The primary impact of HB 2594 is the tightening of legal frameworks surrounding technology exports and intellectual property. By classifying certain technologies as critical for national interest, the Act empowers the President to impose restrictions and oversight mechanisms against specific technologies that could enhance China’s military might or be misused for human rights abuses. This will likely enhance U.S. efforts to proactively safeguard its innovations while presenting challenges for businesses engaged in international trade with China, as compliance with the new regulations will be mandatory.
Summary
House Bill 2594, known as the China Technology Transfer Control Act of 2023, aims to regulate and control the export of certain technologies and intellectual property to the People's Republic of China, particularly those deemed critical to national security. This legislation recognizes the growing concern regarding China's capabilities in leveraging American technology for military applications and potential human rights violations. The bill mandates that the President implement measures to monitor and control the transfer of covered technologies to China, requiring compliance from United States persons involved in such transactions.
Contention
Notably, the bill has ignited discussions regarding its implications on global trade dynamics and the potential for retaliatory actions from China. Critics argue that overly stringent controls might hinder legitimate business activities and stifle technological collaboration that benefits both nations. Proponents of the bill, however, assert that these measures are necessary to ensure national security and prevent technology misuse by adversarial nations. As the bill progresses, its reception will likely shine a light on the balancing act between safeguarding national interests and fostering international trade relationships.
World Deserves To Know Act This bill requires sanctions on certain members of the Chinese Communist Party (CCP) and officials of Chinese health agencies. It also addresses related issues. The President must impose visa- and property-blocking sanctions on any foreign person who is a CCP official and who is knowingly responsible for or complicit in (1) the disappearances of whistleblowers and citizen journalists in China relating to COVID-19, or (2) limiting free speech and academic freedom in China relating to COVID-19. The President must also impose such sanctions on specified individuals who have leadership positions in China's Center for Disease Control and Prevention and China's National Health Commission (NHC). The authority to impose such sanctions shall end when the President certifies to Congress that an independent and unimpeded investigation into the potential origin of COVID-19 from the Wuhan Institute of Virology has taken place. The bill also bars federal funds and certain federal student assistance from going to institutions of higher education that enter into a contract with any element or China-based affiliate of the NHC. Federal funding to the National Academy of Sciences may not be used to enter into a contract with any element or China-based affiliate of the NHC. The Government Accountability Office must report to Congress a review of all funds that the National Institutes of Health have made available to the NHC since FY2010. This report must also be publicly available.