116TH CONGRESS 

2D SESSION H. R. 7440 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
2 

•HR 7440 EH

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘Hong Kong Autonomy Act’’. 

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

5 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. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) ALIEN; NATIONAL; NATIONAL OF THE

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

10 and ‘‘national of the United States’’ have the mean11 ings given those terms in section 101 of the Immi12 gration and Nationality Act (8 U.S.C. 1101). 

13 (2) APPROPRIATE CONGRESSIONAL COMMIT14 TEES AND LEADERSHIP.—The term ‘‘appropriate 

15 congressional committees and leadership’’ means— 

16 (A) the Committee on Armed Services, the 

17 Committee on Banking, Housing, and Urban 
3 

•HR 7440 EH

1 Affairs, the Committee on Foreign Relations, 

2 the Committee on Homeland Security and Gov3 ernmental Affairs, the Committee on the Judi4 ciary, the Select Committee on Intelligence, and 

5 the majority leader and the minority leader of 

6 the Senate; and 

7 (B) the Committee on Armed Services, the 

8 Committee on Financial Services, the Com9 mittee on Foreign Affairs, the Committee on 

10 Homeland Security, the Committee on the Judi11 ciary, the Permanent Select Committee on In12 telligence, and the Speaker and the minority 

13 leader of the House of Representatives. 

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

15 the Basic Law of the Hong Kong Special Adminis16 trative Region of the People’s Republic of China. 

17 (4) CHINA.—The term ‘‘China’’ means the Peo18 ple’s Republic of China. 

19 (5) ENTITY.—The term ‘‘entity’’ means a part20 nership, joint venture, association, corporation, orga21 nization, network, group, or subgroup, or any other 

22 form of business collaboration. 

23 (6) FINANCIAL INSTITUTION.—The term ‘‘fi24 nancial institution’’ means a financial institution 
4 

•HR 7440 EH

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

2 States Code. 

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

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

6 (8) 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 (9) KNOWINGLY.—The term ‘‘knowingly’’, with 

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

14 means that a person has actual knowledge of the 

15 conduct, the circumstance, or the result. 

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

17 individual or entity. 

18 (11) UNITED STATES PERSON.—The term 

19 ‘‘United States person’’ means— 

20 (A) any citizen or national of the United 

21 States; 

22 (B) any alien lawfully admitted for perma23 nent residence in the United States; 

24 (C) any entity organized under the laws of 

25 the United States or any jurisdiction within the 
5 

•HR 7440 EH

1 United States (including a foreign branch of 

2 such an entity); or 

3 (D) any person located in the United 

4 States. 

5 SEC. 3. FINDINGS. 

6 Congress makes the following findings: 

7 (1) The Joint Declaration and the Basic Law 

8 clarify certain obligations and promises that the 

9 Government of China has made with respect to the 

10 future of Hong Kong. 

11 (2) The obligations of the Government of China 

12 under the Joint Declaration were codified in a le13 gally-binding treaty, signed by the Government of 

14 the United Kingdom of Great Britain and Northern 

15 Ireland and registered with the United Nations. 

16 (3) The obligations of the Government of China 

17 under the Basic Law originate from the Joint Dec18 laration, were passed into the domestic law of China 

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

20 considered by citizens of Hong Kong as part of the 

21 de facto legal constitution of Hong Kong. 

22 (4) Foremost among the obligations of the Gov23 ernment of China to Hong Kong is the promise that, 

24 pursuant to Paragraph 3b of the Joint Declaration, 

25 ‘‘the Hong Kong Special Administrative Region will 
6 

•HR 7440 EH

1 enjoy a high degree of autonomy, except in foreign 

2 and defence affairs which are the responsibilities of 

3 the Central People’s Government’’. 

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

5 the Joint Declaration is referenced, reinforced, and 

6 extrapolated on in several portions of the Basic Law, 

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

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

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

10 and no province, autonomous region, or municipality 

11 directly under the Central Government may interfere 

12 in the affairs which the Hong Kong Special Admin13 istrative Region administers on its own in accord14 ance with this Law.’’. 

15 (7) The Joint Declaration and the Basic Law 

16 make clear that additional obligations shall be un17 dertaken by China to ensure the ‘‘high degree of au18 tonomy’’ of Hong Kong. 

