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The Administration opposes H.R. 2647 because it is unnecessary and
counterproductive. In particular, the Administration opposes the
requirement to disclose publicly the list of Chinese military companies
operating directly or indirectly in the United States. The requirement for
such disclosure could implicate classified information that needs to be
protected in the interests of national security, i.e., intelligence sources
and methods.
The Administration is also seriously concerned about the precedent of
authorizing the exercise of authorities under the International Emergency
Economic Powers Act (IEEPA) without regard to the Act?s strict standards of
an international threat. H.R. 2647 establishes no clear standards for
invoking the IEEPA authorities against Chinese military companies and bears
no relation to the effect on the United States of the commercial activities
of the designated Chinese companies. If the People?s Liberation Army
companies, or any other foreign companies, undertake specific illegal
activities, there are U.S. laws authorizing a broad range of sanctions. In
cases when U.S. law is violated, the Administration can, and will, act to
enforce the law.
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