II 

115TH CONGRESS 

1ST SESSION S. 659 

To impose sanctions with respect to the People’s Republic of China in relation 

to activities in the South China Sea and the East China Sea, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 15, 2017 

Mr. RUBIO (for himself and Mr. CARDIN) introduced the following bill; which 

was read twice and referred to the Committee on Foreign Relations 

A BILL 

To impose sanctions with respect to the People’s Republic 

of China in relation to activities in the South China 

Sea and the East China Sea, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘South China Sea and East China Sea Sanctions Act of 

6 2017’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 


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Sec. 3. Definitions. 

Sec. 4. Policy of the United States with respect to the South China Sea and 

the East China Sea. 

Sec. 5. Sense of Congress with respect to the South China Sea and the East 

China Sea. 

Sec. 6. Sanctions with respect to Chinese persons responsible for China’s activities in the South China Sea and the East China Sea. 

Sec. 7. Determinations and report on Chinese companies active in the South 

China Sea and the East China Sea. 

Sec. 8. Prohibition against documents portraying the South China Sea or the 

East China Sea as part of China. 

Sec. 9. Prohibition on facilitating certain investments in the South China Sea 

or the East China Sea. 

Sec. 10. Department of Justice affirmation of non-recognition of annexation. 

Sec. 11. Non-recognition of Chinese sovereignty over the South China Sea or 

the East China Sea. 

Sec. 12. Prohibition on certain assistance to countries that recognize Chinese 

sovereignty over the South China Sea or the East China Sea. 

1 SEC. 2. FINDINGS. 

2 Congress makes the following findings: 

3 (1) According to the Asia-Pacific Maritime Se4 curity Strategy issued by the Department of Defense 

5 in August 2015, ‘‘Although the United States takes 

6 no position on competing sovereignty claims to land 

7 features in the region, all such claims must be based 

8 upon land (which in the case of islands means natu9 rally formed areas of land that are above water at 

10 high tide), and all maritime claims must derive from 

11 such land in accordance with international law.’’. 

12 (2) According to the annual report of the De13 partment of Defense to Congress on the military 

14 power of the People’s Republic of China submitted 

15 in April 2016, ‘‘Throughout 2015, China continued 

16 to assert sovereignty claims over features in the 

17 East and South China Seas. In the East China Sea, 


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1 China continued to use maritime law enforcement 

2 ships and aircraft to patrol near the Senkaku 

3 (Diaoyu) Islands in order to challenge Japan’s 

4 claim. In the South China Sea, China paused its 

5 land reclamation effort in the Spratly Islands in late 

6 2015 after adding more than 3,200 acres of land to 

7 the seven features it occupies in the archipelago. Al8 though these artificial islands do not provide China 

9 with any additional territorial or maritime rights 

10 within the South China Sea, China will be able to 

11 use them as persistent civil-military bases to en12 hance its long-term presence in the South China Sea 

13 significantly.’’. 

14 (3) On May 30, 2015, at the Shangri-la Dia15 logue of the International Institute for Strategic 

16 Studies, Secretary of Defense Ashton Carter stated 

17 that ‘‘with its actions in the South China Sea, China 

18 is out of step with both the international rules and 

19 norms that underscore the Asia-Pacific’s security ar20 chitecture, and the regional consensus that favors di21 plomacy and opposes coercion’’. 

22 (4) On July 24, 2015, Admiral Harry Harris, 

23 Jr., noted at a forum in Colorado that each year 

24 more than $5,300,000,000,000 in global sea-based 

25 trade passes through the South China Sea. 


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1 (5) On June 4, 2016, at the Shangri-la Dia2 logue, Secretary of Defense Ashton Carter stated: 

3 ‘‘[T]he United States will stand with regional part4 ners to uphold core principles, like freedom of navi5 gation and overflight and the peaceful resolution of 

6 disputes through legal means and in accordance with 

7 international law. As I affirmed here last year, and 

8 America’s Freedom of Navigation Operations in the 

9 South China Sea have demonstrated, the United 

10 States will continue to fly, sail and operate wherever 

11 international law allows, so that everyone in the re12 gion can do the same.’’. 

