I 

116TH CONGRESS 

2D SESSION H. R. 7083 

To impose sanctions with respect to foreign persons involved in the erosion 

of certain obligations of China with respect to Hong Kong, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 1, 2020 

Mr. SHERMAN (for himself, Mr. YOHO, Mrs. CAROLYN B. MALONEY of New 

York, Mr. CURTIS, Mr. CONNOLLY, Mr. BARR, Mr. SUOZZI, Mr. 

RESCHENTHALER, and Ms. SPANBERGER) introduced the following bill; 

which was referred to the Committee on Foreign Affairs, and in addition 

to the Committees on the Judiciary, Financial Services, Ways and Means, 

and Rules, for a period to be subsequently determined by the Speaker, 

in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To impose sanctions with respect to foreign persons involved 

in the erosion of certain obligations of China with respect 

to Hong Kong, 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 ‘‘Hong Kong Autonomy Act’’. 


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

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

Sec. 3. Findings. 

Sec. 4. Sense of Congress regarding Hong Kong. 

Sec. 5. Identification of foreign persons involved in the erosion of the obligations of China under the Joint Declaration or the Basic Law 

and foreign financial institutions that conduct significant 

transactions with those persons. 

Sec. 6. Sanctions with respect to foreign persons that contravene the obligations of China under the Joint Declaration or the Basic Law. 

Sec. 7. Sanctions with respect to foreign financial institutions that do business 

with foreign persons that contravene the obligations of China 

under the Joint Declaration or the Basic Law. 

Sec. 8. Waiver, termination, and congressional review process. 

Sec. 9. Rule of construction. 

3 SEC. 2. DEFINITIONS. 

4 In this Act: 

5 (1) ALIEN; NATIONAL; NATIONAL OF THE

6 UNITED STATES.—The terms ‘‘alien’’, ‘‘national’’, 

7 and ‘‘national of the United States’’ have the mean8 ings given those terms in section 101 of the Immi9 gration and Nationality Act (8 U.S.C. 1101). 

10 (2) APPROPRIATE CONGRESSIONAL COMMIT11 TEES AND LEADERSHIP.—The term ‘‘appropriate 

12 congressional committees and leadership’’ means— 

13 (A) the Committee on Armed Services, the 

14 Committee on Banking, Housing, and Urban 

15 Affairs, the Committee on Foreign Relations, 

16 the Committee on Homeland Security and Gov17 ernmental Affairs, the Committee on the Judi18 ciary, the Select Committee on Intelligence, and 


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1 the majority leader and the minority leader of 

2 the Senate; and 

3 (B) the Committee on Armed Services, the 

4 Committee on Financial Services, the Com5 mittee on Foreign Affairs, the Committee on 

6 Homeland Security, the Committee on the Judi7 ciary, the Permanent Select Committee on In8 telligence, and the Speaker and the minority 

9 leader of the House of Representatives. 

10 (3) BASIC LAW.—The term ‘‘Basic Law’’ means 

11 the Basic Law of the Hong Kong Special Adminis12 trative Region of the People’s Republic of China. 

13 (4) CHINA.—The term ‘‘China’’ means the Peo14 ple’s Republic of China. 

15 (5) ENTITY.—The term ‘‘entity’’ means a part16 nership, joint venture, association, corporation, orga17 nization, network, group, or subgroup, or any other 

18 form of business collaboration. 

19 (6) FINANCIAL INSTITUTION.—The term ‘‘fi20 nancial institution’’ means a financial institution 

21 specified in section 5312(a)(2) of title 31, United 

22 States Code. 

23 (7) FOREIGN FINANCIAL INSTITUTION.— 

24 (A) IN GENERAL.—Except as provided in 

25 subparagraph (B), the term ‘‘foreign financial 


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1 institution’’ means any foreign entity that is en2 gaged in the business of accepting deposits, 

3 making, granting, transferring, holding, or 

4 brokering loans or credits, or purchasing or 

5 selling foreign exchange, securities, commodity 

6 futures or options, or procuring purchasers and 

7 sellers thereof, as principal or agent, includ8 ing— 

9 (i) a depository institution; 

10 (ii) a bank; 

11 (iii) a savings bank; 

12 (iv) a money service business; 

13 (v) a trust company; 

14 (vi) a securities broker or dealer; 

15 (vii) a commodity futures and options 

16 broker or dealer; 

17 (viii) a forward contract or foreign ex18 change merchant; 

19 (ix) a securities or commodities ex20 change; 

21 (x) a clearing corporation; 

22 (xi) an investment company; 

23 (xii) an employee benefit plan; 

24 (xiii) a dealer in precious metals, 

25 stones, or jewels; and 


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1 (xiv) any holding company, affiliate, 

2 or subsidiary of an entity specified in any 

3 of clauses (i) through (xiii). 

4 (B) EXCEPTIONS.—The term ‘‘foreign fi5 nancial institution’’ does not include— 

6 (i) an international financial institu7 tion, as defined in section 1701(c) of the 

8 International Financial Institutions Act 

9 (22 U.S.C. 262r(c)); 

10 (ii) the International Fund for Agri11 cultural Development; 

12 (iii) the North American Development 

13 Bank; or 

14 (iv) any other international financial 

15 institution specified by the Office of For16 eign Assets Control of the Department of 

17 the Treasury. 

18 (8) FOREIGN PERSON.—The term ‘‘foreign per19 son’’— 

20 (A) means— 

21 (i) any citizen or national of a foreign 

22 country; or 

23 (ii) any entity not organized under the 

24 laws of the United States or a jurisdiction 

25 within the United States; and 


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1 (B) does not include the government of a 

2 foreign country. 

