S.Amdt. 2660

SA 2660. Mr. RISCH submitted an amendment intended to be proposed by
him to the bill S. 4638, to authorize appropriations for fiscal year
2025 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 F of title XII, add the following:

[[Page S4971]]

SEC. 1291. DEVELOPMENT OF ECONOMIC TOOLS AND STRATEGY TO
DETER AGGRESSION BY PEOPLE'S REPUBLIC OF CHINA
AGAINST TAIWAN.

(a) Sense of Congress.--It is the sense of Congress that
the United States must be prepared to take immediate action
to impose sanctions with respect to any military or
nonmilitary entities owned, controlled, or acting at the
direction of the Government of the PRC or the Chinese
Communist Party that are supporting actions by the Government
of the PRC or the Chinese Communist Party to--
(1) overthrow or dismantle the governing institutions in
Taiwan;
(2) occupy any territory controlled or administered by
Taiwan;
(3) violate the territorial integrity of Taiwan; or
(4) take significant action against Taiwan, including--
(A) conducting a naval blockade of Taiwan;
(B) seizing any outlying island of Taiwan; or
(C) perpetrating a significant cyber attack on Taiwan.
(b) 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 Committee on Armed Services of the Senate;
(C) the Select Committee on Intelligence of the Senate;
(D) the Committee on Finance of the Senate;
(E) the Committee on Banking, Housing, and Urban Affairs of
the Senate;
(F) the Committee on Commerce, Science, and Transportation
of the Senate;
(G) the Committee on Foreign Affairs of the House of
Representatives;
(H) the Committee on Armed Services of the House of
Representatives;
(I) the Committee on Financial Services of the House of
Representatives;
(J) the Committee on Energy and Commerce of the House of
Representatives; and
(K) the Permanent Select Committee on Intelligence of the
House of Representatives.
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations of the Senate;
(B) the Committee on Banking, Housing, and Urban Affairs of
the Senate;
(C) the Committee on Commerce, Science, and Transportation
of the Senate;
(D) the Committee on Foreign Affairs of the House of
Representatives;
(E) the Committee on Financial Services of the House of
Representatives; and
(F) the Committee on Energy and Commerce of the House of
Representatives.
(3) PRC.--The term ``PRC'' means the People's Republic of
China.
(c) Task Force.--Not later than 180 days after the date of
the enactment of this Act, the Office of Sanctions
Coordination of the Department of State and the Office of
Foreign Asset Control of the Department of the Treasury, in
coordination with the Office of the Director of National
Intelligence, shall establish an interagency task force
(referred to in this section as the ``Task Force'') to
identify military or nonmilitary entities that could be
subject to sanctions imposed by the United States immediately
following any action or actions taken by the PRC that
demonstrate an attempt to achieve, or has the significant
effect of achieving, the physical or political control of
Taiwan, including by taking any of the actions described in
paragraphs (1) through (4) of subsection (a).
(d) Strategy.--Not later than 180 days after the
establishment of the Task Force, the Task Force shall submit
a strategy to the appropriate congressional committees for
identifying targets under this section, which shall include--
(1) an assessment of how existing sanctions regimes could
be used to impose sanctions with respect to entities
identified pursuant to subsection (c);
(2) a strategy for developing or proposing, as appropriate,
new sanctions authorities that might be required to impose
sanctions with respect to such entities;
(3) an analysis of the potential economic consequences to
the United States, and to allies and partners of the United
States, of imposing various types of sanctions with respect
to those entities and assess measures that could be taken to
mitigate those consequences, including through the use of
licenses, exemptions, carve-outs, and other forms of relief;
(4) a strategy for working with allies and partners of the
United States--
(A) to leverage sanctions and other economic tools to deter
or respond to aggression against Taiwan;
(B) to identify and resolve potential impediments to
coordinating sanctions-related efforts with respect to
responding to or deterring aggression against Taiwan; and
(C) to identify industries, sectors, or goods and services
with respect to which the United States and allies and
partners of the United States can take coordinated action
through sanctions or other economic tools that will have a
significant negative impact on the economy of the PRC;
(5) an assessment of the resource gaps and needs at the
Department of State, the Department of the Treasury, and
other Federal agencies, as appropriate, to most effectively
use sanctions and other economic tools to respond to the
threat posed by the PRC;
(6) recommendations on how best to target sanctions and
other economic tools against individuals, entities, and
economic sectors in the PRC, taking into account the role of
those targets in supporting policies and activities of the
Government of the PRC or the Chinese Communist Party that
pose a threat to the national security or foreign policy
interests of the United States, the negative economic
implications of those sanctions and tools for that
government, including its ability to achieve its objectives
with respect to Taiwan, and the potential impact of those
sanctions and tools on the stability of the global financial
system, including with respect to--
(A) state-owned enterprises;
(B) officials of the Government of the PRC;
(C) financial institutions associated with the Government
of the PRC;
(D) companies in the PRC that are not formally designated
by the Government of the PRC as state-owned enterprises; and
(7) the identification of any foreign military or non-
military entities that would likely be used to achieve the
outcomes specified in subsection (a)(1), including entities
in the shipping, logistics, energy (including oil and gas),
aviation, ground transportation, and technology sectors.
(e) Report.--
(1) In general.--Not later than 60 days after the
submission of the strategy required under subsection (d), and
semiannually thereafter, the Task Force shall submit a report
to the appropriate congressional committees that includes
information regarding--
(A) any entities identified pursuant to subsection (c) or
(d)(7);
(B) any new authorities needed to impose sanctions with
respect to such entities;
(C) potential economic impacts on the PRC, the United
States, and allies and partners of the United States of
imposing sanctions with respect to those entities, as well as
mitigation measures that could be employed to limit
deleterious impacts on the United States and allies and
partners of the United States;
(D) the status of coordination with allies and partners of
the United States on sanctions and other economic tools
identified under this section;
(E) resource gaps and recommendations to enable the
Department of State and the Department of the Treasury to use
sanctions to more effectively respond to the malign
activities of the Government of the PRC; and
(F) any additional resources that may be necessary to carry
out the strategy.
(2) Form.--Each report required under paragraph (1) shall
be submitted in classified form.
(f) Identification of Vulnerabilities and Leverage.--Not
later than 180 days after the date of the enactment of this
Act, the Secretary of State and the Secretary of Defense, in
consultation with the Secretary of Commerce, the Secretary of
the Treasury, the Director of the Office of Federal
Procurement Policy, and the Director of the Office of Science
and Technology Policy, shall jointly submit a report to the
appropriate committees of Congress that identifies--
(1) goods and services from the United States that are
relied on by the PRC such that reliance presents a strategic
opportunity and source of leverage against the PRC, including
during a conflict; and
(2) procurement practices of the United States Government
that are reliant on trade with the PRC and other inputs from
the PRC, such that reliance presents a strategic
vulnerability and source of leverage that the Chinese
Communist Party could exploit, including during a conflict.
(g) Strategy to Respond to Coercive Action.--
(1) In general.--Not later than 180 days after the
submission of the report required under subsection (f), the
Secretary of the Treasury, in coordination with the Secretary
of State and in consultation with the Secretary of the
Defense, the Secretary of Commerce, the Director of the
Office of Federal Procurement Policy, and the Director of the
Office of Science and Technology Policy, shall submit to the
appropriate committees of Congress a report, utilizing the
findings of the report required under subsection (f), that
describes a comprehensive sanctions strategy to advise
policymakers on policies the United States and allies and
partners of the United States could adopt with respect to the
PRC in response to any coercive action, including an
invasion, by the PRC that infringes upon the territorial
sovereignty of Taiwan by preventing access to international
waterways, airspace, or telecommunications networks.
(2) Elements.--The strategy required under paragraph (1)
shall include policies that--
(A) restrict the access of the People's Liberation Army to
oil, natural gas, munitions, and other supplies needed to
conduct military operations against Taiwan, United States
facilities in the Pacific and Indian Oceans, and allies and
partners of the United States in the region;
(B) diminish the capacity of the industrial base of the PRC
to manufacture and deliver defense articles to replace those
lost in operations of the People's Liberation Army against
Taiwan, the United States, and allies and partners of the
United States;
(C) inhibit the ability of the PRC to evade United States
and multilateral sanctions

