PHASE-OUT OF COMPUTER AND PRINTER ACQUISITIONS INVOLVING ENTITIES OWNED OR CONTROLLED BY CHINA.

SEC. 850. [10 U.S.C. 4871 note] PHASE-OUT OF COMPUTER AND PRINTER ACQUISITIONS INVOLVING ENTITIES OWNED OR CONTROLLED BY CHINA. (a) In General.—In accordance with the phased implementation in subsection (d) and except as provided by subsection (e), the Secretary of Defense may not acquire any computer or printer if the manufacturer, bidder, or offeror is a covered Chinese entity. (b) Prohibition on Indirect Sales.—The Secretary of Defense shall ensure that the prohibition under subsection (a) applies to indirect sales of computers and printers through subsidiaries of a covered Chinese entity. (c) Applicability.—This section shall apply only with respect to contracts and other agreements entered into, renewed, or extended after the date of the enactment of this Act. (d) Phased Implementation.—The Secretary may implement the prohibition in subsection (a) with respect to the acquisition of a computer or printer to the extent that— (1) in fiscal year 2026, not less than 10 percent of the total number of computers acquired by the Department of Defense and not less than 10 percent of the total number printers acquired by the Department comply with such prohibition; (2) in fiscal year 2027, not less than 25 percent of the total number of computers acquired by the Department and not less than 25 percent of the total number printers acquired by the Department comply with such prohibition; (3) in fiscal year 2028, not less than 50 percent of the total number of computers acquired by the Department and not less than 50 percent of the total number printers acquired by the Department comply with such prohibition; and (4) in fiscal year 2029 and each fiscal year thereafter, not less than 100 percent of the total number of computers acquired by the Department and not less than 100 percent of the printers acquired by the Department comply with such prohibition. (e) Exception.—Notwithstanding subsections (a) and (b), the Secretary of Defense may acquire a computer or printer described in subsection (a) to conduct testing, evaluation, exfiltration, or reverse engineering missions on products or capabilities of adversaries of the United States if such computer or printer is not for operational use. (f) Definitions.—In this section: (1) Computer.—The term “computer”— (A) means— (i) an end user electronic, magnetic, optical, electrochemical, or other high speed data processing device performing logical, arithmetic, or storage functions, such as laptops, desktops, and any physical computing equipment; and (ii) includes any data storage facility or communications facility directly related to or operating in conjunction with such device; and (B) does not include— (i) an automated typewriter or typesetter, a portable handheld calculator, or other similar device; or (ii) cloud-based services, including virtual desktops and cellular telephones. (2) Covered chinese entity.—The term “covered Chinese entity” means— (A) an entity or a parent company of an entity that is— (i) identified by the Secretary of Defense under section 1260H(a) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (10 U.S.C. 113 note) as a Chinese military company; (ii) included in the Non-SDN Chinese Military-Industrial Complex Companies List published by the Department of the Treasury; or (iii) both— (I) included on— (aa) the Entity List set forth in Supplement No. 4 to part 744 of the Export Administration Regulations; (bb) the Denied Persons List as described in section 764.3(a)(2) of the Export Administration Regulations; or (cc) the Military End User List set forth in Supplement No. 7 to part 744 of the Export Administration Regulations; and (II) is either— (aa) an agency or instrumentality of the People’s Republic of China; (bb) an entity headquartered in the People’s Republic of China; or (cc) directly or indirectly owned or controlled by an agency, instrumentality, or entity described in subparagraph (i) or (ii); or (B) an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, determines to be an entity owned, controlled, directed, or subcontracted by, affiliated with, or otherwise connected to, the Government of the People’s Republic of China. (3) Printer.—The term “printer”— (A) means desktop printers, multifunction printer copiers, and printer/fax combinations taken out of service that may or may not be designed to reside on a work surface, and include various print technologies, including laser and light-emitting diode (electrographic), ink jet, dot matrix, thermal, and digital sublimation, and “multi-function” or “all-in-one” devices that perform different tasks, including copying, scanning, faxing, and printing; (B) includes floor-standing printers, printers with optional floor stand, or household printers; and (C) does not include point of sale receipt printers, calculators with printing capabilities, label makers, or non-standalone printers that are embedded into products not described in subparagraph (A) or (B).