3 (9) HONG KONG.—The term ‘‘Hong Kong’’ 

4 means the Hong Kong Special Administrative Re5 gion of the People’s Republic of China. 

6 (10) JOINT DECLARATION.—The term ‘‘Joint 

7 Declaration’’ means the Joint Declaration of the 

8 Government of the United Kingdom of Great Britain 

9 and Northern Ireland and the Government of the 

10 People’s Republic of China on the Question of Hong 

11 Kong, done at Beijing on December 19, 1984. 

12 (11) KNOWINGLY.—The term ‘‘knowingly’’, 

13 with respect to conduct, a circumstance, or a result, 

14 means that a person has actual knowledge, or should 

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

16 result. 

17 (12) PERSON.—The term ‘‘person’’ means an 

18 individual or entity. 

19 (13) SIGNIFICANT TRANSACTION.—The term 

20 ‘‘significant transaction’’ means a transaction deter21 mined by the Secretary of the Treasury to be signifi22 cant on the basis of the following factors— 

23 (A) the size, number, and frequency of the 

24 transaction; 

25 (B) the nature of the transaction; 


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1 (C) whether the transaction is part of a 

2 pattern of conduct; 

3 (D) the nexus between the transaction and 

4 a person subject to sanctions under this Act; 

5 and 

6 (E) the impact of the transaction on the 

7 objectives of this Act. 

8 (14) UNITED STATES PERSON.—The term 

9 ‘‘United States person’’ means— 

10 (A) any citizen or national of the United 

11 States; 

12 (B) any alien lawfully admitted for perma13 nent residence in the United States; 

14 (C) any entity organized under the laws of 

15 the United States or any jurisdiction within the 

16 United States (including a foreign branch of 

17 such an entity); or 

18 (D) any person located in the United 

19 States. 

20 SEC. 3. FINDINGS. 

21 Congress makes the following findings: 

22 (1) The Joint Declaration and the Basic Law 

23 clarify certain obligations and promises that the 

24 Government of China has made with respect to the 

25 future of Hong Kong. 


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1 (2) The obligations of the Government of China 

2 under the Joint Declaration were codified in a le3 gally binding treaty, signed by the Government of 

4 the United Kingdom of Great Britain and Northern 

5 Ireland and registered with the United Nations. 

6 (3) The obligations of the Government of China 

7 under the Basic Law originate from the Joint Dec8 laration, were passed into the domestic law of China 

9 by the National People’s Congress, and are widely 

10 considered by citizens of Hong Kong as part of the 

11 de facto legal constitution of Hong Kong. 

12 (4) Foremost among the obligations of the Gov13 ernment of China to Hong Kong is the promise that, 

14 pursuant to Paragraph 3b of the Joint Declaration, 

15 ‘‘the Hong Kong Special Administrative Region will 

16 enjoy a high degree of autonomy, except in foreign 

17 and defence affairs which are the responsibilities of 

18 the Central People’s Government’’. 

19 (5) The obligation specified in Paragraph 3b of 

20 the Joint Declaration is referenced, reinforced, and 

21 extrapolated on in several portions of the Basic Law, 

22 including Articles 2, 12, 13, 14, and 22. 

23 (6) Article 22 of the Basic Law establishes that 

24 ‘‘No department of the Central People’s Government 

25 and no province, autonomous region, or municipality 


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1 directly under the Central Government may interfere 

2 in the affairs which the Hong Kong Special Admin3 istrative Region administers on its own in accord4 ance with this Law.’’. 

5 (7) The Joint Declaration and the Basic Law 

6 make clear that additional obligations shall be un7 dertaken by China to ensure the ‘‘high degree of au8 tonomy’’ of Hong Kong. 

9 (8) Paragraph 3c of the Joint Declaration 

10 states, as reinforced by Articles 2, 16, 17, 18, 19, 

11 and 22 of the Basic Law, that Hong Kong ‘‘will be 

12 vested with executive, legislative and independent ju13 dicial power, including that of final adjudication’’. 

14 (9) On multiple occasions, the Government of 

15 China has undertaken actions that have contravened 

16 the letter or intent of the obligation described in 

17 paragraph (8) of this section, including the fol18 lowing: 

19 (A) In 1999, the Standing Committee of 

20 the National People’s Congress overruled a de21 cision by the Hong Kong Court of Final Appeal 

22 on the right of abode. 

23 (B) On multiple occasions, the Government 

24 of Hong Kong, at the advice of the Government 

25 of China, is suspected to have not allowed perVerDate Sep 11 2014 04:09 Jun 24, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H7083.IH H7083

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1 sons entry into Hong Kong allegedly because of 

2 their support for democracy and human rights 

3 in Hong Kong and China. 

4 (C) The Liaison Office of China in Hong 

5 Kong has, despite restrictions on interference in 

6 the affairs of Hong Kong as detailed in Article 

7 22 of the Basic Law— 

8 (i) openly expressed support for can9 didates in Hong Kong for Chief Executive 

10 and Legislative Council; 

11 (ii) expressed views on various policies 

12 for the Government of Hong Kong and 

13 other internal matters relating to Hong 

14 Kong; and 

15 (iii) on April 17, 2020, asserted that 

16 both the Liaison Office of China in Hong 

17 Kong and the Hong Kong and Macau Af18 fairs Office of the State Council ‘‘have the 

19 right to exercise supervision . . . on affairs 

20 regarding Hong Kong and the mainland, 

21 in order to ensure correct implementation 

22 of the Basic Law’’. 

