H. R. 7440 

One Hundred Sixteenth Congress 

of the 

United States of America 

AT THE SECOND SESSION 

Begun and held at the City of Washington on Friday, 

the third day of January, two thousand and twenty 

An Act 

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. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Hong Kong 

Autonomy Act’’. 

(b) TABLE OF CONTENTS.—The table of contents for 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 conduct significant transactions with foreign persons that contravene the obligations 

of China under the Joint Declaration or the Basic Law. 

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

Sec. 9. Implementation; penalties. 

Sec. 10. Rule of construction. 

SEC. 2. DEFINITIONS. 

In this Act: 

(1) ALIEN; NATIONAL; NATIONAL OF THE UNITED STATES.— The terms ‘‘alien’’, ‘‘national’’, and ‘‘national of the United 

States’’ have the meanings given those terms in section 101 

of the Immigration and Nationality Act (8 U.S.C. 1101). 

(2) APPROPRIATE CONGRESSIONAL COMMITTEES AND LEADERSHIP.—The term ‘‘appropriate congressional committees and 

leadership’’ means— 

(A) the Committee on Armed Services, the Committee 

on Banking, Housing, and Urban Affairs, the Committee 

on Foreign Relations, the Committee on Homeland Security 

and Governmental Affairs, the Committee on the Judiciary, 

the Select Committee on Intelligence, and the majority 

leader and the minority leader of the Senate; and 

(B) the Committee on Armed Services, the Committee 

on Financial Services, the Committee on Foreign Affairs, 

the Committee on Homeland Security, the Committee on 
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the Judiciary, the Permanent Select Committee on Intelligence, and the Speaker and the minority leader of the 

House of Representatives. 

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

Law of the Hong Kong Special Administrative Region of the 

People’s Republic of China. 

(4) CHINA.—The term ‘‘China’’ means the People’s Republic 

of China. 

(5) ENTITY.—The term ‘‘entity’’ means a partnership, joint 

venture, association, corporation, organization, network, group, 

or subgroup, or any other form of business collaboration. 

(6) FINANCIAL INSTITUTION.—The term ‘‘financial institution’’ means a financial institution specified in section 5312(a)(2) 

of title 31, United States Code. 

(7) HONG KONG.—The term ‘‘Hong Kong’’ means the Hong 

Kong Special Administrative Region of the People’s Republic 

of China. 

(8) JOINT DECLARATION.—The term ‘‘Joint Declaration’’ 

means the Joint Declaration of the Government of the United 

Kingdom of Great Britain and Northern Ireland and the 

Government of the People’s Republic of China on the Question 

of Hong Kong, done at Beijing on December 19, 1984. 

(9) KNOWINGLY.—The term ‘‘knowingly’’, with respect to 

conduct, a circumstance, or a result, means that a person 

has actual knowledge of the conduct, the circumstance, or the 

result. 

(10) PERSON.—The term ‘‘person’’ means an individual or 

entity. 

(11) UNITED STATES PERSON.—The term ‘‘United States person’’ means— 

(A) any citizen or national of the United States; 

(B) any alien lawfully admitted for permanent residence in the United States; 

(C) any entity organized under the laws of the United 

States or any jurisdiction within the United States 

(including a foreign branch of such an entity); or 

(D) any person located in the United States. 

SEC. 3. FINDINGS. 

Congress makes the following findings: 

(1) The Joint Declaration and the Basic Law clarify certain 

obligations and promises that the Government of China has 

made with respect to the future of Hong Kong. 

(2) The obligations of the Government of China under 

the Joint Declaration were codified in a legally-binding treaty, 

signed by the Government of the United Kingdom of Great 

Britain and Northern Ireland and registered with the United 

Nations. 

(3) The obligations of the Government of China under 

the Basic Law originate from the Joint Declaration, were passed 

into the domestic law of China by the National People’s Congress, and are widely considered by citizens of Hong Kong 

as part of the de facto legal constitution of Hong Kong. 

(4) Foremost among the obligations of the Government 

of China to Hong Kong is the promise that, pursuant to Paragraph 3b of the Joint Declaration, ‘‘the Hong Kong Special 

Administrative Region will enjoy a high degree of autonomy, 
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except in foreign and defence affairs which are the responsibilities of the Central People’s Government’’. 

(5) The obligation specified in Paragraph 3b of the Joint 

Declaration is referenced, reinforced, and extrapolated on in 

several portions of the Basic Law, including Articles 2, 12, 

13, 14, and 22. 

(6) Article 22 of the Basic Law establishes that ‘‘No department of the Central People’s Government and no province, 

autonomous region, or municipality directly under the Central 

Government may interfere in the affairs which the Hong Kong 

Special Administrative Region administers on its own in accordance with this Law.’’. 

