The ADVERSARIES Act requires the Department of Commerce to conduct a comprehensive review examining whether foreign adversaries can circumvent U.S. export controls by using American-based subsidiaries to acquire restricted technology and materials. The analysis must determine if U.S.-domiciled companies that are at least 50 percent owned by entities on the Commerce Department's Entity List or Military End User List are able to obtain items their foreign parent companies are prohibited from accessing, and assess the national security risks posed by foreign-controlled information and communications technology operating within the U.S. The Department of Commerce has 90 days from the bill's enactment to complete the review and must submit its findings to Congress within 30 days after completion, along with recommendations for any changes to U.S. law needed to address identified vulnerabilities. The bill essentially aims to close potential loopholes in export control enforcement by identifying ways that restricted materials and technology might reach adversarial nations through domestic corporate structures.
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