23 (D) The National People’s Congress has 

24 passed laws requiring Hong Kong to pass laws 


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1 banning disrespectful treatment of the national 

2 flag and national anthem of China. 

3 (E) The State Council of China released a 

4 white paper on June 10, 2014, that stressed 

5 the ‘‘comprehensive jurisdiction’’ of the Govern6 ment of China over Hong Kong and indicated 

7 that Hong Kong must be governed by ‘‘patri8 ots’’. 

9 (F) The Government of China has directed 

10 operatives to kidnap and bring to the mainland, 

11 or is otherwise responsible for the kidnapping 

12 of, residents of Hong Kong, including business13 man Xiao Jianhua and bookseller Gui Minhai. 

14 (G) The Government of Hong Kong, acting 

15 with the support of the Government of China, 

16 introduced an extradition bill that would have 

17 permitted the Government of China to request 

18 and enforce extradition requests for any indi19 vidual present in Hong Kong, regardless of the 

20 legality of the request or the degree to which it 

21 compromised the judicial independence of Hong 

22 Kong. 

23 (H) The spokesman for the Standing Com24 mittee of the National People’s Congress said, 

25 ‘‘Whether Hong Kong’s laws are consistent 


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1 with the Basic Law can only be judged and de2 cided by the National People’s Congress Stand3 ing Committee. No other authority has the 

4 right to make judgments and decisions.’’. 

5 (10) Paragraph 3e of the Joint Declaration 

6 states, as reinforced by Article 5 of the Basic Law, 

7 that the ‘‘current social and economic systems in 

8 Hong Kong will remain unchanged, as so will the 

9 life-style.’’. 

10 (11) On multiple occasions, the Government of 

11 China has undertaken actions that have contravened 

12 the letter or intent of the obligation described in 

13 paragraph (10) of this section, including the fol14 lowing: 

15 (A) In 2002, the Government of China 

16 pressured the Government of Hong Kong to in17 troduce ‘‘patriotic’’ curriculum in primary and 

18 secondary schools. 

19 (B) The governments of China and Hong 

20 Kong proposed the prohibition of discussion of 

21 Hong Kong independence and self-determina22 tion in primary and secondary schools, which 

23 infringes on freedom of speech. 

24 (C) The Government of Hong Kong man25 dated that Mandarin, and not the native lanVerDate Sep 11 2014 04:09 Jun 24, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H7083.IH H7083

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1 guage of Cantonese, be the language of instruc2 tion in Hong Kong schools. 

3 (D) The governments of China and Hong 

4 Kong agreed to a daily quota of mainland im5 migrants to Hong Kong, which is widely be6 lieved by citizens of Hong Kong to be part of 

7 an effort to ‘‘mainlandize’’ Hong Kong. 

8 (12) Paragraph 3e of the Joint Declaration 

9 states, as reinforced by Articles 4, 26, 27, 28, 29, 

10 30, 31, 32 33, 34, and 39 of the Basic Law, that 

11 the ‘‘rights and freedoms, including those of person, 

12 of speech, of the press, of assembly, of association, 

13 of travel, of movement, of correspondence, of strike, 

14 of choice of occupation, of academic research and of 

15 religious belief will be ensured by law’’ in Hong 

16 Kong. 

17 (13) On multiple occasions, the Government of 

18 China has undertaken actions that have contravened 

19 the letter or intent of the obligation described in 

20 paragraph (12) of this section, including the fol21 lowing: 

22 (A) On February 26, 2003, the Govern23 ment of Hong Kong introduced a national secu24 rity bill that would have placed restrictions on 

25 freedom of speech and other protected rights. 


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1 (B) The Liaison Office of China in Hong 

2 Kong has pressured businesses in Hong Kong 

3 not to advertise in newspapers and magazines 

4 critical of the governments of China and Hong 

5 Kong. 

6 (C) The Hong Kong Police Force selec7 tively blocked demonstrations and protests ex8 pressing opposition to the governments of China 

9 and Hong Kong or the policies of those govern10 ments. 

11 (D) The Government of Hong Kong re12 fused to renew work visa for a foreign jour13 nalist, allegedly for hosting a speaker from the 

14 banned Hong Kong National Party. 

15 (E) The Justice Department of Hong 

16 Kong selectively prosecuted cases against lead17 ers of the Umbrella Movement, while failing to 

18 prosecute police officers accused of using exces19 sive force during the protests in 2014. 

20 (F) On April 18, 2020, the Hong Kong 

21 Police Force arrested 14 high-profile democracy 

22 activists and campaigners for their role in orga23 nizing a protest march that took place on Au24 gust 18, 2019, in which almost 2,000,000 peo25 ple rallied against a proposed extradition bill. 


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1 (14) Articles 45 and 68 of the Basic Law assert 

2 that the selection of Chief Executive and all mem3 bers of the Legislative Council of Hong Kong should 

4 be by ‘‘universal suffrage.’’. 

5 (15) On multiple occasions, the Government of 

6 China has undertaken actions that have contravened 

7 the letter or intent of the obligation described in 

8 paragraph (14) of this section, including the fol9 lowing: 

10 (A) In 2004, the National People’s Con11 gress created new, antidemocratic procedures 

12 restricting the adoption of universal suffrage 

13 for the election of the Chief Executive of Hong 

14 Kong. 

15 (B) The decision by the National People’s 

16 Congress on December 29, 2007, which ruled 

17 out universal suffrage in 2012 elections and set 

18 restrictions on when and if universal suffrage 

19 will be implemented. 