(7) The Joint Declaration and the Basic Law make clear 

that additional obligations shall be undertaken by China to 

ensure the ‘‘high degree of autonomy’’ of Hong Kong. 

(8) Paragraph 3c of the Joint Declaration states, as 

reinforced by Articles 2, 16, 17, 18, 19, and 22 of the Basic 

Law, that Hong Kong ‘‘will be vested with executive, legislative 

and independent judicial power, including that of final adjudication’’. 

(9) On multiple occasions, the Government of China has 

undertaken actions that have contravened the letter or intent 

of the obligation described in paragraph (8) of this section, 

including the following: 

(A) In 1999, the Standing Committee of the National 

People’s Congress overruled a decision by the Hong Kong 

Court of Final Appeal on the right of abode. 

(B) On multiple occasions, the Government of Hong 

Kong, at the advice of the Government of China, is suspected to have not allowed persons entry into Hong Kong 

allegedly because of their support for democracy and human 

rights in Hong Kong and China. 

(C) The Liaison Office of China in Hong Kong has, 

despite restrictions on interference in the affairs of Hong 

Kong as detailed in Article 22 of the Basic Law— 

(i) openly expressed support for candidates in Hong 

Kong for Chief Executive and Legislative Council; 

(ii) expressed views on various policies for the 

Government of Hong Kong and other internal matters 

relating to Hong Kong; and 

(iii) on April 17, 2020, asserted that both the Liaison Office of China in Hong Kong and the Hong Kong 

and Macau Affairs Office of the State Council ‘‘have 

the right to exercise supervision * * * on affairs 

regarding Hong Kong and the mainland, in order to 

ensure correct implementation of the Basic Law’’. 

(D) The National People’s Congress has passed laws 

requiring Hong Kong to pass laws banning disrespectful 

treatment of the national flag and national anthem of 

China. 

(E) The State Council of China released a white paper 

on June 10, 2014, that stressed the ‘‘comprehensive jurisdiction’’ of the Government of China over Hong Kong and 

indicated that Hong Kong must be governed by ‘‘patriots’’. 

(F) The Government of China has directed operatives 

to kidnap and bring to the mainland, or is otherwise responsible for the kidnapping of, residents of Hong Kong, 
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including businessman Xiao Jianhua and bookseller Gui 

Minhai. 

(G) The Government of Hong Kong, acting with the 

support of the Government of China, introduced an extradition bill that would have permitted the Government of 

China to request and enforce extradition requests for any 

individual present in Hong Kong, regardless of the legality 

of the request or the degree to which it compromised the 

judicial independence of Hong Kong. 

(H) The spokesman for the Standing Committee of 

the National People’s Congress said, ‘‘Whether Hong Kong’s 

laws are consistent with the Basic Law can only be judged 

and decided by the National People’s Congress Standing 

Committee. No other authority has the right to make judgments and decisions.’’. 

(10) Paragraph 3e of the Joint Declaration states, as 

reinforced by Article 5 of the Basic Law, that the ‘‘current 

social and economic systems in Hong Kong will remain 

unchanged, as so will the life-style.’’. 

(11) On multiple occasions, the Government of China has 

undertaken actions that have contravened the letter or intent 

of the obligation described in paragraph (10) of this section, 

including the following: 

(A) In 2002, the Government of China pressured the 

Government of Hong Kong to introduce ‘‘patriotic’’ curriculum in primary and secondary schools. 

(B) The governments of China and Hong Kong proposed 

the prohibition of discussion of Hong Kong independence 

and self-determination in primary and secondary schools, 

which infringes on freedom of speech. 

(C) The Government of Hong Kong mandated that 

Mandarin, and not the native language of Cantonese, be 

the language of instruction in Hong Kong schools. 

(D) The governments of China and Hong Kong agreed 

to a daily quota of mainland immigrants to Hong Kong, 

which is widely believed by citizens of Hong Kong to be 

part of an effort to ‘‘mainlandize’’ Hong Kong. 

(12) Paragraph 3e of the Joint Declaration states, as 

reinforced by Articles 4, 26, 27, 28, 29, 30, 31, 32 33, 34, 

and 39 of the Basic Law, that the ‘‘rights and freedoms, 

including those of person, of speech, of the press, of assembly, 

of association, of travel, of movement, of correspondence, of 

strike, of choice of occupation, of academic research and of 

religious belief will be ensured by law’’ in Hong Kong. 

(13) On multiple occasions, the Government of China has 

undertaken actions that have contravened the letter or intent 

of the obligation described in paragraph (12) of this section, 

including the following: 

(A) On February 26, 2003, the Government of Hong 

Kong introduced a national security bill that would have 

placed restrictions on freedom of speech and other protected 

rights. 

