Preventing SBA Assistance from Going to China Act of 2023
Impact
If enacted, SB1372 would amend existing provisions of the Small Business Act to incorporate these prohibitions, potentially impacting a range of businesses that may have previously qualified for federal assistance. The bill aims to create a more secure economic environment by safeguarding public funds from being allocated to entities with significant connections to a country that has been viewed as a strategic competitor to the United States. This could lead to stricter scrutiny of business ownership structures and eligibility criteria for federal programs.
Summary
SB1372, titled the "Preventing SBA Assistance from Going to China Act of 2023", introduces regulations to prohibit certain businesses from receiving assistance from the Small Business Administration (SBA) if they have ties to the People's Republic of China. Specifically, the bill disallows any small business that is headquartered in China or has more than 25% of its voting stock owned by Chinese affiliates from qualifying for SBA support. This legislative measure reflects growing concerns about national security and the protection of American businesses from foreign influence.
Contention
Discussions around SB1372 are expected to be contentious, particularly regarding the implications it may have for businesses with international ties. Proponents argue that the measure is essential to protect U.S. interests and prevent foreign exploitation of American resources, while critics may express concerns over the broad strokes of the definitions and the potential for unintended consequences affecting legitimate businesses with non-Chinese partnerships. Furthermore, there may be debates regarding the effectiveness of such prohibitions in genuinely addressing national security concerns without stifling business innovation and growth.
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.
Protecting America's Strategic Petroleum Reserve from China Act This bill prohibits the sale and export of crude oil from the Strategic Petroleum Reserve (SPR) to China. Specifically, the bill prohibits the Department of Energy (DOE) from selling petroleum products (e.g., crude oil) from the SPR to any entity that is under the ownership, control, or influence of the Chinese Communist Party. Further, DOE must require as a condition of any sale of crude oil from the SPR that the oil not be exported to China.
No Oil for CCP Act This bill bans exports of crude oil from the Strategic Petroleum Reserve (SPR) to China, North Korea, Iran, and other specified recipients. Specifically, the bill directs the Department of Energy to require as a condition of any sale of crude oil from the SPR that (1) the oil not be exported to such countries; and (2) the recipient of the oil is not under the ownership, control, or influence of the Chinese Communist Party.
Protecting Personal Data from Foreign Adversaries Act This bill authorizes sanctions and other prohibitions relating to software that engages in user data theft on behalf of certain foreign countries or entities. The President may regulate or prohibit transactions using software that engages in the theft or unauthorized transmission of user data and provides access to such data to (1) a communist country, (2) the Chinese Communist Party (CCP), (3) a foreign adversary, or (4) a state sponsor of terrorism. The President may also impose visa- and property-blocking sanctions on developers and owners of software that makes unauthorized transmissions of user data to servers located in China that are accessible by China's government or the CCP. The Department of State shall report to Congress a determination regarding whether WeChat or TikTok fall within certain regulations and prohibitions, including those provided under this bill. (WeChat and TikTok are software programs developed by China-based companies.)