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This section amends Section 1754 of the Export Control Reform Act of 2018 by changing the Secretary of Commerce's engagement with the Secretaries of State, Defense, and Energy from "consultation" to "coordination" when carrying out export controls (i.e., administering the Commerce Control List, Entity List, licensing, enforcement, and related duties) and by adding a new subsection (g). Subsection (g) authorizes the Secretaries of State, Defense, or Energy to submit proposals for new rules or amendments to existing rules under the Export Administration Regulations to the Export Administration Review Board; requires the Board to vote to accept or reject each proposal within 30 days (extendable by an additional 30 days if a Board member needs more information and the proposing Secretary agrees); and directs the Secretary of Commerce to initiate rulemaking for proposals approved by simple majority vote.
This section directs the Secretary of Commerce, not later than 30 days after enactment and in consultation with agencies represented on the Operating Committee for Export Policy, to complete a review of the implications of the People's Republic of China's (PRC) military-civil fusion strategy for U.S. export control policy and national security, including (1) PRC exploitation of U.S. and allied technology and talent to modernize its military; (2) whether any PRC entity can be considered purely civilian; (3) reliability of end-use checks and conditions for exports, reexports, and transfers involving PRC entities; (4) links between PRC strategic technology sectors (e.g., artificial intelligence, semiconductors) and its military; (5) potential benefits of adding entities to the Military End-User List; (6) exporter due diligence needs; (7) potential export control policy changes; and (8) other relevant topics. Not later than 90 days after enactment, the Secretary must consider proposing identified changes to the Export Administration Review Board (or successor), such as Military End-User List additions, revised military end-use restrictions, Export Administration Regulations amendments, or finalization of a specified proposed rule (89 Fed. Reg. 60985); the Board must then vote on each proposal pursuant to specified procedures. Not later than 150 days after enactment, the Secretary must submit to the appropriate congressional committees a report including the review, any proposed rules, Board-approved policy changes, and recommended statutory changes.
This section defines terms for purposes of the Act as follows: (1) "appropriate congressional committees" as the Committee on Foreign Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate; (2) "Military End-User List" as the list maintained by the Department of Commerce's Bureau of Industry and Security (i.e., denying exports, reexports, and transfers to certain Chinese military end-users) and set forth in Supplement No. 7 to part 744 of title 15, Code of Federal Regulations, or successor regulations; (3) "Operating Committee for Export Policy" as the committee established by Executive Order 12981, as referenced in 50 U.S.C. 4822(c); and (4) "Secretary" as the Secretary of State.