20 (C) The decision by the National People’s 

21 Congress on August 31, 2014, which placed 

22 limits on the nomination process for the Chief 

23 Executive of Hong Kong as a condition for 

24 adoption of universal suffrage. 


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1 (D) On November 7, 2016, the National 

2 People’s Congress interpreted Article 104 of the 

3 Basic Law in such a way to disqualify 6 elected 

4 members of the Legislative Council. 

5 (E) In 2018, the Government of Hong 

6 Kong banned the Hong Kong National Party 

7 and blocked the candidacy of pro-democracy 

8 candidates. 

9 (16) The ways in which the Government of 

10 China, at times with the support of a subservient 

11 Government of Hong Kong, has acted in contraven12 tion of its obligations under the Joint Declaration 

13 and the Basic Law, as set forth in this section, are 

14 deeply concerning to the people of Hong Kong, the 

15 United States, and members of the international 

16 community who support the autonomy of Hong 

17 Kong. 

18 SEC. 4. SENSE OF CONGRESS REGARDING HONG KONG. 

19 It is the sense of Congress that— 

20 (1) the United States continues to uphold the 

21 principles and policy established in the United 

22 States-Hong Kong Policy Act of 1992 (22 U.S.C. 

23 5701 et seq.) and the Hong Kong Human Rights 

24 and Democracy Act of 2019 (Public Law 116–76; 

25 22 U.S.C. 5701 note), which remain consistent with 


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1 China’s obligations under the Joint Declaration and 

2 certain promulgated objectives under the Basic Law, 

3 including that— 

4 (A) as set forth in section 101(1) of the 

5 United States-Hong Kong Policy Act of 1992 

6 (22 U.S.C. 5711(1)), ‘‘The United States 

7 should play an active role, before, on, and after 

8 July 1, 1997, in maintaining Hong Kong’s con9 fidence and prosperity, Hong Kong’s role as an 

10 international financial center, and the mutually 

11 beneficial ties between the people of the United 

12 States and the people of Hong Kong.’’; and 

13 (B) as set forth in section 2(5) of the 

14 United States-Hong Kong Policy Act of 1992 

15 (22 U.S.C. 5701(5)), ‘‘Support for democratiza16 tion is a fundamental principle of United States 

17 foreign policy. As such, it naturally applies to 

18 United States policy toward Hong Kong. This 

19 will remain equally true after June 30, 1997.’’; 

20 (2) although the United States recognizes that, 

21 under the Joint Declaration, the Government of 

22 China ‘‘resumed the exercise of sovereignty over 

23 Hong Kong with effect on 1 July 1997’’, the United 

24 States supports the autonomy of Hong Kong in fur25 therance of the United States-Hong Kong Policy Act 


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1 of 1992 and the Hong Kong Human Rights and De2 mocracy Act of 2019 and advances the desire of the 

3 people of Hong Kong to continue the ‘‘one country, 

4 two systems’’ regime, in addition to other obligations 

5 promulgated by China under the Joint Declaration 

6 and the Basic Law; 

7 (3) in order to support the benefits and protec8 tions that Hong Kong has been afforded by the Gov9 ernment of China under the Joint Declaration and 

10 the Basic Law, the United States should establish a 

11 clear and unambiguous set of penalties with respect 

12 to foreign persons determined by the Secretary of 

13 State to be involved in the contravention of the obli14 gations of China under the Joint Declaration and 

15 the Basic Law and the financial institutions trans16 acting with those foreign persons; 

17 (4) the Secretary of State should provide an un18 classified assessment of the reason for imposition of 

19 certain economic penalties on entities, so as to per20 mit a clear path for the removal of economic pen21 alties if the sanctioned behavior is reversed and 

22 verified by the Secretary of State; 

23 (5) relevant Federal agencies should establish a 

24 multilateral sanctions regime with respect to foreign 

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1 tions of China under the Joint Declaration and the 

2 Basic Law; and 

3 (6) in addition to the penalties on foreign per4 sons, and financial institutions transacting with 

5 those foreign persons, for the contravention of the 

6 obligations of China under the Joint Declaration and 

7 the Basic Law, the United States should take steps, 

8 in a time of crisis, to assist permanent residents of 

9 Hong Kong who are persecuted or fear persecution 

10 as a result of the contravention by China of its obli11 gations under the Joint Declaration and the Basic 

12 Law to become eligible to obtain lawful entry into 

13 the United States. 

14 SEC. 5. IDENTIFICATION OF FOREIGN PERSONS INVOLVED 

15 IN THE EROSION OF THE OBLIGATIONS OF 

16 CHINA UNDER THE JOINT DECLARATION OR 

17 THE BASIC LAW AND FOREIGN FINANCIAL IN18 STITUTIONS THAT CONDUCT SIGNIFICANT 

19 TRANSACTIONS WITH THOSE PERSONS. 

20 (a) IN GENERAL.—Not later than 90 days after the 

21 date of the enactment of this Act, and annually thereafter, 

22 if the Secretary of State determines that a foreign person 

23 is materially contributing to, has materially contributed 

24 to, or attempts to materially contribute to the failure of 

25 the Government of China to meet its obligations under the 


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1 Joint Declaration or the Basic Law, the Secretary of State 

2 shall submit to the appropriate congressional committees 

3 and leadership a report that includes— 

4 (1) an identification of the foreign person; 

5 (2) a clear explanation for why the foreign per6 son was identified and a description of the activity 

7 that resulted in the identification; and 

8 (3) an identification of any foreign financial in9 stitution that knowingly conducts a significant 

10 transactions with the foreign person. 