13 (6) On July 12, 2016, the Permanent Court of 

14 Arbitration’s Tribunal organized pursuant to the 

15 United Nations Convention on the Law of the Sea 

16 issued its unanimous award in the arbitration insti17 tuted by Republic of the Philippines against the Peo18 ple’s Republic of China. The Tribunal noted that its 

19 award is final and binding under that Convention. 

20 (7) Also according to the award, the Tribunal 

21 ‘‘concluded that, to the extent China had historical 

22 rights to resources in the waters of the South China 

23 Sea, such rights were extinguished to the extent they 

24 were incompatible with the exclusive economic zones 

25 provided for in the Convention. The Tribunal conVerDate Sep 11 2014 19:56 Mar 20, 2017 Jkt 069200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S659.IS S659

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1 cluded that there was no legal basis for China to 

2 claim historic rights to resources within the sea 

3 areas falling within the ‘nine-dash line’.’’. 

4 (8) Also according to the award, the Tribunal 

5 ‘‘held that the Spratly Islands cannot generate mari6 time zones collectively as a unit. Having found that 

7 none of the features claimed by China was capable 

8 of generating an exclusive economic zone, the Tri9 bunal found that it could—without delimiting a 

10 boundary—declare that certain sea areas are within 

11 the exclusive economic zone of the Philippines, be12 cause those areas are not overlapped by any possible 

13 entitlement of China.’’. 

14 (9) Also according to the award, the Tribunal 

15 ‘‘found that China had violated the Philippines’ sov16 ereign rights in its exclusive economic zone by (a) 

17 interfering with Philippine fishing and petroleum ex18 ploration, (b) constructing artificial islands and (c) 

19 failing to prevent Chinese fishermen from fishing in 

20 the zone. The Tribunal also held that fishermen 

21 from the Philippines (like those from China) had 

22 traditional fishing rights at Scarborough Shoal and 

23 that China had interfered with these rights in re24 stricting access. The Tribunal further held that Chi25 nese law enforcement vessels had unlawfully created 


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1 a serious risk of collision when they physically ob2 structed Philippine vessels.’’. 

3 (10) On July 12, 2016, the Ministry of Foreign 

4 Affairs of the People’s Republic of China issued a 

5 statement that China ‘‘declares that the [Tribunal] 

6 award is null and void and has no binding force. 

7 China neither accepts nor recognizes it. . . . China’s 

8 territorial sovereignty and maritime rights and inter9 ests in the South China Sea shall under no cir10 cumstances be affected by those awards. China op11 poses and will never accept any claim or action 

12 based on those awards.’’. 

13 (11) On July 12, 2016, the Government of the 

14 People’s Republic of China issued the fifth state15 ment in the name of that Government since 1979 

16 that— 

17 (A) stated that the People’s Republic of 

18 China has sovereignty over the 4 rocks and 

19 shoals in the South China Sea; 

20 (B) claims internal waters, territorial seas, 

21 contiguous zones, one or more exclusive eco22 nomic zones, and a continental shelf based on 

23 that sovereignty claim; and 

24 (C) continues to claim historic rights in 

25 the South China Sea. 


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1 (12) On July 12, 2016, Assistant Secretary of 

2 State and Department of State Spokesperson John 

3 Kirby noted that the ‘‘United States strongly sup4 ports the rule of law. We support efforts to resolve 

5 territorial and maritime disputes in the South China 

6 Sea peacefully, including through arbitration. . . . 

7 we urge all claimants to avoid provocative state8 ments or actions. This decision can and should serve 

9 as a new opportunity to renew efforts to address 

10 maritime disputes peacefully.’’. 

11 (13) On July 13, 2016, the Vice Foreign Min12 ister of the People’s Republic of China, Liu 

13 Zhenmin, said that declaring an air defense identi14 fication zone in the South China Sea would depend 

15 on the threat China faces and stated that ‘‘[i]f our 

16 security is threatened, we of course have the right 

17 to set it up’’. 