(B) The Liaison Office of China in Hong Kong has 

pressured businesses in Hong Kong not to advertise in 

newspapers and magazines critical of the governments of 

China and Hong Kong. 
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(C) The Hong Kong Police Force selectively blocked 

demonstrations and protests expressing opposition to the 

governments of China and Hong Kong or the policies of 

those governments. 

(D) The Government of Hong Kong refused to renew 

work visa for a foreign journalist, allegedly for hosting 

a speaker from the banned Hong Kong National Party. 

(E) The Justice Department of Hong Kong selectively 

prosecuted cases against leaders of the Umbrella Movement, while failing to prosecute police officers accused of 

using excessive force during the protests in 2014. 

(F) On April 18, 2020, the Hong Kong Police Force 

arrested 14 high-profile democracy activists and campaigners for their role in organizing a protest march that 

took place on August 18, 2019, in which almost 2,000,000 

people rallied against a proposed extradition bill. 

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

selection of Chief Executive and all members of the Legislative 

Council of Hong Kong should be by ‘‘universal suffrage.’’. 

(15) On multiple occasions, the Government of China has 

undertaken actions that have contravened the letter or intent 

of the obligation described in paragraph (14) of this section, 

including the following: 

(A) In 2004, the National People’s Congress created 

new, antidemocratic procedures restricting the adoption 

of universal suffrage for the election of the Chief Executive 

of Hong Kong. 

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

on December 29, 2007, which ruled out universal suffrage 

in 2012 elections and set restrictions on when and if universal suffrage will be implemented. 

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

on August 31, 2014, which placed limits on the nomination 

process for the Chief Executive of Hong Kong as a condition 

for adoption of universal suffrage. 

(D) On November 7, 2016, the National People’s Congress interpreted Article 104 of the Basic Law in such 

a way to disqualify 6 elected members of the Legislative 

Council. 

(E) In 2018, the Government of Hong Kong banned 

the Hong Kong National Party and blocked the candidacy 

of pro-democracy candidates. 

(16) The ways in which the Government of China, at times 

with the support of a subservient Government of Hong Kong, 

has acted in contravention of its obligations under the Joint 

Declaration and the Basic Law, as set forth in this section, 

are deeply concerning to the people of Hong Kong, the United 

States, and members of the international community who support the autonomy of Hong Kong. 

SEC. 4. SENSE OF CONGRESS REGARDING HONG KONG. 

It is the sense of Congress that— 

(1) the United States continues to uphold the principles 

and policy established in the United States-Hong Kong Policy 

Act of 1992 (22 U.S.C. 5701 et seq.) and the Hong Kong Human 

Rights and Democracy Act of 2019 (Public Law 116–76; 22 
H. R. 7440—6 

U.S.C. 5701 note), which remain consistent with China’s obligations under the Joint Declaration and certain promulgated 

objectives under the Basic Law, including that— 

(A) as set forth in section 101(1) of the United StatesHong Kong Policy Act of 1992 (22 U.S.C. 5711(1)), ‘‘The 

United States should play an active role, before, on, and 

after July 1, 1997, in maintaining Hong Kong’s confidence 

and prosperity, Hong Kong’s role as an international financial center, and the mutually beneficial ties between the 

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

and 

(B) as set forth in section 2(5) of the United StatesHong Kong Policy Act of 1992 (22 U.S.C. 5701(5)), ‘‘Support 

for democratization is a fundamental principle of United 

States foreign policy. As such, it naturally applies to United 

States policy toward Hong Kong. This will remain equally 

true after June 30, 1997.’’; 

(2) although the United States recognizes that, under the 

Joint Declaration, the Government of China ‘‘resumed the exercise of sovereignty over Hong Kong with effect on 1 July 1997’’, 

the United States supports the autonomy of Hong Kong in 

furtherance of the United States-Hong Kong Policy Act of 1992 

and the Hong Kong Human Rights and Democracy Act of 

2019 and advances the desire of the people of Hong Kong 

to continue the ‘‘one country, two systems’’ regime, in addition 

to other obligations promulgated by China under the Joint 

Declaration and the Basic Law; 

(3) in order to support the benefits and protections that 

Hong Kong has been afforded by the Government of China 

under the Joint Declaration and the Basic Law, the United 

States should establish a clear and unambiguous set of penalties with respect to foreign persons determined by the Secretary of State, in consultation with the Secretary of the 

Treasury, to be involved in the contravention of the obligations 

of China under the Joint Declaration and the Basic Law and 

the financial institutions transacting with those foreign persons; 

(4) the Secretary of State should provide an unclassified 

assessment of the reason for imposition of certain economic 

penalties on entities, so as to permit a clear path for the 

removal of economic penalties if the sanctioned behavior is 

reversed and verified by the Secretary of State; 

(5) relevant Federal agencies should establish a multilateral sanctions regime with respect to foreign persons involved 

in the contravention of the obligations of China under the 

Joint Declaration and the Basic Law; and 

(6) in addition to the penalties on foreign persons, and 

financial institutions transacting with those foreign persons, 

for the contravention of the obligations of China under the 

Joint Declaration and the Basic Law, the United States should 

take steps, in a time of crisis, to assist permanent residents 

of Hong Kong who are persecuted or fear persecution as a 

result of the contravention by China of its obligations under 

the Joint Declaration and the Basic Law to become eligible 

to obtain lawful entry into the United States. 
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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. 