19 (8) Paragraph 3c of the Joint Declaration 

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

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

22 vested with executive, legislative and independent ju23 dicial power, including that of final adjudication’’. 

24 (9) On multiple occasions, the Government of 

25 China has undertaken actions that have contravened 
7 

•HR 7440 EH

1 the letter or intent of the obligation described in 

2 paragraph (8) of this section, including the fol3 lowing: 

4 (A) In 1999, the Standing Committee of 

5 the National People’s Congress overruled a de6 cision by the Hong Kong Court of Final Appeal 

7 on the right of abode. 

8 (B) On multiple occasions, the Government 

9 of Hong Kong, at the advice of the Government 

10 of China, is suspected to have not allowed per11 sons entry into Hong Kong allegedly because of 

12 their support for democracy and human rights 

13 in Hong Kong and China. 

14 (C) The Liaison Office of China in Hong 

15 Kong has, despite restrictions on interference in 

16 the affairs of Hong Kong as detailed in Article 

17 22 of the Basic Law— 

18 (i) openly expressed support for can19 didates in Hong Kong for Chief Executive 

20 and Legislative Council; 

21 (ii) expressed views on various policies 

22 for the Government of Hong Kong and 

23 other internal matters relating to Hong 

24 Kong; and 
8 

•HR 7440 EH

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

2 both the Liaison Office of China in Hong 

3 Kong and the Hong Kong and Macau Af4 fairs Office of the State Council ‘‘have the 

5 right to exercise supervision . . . on affairs 

6 regarding Hong Kong and the mainland, 

7 in order to ensure correct implementation 

8 of the Basic Law’’. 

9 (D) The National People’s Congress has 

10 passed laws requiring Hong Kong to pass laws 

11 banning disrespectful treatment of the national 

12 flag and national anthem of China. 

13 (E) The State Council of China released a 

14 white paper on June 10, 2014, that stressed 

15 the ‘‘comprehensive jurisdiction’’ of the Govern16 ment of China over Hong Kong and indicated 

17 that Hong Kong must be governed by ‘‘patri18 ots’’. 

19 (F) The Government of China has directed 

20 operatives to kidnap and bring to the mainland, 

21 or is otherwise responsible for the kidnapping 

22 of, residents of Hong Kong, including business23 man Xiao Jianhua and bookseller Gui Minhai. 

24 (G) The Government of Hong Kong, acting 

25 with the support of the Government of China, 
9 

•HR 7440 EH

1 introduced an extradition bill that would have 

2 permitted the Government of China to request 

3 and enforce extradition requests for any indi4 vidual present in Hong Kong, regardless of the 

5 legality of the request or the degree to which it 

6 compromised the judicial independence of Hong 

7 Kong. 

8 (H) The spokesman for the Standing Com9 mittee of the National People’s Congress said, 

10 ‘‘Whether Hong Kong’s laws are consistent 

11 with the Basic Law can only be judged and de12 cided by the National People’s Congress Stand13 ing Committee. No other authority has the 

14 right to make judgments and decisions.’’. 

15 (10) Paragraph 3e of the Joint Declaration 

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

17 that the ‘‘current social and economic systems in 

18 Hong Kong will remain unchanged, as so will the 

19 life-style.’’. 

20 (11) On multiple occasions, the Government of 

21 China has undertaken actions that have contravened 

22 the letter or intent of the obligation described in 

23 paragraph (10) of this section, including the fol24 lowing: 
10 

•HR 7440 EH

1 (A) In 2002, the Government of China 

2 pressured the Government of Hong Kong to in3 troduce ‘‘patriotic’’ curriculum in primary and 

4 secondary schools. 

5 (B) The governments of China and Hong 

6 Kong proposed the prohibition of discussion of 

7 Hong Kong independence and self-determina8 tion in primary and secondary schools, which 

9 infringes on freedom of speech. 

10 (C) The Government of Hong Kong man11 dated that Mandarin, and not the native lan12 guage of Cantonese, be the language of instruc13 tion in Hong Kong schools. 