18 (14) On July 18, 2016, the People’s Liberation 

19 Army Air Force of the People’s Republic of China 

20 stated that it had conducted a ‘‘combat air patrol’’ 

21 over the South China Sea and that it would become 

22 ‘‘regular practice’’ in the future. A spokesperson 

23 stated that the People’s Liberation Army Air Force 

24 ‘‘will firmly defend national sovereignty, security and 

25 maritime interests, safeguard regional peace and 


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1 stability, and cope with various threats and chal2 lenges’’. 

3 (15) On August 2, 2016, the Supreme People’s 

4 Court of the People’s Republic of China issued a ju5 dicial interpretation that people caught illegally fish6 ing in Chinese waters could be jailed for up to one 

7 year. 

8 (16) In the Agreement concerning the Ryukyu 

9 Islands and the Daito Islands with Related Arrange10 ments, signed at Washington and Tokyo June 17, 

11 1971 (23 UST 446), between the United States and 

12 Japan (commonly referred to as the ‘‘Okinawa Re13 version Treaty’’), the United States agreed to apply 

14 the Treaty of Mutual Cooperation and Security, with 

15 Agreed Minute and Exchanges of Notes (11 UST 

16 1632), signed at Washington January 19, 1961, be17 tween the United States and Japan, to the area cov18 ered by the Okinawa Reversion Treaty, including the 

19 Senkaku Islands. 

20 (17) In April 2014, President Barack Obama 

21 stated, ‘‘The policy of the United States is clear— 

22 the Senkaku Islands are administered by Japan and 

23 therefore fall within the scope of Article 5 of the 

24 U.S.-Japan Treaty of Mutual Cooperation and SecuVerDate Sep 11 2014 19:56 Mar 20, 2017 Jkt 069200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S659.IS S659

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1 rity. And we oppose any unilateral attempts to un2 dermine Japan’s administration of these islands.’’. 

3 (18) In February 2017, President Donald 

4 Trump and Japanese Prime Minister Shinzo Abe 

5 issued a joint statement that ‘‘affirmed that Article 

6 V of the U.S.-Japan Treaty of Mutual Cooperation 

7 and Security covers the Senkaku Islands’’. 

8 SEC. 3. DEFINITIONS. 

9 In this Act: 

10 (1) ACCOUNT; CORRESPONDENT ACCOUNT; PAY11 ABLE-THROUGH ACCOUNT.—The terms ‘‘account’’, 

12 ‘‘correspondent account’’, and ‘‘payable-through ac13 count’’ have the meanings given those terms in sec14 tion 5318A of title 31, United States Code. 

15 (2) ALIEN.—The term ‘‘alien’’ has the meaning 

16 given that term in section 101(a) of the Immigration 

17 and Nationality Act (8 U.S.C. 1101(a)). 

18 (3) APPROPRIATE CONGRESSIONAL COMMIT19 TEES.—The term ‘‘appropriate congressional com20 mittees’’ means— 

21 (A) the Committee on Foreign Relations, 

22 the Committee on Armed Services, the Com23 mittee on Banking, Housing, and Urban Af24 fairs, and the Select Committee on Intelligence 

25 of the Senate; and 


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1 (B) the Committee on Foreign Affairs, the 

2 Committee on Armed Services, the Committee 

3 on Financial Services, and the Permanent Se4 lect Committee on Intelligence of the House of 

5 Representatives. 

6 (4) CHINESE PERSON.—The term ‘‘Chinese 

7 person’’ means— 

8 (A) an individual who is a citizen or na9 tional of the People’s Republic of China; or 

10 (B) an entity organized under the laws of 

11 the People’s Republic of China or otherwise 

12 subject to the jurisdiction of the Government of 

13 the People’s Republic of China. 

