S. 4486 – Defense Technology Report Parity Act

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Updated January 20, 2026 at 5:09 PM UTC

The Defense Technology Report Parity Act amends the 2022 National Defense Authorization Act to tighten reporting rules for U.S. defense contractors that develop software in the People’s Republic of China. It requires these companies to disclose if Chinese government or non‑governmental Chinese firms request or obtain data, and to report any software vulnerabilities they must share with Chinese authorities. The bill also directs the Secretary of Defense to update acquisition regulations so companies must notify the Department of Defense within 48 hours of such disclosures and retain related information. It primarily affects covered defense contractors and the Department of Defense.

Key Provisions

Expands the definition of “covered company” to include any contractor that conducts software development in China.
Requires covered companies to disclose whether Chinese government agencies or non‑governmental Chinese companies have requested or obtained data under Chinese intelligence or similar laws.
Mandates companies to describe how they report software vulnerabilities to Chinese authorities and how U.S. affiliates are notified of those flaws.
Directs the Secretary of Defense to revise the Defense Federal Acquisition Regulation Supplement within 180 days to require notification to the DoD within 48 hours of any vulnerability reported to Chinese agencies and to retain related information for the DoD.
Updates terminology throughout the relevant sections, replacing “entity” with “company.”

Legislative Activity

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Armed Services.

Armed Services Committee

June 5, 2024

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SenateIntro Referral

Introduced in Senate

June 5, 2024

SenateIntro Referral

Read twice and referred to the Committee on Armed Services.

Armed Services Committee

June 5, 2024

Bill Text

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Introduced in SenateIssued June 5, 2024

II

118th CONGRESS

2d Session

S. 4486

IN THE SENATE OF THE UNITED STATES

June 5, 2024

Mr. Schmitt introduced the following bill; which was read twice and referred to the Committee on Armed Services

A BILL

To strengthen provisions relating to employment transparency regarding individuals who perform work in the People's Republic of China.

1.

Short title

This Act may be cited as the Defense Technology Report Parity Act.

2.

Employment transparency regarding individuals who perform work in the People's Republic of China

Section 855 of the National Defense Authorization Act for Fiscal Year 2022 (Public Law 117–81; 10 U.S.C. 4651 note prec.) is amended—

(1)

in subsection (a)(3)—

(A)

by redesignating subparagraphs (A) and (B) as clauses (i) and (ii) and moving such clauses, as so redesignated, two ems to the right;

(B)

by striking If a covered entity and inserting (A) In general.—If a covered company; and

(C)

in clause (ii), as so redeignated, by striking performed. and inserting the following: “performed; and

(iii)

whether an agency or instrumentality of the People’s Republic of China or any non-governmental Chinese company has requested access to data or otherwise acquired data from such covered company pursuant to the People’s Republic of China’s National Intelligence Law of China or any similar legislative or regulatory requirements.

(B)

Additional disclosure of information and additional measures regarding certain entities

(i)

In general

If a covered company performs service contracts dealing with commercial computer software or noncommercial computer software and is required to make a disclosure under paragraph (1) or (2), such company shall—

(I)

describe the process for disclosing a software vulnerability, if such company is also required to disclose any software vulnerability to the Ministry of Industry and Information Technology or any other agency or instrumentality of the People’s Republic of China; and

(II)

provide any information related to how a United States affiliate is notified of a flaw described in subclause (I).

(ii)

Issuance of regulations

Not later than 180 days after the date of the enactment of this subparagraph, the Secretary shall revise the Defense Federal Acquisition Regulation Supplement to ensure that—

(I)

a company described in clause (i) is notified of any software vulnerability by any affiliated Chinese company within 48 hours of such company entity reporting any software vulnerability to the Ministry of Industry and Information Technology or any other agency or instrumentality of the People’s Republic of China; and

(II)

the company shall retain and furnish to the Department of Defense information regarding any software vulnerability reported to the Ministry of Industry and Information Technology or any other agency or instrumentality of the People’s Republic of China.

;

(2)

in subsection (b)—

(A)

in the subsection heading, by striking entities and inserting companies; and

(B)

by striking entity both places it appears and inserting company; and

(3)

by amending subsection (d)(2) to read as follows:

(2)

Covered company

The term covered company means a contractor offeror that also conducts software development in the People's Republic of China.

.