China Technology Transfer Control Act of 2025

Bill Number: H.R. 1122
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Foreign Trade and International Finance
Status: Introduced
Latest Action: 2025-02-07: Referred to the Committee on Foreign Affairs, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Last Updated: 2025-07-03T13:29:01Z

AI-Generated Summary

Purpose of the Legislation

The China Technology Transfer Control Act of 2025 aims to restrict the export, re-export, or transfer of specific U.S.-controlled technology and intellectual property (IP) to the People's Republic of China (PRC). It seeks to protect U.S. national security by preventing such items from boosting China's military capabilities, supporting its industrial policies that harm U.S. exports, or enabling human rights abuses.

Key Provisions

Definitions:
"Chinese person" includes PRC citizens, nationals, or entities under PRC government jurisdiction.
"Covered national interest technology or intellectual property" covers tech/IP that could enhance PRC military power (harming U.S. security), components of products on a new U.S. Trade Representative (USTR) list (detailed below), or tech used by the PRC for human rights or religious freedom violations.
"Technology" broadly includes goods/services in areas like information systems, AI, biotechnology, robotics, and computing.
"Intellectual property" encompasses copyrights, patents, trademarks, trade secrets (confidential business info protected by law), and other forms.
"Knowingly" means having actual knowledge or reason to know of an action.
"United States person" includes U.S. citizens, permanent residents, and U.S.-organized entities (including foreign branches).
"Foreign person" is anyone not a U.S. person.

Sense of Congress: Affirms U.S. support for global cultural/tech exchange but emphasizes the need to safeguard against PRC exploitation, including IP theft and military misuse of transferred tech.

Export Controls (Section 4): Starting 180 days after enactment, the President must regulate exports, re-exports, or transfers to the PRC of covered tech/IP under U.S. jurisdiction or by U.S. persons. Within 90 days, the Secretaries of State and Commerce must report to Congress on integrating these controls into existing rules (e.g., International Traffic in Arms Regulations for defense items or Export Administration Regulations for dual-use goods). The President must issue implementing regulations within 180 days.

Sanctions (Section 5): Under the International Emergency Economic Powers Act (IEEPA, a law allowing presidential economic actions in foreign threats), the President must block U.S.-based transactions involving persons who:
Knowingly sell/provide covered tech/IP to the PRC or buy it from the PRC (foreign persons).
Knowingly use such tech/IP in violation of these export rules or other U.S. export laws (Chinese persons).
Exceptions: Sanctions do not apply to importing physical goods (defined as tangible articles, materials, or products, excluding technical data). The President can waive sanctions if vital to U.S. national security, with a report to Congress.
Implementation uses IEEPA authorities; violators face civil/criminal penalties (fines up to $1 million or imprisonment up to 20 years). No national emergency declaration is needed.

New Product List (Section 6): Amends the Trade Act of 1974 by adding Section 183, requiring the USTR (in consultation with others) to publish and update annually a list of PRC-manufactured/exported products that:
Receive PRC government support under "Made in China 2025" (a PRC industrial plan) or similar policies that displace U.S. exports.
Are used by the PRC for human rights/religious liberty violations (as determined by the Secretary of State).
Includes specific sectors like civil aircraft, semiconductors, AI, quantum computing, biotechnology, robotics, and others tied to PRC strategy documents.
This list feeds into the definition of "covered" tech/IP for export controls.

Significant Changes to Existing Law

Trade Act of 1974 Amendment: Adds a new Section 183 and table of contents entry, creating the first mandatory, annual USTR list targeting PRC-supported products and human rights-related items. This builds on but expands existing trade monitoring (e.g., Section 182 on foreign trade barriers).
Export Control Expansion: Strengthens U.S. jurisdiction over dual-use tech/IP specifically for the PRC, integrating it with existing regulations (ITAR/EAR) without creating entirely new frameworks. Unlike standard export rules, it mandates controls for national interest items and ties them to PRC-specific threats.
IEEPA Application: Allows sanctions without a formal national emergency declaration (normally required under IEEPA Section 202), broadening presidential flexibility for enforcement.

Potential Impacts

Government Agencies: Increases workload for the Departments of State, Commerce, and USTR in reporting, listing products, issuing regulations, and enforcing controls/sanctions. The President gains direct authority, potentially centralizing decisions.
Citizens and Businesses: U.S. companies and individuals in tech sectors (e.g., AI, biotech) face stricter export licensing, compliance costs, and risks of penalties for dealings with the PRC. This could limit innovation collaborations but protect U.S. IP from theft.
International Relations: May heighten U.S.-PRC tensions by signaling a targeted economic decoupling in strategic tech, potentially prompting PRC retaliation (e.g., trade barriers). It could strengthen U.S. alliances by addressing shared concerns over PRC military/tech advances and human rights.

Main Stakeholders Affected

U.S. Government Entities: Departments of State, Commerce, and USTR; the President and Congress (via reports/waivers).
U.S. Businesses and Innovators: Tech firms, exporters, and IP holders in listed sectors (e.g., semiconductors, robotics) dealing with China.
Chinese Entities: PRC government, companies, and individuals involved in tech imports, military applications, or human rights issues.
Foreign Companies: Non-U.S. firms trading covered tech/IP with the PRC, risking U.S. sanctions if using U.S. jurisdiction.
Global Supply Chains: Industries reliant on U.S.-PRC tech flows, including allies in Europe/Asia.

Notable Legal, Constitutional, or Political Implications

Legal: Relies on established IEEPA and export laws for enforceability, but broad "knowingly" and "covered" definitions could lead to challenges over vagueness or overreach in court (e.g., distinguishing legitimate trade). Penalties align with existing statutes, ensuring consistency.
Constitutional: Sanctions blocking property may raise due process concerns (5th Amendment), but IEEPA precedents (upheld by courts) allow it for national security. No direct free speech issues, though it indirectly affects global tech exchange.
Political: Reflects bipartisan U.S. priorities on countering PRC influence, IP protection, and human rights, but could polarize debates on trade isolationism vs. engagement. The bill's referral to Foreign Affairs and Ways and Means Committees underscores its foreign policy and trade dimensions.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Green, Mark E. [R-TN-7]

Recent Actions

2025-02-07: Referred to the Committee on Foreign Affairs, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-02-07: Referred to the Committee on Foreign Affairs, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-02-07: Introduced in House
2025-02-07: Introduced in House

Bill Versions

China Technology Transfer Control Act of 2025 — issued 2025-02-07 — PDF (12 pages)