14 (5) FINANCIAL INSTITUTION.—The term ‘‘fi15 nancial institution’’ means a financial institution 

16 specified in subparagraph (A), (B), (C), (D), (E), 

17 (F), (G), (H), (I), (J), (K), (M), (N), (P), (R), (T), 

18 (Y), or (Z) of section 5312(a)(2) of title 31, United 

19 States Code. 

20 (6) FOREIGN FINANCIAL INSTITUTION.—The 

21 term ‘‘foreign financial institution’’ has the meaning 

22 given that term in section 1010.605 of title 31, Code 

23 of Federal Regulations (or any corresponding similar 

24 regulation or ruling). 


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1 (7) KNOWINGLY.—The term ‘‘knowingly’’, with 

2 respect to conduct, a circumstance, or a result, 

3 means that a person has actual knowledge, or should 

4 have known, of the conduct, the circumstance, or the 

5 result. 

6 (8) PERSON.—The term ‘‘person’’ means any 

7 individual or entity. 

8 (9) UNITED STATES PERSON.—The term 

9 ‘‘United States person’’ means— 

10 (A) a United States citizen or an alien law11 fully admitted for permanent residence to the 

12 United States; or 

13 (B) an entity organized under the laws of 

14 the United States or of any jurisdiction within 

15 the United States, including a foreign branch of 

16 such an entity. 

17 SEC. 4. POLICY OF THE UNITED STATES WITH RESPECT TO 

18 THE SOUTH CHINA SEA AND THE EAST CHINA 

19 SEA. 

20 It is the policy of the United States— 

21 (1) to support the principle that disputes be22 tween countries should be resolved peacefully con23 sistent with international law; 

24 (2) to reaffirm its unwavering commitment and 

25 support for allies and partners in the Asia-Pacific 


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1 region, including longstanding United States pol2 icy— 

3 (A) regarding Article V of the Mutual De4 fense Treaty, signed at Washington August 30, 

5 1951 (3 UST 3947), between the United States 

6 and the Philippines; and 

7 (B) that Article V of the Mutual Defense 

8 Assistance Agreement, with Annexes, signed at 

9 Tokyo March 8, 1954 (5 UST 661), between 

10 the United States and Japan, applies to the 

11 Senkaku Islands, which are administered by 

12 Japan; and 

13 (3) to support the principle of freedom of navi14 gation and overflight and to continue to use the sea 

15 and airspace wherever international law allows. 

16 SEC. 5. SENSE OF CONGRESS WITH RESPECT TO THE 

17 SOUTH CHINA SEA AND THE EAST CHINA SEA. 

18 It is the sense of Congress that— 

19 (1) the United States— 

20 (A) opposes all claims in the maritime do21 mains that impinges on the rights, freedoms, 

22 and lawful use of the seas that belong to all 

23 countries; 

24 (B) opposes unilateral actions by the gov25 ernment of any country seeking to change the 


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1 status quo in the South China Sea through the 

2 use of coercion, intimidation, or military force; 

3 (C) opposes actions by the government of 

4 any country to interfere in any way in the free 

5 use of waters and airspace in the South China 

6 Sea or East China Sea; 

7 (D) opposes actions by the government of 

8 any country to prevent any other country from 

9 exercising its sovereign rights to the resources 

10 of the exclusive economic zone and continental 

11 shelf by making claims that have no support in 

12 international law; and 

13 (E) upholds the principle that territorial 

14 and maritime claims, including with respect to 

15 territorial waters or territorial seas, must be de16 rived from land features and otherwise comport 

17 with international law; 

18 (2) the People’s Republic of China should not 

19 continue to pursue illegitimate claims and to milita20 rize an area that is essential to global security; 

21 (3) the United States should— 

22 (A) continue and expand freedom of navi23 gation operations and overflights; 

24 (B) reconsider the traditional policy of not 

25 taking a position on individual claims; and 


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1 (C) respond to provocations by the Peo2 ple’s Republic of China with commensurate ac3 tions that impose costs on any attempts to un4 dermine security in the region; 

