ANNUAL REPORT OF DEFENSE IMPACT.

SEC. 2445. ANNUAL REPORT OF DEFENSE IMPACT. Section 14 of the Act (50 U.S.C. App. 2413) is amended by adding at the end the following new subsection: “(f) Annual Report of the President.—The President shall submit an annual report to the Congress estimating the additional defense expenditures of the United States arising from illegal technology transfers, focusing on estimated defense costs arising from illegal technology transfers that resulted in a serious adverse impact on the strategic balance of forces. These estimates shall be based on assessment by the intelligence community of any technology transfers that resulted in such serious adverse impact. This report may have a classified annex covering any information of a sensitive nature.”.