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

the enactment of this Act, if the Secretary of State, in consultation 

with the Secretary of the Treasury, determines that a foreign person 

is materially contributing to, has materially contributed to, or 

attempts to materially contribute to the failure of the Government 

of China to meet its obligations under the Joint Declaration or 

the Basic Law, the Secretary of State shall submit to the appropriate congressional committees and leadership a report that 

includes— 

(1) an identification of the foreign person; and 

(2) a clear explanation for why the foreign person was 

identified and a description of the activity that resulted in 

the identification. 

(b) IDENTIFYING FOREIGN FINANCIAL INSTITUTIONS.—Not earlier 

than 30 days and not later than 60 days after the Secretary of 

State submits to the appropriate congressional committees and 

leadership the report under subsection (a), the Secretary of the 

Treasury, in consultation with the Secretary of State, shall submit 

to the appropriate congressional committees and leadership a report 

that identifies any foreign financial institution that knowingly conducts a significant transaction with a foreign person identified 

in the report under subsection (a). 

(c) EXCLUSION OF CERTAIN INFORMATION.— 

(1) INTELLIGENCE.—The Secretary of State shall not disclose the identity of a person in a report submitted under 

subsection (a) or (b), or an update under subsection (e), if 

the Director of National Intelligence determines that such 

disclosure could compromise an intelligence operation, activity, 

source, or method of the United States. 

(2) LAW ENFORCEMENT.—The Secretary of State shall not 

disclose the identity of a person in a report submitted under 

subsection (a) or (b), or an update under subsection (e), if 

the Attorney General, in coordination, as appropriate, with 

the Director of the Federal Bureau of Investigation, the head 

of any other appropriate Federal law enforcement agency, and 

the Secretary of the Treasury, determines that such disclosure 

could reasonably be expected— 

(A) to compromise the identity of a confidential source, 

including a State, local, or foreign agency or authority 

or any private institution that furnished information on 

a confidential basis; 

(B) to jeopardize the integrity or success of an ongoing 

criminal investigation or prosecution; 

(C) to endanger the life or physical safety of any person; 

or 

(D) to cause substantial harm to physical property. 

(3) NOTIFICATION REQUIRED.—If the Director of National 

Intelligence makes a determination under paragraph (1) or 

the Attorney General makes a determination under paragraph 

(2), the Director or the Attorney General, as the case may 

be, shall notify the appropriate congressional committees and 
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leadership of the determination and the reasons for the determination. 

(d) EXCLUSION OR REMOVAL OF FOREIGN PERSONS AND FOREIGN

FINANCIAL INSTITUTIONS.— 

(1) FOREIGN PERSONS.—The President may exclude a foreign person from the report under subsection (a), or an update 

under subsection (e), or remove a foreign person from the 

report or update prior to the imposition of sanctions under 

section 6(a) if the material contribution (as described in subsection (g)) that merited inclusion in that report or update— 

(A) does not have a significant and lasting negative 

effect that contravenes the obligations of China under the 

Joint Declaration and the Basic Law; 

(B) is not likely to be repeated in the future; and 

(C) has been reversed or otherwise mitigated through 

positive countermeasures taken by that foreign person. 

(2) FOREIGN FINANCIAL INSTITUTIONS.—The President may 

exclude a foreign financial institution from the report under 

subsection (b), or an update under subsection (e), or remove 

a foreign financial institution from the report or update prior 

to the imposition of sanctions under section 7(a) if the significant transaction or significant transactions of the foreign financial institution that merited inclusion in that report or update— 

(A) does not have a significant and lasting negative 

effect that contravenes the obligations of China under the 

Joint Declaration and the Basic Law; 

(B) is not likely to be repeated in the future; and 

(C) has been reversed or otherwise mitigated through 

positive countermeasures taken by that foreign financial 

institution. 

(3) NOTIFICATION REQUIRED.—If the President makes a 

determination under paragraph (1) or (2) to exclude or remove 

a foreign person or foreign financial institution from a report 

under subsection (a) or (b), as the case may be, the President 

shall notify the appropriate congressional committees and 

leadership of the determination and the reasons for the determination. 