5 (4) the Senkaku Islands are covered by Article 

6 V of the Mutual Defense Assistance Agreement, with 

7 Annexes, signed at Tokyo March 8, 1954 (5 UST 

8 661), between the United States and Japan; and 

9 (5) the United States should firmly oppose any 

10 unilateral actions by the People’s Republic of China 

11 that seek to undermine Japan’s control of the 

12 Senkaku Islands. 

13 SEC. 6. SANCTIONS WITH RESPECT TO CHINESE PERSONS 

14 RESPONSIBLE FOR CHINA’S ACTIVITIES IN 

15 THE SOUTH CHINA SEA AND THE EAST CHINA 

16 SEA. 

17 (a) INITIAL IMPOSITION OF SANCTIONS.—On and 

18 after the date that is 60 days after the date of the enact19 ment of this Act, the President shall impose the sanctions 

20 described in subsection (b) with respect to— 

21 (1) any Chinese person that contributes to con22 struction or development projects, including land 

23 reclamation, island-making, lighthouse construction, 

24 building of base stations for mobile communications 

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1 ties, or civil infrastructure projects, in areas of the 

2 South China Sea contested by one or more members 

3 of the Association of Southeast Asian Nations; 

4 (2) any Chinese person that is responsible for 

5 or complicit in, or has engaged in, directly or indi6 rectly, actions or policies that threaten the peace, se7 curity, or stability of areas of the South China Sea 

8 contested by one or more members of the Associa9 tion of Southeast Asian Nations or areas of the East 

10 China Sea administered by Japan or the Republic of 

11 Korea, including through the use of vessels and air12 craft to impose the sovereignty of the People’s Re13 public of China in those areas; 

14 (3) any Chinese person that engages, or at15 tempts to engage, in an activity or transaction that 

16 materially contributes to, or poses a risk of materi17 ally contributing to, an activity described in para18 graph (1) or (2); and 

19 (4) any person that— 

20 (A) is owned or controlled by a person de21 scribed in paragraph (1), (2), or (3); 

22 (B) is acting for or on behalf of such a 

23 person; or 

24 (C) provides, or attempts to provide— 


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1 (i) financial, material, technological, 

2 or other support to a person described in 

3 paragraph (1), (2), or (3); or 

4 (ii) goods or services in support of an 

5 activity described in paragraph (1), (2), or 

6 (3). 

7 (b) SANCTIONS DESCRIBED.— 

8 (1) BLOCKING OF PROPERTY.—The President 

9 shall block, in accordance with the International 

10 Emergency Economic Powers Act (50 U.S.C. 1701 

11 et seq.), all transactions in all property and interests 

12 in property of any person subject to subsection (a) 

13 if such property and interests in property are in the 

14 United States, come within the United States, or are 

15 or come within the possession or control of a United 

16 States person. 

17 (2) EXCLUSION FROM UNITED STATES.—The 

18 Secretary of State shall deny a visa to, and the Sec19 retary of Homeland Security shall exclude from the 

20 United States, any person subject to subsection (a) 

21 that is an alien. 

22 (3) CURRENT VISA REVOKED.—The issuing 

23 consular officer, the Secretary of State, or the Sec24 retary of Homeland Security (or a designee of one 

25 of such Secretaries) shall revoke any visa or other 


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1 entry documentation issued to any person subject to 

2 subsection (a) that is an alien, regardless of when 

3 issued. The revocation shall take effect immediately 

4 and shall automatically cancel any other valid visa or 

5 entry documentation that is in the alien’s possession. 

6 (c) EXCEPTIONS; PENALTIES.— 

7 (1) INAPPLICABILITY OF NATIONAL EMER8 GENCY REQUIREMENT.—The requirements of section 

9 202 of the International Emergency Economic Pow10 ers Act (50 U.S.C. 1701) shall not apply for pur11 poses of subsection (b)(1). 

