WASHINGTON – Reps. Mark Green (R-TN) and Henry Cuellar (D-TX) introduced today the bipartisan China Technology Transfer Control Act of 2019 in the U.S. House. The bill would stop the Chinese military’s acquisition of sensitive American technology and formally admonish China for its predatory trade practices.

In recent years, China has aggressively advanced its military capabilities through IP theft and exploitation of loopholes. The Department of Defense and the Intelligence Community have anxiously warned of China’s dangerous investments in U.S. firms working on facial-recognition, 3-D printing, virtual reality and autonomous vehicles to build up their warfighting capabilities. They have pushed U.S. companies into “pay-to-play” to operate in their country, requiring that they help their surveillance state and military or not participate in their market at all. Furthermore, they have exploited loopholes in U.S. law to pay to use technology, such as U.S.-owned satellites, for attacking the human rights of minorities in China, such as the Chinese Muslim population, and to threaten their neighbors and the United States.  

“Why should we continue to let China steal American intellectual property, only for them to turn around and use it to undermine our national security, threaten peaceful neighbors, and oppress their own people?” said Rep. Mark Green.“CNN reported China’s IP theft has cost U.S. companies 225-600 billion dollars. That is unacceptable. I am glad to introduce this bipartisan bill with Congressman Henry Cuellar.”

“China is aggressively stealing technology from the United States and foreign militaries to advance and modernize its military,” said Rep. Henry Cuellar. “This legislation will take the first step in stopping the theft of U.S. technology by China, and help secure the U.S. global military advantage.  For the safety and security of our country, we must end China’s ability to use cyber theft and other methods to advance its military power. Congress must act now to thwart these unfair trade practices. I want to thank Congressman Mark Green for working with me on this important legislation.”

This bill is the House companion version to legislation introduced in the Senate by Senator Josh Hawley.

“American companies should not be providing support to the oppressive Chinese government or its military. Unfortunately, that is exactly what happens when China forces American companies to give its government access to advanced, dual-use technologies as a precondition for entering the Chinese market,” said Sen. Hawley. “This legislation takes important steps to end China’s exploitation of sensitive American technology. I’m proud to have Congressman Green’s support on this companion legislation in the House of Representatives.”

Bill Summary:

  • Formally admonishes China for IP theft and manipulation of lawful transfer and uses of technology in ways that directly support its military objectives and threaten the United States
  • Places all “core technologies” from China’s “Made in China 2025” strategy on the Department of Commerce’s Export Control List.
      • “Core technologies” include nearly 15 different technologies such as artificial intelligence, robotics, semiconductors, advanced construction equipment and lithium battery manufacturing
      • Once a technology is placed on the Export Control List, companies must obtain licenses to export that technology to China.
  • Imposes sanctions on foreign entities and individuals that violate these export controls through transfer of these “core technologies” to China.