(v)other technologies, as defined by the Secretary of Defense, in consultation with the Secretary of Commerce, the Secretary of State, and the Secretary of Energy.(3)Rebuttable presumptionThe Secretary shall deny a license described in paragraph (1) for the export, reexport, or in-country transfer of an item described in paragraph (2) unless the person seeking to export the item submits to the Secretary such documentation as the Secretary may reasonably require that demonstrates by clear and convincing evidence that the export of the item will not pose a threat to the national security of the United States.(4)Applications of licensing requirements to subsidiariesAny licensing requirement applied to a PRC or Russian entity by reason of the entity being included on the entity list shall also apply to any subsidiary or other entity over which the listed entity has control..

6. Regulations Not later than 90 days after the date of the enactment of this Act, the Secretary of Commerce, the Secretary of Defense, and the Secretary of State, shall issue such regulations as may be necessary to carry out this Act and the amendments made by this Act.