12 (2) COMPLIANCE WITH UNITED NATIONS HEAD13 QUARTERS AGREEMENT.—Paragraphs (2) and (3) of 

14 subsection (b) shall not apply if admission to the 

15 United States is necessary to permit the United 

16 States to comply with the Agreement regarding the 

17 Headquarters of the United Nations, signed at Lake 

18 Success June 26, 1947, and entered into force No19 vember 21, 1947, between the United Nations and 

20 the United States. 

21 (3) PENALTIES.—The penalties provided for in 

22 subsections (b) and (c) of section 206 of the Inter23 national Emergency Economic Powers Act (50 

24 U.S.C. 1705) shall apply to a person that violates, 

25 attempts to violate, conspires to violate, or causes a 


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1 violation of regulations prescribed under subsection 

2 (b)(1) to the same extent that such penalties apply 

3 to a person that commits an unlawful act described 

4 in subsection (a) of such section 206. 

5 (d) ADDITIONAL IMPOSITION OF SANCTIONS.— 

6 (1) IN GENERAL.—The President shall prohibit 

7 the opening, and prohibit or impose strict conditions 

8 on the maintaining, in the United States of a cor9 respondent account or a payable-through account by 

10 a foreign financial institution that the President de11 termines knowingly, on or after the date that is 60 

12 days after the date of the enactment of this Act, 

13 conducts or facilitates a significant financial trans14 action for a person subject to subsection (a) if the 

15 Director of National Intelligence determines that the 

16 Government of the People’s Republic of China has— 

17 (A) declared an air defense identification 

18 zone over any part of the South China Sea; 

19 (B) initiated reclamation work at another 

20 disputed location in the South China Sea, such 

21 as at Scarborough Shoal; 

22 (C) seized control of Second Thomas 

23 Shoal; 

24 (D) deployed surface-to-air missiles to any 

25 of the artificial islands the People’s Republic of 


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1 China has built in the Spratly Island chain, in2 cluding Fiery Cross, Mischief, or Subi Reefs; 

3 (E) established territorial baselines around 

4 the Spratly Island chain; 

5 (F) increased harassment of Philippine 

6 vessels; or 

7 (G) increased provocative actions against 

8 the Japanese Coast Guard or Maritime Self-De9 fense Force or United States forces in the East 

10 China Sea. 

11 (2) REPORT.— 

12 (A) IN GENERAL.—The determination of 

13 the Director of National Intelligence referred to 

14 in paragraph (1) shall be submitted in a report 

15 to the President and the appropriate congres16 sional committees. 

17 (B) FORM OF REPORT.—The report re18 quired by subparagraph (A) shall be submitted 

19 in unclassified form, but may include a classi20 fied annex. 

21 SEC. 7. DETERMINATIONS AND REPORT ON CHINESE COM22 PANIES ACTIVE IN THE SOUTH CHINA SEA 

23 AND THE EAST CHINA SEA. 

24 (a) IN GENERAL.—The Secretary of State shall sub25 mit to the appropriate congressional committees a report 


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1 that identifies each Chinese person the Secretary deter2 mines is engaged in the activities described in section 6(a). 

3 (b) CONSIDERATION.—In preparing the report re4 quired under subsection (a), the Secretary of State shall 

5 make specific findings with respect to whether each of the 

6 following persons is involved in the activities described in 

7 section 6(a): 

8 (1) CCCC Tianjin Dredging Co., Ltd. 

9 (2) CCCC Dredging (Group) Company, Ltd. 

10 (3) China Communications Construction Com11 pany (CCCC), Ltd. 

12 (4) China Petroleum Corporation (Sinopec 

13 Group). 

14 (5) China Mobile. 

15 (6) China Telecom. 

16 (7) China Southern Power Grid. 

17 (8) CNFC Guangzhou Harbor Engineering 

18 Company. 

19 (9) Zhanjiang South Project Construction Bu20 reau. 

21 (10) Hubei Jiangtian Construction Group. 

22 (11) China Harbour Engineering Company 

23 (CHEC). 