14 (D) The governments of China and Hong 

15 Kong agreed to a daily quota of mainland im16 migrants to Hong Kong, which is widely be17 lieved by citizens of Hong Kong to be part of 

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

19 (12) Paragraph 3e of the Joint Declaration 

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

21 30, 31, 32 33, 34, and 39 of the Basic Law, that 

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

23 of speech, of the press, of assembly, of association, 

24 of travel, of movement, of correspondence, of strike, 

25 of choice of occupation, of academic research and of 
11 

•HR 7440 EH

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

2 Kong. 

3 (13) On multiple occasions, the Government of 

4 China has undertaken actions that have contravened 

5 the letter or intent of the obligation described in 

6 paragraph (12) of this section, including the fol7 lowing: 

8 (A) On February 26, 2003, the Govern9 ment of Hong Kong introduced a national secu10 rity bill that would have placed restrictions on 

11 freedom of speech and other protected rights. 

12 (B) The Liaison Office of China in Hong 

13 Kong has pressured businesses in Hong Kong 

14 not to advertise in newspapers and magazines 

15 critical of the governments of China and Hong 

16 Kong. 

17 (C) The Hong Kong Police Force selec18 tively blocked demonstrations and protests ex19 pressing opposition to the governments of China 

20 and Hong Kong or the policies of those govern21 ments. 

22 (D) The Government of Hong Kong re23 fused to renew work visa for a foreign jour24 nalist, allegedly for hosting a speaker from the 

25 banned Hong Kong National Party. 
12 

•HR 7440 EH

1 (E) The Justice Department of Hong 

2 Kong selectively prosecuted cases against lead3 ers of the Umbrella Movement, while failing to 

4 prosecute police officers accused of using exces5 sive force during the protests in 2014. 

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

7 Police Force arrested 14 high-profile democracy 

8 activists and campaigners for their role in orga9 nizing a protest march that took place on Au10 gust 18, 2019, in which almost 2,000,000 peo11 ple rallied against a proposed extradition bill. 

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

13 that the selection of Chief Executive and all mem14 bers of the Legislative Council of Hong Kong should 

15 be by ‘‘universal suffrage.’’. 

16 (15) On multiple occasions, the Government of 

17 China has undertaken actions that have contravened 

18 the letter or intent of the obligation described in 

19 paragraph (14) of this section, including the fol20 lowing: 

21 (A) In 2004, the National People’s Con22 gress created new, antidemocratic procedures 

23 restricting the adoption of universal suffrage 

24 for the election of the Chief Executive of Hong 

25 Kong. 
13 

•HR 7440 EH

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

2 Congress on December 29, 2007, which ruled 

3 out universal suffrage in 2012 elections and set 

4 restrictions on when and if universal suffrage 

5 will be implemented. 

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

7 Congress on August 31, 2014, which placed 

8 limits on the nomination process for the Chief 

9 Executive of Hong Kong as a condition for 

10 adoption of universal suffrage. 

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

12 People’s Congress interpreted Article 104 of the 

13 Basic Law in such a way to disqualify 6 elected 

14 members of the Legislative Council. 

15 (E) In 2018, the Government of Hong 

16 Kong banned the Hong Kong National Party 

17 and blocked the candidacy of pro-democracy 

18 candidates. 

19 (16) The ways in which the Government of 

20 China, at times with the support of a subservient 

21 Government of Hong Kong, has acted in contraven22 tion of its obligations under the Joint Declaration 

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

24 deeply concerning to the people of Hong Kong, the 

25 United States, and members of the international 
14 

•HR 7440 EH

1 community who support the autonomy of Hong 

2 Kong. 

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

4 It is the sense of Congress that— 

5 (1) the United States continues to uphold the 

6 principles and policy established in the United 

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

8 5701 et seq.) and the Hong Kong Human Rights 

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

10 22 U.S.C. 5701 note), which remain consistent with 

11 China’s obligations under the Joint Declaration and 

12 certain promulgated objectives under the Basic Law, 

13 including that— 

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

15 United States-Hong Kong Policy Act of 1992 

16 (22 U.S.C. 5711(1)), ‘‘The United States 

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

18 July 1, 1997, in maintaining Hong Kong’s con19 fidence and prosperity, Hong Kong’s role as an 

20 international financial center, and the mutually 

21 beneficial ties between the people of the United 

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

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

24 United States-Hong Kong Policy Act of 1992 

25 (22 U.S.C. 5701(5)), ‘‘Support for democratiza-
15 

•HR 7440 EH

1 tion is a fundamental principle of United States 

2 foreign policy. As such, it naturally applies to 

3 United States policy toward Hong Kong. This 

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

5 (2) although the United States recognizes that, 

6 under the Joint Declaration, the Government of 

7 China ‘‘resumed the exercise of sovereignty over 

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

9 States supports the autonomy of Hong Kong in fur10 therance of the United States-Hong Kong Policy Act 

11 of 1992 and the Hong Kong Human Rights and De12 mocracy Act of 2019 and advances the desire of the 