[[Page S4972]]

through third parties, including through secondary sanctions;
(D) identify specific sanctions-related tools that may be
effective in responding to coercive action described in
paragraph (1) and assess the feasibility of the use and
impact of the use of such tools;
(E) identify and resolve potential impediments to
coordinating sanctions-related efforts with respect to
responding to or deterring aggression against Taiwan with
allies and partners of the United States;
(F) identify industries, sectors, or goods and services
with respect to which the United States, working with allies
and partners of the United States, can take coordinated
action through sanctions or other economic tools that will
have a significant negative impact on the economy of the PRC;
and
(G) identify tactics used by the Government of the PRC to
influence the public in the United States and Taiwan through
propaganda and disinformation campaigns, including such
campaigns focused on delegitimizing Taiwan or legitimizing a
forceful action by the PRC against Taiwan.
(h) Recommendations for Reduction of Vulnerabilities and
Leverage.--Not later than 180 days after the submission of
the report required under subsection (g), the Secretary of
State and the Secretary of Defense, in consultation with the
Secretary of Commerce, the Secretary of the Treasury, the
Director of the Office of Federal Procurement Policy, and the
Director of the Office of Science and Technology Policy,
shall jointly submit to the appropriate committees of
Congress a report that--
(1) identifies critical sectors within the United States
economy that rely on trade with the PRC and other inputs from
the PRC (including active pharmaceutical ingredients, rare
earth minerals, and metallurgical inputs) that present a
strategic vulnerability and source of leverage that the
Chinese Communist Party or the People's Republic of China
could exploit; and
(2) includes recommendations to Congress regarding the
steps that could be taken to reduce the sources of leverage
described in paragraph (1) and subsection (f)(1), including
through--
(A) providing economic incentives and making other trade
and contracting reforms to support United States industry and
job growth in critical sectors and to indigenize production
of critical resources; and
(B) policies for facilitating ``near-shoring or friend-
shoring'' or otherwise developing strategies to facilitate
that process with allies and partners of the United States,
in other sectors for which domestic reshoring would prove
infeasible for any reason.
(i) Form.--The reports required under subsections (f), (g),
and (h) shall be submitted in unclassified form, but may
include a classified annex.
(j) Rules of Construction.--Nothing in this section may be
construed as--
(1) a change to the One China Policy of the United States,
which is guided by the Taiwan Relations Act (22 U.S.C. 3301
et seq.), the three United States-People's Republic of China
Joint Communiques, and the Six Assurances; or
(2) authorizing the use of military force.
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