(e) UPDATE OF REPORTS.— 

(1) IN GENERAL.—Each report submitted under subsections 

(a) and (b) shall be updated in an ongoing manner and, to 

the extent practicable, updated reports shall be resubmitted 

with the annual report under section 301 of the United StatesHong Kong Policy Act of 1992 (22 U.S.C. 5731). 

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

shall be construed to terminate the requirement to update 

the reports under subsections (a) and (b) upon the termination 

of the requirement to submit the annual report under section 

301 of the United States-Hong Kong Policy Act of 1992 (22 

U.S.C. 5731). 

(f) FORM OF REPORTS.— 

(1) IN GENERAL.—Each report under subsection (a) or (b) 

(including updates under subsection (e)) shall be submitted 

in unclassified form and made available to the public. 

(2) CLASSIFIED ANNEX.—The explanations and descriptions 

included in the report under subsection (a)(2) (including updates 

under subsection (e)) may be expanded on in a classified annex. 
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(g) MATERIAL CONTRIBUTIONS RELATED TO OBLIGATIONS OF

CHINA DESCRIBED.—For purposes of this section, a foreign person 

materially contributes to the failure of the Government of China 

to meet its obligations under the Joint Declaration or the Basic 

Law if the person— 

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

of Hong Kong— 

(A) to enjoy freedom of assembly, speech, press, or 

independent rule of law; or 

(B) to participate in democratic outcomes; or 

(2) otherwise took action that reduces the high degree 

of autonomy of Hong Kong. 

SEC. 6. SANCTIONS WITH RESPECT TO FOREIGN PERSONS THAT CONTRAVENE THE OBLIGATIONS OF CHINA UNDER THE JOINT 

DECLARATION OR THE BASIC LAW. 

(a) IMPOSITION OF SANCTIONS.— 

(1) IN GENERAL.—On and after the date on which a foreign 

person is included in the report under section 5(a) or an update 

to that report under section 5(e), the President may impose 

sanctions described in subsection (b) with respect to that foreign 

person. 

(2) MANDATORY SANCTIONS.—Not later than one year after 

the date on which a foreign person is included in the report 

under section 5(a) or an update to that report under section 

5(e), the President shall impose sanctions described in subsection (b) with respect to that foreign person. 

(b) SANCTIONS DESCRIBED.—The sanctions described in this 

subsection with respect to a foreign person are the following: 

(1) PROPERTY TRANSACTIONS.—The President may, pursuant to such regulations as the President may prescribe, prohibit 

any person from— 

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

withdrawing, transporting, or exporting any property that 

is subject to the jurisdiction of the United States and 

with respect to which the foreign person has any interest; 

(B) dealing in or exercising any right, power, or privilege with respect to such property; or 

(C) conducting any transaction involving such property. 

(2) EXCLUSION FROM THE UNITED STATES AND REVOCATION

OF VISA OR OTHER DOCUMENTATION.—In the case of a foreign 

person who is an individual, the President may direct the 

Secretary of State to deny a visa to, and the Secretary of 

Homeland Security to exclude from the United States, the 

foreign person, subject to regulatory exceptions to permit the 

United States to comply with the Agreement regarding the 

Headquarters of the United Nations, signed at Lake Success 

June 26, 1947, and entered into force November 21, 1947, 

between the United Nations and the United States, or other 

applicable international obligations. 

SEC. 7. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL INSTITUTIONS THAT CONDUCT SIGNIFICANT TRANSACTIONS WITH 

FOREIGN PERSONS THAT CONTRAVENE THE OBLIGATIONS 

OF CHINA UNDER THE JOINT DECLARATION OR THE BASIC 

LAW. 

(a) IMPOSITION OF SANCTIONS.— 
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(1) INITIAL SANCTIONS.—Not later than one year after the 

date on which a foreign financial institution is included in 

the report under section 5(b) or an update to that report under 

section 5(e), the President shall impose not fewer than 5 of 

the sanctions described in subsection (b) with respect to that 

foreign financial institution. 

(2) EXPANDED SANCTIONS.—Not later than two years after 

the date on which a foreign financial institution is included 

in the report under section 5(b) or an update to that report 

under section 5(e), the President shall impose each of the 

sanctions described in subsection (b). 

(b) SANCTIONS DESCRIBED.—The sanctions described in this 

subsection with respect to a foreign financial institution are the 

following: 

(1) LOANS FROM UNITED STATES FINANCIAL INSTITUTIONS.— 

The United States Government may prohibit any United States 

financial institution from making loans or providing credits 

to the foreign financial institution. 

(2) PROHIBITION ON DESIGNATION AS PRIMARY DEALER.— 

Neither the Board of Governors of the Federal Reserve System 

nor the Federal Reserve Bank of New York may designate, 

or permit the continuation of any prior designation of, the 

foreign financial institution as a primary dealer in United 

States Government debt instruments. 