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

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

15 promulgated by China under the Joint Declaration 

16 and the Basic Law; 

17 (3) in order to support the benefits and protec18 tions that Hong Kong has been afforded by the Gov19 ernment of China under the Joint Declaration and 

20 the Basic Law, the United States should establish a 

21 clear and unambiguous set of penalties with respect 

22 to foreign persons determined by the Secretary of 

23 State, in consultation with the Secretary of the 

24 Treasury, to be involved in the contravention of the 

25 obligations of China under the Joint Declaration and 
16 

•HR 7440 EH

1 the Basic Law and the financial institutions 

2 transacting with those foreign persons; 

3 (4) the Secretary of State should provide an un4 classified assessment of the reason for imposition of 

5 certain economic penalties on entities, so as to per6 mit a clear path for the removal of economic pen7 alties if the sanctioned behavior is reversed and 

8 verified by the Secretary of State; 

9 (5) relevant Federal agencies should establish a 

10 multilateral sanctions regime with respect to foreign 

11 persons involved in the contravention of the obliga12 tions of China under the Joint Declaration and the 

13 Basic Law; and 

14 (6) in addition to the penalties on foreign per15 sons, and financial institutions transacting with 

16 those foreign persons, for the contravention of the 

17 obligations of China under the Joint Declaration and 

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

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

20 Hong Kong who are persecuted or fear persecution 

21 as a result of the contravention by China of its obli22 gations under the Joint Declaration and the Basic 

23 Law to become eligible to obtain lawful entry into 

24 the United States. 
17 

•HR 7440 EH

1 SEC. 5. IDENTIFICATION OF FOREIGN PERSONS INVOLVED 

2 IN THE EROSION OF THE OBLIGATIONS OF 

3 CHINA UNDER THE JOINT DECLARATION OR 

4 THE BASIC LAW AND FOREIGN FINANCIAL IN5 STITUTIONS THAT CONDUCT SIGNIFICANT 

6 TRANSACTIONS WITH THOSE PERSONS. 

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

8 date of the enactment of this Act, if the Secretary of 

9 State, in consultation with the Secretary of the Treasury, 

10 determines that a foreign person is materially contributing 

11 to, has materially contributed to, or attempts to materially 

12 contribute to the failure of the Government of China to 

13 meet its obligations under the Joint Declaration or the 

14 Basic Law, the Secretary of State shall submit to the ap15 propriate congressional committees and leadership a re16 port that includes— 

17 (1) an identification of the foreign person; and 

18 (2) a clear explanation for why the foreign per19 son was identified and a description of the activity 

20 that resulted in the identification. 

21 (b) IDENTIFYING FOREIGN FINANCIAL INSTITU22 TIONS.—Not earlier than 30 days and not later than 60 

23 days after the Secretary of State submits to the appro24 priate congressional committees and leadership the report 

25 under subsection (a), the Secretary of the Treasury, in 

26 consultation with the Secretary of State, shall submit to 
18 

•HR 7440 EH

1 the appropriate congressional committees and leadership 

2 a report that identifies any foreign financial institution 

3 that knowingly conducts a significant transaction with a 

4 foreign person identified in the report under subsection 

5 (a). 

6 (c) EXCLUSION OF CERTAIN INFORMATION.— 

7 (1) INTELLIGENCE.—The Secretary of State 

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

9 submitted under subsection (a) or (b), or an update 

10 under subsection (e), if the Director of National In11 telligence determines that such disclosure could com12 promise an intelligence operation, activity, source, or 

13 method of the United States. 