24 (12) Guangdong Navigation Group (GNG) 

25 Ocean Shipping. 


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1 (13) Shanghai Leading Energy Shipping. 

2 (14) China National Offshore Oil Corporation 

3 (CNOOC). 

4 (15) China Oilfield Services Limited (COSL). 

5 (16) China Precision Machinery Import/Export 

6 Corporation (CPMIEC). 

7 (17) China Aerospace Science and Industry 

8 Corporation (CASIC). 

9 (18) Aviation Industry Corporation of China 

10 (AVIC). 

11 (19) Shenyang Aircraft Corporation. 

12 (20) Shaanxi Aircraft Corporation. 

13 (21) China Ocean Shipping (Group) Company 

14 (COSCO). 

15 (22) China Southern Airlines. 

16 (23) Zhan Chaoying. 

17 (24) Sany Group. 

18 (25) Chinese persons affiliated with any of the 

19 entities specified in paragraphs (1) through (24). 

20 (c) SUBMISSION AND FORM.— 

21 (1) SUBMISSION.—The report required by sub22 section (a) shall be submitted not later than 60 days 

23 after the date of the enactment of this Act and every 

24 180 days thereafter until the date that is 3 years 

25 after the date of the enactment of this Act. 


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1 (2) FORM.—The report required by subsection 

2 (a) shall be submitted in unclassified form, but may 

3 include a classified annex if the Secretary of State 

4 determines it is necessary for the national security 

5 interests of the United States to do so. 

6 (3) PUBLIC AVAILABILITY.—The Secretary of 

7 State shall publish the unclassified part of the report 

8 required by subsection (a) on a publicly available 

9 website of the Department of State. 

10 SEC. 8. PROHIBITION AGAINST DOCUMENTS PORTRAYING 

11 THE SOUTH CHINA SEA OR THE EAST CHINA 

12 SEA AS PART OF CHINA. 

13 The Government Publishing Office may not publish 

14 any map, document, record, electronic resource, or other 

15 paper of the United States (other than materials relating 

16 to hearings held by committees of Congress or internal 

17 work product of a Federal agency) portraying or otherwise 

18 indicating that it is the position of the United States that 

19 the territory or airspace in the South China Sea contested 

20 by one or more members of the Association of Southeast 

21 Asian Nations or the territory or airspace of areas of the 

22 East China Sea administered by Japan or the Republic 

23 of Korea is part of the territory or airspace of the People’s 

24 Republic of China. 


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1 SEC. 9. PROHIBITION ON FACILITATING CERTAIN INVEST2 MENTS IN THE SOUTH CHINA SEA OR THE 

3 EAST CHINA SEA. 

4 (a) IN GENERAL.—No United States person may 

5 take any action to approve, facilitate, finance, or guar6 antee any investment, provide insurance, or underwriting 

7 in the South China Sea or the East China Sea that in8 volves any person with respect to which sanctions are im9 posed under section 6(a). 

10 (b) ENFORCEMENT.—The Secretary of the Treasury, 

11 in consultation with the Secretary of State, is authorized 

12 to take such actions, including the promulgation of such 

13 rules and regulations, as may be necessary to carry out 

14 the purposes of this section. 

15 (c) PENALTIES.—The penalties provided for in sub16 sections (b) and (c) of section 206 of the International 

17 Emergency Economic Powers Act (50 U.S.C. 1705) shall 

18 apply to a person that violates, attempts to violate, con19 spires to violate, or causes a violation of regulations pre20 scribed under this section to the same extent that such 

21 penalties apply to a person that commits an unlawful act 

22 described in subsection (a) of such section 206. 

23 (d) EXCEPTION.—Subsection (a) shall not apply with 

24 respect to humanitarian assistance, disaster assistance, or 

25 emergency food assistance. 


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1 SEC. 10. DEPARTMENT OF JUSTICE AFFIRMATION OF NON2 RECOGNITION OF ANNEXATION. 