(3) PROHIBITION ON SERVICE AS A REPOSITORY OF GOVERNMENT FUNDS.—The foreign financial institution may not serve 

as agent of the United States Government or serve as repository 

for United States Government funds. 

(4) FOREIGN EXCHANGE.—The President may, pursuant to 

such regulations as the President may prescribe, prohibit any 

transactions in foreign exchange that are subject to the jurisdiction of the United States and involve the foreign financial 

institution. 

(5) BANKING TRANSACTIONS.—The President may, pursuant 

to such regulations as the President may prescribe, prohibit 

any transfers of credit or payments between financial institutions or by, through, or to any financial institution, to the 

extent that such transfers or payments are subject to the jurisdiction of the United States and involve the foreign financial 

institution. 

(6) PROPERTY TRANSACTIONS.—The President may, pursuant to such regulations as the President may prescribe, prohibit 

any person from— 

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

withdrawing, transporting, importing, or exporting any 

property that is subject to the jurisdiction of the United 

States and with respect to which the foreign financial 

institution has any interest; 

(B) dealing in or exercising any right, power, or privilege with respect to such property; or 

(C) conducting any transaction involving such property. 

(7) RESTRICTION ON EXPORTS, REEXPORTS, AND TRANSFERS.— The President, in consultation with the Secretary of Commerce, 

may restrict or prohibit exports, reexports, and transfers (incountry) of commodities, software, and technology subject to 

the jurisdiction of the United States directly or indirectly to 

the foreign financial institution. 
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(8) BAN ON INVESTMENT IN EQUITY OR DEBT.—The President 

may, pursuant to such regulations or guidelines as the President may prescribe, prohibit any United States person from 

investing in or purchasing significant amounts of equity or 

debt instruments of the foreign financial institution. 

(9) EXCLUSION OF CORPORATE OFFICERS.—The President 

may direct the Secretary of State, in consultation with the 

Secretary of the Treasury and the Secretary of Homeland Security, to exclude from the United States any alien that is determined to be a corporate officer or principal of, or a shareholder 

with a controlling interest in, the foreign financial institution, 

subject to regulatory exceptions to permit the United States 

to comply with the Agreement regarding the Headquarters 

of the United Nations, signed at Lake Success June 26, 1947, 

and entered into force November 21, 1947, between the United 

Nations and the United States, or other applicable international 

obligations. 

(10) SANCTIONS ON PRINCIPAL EXECUTIVE OFFICERS.—The 

President may impose on the principal executive officer or 

officers of the foreign financial institution, or on individuals 

performing similar functions and with similar authorities as 

such officer or officers, any of the sanctions described in paragraphs (1) through (8) that are applicable. 

(c) TIMING OF SANCTIONS.—The President may impose sanctions 

required under subsection (a) with respect to a financial institution 

included in the report under section 5(b) or an update to that 

report under section 5(e) beginning on the day on which the financial institution is included in that report or update. 

SEC. 8. WAIVER, TERMINATION, EXCEPTIONS, AND CONGRESSIONAL 

REVIEW PROCESS. 

(a) NATIONAL SECURITY WAIVER.—Unless a disapproval resolution is enacted under subsection (e), the President may waive the 

application of sanctions under section 6 or 7 with respect to a 

foreign person or foreign financial institution if the President— 

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

interest of the United States; and 

(2) submits to the appropriate congressional committees 

and leadership a report on the determination and the reasons 

for the determination. 

(b) TERMINATION OF SANCTIONS AND REMOVAL FROM REPORT.— 

Unless a disapproval resolution is enacted under subsection (e), 

the President may terminate the application of sanctions under 

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

institution and remove the foreign person from the report required 

under section 5(a) or the foreign financial institution from the 

report required under section 5(b), as the case may be, if the 

Secretary of State, in consultation with the Secretary of the 

Treasury, determines that the actions taken by the foreign person 

or foreign financial institution that led to the imposition of sanctions— 

(1) do not have a significant and lasting negative effect 

that contravenes the obligations of China under the Joint Declaration and the Basic Law; 

(2) are not likely to be repeated in the future; and 
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(3) have been reversed or otherwise mitigated through positive countermeasures taken by that foreign person or foreign 

financial institution. 

(c) TERMINATION OF ACT.— 

(1) REPORT.— 

(A) IN GENERAL.—Not later than July 1, 2046, the 

President, in consultation with the Secretary of State, the 

Secretary of the Treasury, and the heads of such other 

Federal agencies as the President considers appropriate, 

shall submit to Congress a report evaluating the 

implementation of this Act and sanctions imposed pursuant 

to this Act. 

