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This bill prohibits the Department of Defense from signing or renewing information technology contracts with companies that have certain connections to China. Specifically, the ban applies to contractors that own or operate artificial intelligence research facilities in mainland China, have given Chinese entities access to U.S. government software source code, provide military or law enforcement software to Chinese entities, or operate data centers in China. The Secretary of Defense can waive these restrictions if deemed necessary for national security. The prohibition applies to all new, renewed, or extended contracts within three years of the law's enactment and extends to parent companies, subsidiaries, affiliates, and subcontractors at any level.

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