3 In any matter before any United States court, upon 

4 request of the court or any party to the matter, the Attor5 ney General shall affirm the United States policy of not 

6 recognizing the de jure or de facto sovereignty of the Peo7 ple’s Republic of China over territory or airspace contested 

8 by one or more members of the Association of Southeast 

9 Asian Nations in the South China Sea or the territory or 

10 airspace of areas of the East China Sea administered by 

11 Japan or the Republic of Korea. 

12 SEC. 11. NON-RECOGNITION OF CHINESE SOVEREIGNTY 

13 OVER THE SOUTH CHINA SEA OR THE EAST 

14 CHINA SEA. 

15 (a) UNITED STATES ARMED FORCES.—The Sec16 retary of Defense may not take any action, including any 

17 movement of aircraft or vessels that implies recognition 

18 of the sovereignty of the People’s Republic of China over 

19 territory or airspace contested by one or more members 

20 of the Association of Southeast Asian Nations in the 

21 South China Sea or the territory or airspace of areas of 

22 the East China Sea administered by Japan or the Repub23 lic of Korea. 

24 (b) UNITED STATES FLAGGED VESSELS.—No vessel 

25 that is issued a certificate of documentation under chapter 

26 121 of title 46, United States Code, may take any action 


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1 that implies recognition of the sovereignty of the People’s 

2 Republic of China over territory or airspace contested by 

3 one or more members of the Association of Southeast 

4 Asian Nations in the South China Sea or the territory or 

5 airspace of areas of the East China Sea administered by 

6 Japan or the Republic of Korea. 

7 (c) UNITED STATES AIRCRAFT.—No aircraft oper8 ated by an air carrier that holds an air carrier certificate 

9 issued under chapter 411 of title 49, United States Code, 

10 may take any action that implies recognition of the sov11 ereignty of the People’s Republic of China over territory 

12 or airspace contested by one or more members of the Asso13 ciation of Southeast Asian Nations in the South China Sea 

14 or the territory or airspace of areas of the East China 

15 Sea administered by Japan or the Republic of Korea. 

16 SEC. 12. PROHIBITION ON CERTAIN ASSISTANCE TO COUN17 TRIES THAT RECOGNIZE CHINESE SOV18 EREIGNTY OVER THE SOUTH CHINA SEA OR 

19 THE EAST CHINA SEA. 

20 (a) PROHIBITION.—Except as provided by subsection 

21 (c) or (d), no amounts may be obligated or expended to 

22 provide foreign assistance to the government of any coun23 try identified in a report required by subsection (b). 

24 (b) REPORT REQUIRED.— 


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1 (1) IN GENERAL.—Not later than 60 days after 

2 the date of the enactment of this Act, and every 180 

3 days thereafter until the date that is 3 years after 

4 such date of enactment, the Secretary of State shall 

5 submit to the appropriate congressional committees 

6 a report identifying each country that the Secretary 

7 determines recognizes, after the date of the enact8 ment of this Act, the sovereignty of the People’s Re9 public of China over territory or airspace contested 

10 by one or more members of the Association of 

11 Southeast Asian Nations in the South China Sea or 

12 the territory or airspace of areas of the East China 

13 Sea administered by Japan or the Republic of 

14 Korea. 

15 (2) FORM.—The report required by paragraph 

16 (1) shall be submitted in unclassified form, but may 

17 include a classified annex if the Secretary of State 

18 determines it is necessary for the national security 

19 interests of the United States to do so. 

20 (3) PUBLIC AVAILABILITY.—The Secretary of 

21 State shall publish the unclassified part of the report 

22 required by paragraph (1) on a publicly available 

23 website of the Department of State. 


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1 (c) EXCEPTION.—This section shall not apply with 

2 respect to Taiwan, humanitarian assistance, disaster as3 sistance, emergency food assistance, or the Peace Corps. 

4 (d) WAIVER.—The President may waive the applica5 tion of subsection (a) with respect to the government of 

6 a country if the President determines that the waiver is 

7 in the national interests of the United States. 

Æ 


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