14 (2) LAW ENFORCEMENT.—The Secretary of 

15 State shall not disclose the identity of a person in 

16 a report submitted under subsection (a) or (b), or an 

17 update under subsection (e), if the Attorney General, 

18 in coordination, as appropriate, with the Director of 

19 the Federal Bureau of Investigation, the head of any 

20 other appropriate Federal law enforcement agency, 

21 and the Secretary of the Treasury, determines that 

22 such disclosure could reasonably be expected— 

23 (A) to compromise the identity of a con24 fidential source, including a State, local, or for25 eign agency or authority or any private institu-
19 

•HR 7440 EH

1 tion that furnished information on a confiden2 tial basis; 

3 (B) to jeopardize the integrity or success 

4 of an ongoing criminal investigation or prosecu5 tion; 

6 (C) to endanger the life or physical safety 

7 of any person; or 

8 (D) to cause substantial harm to physical 

9 property. 

10 (3) NOTIFICATION REQUIRED.—If the Director 

11 of National Intelligence makes a determination 

12 under paragraph (1) or the Attorney General makes 

13 a determination under paragraph (2), the Director 

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

15 notify the appropriate congressional committees and 

16 leadership of the determination and the reasons for 

17 the determination. 

18 (d) EXCLUSION OR REMOVAL OF FOREIGN PERSONS

19 AND FOREIGN FINANCIAL INSTITUTIONS.— 

20 (1) FOREIGN PERSONS.—The President may 

21 exclude a foreign person from the report under sub22 section (a), or an update under subsection (e), or re23 move a foreign person from the report or update 

24 prior to the imposition of sanctions under section 

25 6(a) if the material contribution (as described in 
20 

•HR 7440 EH

1 subsection (g)) that merited inclusion in that report 

2 or update— 

3 (A) does not have a significant and lasting 

4 negative effect that contravenes the obligations 

5 of China under the Joint Declaration and the 

6 Basic Law; 

7 (B) is not likely to be repeated in the fu8 ture; and 

9 (C) has been reversed or otherwise miti10 gated through positive countermeasures taken 

11 by that foreign person. 

12 (2) FOREIGN FINANCIAL INSTITUTIONS.—The 

13 President may exclude a foreign financial institution 

14 from the report under subsection (b), or an update 

15 under subsection (e), or remove a foreign financial 

16 institution from the report or update prior to the 

17 imposition of sanctions under section 7(a) if the sig18 nificant transaction or significant transactions of the 

19 foreign financial institution that merited inclusion in 

20 that report or update— 

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; 
21 

•HR 7440 EH

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 (3) NOTIFICATION REQUIRED.—If the Presi7 dent makes a determination under paragraph (1) or 

8 (2) to exclude or remove a foreign person or foreign 

9 financial institution from a report under subsection 

10 (a) or (b), as the case may be, the President shall 

11 notify the appropriate congressional committees and 

12 leadership of the determination and the reasons for 

13 the determination. 

14 (e) UPDATE OF REPORTS.— 

15 (1) IN GENERAL.—Each report submitted 

16 under subsections (a) and (b) shall be updated in an 

17 ongoing manner and, to the extent practicable, up18 dated reports shall be resubmitted with the annual 

19 report under section 301 of the United States-Hong 

20 Kong Policy Act of 1992 (22 U.S.C. 5731). 

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

22 subsection shall be construed to terminate the re23 quirement to update the reports under subsections 

24 (a) and (b) upon the termination of the requirement 

25 to submit the annual report under section 301 of the 
22 

•HR 7440 EH

1 United States-Hong Kong Policy Act of 1992 (22 

2 U.S.C. 5731). 

3 (f) FORM OF REPORTS.— 

4 (1) IN GENERAL.—Each report under sub5 section (a) or (b) (including updates under sub6 section (e)) shall be submitted in unclassified form 

7 and made available to the public. 

8 (2) CLASSIFIED ANNEX.—The explanations and 

9 descriptions included in the report under subsection 

10 (a)(2) (including updates under subsection (e)) may 

11 be expanded on in a classified annex. 

12 (g) MATERIAL CONTRIBUTIONS RELATED TO OBLI13 GATIONS OF CHINA DESCRIBED.—For purposes of this 

14 section, a foreign person materially contributes to the fail15 ure of the Government of China to meet its obligations 

16 under the Joint Declaration or the Basic Law if the per17 son— 

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

19 the people of Hong Kong— 

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

21 press, or independent rule of law; or 

22 (B) to participate in democratic outcomes; 

23 or 

24 (2) otherwise took action that reduces the high 

25 degree of autonomy of Hong Kong. 
23 

•HR 7440 EH

1 SEC. 6. SANCTIONS WITH RESPECT TO FOREIGN PERSONS 

2 THAT CONTRAVENE THE OBLIGATIONS OF 

3 CHINA UNDER THE JOINT DECLARATION OR 

4 THE BASIC LAW. 

5 (a) IMPOSITION OF SANCTIONS.— 

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

7 which a foreign person is included in the report 

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

9 section 5(e), the President may impose sanctions de10 scribed in subsection (b) with respect to that foreign 

11 person. 