(B) ELEMENTS.—The President shall include in the 

report submitted under subparagraph (A) an assessment 

of whether this Act and the sanctions imposed pursuant 

to this Act should be terminated. 

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

pursuant to this Act shall remain in effect unless a termination 

resolution is enacted under subsection (e) after July 1, 2047. 

(d) EXCEPTION RELATING TO IMPORTATION OF GOODS.— 

(1) IN GENERAL.—The authorities and requirements to 

impose sanctions under sections 6 and 7 shall not include 

the authority or requirement to impose sanctions on the 

importation of goods. 

(2) GOOD DEFINED.—In this subsection, the term ‘‘good’’ 

means any article, natural or manmade substance, material, 

supply, or manufactured product, including inspection and test 

equipment, and excluding technical data. 

(e) CONGRESSIONAL REVIEW.— 

(1) RESOLUTIONS.— 

(A) DISAPPROVAL RESOLUTION.—In this section, the 

term ‘‘disapproval resolution’’ means only a joint resolution 

of either House of Congress— 

(i) the title of which is as follows: ‘‘A joint resolution disapproving the waiver or termination of sanctions with respect to a foreign person that contravenes 

the obligations of China with respect to Hong Kong 

or a foreign financial institution that conducts a significant transaction with that person.’’; and 

(ii) the sole matter after the resolving clause of 

which is the following: ‘‘Congress disapproves of the 

action under section 8 of the Hong Kong Autonomy 

Act relating to the application of sanctions imposed 

with respect to a foreign person that contravenes the 

obligations of China with respect to Hong Kong, or 

a foreign financial institution that conducts a significant transaction with that person, on lllllll 

relating to llllllll.’’, with the first blank 

space being filled with the appropriate date and the 

second blank space being filled with a short description 

of the proposed action. 

(B) TERMINATION RESOLUTION.—In this section, the 

term ‘‘termination resolution’’ means only a joint resolution 

of either House of Congress— 

(i) the title of which is as follows: ‘‘A joint resolution terminating sanctions with respect to foreign persons that contravene the obligations of China with 
H. R. 7440—13 

respect to Hong Kong and foreign financial institutions 

that conduct significant transactions with those persons.’’; and 

(ii) the sole matter after the resolving clause of 

which is the following: ‘‘The Hong Kong Autonomy 

Act and any sanctions imposed pursuant to that Act 

shall terminate on llll.’’, with the blank space 

being filled with the termination date. 

(C) COVERED RESOLUTION.—In this subsection, the 

term ‘‘covered resolution’’ means a disapproval resolution 

or a termination resolution. 

(2) INTRODUCTION.—A covered resolution may be introduced— 

(A) in the House of Representatives, by the majority 

leader or the minority leader; and 

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

majority leader’s designee) or the minority leader (or the 

minority leader’s designee). 

(3) FLOOR CONSIDERATION IN HOUSE OF REPRESENTATIVES.— 

If a committee of the House of Representatives to which a 

covered resolution has been referred has not reported the resolution within 10 legislative days after the date of referral, 

that committee shall be discharged from further consideration 

of the resolution. 

(4) CONSIDERATION IN THE SENATE.— 

(A) COMMITTEE REFERRAL.— 

(i) DISAPPROVAL RESOLUTION.—A disapproval resolution introduced in the Senate shall be— 

(I) referred to the Committee on Banking, 

Housing, and Urban Affairs if the resolution 

relates to an action that is not intended to significantly alter United States foreign policy with 

regard to China; and 

(II) referred to the Committee on Foreign Relations if the resolution relates to an action that 

is intended to significantly alter United States foreign policy with regard to China. 

(ii) TERMINATION RESOLUTION.—A termination 

resolution introduced in the Senate shall be referred 

to the Committee on Banking, Housing, and Urban 

Affairs and the Committee on Foreign Relations. 

(B) REPORTING AND DISCHARGE.—If a committee to 

which a covered resolution was referred has not reported 

the resolution within 10 legislative days after the date 

of referral of the resolution, that committee shall be discharged from further consideration of the resolution and 

the resolution shall be placed on the appropriate calendar. 

(C) PROCEEDING TO CONSIDERATION.—Notwithstanding 

Rule XXII of the Standing Rules of the Senate, it is in 

order at any time after the Committee on Banking, 

Housing, and Urban Affairs or the Committee on Foreign 

Relations, as the case may be, reports a covered resolution 

to the Senate or has been discharged from consideration 

of such a resolution (even though a previous motion to 

the same effect has been disagreed to) to move to proceed 

to the consideration of the resolution, and all points of 

order against the resolution (and against consideration of 
H. R. 7440—14 

the resolution) are waived. The motion to proceed is not 

debatable. The motion is not subject to a motion to postpone. A motion to reconsider the vote by which the motion 

is agreed to or disagreed to shall not be in order. 

