S.Amdt. 4491

SA 4491. Mr. RISCH 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 of division A, add
the following:

SEC. 1253. ANNUAL REVIEW ON THE PRESENCE OF CHINESE COMPANIES
IN UNITED STATES CAPITAL MARKETS.

(a) Definitions.--In this section:
(1) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Foreign Relations of the Senate;
(B) the Select Committee on Intelligence of the Senate;
(C) the Committee on Banking, Housing, and Urban Affairs of
the Senate;
(D) the Committee on Foreign Affairs of the House of
Representatives;
(E) the Permanent Select Committee on Intelligence of the
House of Representatives; and
(F) the Committee on Financial Services of the House of
Representatives.
(2) PRC.--The term ``PRC'' means the People's Republic of
China.
(b) Report.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and annually thereafter for the
following 5 years, the Secretary of State, in consultation
with the Director of National Intelligence and the Secretary
of the Treasury, shall submit an unclassified report to the
appropriate committees of Congress that describes the risks
posed to the United States by the presence in United States
capital markets of companies incorporated in the PRC.
(2) Matters to be included.--The report required under
paragraph (1) shall--
(A) identify companies incorporated in the PRC that--
(i) are listed or traded on at least 1 stock exchange
within the United States, including over-the-counter market
and ``A Shares'' added to indexes and exchange-traded funds
out of mainland exchanges in the PRC; and
(ii) based on the factors for consideration described in
paragraph (3), have knowingly and materially contributed to--

(I) activities that undermine United States national
security;
(II) serious abuses of internationally recognized human
rights; or
(III) a substantially increased financial risk exposure for
United States-based investors;

(B) describe the activities of the companies identified
pursuant to subparagraph (A), and the implications of such
activities for the United States; and
(C) develop policy recommendations for the Federal
Government, State governments, United States financial
institutions, United States equity and debt exchanges, and
other relevant stakeholders to address the risks posed by the
presence in United States capital markets of the companies
identified pursuant to subparagraph (A).
(3) Factors for consideration.--In completing the report
under paragraph (1), the Secretary of State shall consider
whether a company identified pursuant to paragraph (2)(A)--
(A) has materially contributed to the development or
manufacture, or sold or facilitated procurement by the
People's Liberation Army of the PRC, of lethal military
equipment or component parts of such equipment;
(B) has contributed to the construction and militarization
of features in the South China Sea;
(C) has been sanctioned by the United States or has been
determined to have conducted business with sanctioned
entities;
(D) has engaged in an act or a series of acts of
intellectual property theft;
(E) has engaged in corporate or economic espionage;
(F) has contributed to the proliferation of nuclear or
missile technology in violation of United Nations Security
Council resolutions or United States sanctions;
(G) has contributed to the repression of religious and
ethnic minorities within the PRC, including in Xinjiang
Uyghur Autonomous Region or Tibet Autonomous Region;
(H) has contributed to the development of technologies that
enable censorship directed or directly supported by the PRC
government;
(I) has failed to comply fully with Federal securities laws
(including required audits by the Public Company Accounting
Oversight Board) and ``material risk'' disclosure
requirements of the Securities and Exchange Commission; or
(J) has contributed to other activities or behavior
determined to be relevant by the Secretary of State.
(c) Report Form.--The report required under subsection
(b)(1) shall be submitted in unclassified form, but may
include a classified annex.
(d) Publication.--The unclassified portion of the report
required under subsection (b)(1) shall be made accessible to
the public online through relevant United States Government
websites.
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