ADVERSARIES Act

This Act may be cited as the “Addressing Dangerous Vulnerabilities in Exports and Research to Strategic Adversaries, Regimes, and Industrial Entities of Security Concern Act” or “ADVERSARIES Act”.

(a) In general.— The Under Secretary of the Bureau of Industry and Security of the Department of Commerce, acting through the Executive Director of the Office of Information and Communications Technology and Services (OICTS) shall, not later than 90 days after the date of the enactment of this Act, complete a review of the impact on United States export control effectiveness by operations of United States-domiciled affiliates of entities described in subsection (b)(1)(B) and, additionally, the national security threats posed by foreign adversary exploitation of vulnerabilities in information and communications technology and services (ICTS).

(b) Contents.— The review required by subsection (a) shall address the following:

(1)

(A) Whether United States-domiciled affiliates, defined as any entity that is directly or indirectly, individually or in aggregate, 50 percent or more owned by one or more entities described in subparagraph (B), can acquire items that their ultimate parent companies are restricted from accessing due to United States export controls.

(B) The entities described in this subparagraph are—

(i) entities identified on the Entity List; or

(ii) entities identified on the Military End User List.

(2) If the review concludes affirmatively the question posed in paragraph (1), the extent to which entities described in subparagraph (A) are acquiring items that their ultimate parent companies are restricted from accessing due to United States export controls and the impact on the effectiveness of United States export controls.

(3) The risks to United States national security or export control effectiveness, if any, posed by the operation of foreign-adversary controlled ICTS.

(4) Whether any specific sectors of foreign-adversary controlled ICTS pose undue risk, such as by undermining export control effectiveness.

(5) What steps, if any, the Under Secretary of the Bureau of Industry and the Executive Director of the OICTS intend to take within the next year to address the threats found in paragraphs (1) through (4).

(6) Any recommended change to United States law that would help address any threats found from this review.

(c) Report.— The Under Secretary of the Bureau of Industry and Security of the Department of Commerce, acting through the Executive Director of the Office of Information and Communications Technology and Services (OICTS) shall, not later than 30 days after completing the review required by subsection (a), provide the results of the review to the Committee on Foreign Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.

(d) Definitions.— In this section—

(1) the term “Entity List” means the list required pursuant to Supplement No. 4 to part 744 of title 15, Code of Federal Regulations, or successor regulations by the Bureau of Industry and Security of the Department of Commerce; and

(2) the term “Military End User List” means the list required pursuant to Supplement No. 7 to part 744 of title 15, Code of Federal Regulations, or successor regulations by the Bureau of Industry and Security of the Department of Commerce.