12 (2) MANDATORY SANCTIONS.—Not later than 

13 one year after the date on which a foreign person is 

14 included in the report under section 5(a) or an up15 date to that report under section 5(e), the President 

16 shall impose sanctions described in subsection (b) 

17 with respect to that foreign person. 

18 (b) SANCTIONS DESCRIBED.—The sanctions de19 scribed in this subsection with respect to a foreign person 

20 are the following: 

21 (1) PROPERTY TRANSACTIONS.—The President 

22 may, pursuant to such regulations as the President 

23 may prescribe, prohibit any person from— 

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

25 transferring, withdrawing, transporting, or ex26 porting any property that is subject to the ju-
24 

•HR 7440 EH

1 risdiction of the United States and with respect 

2 to which the foreign person has any interest; 

3 (B) dealing in or exercising any right, 

4 power, or privilege with respect to such prop5 erty; or 

6 (C) conducting any transaction involving 

7 such property. 

8 (2) EXCLUSION FROM THE UNITED STATES

9 AND REVOCATION OF VISA OR OTHER DOCUMENTA10 TION.—In the case of a foreign person who is an in11 dividual, the President may direct the Secretary of 

12 State to deny a visa to, and the Secretary of Home13 land Security to exclude from the United States, the 

14 foreign person, subject to regulatory exceptions to 

15 permit the United States to comply with the Agree16 ment regarding the Headquarters of the United Na17 tions, signed at Lake Success June 26, 1947, and 

18 entered into force November 21, 1947, between the 

19 United Nations and the United States, or other ap20 plicable international obligations. 
25 

•HR 7440 EH

1 SEC. 7. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL 

2 INSTITUTIONS THAT CONDUCT SIGNIFICANT 

3 TRANSACTIONS WITH FOREIGN PERSONS 

4 THAT CONTRAVENE THE OBLIGATIONS OF 

5 CHINA UNDER THE JOINT DECLARATION OR 

6 THE BASIC LAW. 

7 (a) IMPOSITION OF SANCTIONS.— 

8 (1) INITIAL SANCTIONS.—Not later than one 

9 year after the date on which a foreign financial in10 stitution is included in the report under section 5(b) 

11 or an update to that report under section 5(e), the 

12 President shall impose not fewer than 5 of the sanc13 tions described in subsection (b) with respect to that 

14 foreign financial institution. 

15 (2) EXPANDED SANCTIONS.—Not later than 

16 two years after the date on which a foreign financial 

17 institution is included in the report under section 

18 5(b) or an update to that report under section 5(e), 

19 the President shall impose each of the sanctions de20 scribed in subsection (b). 

21 (b) SANCTIONS DESCRIBED.—The sanctions de22 scribed in this subsection with respect to a foreign finan23 cial institution are the following: 

24 (1) LOANS FROM UNITED STATES FINANCIAL

25 INSTITUTIONS.—The United States Government 

26 may prohibit any United States financial institution 
26 

•HR 7440 EH

1 from making loans or providing credits to the for2 eign financial institution. 

3 (2) PROHIBITION ON DESIGNATION AS PRIMARY

4 DEALER.—Neither the Board of Governors of the 

5 Federal Reserve System nor the Federal Reserve 

6 Bank of New York may designate, or permit the 

7 continuation of any prior designation of, the foreign 

8 financial institution as a primary dealer in United 

9 States Government debt instruments. 

10 (3) PROHIBITION ON SERVICE AS A REPOSI11 TORY OF GOVERNMENT FUNDS.—The foreign finan12 cial institution may not serve as agent of the United 

13 States Government or serve as repository for United 

14 States Government funds. 

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

16 pursuant to such regulations as the President may 

17 prescribe, prohibit any transactions in foreign ex18 change that are subject to the jurisdiction of the 

19 United States and involve the foreign financial insti20 tution. 

21 (5) BANKING TRANSACTIONS.—The President 

22 may, pursuant to such regulations as the President 

23 may prescribe, prohibit any transfers of credit or 

24 payments between financial institutions or by, 

25 through, or to any financial institution, to the extent 
27 

•HR 7440 EH

1 that such transfers or payments are subject to the 

2 jurisdiction of the United States and involve the for3 eign financial institution. 

