ESTABLISHMENT OF CAPABILITIES TO ASSESS THE DEFENSE TECHNOLOGICAL AND INDUSTRIAL BASES OF CHINA AND OTHER FOREIGN ADVERSARIES.

SEC. 1260C. ESTABLISHMENT OF CAPABILITIES TO ASSESS THE DEFENSE TECHNOLOGICAL AND INDUSTRIAL BASES OF CHINA AND OTHER FOREIGN ADVERSARIES. (a) Assessments.—The Secretary of Defense, in coordination with the heads of other Federal departments and agencies as appropriate, shall define intelligence and other information requirements, sources, and organizational responsibilities for assessing the defense technological and industrial bases of foreign adversaries and conducting comparative analyses of such technological and industrial bases with respect to their resilience and capacity to support their strategic objectives. The requirements, sources, and responsibilities shall include— (1) examining the competitive military advantages of foreign adversaries, including with respect to regulation, raw materials, use of energy and other natural resources, education, labor, and capital accessibility; (2) assessing relative cost, speed of product development, age and value of the installed capital base, leadership’s technical competence and agility, nationally-imposed inhibiting conditions by foreign adversaries, the availability of human and material resources, and reliance on the industrial base of the United States or United States allies and partners; (3) a temporal evaluation of the competitive strengths and weaknesses of United States industry, including manufacturing surge capacity, versus the directed priorities and capabilities of foreign adversary governments; and (4) assessing any other issues that the Secretary determines appropriate. (b) Methodology.—The Secretary of Defense shall incorporate inputs pursuant to subsection (a) as part of a methodology to continuously assess domestic and foreign defense industries, markets, and companies of significance to military and industrial advantage to identify supply chain vulnerabilities. (c) Conduct of Assessment Work by Independent Organization.— (1) Agreement authorized.—The Secretary of Defense is authorized to enter into an agreement with an independent organization to carry out some of the assessment work required under subsections (a) and (b). (2) Notification.—If the Secretary enters such an agreement, the Secretary shall, not later than March 15, 2021, provide to the congressional defense committees a report identifying the organization and describing the scope of work under the agreement. (d) Reports.— (1) Initial report.—Not later than March 15, 2021, the Secretary of Defense shall submit to the congressional defense committees a report on efforts to establish the continuous assessment activity required under subsections (a) and (b), including a notification if the Secretary engages an independent organization, pursuant to subsection (c), to prepare the report described in paragraph (2). (2) Subsequent report.— (A) In general.—Not later than August 1, 2021, the Secretary shall submit to the congressional defense committees a report on the first assessment required under subsections (a) and (b) with respect to the People’s Republic of China. (B) Elements.—The report required by subparagraph (A) shall include— (i) the information described in subsection (a); (ii) any exclusive or dominant supply of military and civilian material, raw materials, or other goods (or components thereof) essential to China’s national security by the United States or United States allies and partners; and (iii) the availability of substitutes or alternative sources for goods identified under clause (ii). (3) Inclusion of independent organization’s assessment work.—If the Secretary enters into an agreement with an independent organization under subsection (c), the Secretary shall include the assessment work carried out by the organization under the agreement without change, but may include comments with respect to such assessment work.