11 (b) EXCLUSION OF CERTAIN INFORMATION.— 

12 (1) INTELLIGENCE.—The Secretary of State 

13 shall not disclose the identity of a person in a report 

14 submitted under subsection (a) if the Director of 

15 National Intelligence determines that such disclosure 

16 could compromise an intelligence operation, activity, 

17 source, or method of the United States. 

18 (2) LAW ENFORCEMENT.—The Secretary of 

19 State shall not disclose the identity of a person in 

20 a report submitted under subsection (a) if the Attor21 ney General, in coordination, as appropriate, with 

22 the Director of the Federal Bureau of Investigation, 

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1 ury, determines that such disclosure could reason2 ably be expected— 

3 (A) to compromise the identity of a con4 fidential source, including a State, local, or for5 eign agency or authority or any private institu6 tion that furnished information on a confiden7 tial basis; 

8 (B) to jeopardize the integrity or success 

9 of an ongoing criminal investigation or prosecu10 tion; 

11 (C) to endanger the life or physical safety 

12 of any person; or 

13 (D) to cause substantial harm to physical 

14 property. 

15 (3) NOTIFICATION REQUIRED.—If the Director 

16 of National Intelligence makes a determination 

17 under paragraph (1) or the Attorney General makes 

18 a determination under paragraph (2), the Director 

19 or the Attorney General, as the case may be, shall 

20 notify the appropriate congressional committees and 

21 leadership of the determination and the reasons for 

22 the determination. 

23 (c) EXCLUSION OF FOREIGN PERSONS AND FOREIGN

24 FINANCIAL INSTITUTIONS.— 


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1 (1) FOREIGN PERSONS.—The President may 

2 exclude a foreign person from the report under sub3 section (a) if the material contribution (as described 

4 in subsection (d)) that merited inclusion in that re5 port— 

6 (A) does not have a significant and lasting 

7 negative effect that contravenes the obligations 

8 of China under the Joint Declaration and the 

9 Basic Law; 

10 (B) is not likely to be repeated in the fu11 ture; and 

12 (C) has been reversed or otherwise miti13 gated through positive countermeasures taken 

14 by that foreign person. 

15 (2) FOREIGN FINANCIAL INSTITUTIONS.—The 

16 President may exclude a foreign financial institution 

17 from the report under subsection (a) if the signifi18 cant transaction or significant transactions of the 

19 foreign financial institution that merited inclusion in 

20 that report— 

21 (A) does not have a significant and lasting 

22 negative effect that contravenes the obligations 

23 of China under the Joint Declaration and the 

24 Basic Law; 


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1 (B) is not likely to be repeated in the fu2 ture; and 

3 (C) has been reversed or otherwise miti4 gated through positive countermeasures taken 

5 by that foreign financial institution. 

6 (d) FORM OF REPORT.—Each report under sub7 section (a) shall be submitted in unclassified form but may 

8 include a classified annex. 

9 (e) TIMING OF REPORT.— 

10 (1) IN GENERAL.—Each report under sub11 section (a), to the extent practicable, shall be sub12 mitted with the annual report under section 301 of 

13 the United States-Hong Kong Policy Act of 1992 

14 (22 U.S.C. 5731). 

15 (2) RULE OF CONSTRUCTION.—Nothing in this 

16 subsection shall be construed to terminate the re17 quirement to submit the report under subsection (a) 

18 upon the termination of the requirement to submit 

19 the annual report under section 301 of the United 

20 States-Hong Kong Policy Act of 1992 (22 U.S.C. 

21 5731). 

22 (f) MATERIAL CONTRIBUTIONS RELATED TO OBLI23 GATIONS OF CHINA DESCRIBED.—For purposes of this 

24 section, a foreign person materially contributes to the fail25 ure of the Government of China to meet its obligations 


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1 under the Joint Declaration or the Basic Law if the per2 son— 

3 (1) took action that resulted in the inability of 

4 the people of Hong Kong— 

5 (A) to enjoy freedom of assembly, speech, 

6 press, or independent rule of law; or 

7 (B) to participate in democratic outcomes; 

8 or 

9 (2) otherwise took action that reduces the high 

10 degree of autonomy of Hong Kong. 

11 SEC. 6. SANCTIONS WITH RESPECT TO FOREIGN PERSONS 

12 THAT CONTRAVENE THE OBLIGATIONS OF 

13 CHINA UNDER THE JOINT DECLARATION OR 

14 THE BASIC LAW. 

15 (a) IMPOSITION OF SANCTIONS.— 

16 (1) IN GENERAL.—On and after the date on 

17 which a foreign person is included in a report under 

18 section 5(a)(1), the President may impose sanctions 

19 described in subsection (b) with respect to that for20 eign person. 

21 (2) MANDATORY SANCTIONS.—On and after the 

22 date on which a foreign person is included in 2 re23 ports submitted under section 5(a)(1), the President 

24 shall impose sanctions described in subsection (b) 

25 with respect to that foreign person. 


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1 (b) SANCTIONS DESCRIBED.—The sanctions de2 scribed in this subsection with respect to a foreign person 

3 are the following: 

4 (1) PROPERTY TRANSACTIONS.—The President 

5 may, pursuant to such regulations as the President 

6 may prescribe, prohibit any person from— 

7 (A) acquiring, holding, withholding, using, 

8 transferring, withdrawing, transporting, or ex9 porting any property that is subject to the ju10 risdiction of the United States and with respect 

11 to which the foreign person has any interest; 

12 (B) dealing in or exercising any right, 

13 power, or privilege with respect to such prop14 erty; or 

15 (C) conducting any transaction involving 

16 such property. 