4 (6) 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, import9 ing, or exporting any property that is subject to 

10 the jurisdiction of the United States and with 

11 respect to which the foreign financial institution 

12 has any interest; 

13 (B) dealing in or exercising any right, 

14 power, or privilege with respect to such prop15 erty; or 

16 (C) conducting any transaction involving 

17 such property. 

18 (7) RESTRICTION ON EXPORTS, REEXPORTS, 

19 AND TRANSFERS.—The President, in consultation 

20 with the Secretary of Commerce, may restrict or 

21 prohibit exports, reexports, and transfers (in-coun22 try) of commodities, software, and technology sub23 ject to the jurisdiction of the United States directly 

24 or indirectly to the foreign financial institution. 
28 

•HR 7440 EH

1 (8) BAN ON INVESTMENT IN EQUITY OR

2 DEBT.—The President may, pursuant to such regu3 lations or guidelines as the President may prescribe, 

4 prohibit any United States person from investing in 

5 or purchasing significant amounts of equity or debt 

6 instruments of the foreign financial institution. 

7 (9) EXCLUSION OF CORPORATE OFFICERS.— 

8 The President may direct the Secretary of State, in 

9 consultation with the Secretary of the Treasury and 

10 the Secretary of Homeland Security, to exclude from 

11 the United States any alien that is determined to be 

12 a corporate officer or principal of, or a shareholder 

13 with a controlling interest in, the foreign financial 

14 institution, subject to regulatory exceptions to per15 mit the United States to comply with the Agreement 

16 regarding the Headquarters of the United Nations, 

17 signed at Lake Success June 26, 1947, and entered 

18 into force November 21, 1947, between the United 

19 Nations and the United States, or other applicable 

20 international obligations. 

21 (10) SANCTIONS ON PRINCIPAL EXECUTIVE OF22 FICERS.—The President may impose on the prin23 cipal executive officer or officers of the foreign fi24 nancial institution, or on individuals performing 

25 similar functions and with similar authorities as 
29 

•HR 7440 EH

1 such officer or officers, any of the sanctions de2 scribed in paragraphs (1) through (8) that are appli3 cable. 

4 (c) TIMING OF SANCTIONS.—The President may im5 pose sanctions required under subsection (a) with respect 

6 to a financial institution included in the report under sec7 tion 5(b) or an update to that report under section 5(e) 

8 beginning on the day on which the financial institution 

9 is included in that report or update. 

10 SEC. 8. WAIVER, TERMINATION, EXCEPTIONS, AND CON11 GRESSIONAL REVIEW PROCESS. 

12 (a) NATIONAL SECURITY WAIVER.—Unless a dis13 approval resolution is enacted under subsection (e), the 

14 President may waive the application of sanctions under 

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

16 financial institution if the President— 

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

18 security interest of the United States; and 

19 (2) submits to the appropriate congressional 

20 committees and leadership a report on the deter21 mination and the reasons for the determination. 

22 (b) TERMINATION OF SANCTIONS AND REMOVAL

23 FROM REPORT.—Unless a disapproval resolution is en24 acted under subsection (e), the President may terminate 

25 the application of sanctions under section 6 or 7 with re-
30 

•HR 7440 EH

1 spect to a foreign person or foreign financial institution 

2 and remove the foreign person from the report required 

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

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

5 be, if the Secretary of State, in consultation with the Sec6 retary of the Treasury, determines that the actions taken 

7 by the foreign person or foreign financial institution that 

8 led to the imposition of sanctions— 

9 (1) do not have a significant and lasting nega10 tive effect that contravenes the obligations of China 

11 under the Joint Declaration and the Basic Law; 

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

13 and 

14 (3) have been reversed or otherwise mitigated 

15 through positive countermeasures taken by that for16 eign person or foreign financial institution. 

17 (c) TERMINATION OF ACT.— 

18 (1) REPORT.— 

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

20 2046, the President, in consultation with the 

21 Secretary of State, the Secretary of the Treas22 ury, and the heads of such other Federal agen23 cies as the President considers appropriate, 

24 shall submit to Congress a report evaluating the 
31 

•HR 7440 EH

1 implementation of this Act and sanctions im2 posed pursuant to this Act. 

