S.Amdt. 818

SA 818. Mr. RISCH submitted an amendment intended to be proposed by
him to the bill S. 2226, to authorize appropriations for fiscal year
2024 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 D of title XII, add the following:

SEC. 1269. DEVELOPING ECONOMIC TOOLS TO DETER AGGRESSION
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 People's Republic of China
or the Chinese Communist Party and that are supporting
actions by the Government of the People's Republic of China
or the Chinese Communist Party--
(1) to overthrow or dismantle the governing institutions in
Taiwan;
(2) to occupy any territory controlled or administered by
Taiwan;
(3) to violate the territorial integrity of Taiwan; or
(4) to take significant action against Taiwan, including
conducting a naval blockade, seizing Taiwan's outlying
islands, or perpetrating a significant cyber attack on
Taiwan.
(b) Task Force.--Not later than 180 days after the date of
the enactment of this Act, the head of the Office of the
Sanctions Coordinator of the Department of State and the
Director of the Office of Foreign Asset Control of the
Department of the Treasury, in coordination with the Director
of National Intelligence, shall establish an interagency task
force to identify military and nonmilitary entities with
respect to which sanctions could be imposed immediately
following any action taken by the People's Republic of China
that demonstrates an attempt to achieve or has the
significant effect of achieving the physical or political
control of Taiwan, including by--
(1) overthrowing or dismantling the governing institutions
in Taiwan;
(2) occupying any territory controlled or administered by
Taiwan as of the date of the enactment of this Act;
(3) violating the territorial integrity of Taiwan; or
(4) taking significant action against Taiwan, including--
(A) creation of a naval blockade of Taiwan;
(B) seizure of the outer lying islands of Taiwan; or
(C) initiation of a significant cyber attack that threatens
civilian or military infrastructure of Taiwan.
(c) Strategy.--
(1) In general.--Not later than 180 days after the
establishment of the task force required by subsection (b),
the task force shall submit to the appropriate congressional
committees a strategy for identifying targets for the
imposition of sanctions as described in subsection (b).
(2) Elements.--The strategy required by paragraph (1)
shall--
(A) include an assessment of how existing sanctions regimes
could be used in the case of an action by the People's
Republic of China described in subsection (b);
(B) develop or propose, as appropriate, new sanctions
authorities that might be required to impose sanctions on
targets described in paragraph (1);
(C) analyze the potential economic consequences to the
United States, and to allies and partners of the United
States, of various types of sanctions and assess measures
that could be taken to mitigate such consequences, including
through the use of licenses, exemptions, carve-outs, and
other forms of relief;
(D) develop a strategy for the United States to work with
allies and partners--
(i) to leverage sanctions and other economic tools to deter
or respond to aggression against to Taiwan;
(ii) to identify and resolve potential impediments to
coordinating sanctions-related efforts with respect to
responding to or deterring aggression against Taiwan; and
(iii) to identify industries, sectors, or goods and
services with respect to which the United States and
countries that are 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 People's Republic of China;
(E) assess the resource gaps and needs at the Departments
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 People's Republic of China;
(F) recommend how best to target sanctions and other
economic tools against individuals, entities, and economic
sectors in the People's Republic of China, taking into
account the role of such individuals, entities, and economic
sectors in supporting policies and activities of the
Government of the People's Republic of China 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 for the People's Republic of
China, including its ability to achieve its objectives with
respect to Taiwan, and the potential impact of such sanctions
on the stability of the global financial system, including
with regard to--
(i) entities--

(I) owned or controlled by the Government of the People's
Republic of China; and
(II) organized under the laws of or otherwise subject to
the jurisdiction of that Government that are not formally
owned or controlled by that Government;

(ii) officials of that Government; and
(iii) financial institutions associated with that
Government; and
(G) identify any foreign military or nonmilitary entities
that would likely be used in actions described in subsection
(b), including entities in the following sectors:
(i) Shipping.
(ii) Logistics.
(iii) Energy, including oil and gas.
(iv) Aviation.
(v) Ground transportation.
(vi) Technology.
(d) Report Required.--
(1) In general.--Not later 60 days after the submission of
the strategy required by subsection (c), and every 180 days
thereafter, the task force established under subsection (b)
shall submit to the appropriate congressional committees a
report that includes information regarding--
(A) any entities identified pursuant to subparagraph (G) of
subsection (c)(2);
(B) any new authorities needed to impose sanctions with
respect to individuals, entities, and economic sectors
identified under subparagraph (D) of that subsection;
(C) potential economic impacts on the People's Republic of
China and on the United States and allies and partners of the
United States relating to sanctions imposed with respect to
such individuals, entities, and economic sectors;
(D) mitigation measures that could be employed to limit
deleterious impacts on the United States and allies and
partners of the United States;
(E) the status of coordination with allies and partners of
the United States with respect to the use of sanctions and
other economic tools identified under this section;
(F) resource gaps and recommendations to enable the
Department of State and the Department of the Treasury to use
sanctions to more effectively to respond to the malign
activities of the People's Republic of China; and
(G) any additional resources that may be necessary to carry
out the strategy.
(2) Form.--Each report required by subsection (b) shall be
submitted in classified form.
(e) Appropriate Congressional Committees.--In this section,
the term ``appropriate congressional committees'' means--
(1) the Committee on Foreign Relations, the Committee on
Banking, Housing, and Urban Affairs, and the Committee on
Commerce, Science and Transportation of the Senate; and
(2) the Committee on Foreign Affairs, the Committee on
Financial Services, and the Committee on Energy and Commerce
of the House of Representatives.

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