17 (2) EXCLUSION FROM THE UNITED STATES

18 AND REVOCATION OF VISA OR OTHER DOCUMENTA19 TION.—In the case of a foreign person who is an in20 dividual, the President may direct the Secretary of 

21 State to deny a visa to, and the Secretary of Home22 land Security to exclude from the United States, the 

23 foreign person, subject to regulatory exceptions to 

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1 tions, signed at Lake Success June 26, 1947, and 

2 entered into force November 21, 1947, between the 

3 United Nations and the United States, or other ap4 plicable international obligations. 

5 SEC. 7. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL 

6 INSTITUTIONS THAT DO BUSINESS WITH FOR7 EIGN PERSONS THAT CONTRAVENE THE OB8 LIGATIONS OF CHINA UNDER THE JOINT 

9 DECLARATION OR THE BASIC LAW. 

10 (a) IMPOSITION OF SANCTIONS.—With respect to any 

11 financial institution included in a report under section 

12 5(a)(3)— 

13 (1) not later than one year after the submittal 

14 of the report, the President shall impose not fewer 

15 than five of the sanctions described in subsection 

16 (b); and 

17 (2) not later than 2 years after the submittal 

18 of the report, the President shall impose each of the 

19 sanctions described in subsection (b). 

20 (b) SANCTIONS DESCRIBED.—The sanctions that 

21 may imposed with respect to a foreign financial institution 

22 included in the report under section 5(a)(3) are the fol23 lowing: 

24 (1) LOANS FROM UNITED STATES FINANCIAL

25 INSTITUTIONS.—The United States Government 


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1 may prohibit any United States financial institution 

2 from making loans or providing credits to the for3 eign financial institution. 

4 (2) PROHIBITION ON DESIGNATION AS PRIMARY

5 DEALER.—Neither the Board of Governors of the 

6 Federal Reserve System nor the Federal Reserve 

7 Bank of New York may designate, or permit the 

8 continuation of any prior designation of, the foreign 

9 financial institution as a primary dealer in United 

10 States Government debt instruments. 

11 (3) PROHIBITION ON SERVICE AS A REPOSI12 TORY OF GOVERNMENT FUNDS.—The foreign finan13 cial institution may not serve as agent of the United 

14 States Government or serve as repository for United 

15 States Government funds. 

16 (4) FOREIGN EXCHANGE.—The President may, 

17 pursuant to such regulations as the President may 

18 prescribe, prohibit any transactions in foreign ex19 change that are subject to the jurisdiction of the 

20 United States and in which the foreign financial in21 stitution has any interest. 

22 (5) BANKING TRANSACTIONS.—The President 

23 may, pursuant to such regulations as the President 

24 may prescribe, prohibit any transfers of credit or 

25 payments between financial institutions or by, 


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1 through, or to any financial institution, to the extent 

2 that such transfers or payments are subject to the 

3 jurisdiction of the United States and involve any in4 terest of the foreign financial institution. 

5 (6) PROPERTY TRANSACTIONS.—The President 

6 may, pursuant to such regulations as the President 

7 may prescribe, prohibit any person from— 

8 (A) acquiring, holding, withholding, using, 

9 transferring, withdrawing, transporting, import10 ing, or exporting any property that is subject to 

11 the jurisdiction of the United States and with 

12 respect to which the foreign financial institution 

13 has any interest; 

14 (B) dealing in or exercising any right, 

15 power, or privilege with respect to such prop16 erty; or 

17 (C) conducting any transaction involving 

18 such property. 

19 (7) RESTRICTION ON EXPORTS.—The President 

20 may restrict or prohibit exports of goods, technology, 

21 or services, directly or indirectly, from the United 

22 States to the foreign financial institution. 

23 (8) BAN ON INVESTMENT IN EQUITY OR

24 DEBT.—The President may, pursuant to such regu25 lations or guidelines as the President may prescribe, 


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1 prohibit any United States person from investing in 

2 or purchasing significant amounts of equity or debt 

3 instruments of the foreign financial institution. 

4 (9) EXCLUSION OF CORPORATE OFFICERS.— 

5 The President may direct the Secretary of State to 

6 deny a visa to, and the Secretary of Homeland Secu7 rity to exclude from the United States, any alien 

8 that the President determines is a corporate officer 

9 or principal of, or a shareholder with a controlling 

10 interest in, the foreign financial institution. 

11 (10) SANCTIONS ON PRINCIPAL EXECUTIVE OF12 FICERS.—The President may impose on the prin13 cipal executive officer or officers of the foreign fi14 nancial institution, or on individuals performing 

15 similar functions and with similar authorities as 

16 such officer or officers, any of the sanctions de17 scribed in paragraphs (1) through (8) that are appli18 cable. 

19 (c) TIMING OF SANCTIONS.—The President may im20 pose sanctions required under subsection (a) with respect 

21 to a financial institution included in a report under section 

22 5(a)(3) beginning on the day on which the financial insti23 tution is included in that report. 


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1 SEC. 8. WAIVER, TERMINATION, AND CONGRESSIONAL RE2 VIEW PROCESS. 

3 (a) NATIONAL SECURITY WAIVER.—Unless a dis4 approval resolution is enacted under subsection (d), the 

5 President may waive the application of sanctions under 

6 section 6 or 7 with respect to a foreign person or foreign 

7 financial institution if the President— 

8 (1) determines that the waiver is in the national 

9 security interest of the United States; and 

10 (2) submits to the appropriate congressional 

11 committees and leadership a report on the deter12 mination and the reasons for the determination. 

