; or (II) the principal place of business of which is in a State. (B) Notwithstanding any other provision of this subsection, no person, the principal place of business of which is in the People’s Republic of China, may be the beneficial owner, directly or indirectly, of more than 50 per centum of any class of equity security of a covered issuer that is registered pursuant to section 12. (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