Bill > HR10453

This bill prohibits the Secretary of Defense from entering into, renewing, or extending information technology contracts with entities that have significant connections to China, creating several specific restrictions. Specifically, the bill bars contracts with companies that own or operate facilities in mainland China focused on artificial intelligence research, have shared software source code with Chinese entities, provide software with military or law enforcement applications to Chinese organizations, or operate data centers within China. The bill defines "covered Chinese entities" as organizations determined by the Secretary of Defense (in consultation with intelligence agencies) to be owned, controlled, or affiliated with the Chinese government. The Secretary is granted a waiver authority to bypass these restrictions if they determine it is necessary for national security interests. The prohibition applies to contracts entered into, renewed, or extended within three years of the Act's enactment. The bill also introduces a definition of "material interest" as a financial or other significant interest that could influence decision-making. The overall aim appears to be preventing potential technological and security risks by limiting the Department of Defense's contractual relationships with entities that have close ties to the Chinese government.