13 (b) TERMINATION OF SANCTIONS AND REMOVAL

14 FROM REPORT.—Unless a disapproval resolution is en15 acted under subsection (d), the President may terminate 

16 the application of sanctions under section 6 or 7 with re17 spect to a foreign person or foreign financial institution 

18 and remove that foreign person or foreign financial insti19 tution from the report required under section 5(a) if the 

20 Secretary of State determines that the actions taken by 

21 the foreign person or foreign financial institution that led 

22 to the imposition of sanctions— 

23 (1) do not have a significant and lasting nega24 tive effect that contravenes the obligations of China 

25 under the Joint Declaration and the Basic Law; 


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1 (2) are not likely to be repeated in the future; 

2 and 

3 (3) have been reversed or otherwise mitigated 

4 through positive countermeasures taken by that for5 eign person or foreign financial institution. 

6 (c) TERMINATION OF ACT.— 

7 (1) REPORT.— 

8 (A) IN GENERAL.—Not later than July 1, 

9 2046, the President, in consultation with the 

10 Secretary of State, the Secretary of the Treas11 ury, and the heads of such other Federal agen12 cies as the President considers appropriate, 

13 shall submit to Congress a report evaluating the 

14 implementation of this Act and sanctions im15 posed pursuant to this Act. 

16 (B) ELEMENTS.—The President shall in17 clude in the report submitted under paragraph 

18 (1) an assessment of whether this Act and the 

19 sanctions imposed pursuant to this Act should 

20 be terminated. 

21 (2) TERMINATION.—This Act and the sanctions 

22 imposed pursuant to this Act shall remain in effect 

23 unless a termination resolution is enacted under sub24 section (d) after July 1, 2047. 

25 (d) CONGRESSIONAL REVIEW.— 


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1 (1) RESOLUTIONS.— 

2 (A) DISAPPROVAL RESOLUTION.—In this 

3 section, the term ‘‘disapproval resolution’’ 

4 means only a joint resolution of either House of 

5 Congress— 

6 (i) the title of which is as follows: ‘‘A 

7 joint resolution disapproving the waiver or 

8 termination of sanctions with respect to a 

9 foreign person that contravenes the obliga10 tions of China with respect to Hong Kong 

11 or a foreign financial institution that pro12 vides services to that person.’’; and 

13 (ii) the sole matter after the resolving 

14 clause of which is the following: ‘‘Congress 

15 disapproves of the action under section 8 

16 of the Hong Kong Autonomy Act relating 

17 to the application of sanctions imposed 

18 with respect to a foreign person that con19 travenes the obligations of China with re20 spect to Hong Kong, or a foreign financial 

21 institution that provides services to that 

22 person, on lllllll relating to 

23 llllllll.’’, with the first blank 

24 space being filled with the appropriate date 

25 and the second blank space being filled 


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1 with a short description of the proposed 

2 action. 

3 (B) TERMINATION RESOLUTION.—In this 

4 section, the term ‘‘termination resolution’’ 

5 means only a joint resolution of either House of 

6 Congress— 

7 (i) the title of which is as follows: ‘‘A 

8 joint resolution terminating sanctions with 

9 respect to foreign persons that contravene 

10 the obligations of China with respect to 

11 Hong Kong and foreign financial institu12 tions that provide services to those per13 sons.’’; and 

14 (ii) the sole matter after the resolving 

15 clause of which is the following: ‘‘The 

16 Hong Kong Autonomy Act and any sanc17 tions imposed pursuant to that Act shall 

18 terminate on llll.’’, with the blank 

19 space being filled with the termination 

20 date. 

21 (C) COVERED RESOLUTION.—In this sub22 section, the term ‘‘covered resolution’’ means a 

23 disapproval resolution or a termination resolu24 tion. 


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1 (2) INTRODUCTION.—A covered resolution may 

2 be introduced— 

3 (A) in the House of Representatives, by 

4 the majority leader or the minority leader; and 

5 (B) in the Senate, by the majority leader 

6 (or the majority leader’s designee) or the mi7 nority leader (or the minority leader’s des8 ignee). 

9 (3) FLOOR CONSIDERATION IN HOUSE OF REP10 RESENTATIVES.—If a committee of the House of 

11 Representatives to which a covered resolution has 

12 been referred has not reported the resolution within 

13 10 calendar days after the date of referral, that 

14 committee shall be discharged from further consider15 ation of the resolution. 

16 (4) CONSIDERATION IN THE SENATE.— 

17 (A) COMMITTEE REFERRAL.— 

18 (i) DISAPPROVAL RESOLUTION.—A 

19 disapproval resolution introduced in the 

20 Senate shall be— 

21 (I) referred to the Committee on 

22 Banking, Housing, and Urban Affairs 

23 if the resolution relates to an action 

24 that is not intended to significantly 


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1 alter United States foreign policy with 

2 regard to China; and 

3 (II) referred to the Committee on 

4 Foreign Relations if the resolution re5 lates to an action that is intended to 

6 significantly alter United States for7 eign policy with regard to China. 

8 (ii) TERMINATION RESOLUTION.—A 

9 termination resolution introduced in the 

10 Senate shall be referred to the Committee 

11 on Banking, Housing, and Urban Affairs 

12 and the Committee on Foreign Relations. 

