Senator Tom Cotton (R) – Arkansas

S. 5239: Critical Defense Systems Supply Chain Integrity

November 9, 2025

Preamble: The purpose of this bill is to improve national security and confront bad actors, protecting the integrity of critical defense systems, primarily by banning Chinese components in these systems.

Section I: Increasing Foreign Competition and Potential for Sabotage

China accounts for around 70% of global rare-earth mining, and greater than 85% of processing, granting it industrial dominance in the refining of crucial elements for use in nearly all electrical/mechanical products, including military equipment. This monopoly has allowed China a measure of leverage when it comes to supply chain disruption, espionage, or even sabotage, due to the complicated nature of global supply chains. This poses a severe security risk to military assets and capabilities. While attempts have been made to regulate and prevent infiltration of military supply chains, these effects still lack a grounded framework for preventing foreign interference in America’s military resources.

Section II: Industrial Elimination of Security Threats

A comprehensive solution to the threat of foreign interference in this sector is needed. Primarily, the solution entails:

I. Defining Chinese components as any electronic part, subassembly, material, or software that is produced entirely or partly by any entity affiliated with the Government of the People’s Republic of China, or the Chinese Communist Party, independent of geographic location,

II. Preventing the Department of Defense from spending money on obtaining systems that contain components of Chinese origin,

III. Guaranteeing that DoD contractors do not use any Chinese components in subassembly, material, or software of systems.

Section III: Enhanced Contracting Accountability

In order to enforce the implementation of these measures, the DoD would require specific certifications for contractors, such as the NDAA Section 889 prohibition of specific Chinese telecom equipment/services. Contractors would also be required to certify whether contracts have been made or services provided to specific Chinese entities. In conjunction with these certifications, random audits would be made to make sure contractors are complying with these measures. If contractors breach the terms of these requirements, penalties such as fines or contract termination would be exacted. Contractors should also report when they find equipment/services that are determined to be Chinese in origin. Congress should be notified of any exceptions to these regulations.

Section IV: Opportunity for Emergency Action (Waiver Clause)

In certain cases, exceptions to these measures must be made. However, the circumstances must be urgent and localized national security situations, and the exceptions must not interfere with the objectives of this bill. The duration of the waiver must be short, and renewal criteria must be clearly established, and a timeline must be implemented.