determined in consultation with the United States Trade Representative. (B) No covered issuer that is incorporated under the laws of a State, or whose principal place of business is within a State, may be majority-owned by a person whose principal place of business is in the People’s Republic of China. (C) The prohibition in subparagraph (B) shall apply to any acquisition on or after the date of enactment of this paragraph. . 104. Prohibition on use of certain telecommunications services or equipment (a) Findings Congress makes the following findings: (1) In its 2011 Annual Report to Congress on Military and Security Developments Involving the People’s Republic of China , the Department of Defense stated, China’s defense industry has benefited from integration with a rapidly expanding civilian economy and science and technology sector, particularly elements that have access to foreign technology. Progress within individual defense sectors appears linked to the relative integration of each, through China’s civilian economy, into the global production and R&D chain … Information technology companies in particular, including Huawei, Datang, and Zhongxing, maintain close ties to the PLA. . (2) In a 2011 report titled The National Security Implications of Investments and Products from the People’s Republic of China in the Telecommunications Sector , the United States China Economic and Security Review Commission stated that [n]ational security concerns have accompanied the dramatic growth of China’s telecom sector. … Additionally, large Chinese companies—particularly those national champions prominent in China’s going out strategy of overseas expansion—are directly subject to direction by the Chinese Communist Party, to include support for PRC state policies and goals. . (3) The Commission further stated in its report that [f]rom this point of view, the clear economic benefits of foreign investment in the U.S. must be weighed against the potential security concerns related to infrastructure components coming under