13 (B) REPORTING AND DISCHARGE.—If a 

14 committee to which a covered resolution was re15 ferred has not reported the resolution within 10 

16 calendar days after the date of referral of the 

17 resolution, that committee shall be discharged 

18 from further consideration of the resolution and 

19 the resolution shall be placed on the appro20 priate calendar. 

21 (C) PROCEEDING TO CONSIDERATION.— 

22 Notwithstanding Rule XXII of the Standing 

23 Rules of the Senate, it is in order at any time 

24 after the Committee on Banking, Housing, and 

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1 lations, as the case may be, reports a covered 

2 resolution to the Senate or has been discharged 

3 from consideration of such a resolution (even 

4 though a previous motion to the same effect has 

5 been disagreed to) to move to proceed to the 

6 consideration of the resolution, and all points of 

7 order against the resolution (and against con8 sideration of the resolution) are waived. The 

9 motion to proceed is not debatable. The motion 

10 is not subject to a motion to postpone. A mo11 tion to reconsider the vote by which the motion 

12 is agreed to or disagreed to shall not be in 

13 order. 

14 (D) RULINGS OF THE CHAIR ON PROCE15 DURE.—Appeals from the decisions of the Chair 

16 relating to the application of the rules of the 

17 Senate, as the case may be, to the procedure re18 lating to a covered resolution shall be decided 

19 without debate. 

20 (E) CONSIDERATION OF VETO MES21 SAGES.—Debate in the Senate of any veto mes22 sage with respect to a covered resolution, in23 cluding all debatable motions and appeals in 

24 connection with the resolution, shall be limited 

25 to 10 hours, to be equally divided between, and 


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1 controlled by, the majority leader and the mi2 nority leader or their designees. 

3 (5) RULES RELATING TO SENATE AND HOUSE

4 OF REPRESENTATIVES.— 

5 (A) TREATMENT OF SENATE RESOLUTION

6 IN HOUSE.—In the House of Representatives, 

7 the following procedures shall apply to a cov8 ered resolution received from the Senate (unless 

9 the House has already passed a resolution relat10 ing to the same proposed action): 

11 (i) The resolution shall be referred to 

12 the appropriate committees. 

13 (ii) If a committee to which a resolu14 tion has been referred has not reported the 

15 resolution within 2 calendar days after the 

16 date of referral, that committee shall be 

17 discharged from further consideration of 

18 the resolution. 

19 (iii) Beginning on the third legislative 

20 day after each committee to which a reso21 lution has been referred reports the resolu22 tion to the House or has been discharged 

23 from further consideration thereof, it shall 

24 be in order to move to proceed to consider 

25 the resolution in the House. All points of 


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1 order against the motion are waived. Such 

2 a motion shall not be in order after the 

3 House has disposed of a motion to proceed 

4 on the resolution. The previous question 

5 shall be considered as ordered on the mo6 tion to its adoption without intervening 

7 motion. The motion shall not be debatable. 

8 A motion to reconsider the vote by which 

9 the motion is disposed of shall not be in 

10 order. 

11 (iv) The resolution shall be considered 

12 as read. All points of order against the res13 olution and against its consideration are 

14 waived. The previous question shall be con15 sidered as ordered on the resolution to 

16 final passage without intervening motion 

17 except 2 hours of debate equally divided 

18 and controlled by the sponsor of the reso19 lution (or a designee) and an opponent. A 

20 motion to reconsider the vote on passage of 

21 the resolution shall not be in order. 

22 (B) TREATMENT OF HOUSE RESOLUTION

23 IN SENATE.— 

24 (i) RECEIVED BEFORE PASSAGE OF

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1 sage by the Senate of a covered resolution, 

2 the Senate receives an identical resolution 

3 from the House of Representatives, the fol4 lowing procedures shall apply: 

5 (I) That resolution shall not be 

6 referred to a committee. 

7 (II) With respect to that resolu8 tion— 

9 (aa) the procedure in the 

10 Senate shall be the same as if no 

11 resolution had been received from 

12 the House of Representatives; 

13 but 

14 (bb) the vote on passage 

15 shall be on the resolution from 

16 the House of Representatives. 

17 (ii) RECEIVED AFTER PASSAGE OF

18 SENATE RESOLUTION.—If, following pas19 sage of a covered resolution in the Senate, 

20 the Senate receives an identical resolution 

21 from the House of Representatives, that 

22 resolution shall be placed on the appro23 priate Senate calendar. 

24 (iii) NO SENATE COMPANION.—If a 

25 covered resolution is received from the 


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1 House of Representatives, and no com2 panion resolution has been introduced in 

3 the Senate, the Senate procedures under 

4 this subsection shall apply to the resolution 

5 from the House of Representatives. 

6 (C) APPLICATION TO REVENUE MEAS7 URES.—The provisions of this paragraph shall 

8 not apply in the House of Representatives to a 

9 covered resolution that is a revenue measure. 

10 (6) RULES OF HOUSE OF REPRESENTATIVES

11 AND SENATE.—This subsection is enacted by Con12 gress— 

13 (A) as an exercise of the rulemaking power 

14 of the Senate and the House of Representa15 tives, respectively, and as such is deemed a part 

16 of the rules of each House, respectively, and su17 persedes other rules only to the extent that it 

18 is inconsistent with such rules; and 

19 (B) with full recognition of the constitu20 tional right of either House to change the rules 

21 (so far as relating to the procedure of that 

22 House) at any time, in the same manner, and 

23 to the same extent as in the case of any other 

24 rule of that House. 


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1 SEC. 9. RULE OF CONSTRUCTION. 

2 Nothing in this Act shall be construed as an author3 ization of military force against China. 

Æ 


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