(D) RULINGS OF THE CHAIR ON PROCEDURE.—Appeals 

from the decisions of the Chair relating to the application 

of the rules of the Senate, as the case may be, to the 

procedure relating to a covered resolution shall be decided 

without debate. 

(E) CONSIDERATION OF VETO MESSAGES.—Debate in the 

Senate of any veto message with respect to a covered 

resolution, including all debatable motions and appeals 

in connection with the resolution, shall be limited to 10 

hours, to be equally divided between, and controlled by, 

the majority leader and the minority leader or their designees. 

(5) RULES RELATING TO SENATE AND HOUSE OF REPRESENTATIVES.— 

(A) TREATMENT OF SENATE RESOLUTION IN HOUSE.— 

In the House of Representatives, the following procedures 

shall apply to a covered resolution received from the Senate 

(unless the House has already passed a resolution relating 

to the same proposed action): 

(i) The resolution shall be referred to the appropriate committees. 

(ii) If a committee to which a resolution has been 

referred has not reported the resolution within 10 legislative days after the date of referral, that committee 

shall be discharged from further consideration of the 

resolution. 

(iii) Beginning on the third legislative day after 

each committee to which a resolution has been referred 

reports the resolution to the House or has been discharged from further consideration thereof, it shall 

be in order to move to proceed to consider the resolution in the House. All points of order against the motion 

are waived. Such a motion shall not be in order after 

the House has disposed of a motion to proceed on 

the resolution. The previous question shall be considered as ordered on the motion to its adoption without 

intervening motion. The motion shall not be debatable. 

A motion to reconsider the vote by which the motion 

is disposed of shall not be in order. 

(iv) The resolution shall be considered as read. 

All points of order against the resolution and against 

its consideration are waived. The previous question 

shall be considered as ordered on the resolution to 

final passage without intervening motion except 2 

hours of debate equally divided and controlled by the 

offeror of the motion to proceed (or a designee) and 

an opponent. A motion to reconsider the vote on passage of the resolution shall not be in order. 

(B) TREATMENT OF HOUSE RESOLUTION IN SENATE.— 

(i) RECEIVED BEFORE PASSAGE OF SENATE RESOLUTION.—If, before the passage by the Senate of a covered 

resolution, the Senate receives an identical resolution 
H. R. 7440—15 

from the House of Representatives, the following procedures shall apply: 

(I) That resolution shall not be referred to 

a committee. 

(II) With respect to that resolution— 

(aa) the procedure in the Senate shall be 

the same as if no resolution had been received 

from the House of Representatives; but 

(bb) the vote on passage shall be on the 

resolution from the House of Representatives. 

(ii) RECEIVED AFTER PASSAGE OF SENATE RESOLUTION.—If, following passage of a covered resolution in 

the Senate, the Senate receives an identical resolution 

from the House of Representatives, that resolution 

shall be placed on the appropriate Senate calendar. 

(iii) NO SENATE COMPANION.—If a covered resolution is received from the House of Representatives, 

and no companion resolution has been introduced in 

the Senate, the Senate procedures under this subsection shall apply to the resolution from the House 

of Representatives. 

(C) APPLICATION TO REVENUE MEASURES.—The provisions of this paragraph shall not apply in the House of 

Representatives to a covered resolution that is a revenue 

measure. 

(6) RULES OF HOUSE OF REPRESENTATIVES AND SENATE.— 

This subsection is enacted by Congress— 

(A) as an exercise of the rulemaking power of the 

Senate and the House of Representatives, respectively, and 

as such is deemed a part of the rules of each House, 

respectively, and supersedes other rules only to the extent 

that it is inconsistent with such rules; and 

(B) with full recognition of the constitutional right 

of either House to change the rules (so far as relating 

to the procedure of that House) at any time, in the same 

manner, and to the same extent as in the case of any 

other rule of that House. 

SEC. 9. IMPLEMENTATION; PENALTIES. 

(a) IMPLEMENTATION.—The President may exercise all authorities provided under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to the 

extent necessary to carry out this Act. 

(b) PENALTIES.—A person that violates, attempts to violate, 

conspires to violate, or causes a violation of section 6 or 7 or 

any regulation, license, or order issued to carry out that section 

shall be subject to the penalties set forth in subsections (b) and 

(c) of section 206 of the International Emergency Economic Powers 

Act (50 U.S.C. 1705) to the same extent as a person that commits 

an unlawful act described in subsection (a) of that section. 
H. R. 7440—16 

SEC. 10. RULE OF CONSTRUCTION. 

Nothing in this Act shall be construed as an authorization 

of military force against China. 

Speaker of the House of Representatives. 

Vice President of the United States and

President of the Senate.