S.Amdt. 4246

SA 4246. Mr. COTTON submitted an amendment intended to be proposed to
amendment SA 3867 submitted by Mr. Reed and intended to be proposed to
the bill H.R. 4350, to authorize appropriations for fiscal year 2022
for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:

At the end of subtitle E of title XII, add the following:

SEC. 1253. EXPORT CONTROL MEASURES RELATING TO SEMICONDUCTOR
MANUFACTURING INTERNATIONAL CORPORATION AND
HUAWEI TECHNOLOGIES CO., LTD.

(a) Removal From Entity List.--The President may not remove
SMIC from the Entity List unless--
(1) the President certifies to the appropriate
congressional committees that SMIC--
(A) has ceased the activities that were the basis for its
addition to the Entity List consistent with the standards for
removal of an entity from the Entity List established in the
Export Administration Regulations;
(B) could not reasonably be expected to--
(i) resume activities that were the basis for its addition
to the Entity List;
(ii) contribute directly or indirectly to the military or
intelligence efforts of a country subject to a United States
arms embargo; and
(iii) directly or indirectly develop technologies that may
be used for violations of internationally recognized human
rights, including the surveillance of individuals based on
religious, ethnic, cultural, or political expressions or
affiliations; and
(C) does not pose a threat to the national security or
foreign policy interests of the United States or its allies;
or
(2) the President removes SMIC from the Entity List in
order to include SMIC on the Denied Persons List.
(b) Revision of Licensing Regulations.--Not later than 60
days after the date of the enactment of this Act, the
Secretary of Commerce shall publish in the Federal Register a
final rule revising the Export Administration Regulations to
require that the following be subject to a presumption of
denial:
(1) An application for a license or other authorization for
the export, re-export, or in-country transfer to SMIC of
items capable of supporting the development or production of
semiconductors at technology nodes 16 nanometers or below.
(2) An application for a license or other authorization for
exports, re-exports, or in-country transfers to Huawei
Technologies Co., Ltd. or any of its successor entities or
affiliates of items capable of supporting the development or
production of semiconductors.
(c) Report Required.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, and annually thereafter, the
Secretary of Commerce shall submit to the appropriate
congressional committees a report on applications for
licenses for the export, reexport, or in-country transfer of
items to SMIC that were issued, denied, or returned without
action during the year preceding submission of the report.
(2) Matters to be included.--For each application for a
license described in subparagraph (A), the report required by
that subparagraph (A) shall include--
(A) an identification of the items to which the application
is related;
(B) a description of the end-uses of the items;
(C) a description of the capabilities of the items;
(D) the quantity and value of the items;
(E) the identities of the entities seeking the license; and
(F) if the application was approved, a statement of how the
approval of the license is consistent with the national
security and foreign policy interests of the United States.
(d) Definitions.--In this section:
(1) Affiliate.--The term ``affiliate'', with respect to an
entity, means any other entity that owns or controls, is
owned or controlled by, or is under common ownership or
control with, the entity.
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Banking, Housing, and Urban Affairs
and the Select Committee on Intelligence of the Senate; and
(B) the Committee on Foreign Affairs of the House of
Representatives and the Permanent Select Committee on
Intelligence of the House of Representatives.
(3) Denied persons list.--The term ``Denied Persons List''
means the list maintained by the Bureau of Industry and
Security of the Department of Commerce and pursuant to
section 764.3(a)(2) of the Export Administration Regulations.
(4) Entity list.--The term ``Entity List'' means the list
maintained by the Bureau of Industry and Security of the
Department of Commerce and set forth in Supplement No. 4 to
part 744 of the Export Administration Regulations.
(5) Export; export administration regulations; in-country
transfer; items; reexport.--The terms ``export'', ``Export
Administration Regulations'', ``in-country transfer'',
``items'', and ``reexport'' have the meanings given those
terms in section 1742 of the Export Control Reform Act of
2018 (50 U.S.C. 4801).
(6) SMIC.--The term ``SMIC'' means the Semiconductor
Manufacturing International Corporation and any of its
successor entities or affiliates.
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