U.S. Supply Chain Security Review Act of 2023

Floor Speech

BREAK IN TRANSCRIPT

Mr. JAMES. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3395) to direct the Chairman of the Federal Maritime Commission to seek to enter into an agreement with a federally funded research and development center to evaluate foreign ownership of marine terminals at the 15 largest United States container ports, and for other purposes, as amended.

The Clerk read the title of the bill.

The text of the bill is as follows: H.R. 3395

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.

This Act may be cited as the ``U.S. Supply Chain Security Review Act of 2023''. SEC. 2. STUDY ON FOREIGN PORTS.

(a) In General.--Not later than 90 days after the date of enactment of this Act, the Chairman of the Federal Maritime Commission shall seek to enter into an agreement with a federally funded research and development center to evaluate how foreign ownership of marine terminals at the 15 largest United States container ports affects or could affect United States economic security.

(b) Contents.--In carrying out the study under subsection (a), the center selected under such subsection shall--

(1) consider--

(A) changes in ownership of the 15 largest United States container ports over the past 10 years as well as announced ownership changes from 2023 and 2024;

(B) instances of ownership in individual marine terminals and cumulative ownership by Chinese or Russian entities or nationals;

(C) instances of ownership in individual marine terminals and cumulative ownership by any foreign entity;

(D) the amount of--

(i) Port Infrastructure Development Grant funds since fiscal year 2018 that have gone to ports and marine terminals that are owned wholly or partially foreign owned; and

(ii) Port Security Grant funds since fiscal year 2003 that have gone to ports and marine terminals that are owned wholly or partially foreign owned; and

(E) where ownership exists, a detailed description of foreign operational control including both affirmative and negative control; and

(2) offer recommendations on--

(A) policies by ports and marine terminal operators to prevent excessive foreign ownership that could threaten United States economic security;

(B) whether ownership affords the foreign owner access to operational technology and information unique to the United States and otherwise unavailable; and

(C) whether foreign ownership has or could affect the supply chain and policies related to the prioritization of certain cargoes.

(c) Report.--Not later than 1 year after the initiation of the evaluation under subsection (a), the Chairman of the Federal Maritime Commission shall submit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives the results of such evaluation.

BREAK IN TRANSCRIPT

Mr. JAMES. 3395, as amended.

H.R. 3395, as amended, requires a study on the implication of foreign ownership of marine terminals at United States container ports.

Not only will the study examine the nationality of the firms owning marine terminals at 15 of the largest United States ports, but it will also specifically focus on whether ownership is held by entities or nationals of countries adversarial to our Nation, including affiliations with China or Russia.

Further, the study will assess whether Port Infrastructure Development Grant and Port Security Grant funds have been awarded to ports that are wholly or partially foreign-owned.

These findings will help the Committee on Transportation and Infrastructure hold the administration accountable for how Federal funds are allocated and inform the committee's work on the efficient movement of goods through the supply chain.

I thank the gentleman from Massachusetts (Mr. Auchincloss) for introducing this bill.

As a supply chain logistics professional in my prior life, I understand how critical this is to our Nation's infrastructure and to our economic prosperity moving forward in the future.

Mr. Speaker, I urge support of this legislation, and I reserve the balance of my time.

BREAK IN TRANSCRIPT

Mr. JAMES. Mr. Speaker, I have no more speakers. I am prepared to close.

The report directed by this bill will help inform the committee's work and protect our ports and supply chains against foreign adversaries.

As we have seen these past few years, disruptions in the supply chain have a widespread impact across our Nation. We should take the necessary steps to understand the potential vulnerabilities in our supply chain and work to address them.

Mr. Speaker, I again, thank the sponsor of this bill for his work, and I urge support. I yield back the balance of my time.
BREAK IN TRANSCRIPT

Source