US SB2424

Requires the Director of National Intelligence, in coordination with the Secretaries of Defense and State, to submit annual reports to Congress for 3 years on Chinese arms sales, including weapons systems available for purchase, technical capabilities, countries likely to buy them, and Chinese entities violating UN Security Council resolutions on arms transfers to Iran and North Korea.

Mandates the Secretary of State to develop within 1 year a strategy to dissuade foreign countries from purchasing new Chinese weapons systems and military equipment, excluding spare parts for previously purchased items.

Strategy must include an information campaign warning prospective buyers about risks of Chinese weapons (reliability issues, lack of combat track record, incompatibility with U.S. systems) and potential limitations on future U.S. security cooperation.

Requires analysis of whether sanctions, export controls, or economic restrictions could deter purchases of Chinese weapons, and actions the U.S. government can take including creative financing and subsidized pricing to make American weapons more attractive.

Reports must be submitted in unclassified form with classified annexes containing intelligence assessments on counterintelligence risks and potential technology proliferation from U.S. allies using Chinese military equipment.