3 (B) ELEMENTS.—The President shall in4 clude in the report submitted under subpara5 graph (A) an assessment of whether this Act 

6 and the sanctions imposed pursuant to this Act 

7 should be terminated. 

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

9 imposed pursuant to this Act shall remain in effect 

10 unless a termination resolution is enacted under sub11 section (e) after July 1, 2047. 

12 (d) EXCEPTION RELATING TO IMPORTATION OF

13 GOODS.— 

14 (1) IN GENERAL.—The authorities and require15 ments to impose sanctions under sections 6 and 7 

16 shall not include the authority or requirement to im17 pose sanctions on the importation of goods. 

18 (2) GOOD DEFINED.—In this subsection, the 

19 term ‘‘good’’ means any article, natural or manmade 

20 substance, material, supply, or manufactured prod21 uct, including inspection and test equipment, and ex22 cluding technical data. 

23 (e) CONGRESSIONAL REVIEW.— 

24 (1) RESOLUTIONS.— 
32 

•HR 7440 EH

1 (A) DISAPPROVAL RESOLUTION.—In this 

2 section, the term ‘‘disapproval resolution’’ 

3 means only a joint resolution of either House of 

4 Congress— 

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

6 joint resolution disapproving the waiver or 

7 termination of sanctions with respect to a 

8 foreign person that contravenes the obliga9 tions of China with respect to Hong Kong 

10 or a foreign financial institution that con11 ducts a significant transaction with that 

12 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 conducts a significant 

22 transaction with that person, on 

23 lllllll relating to 

24 llllllll.’’, with the first blank 

25 space being filled with the appropriate date 
33 

•HR 7440 EH

1 and the second blank space being filled 

2 with a short description of the proposed 

3 action. 

4 (B) TERMINATION RESOLUTION.—In this 

5 section, the term ‘‘termination resolution’’ 

6 means only a joint resolution of either House of 

7 Congress— 

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

9 joint resolution terminating sanctions with 

10 respect to foreign persons that contravene 

11 the obligations of China with respect to 

12 Hong Kong and foreign financial institu13 tions that conduct significant transactions 

14 with those persons.’’; and 

15 (ii) the sole matter after the resolving 

16 clause of which is the following: ‘‘The 

17 Hong Kong Autonomy Act and any sanc18 tions imposed pursuant to that Act shall 

19 terminate on llll.’’, with the blank 

20 space being filled with the termination 

21 date. 

22 (C) COVERED RESOLUTION.—In this sub23 section, the term ‘‘covered resolution’’ means a 

24 disapproval resolution or a termination resolu25 tion. 
34 

•HR 7440 EH

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 legislative 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 
35 

•HR 7440 EH

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 legislative 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 

25 Urban Affairs or the Committee on Foreign Re-
36 

•HR 7440 EH

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 
37 

•HR 7440 EH

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 10 legislative days after 

16 the date of referral, that committee shall 

17 be discharged from further consideration 

18 of 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 
38 

•HR 7440 EH

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 offeror of the motion 

19 to proceed (or a designee) and an oppo20 nent. A motion to reconsider the vote on 

21 passage of the resolution shall not be in 

22 order. 

23 (B) TREATMENT OF HOUSE RESOLUTION

24 IN SENATE.— 
39 

•HR 7440 EH

1 (i) RECEIVED BEFORE PASSAGE OF

2 SENATE RESOLUTION.—If, before the pas3 sage by the Senate of a covered resolution, 

4 the Senate receives an identical resolution 

5 from the House of Representatives, the fol6 lowing procedures shall apply: 

7 (I) That resolution shall not be 

8 referred to a committee. 

9 (II) With respect to that resolu10 tion— 

11 (aa) the procedure in the 

12 Senate shall be the same as if no 

13 resolution had been received from 

14 the House of Representatives; 

15 but 

16 (bb) the vote on passage 

17 shall be on the resolution from 

18 the House of Representatives. 

19 (ii) RECEIVED AFTER PASSAGE OF

20 SENATE RESOLUTION.—If, following pas21 sage of a covered resolution in the Senate, 

22 the Senate receives an identical resolution 

23 from the House of Representatives, that 

24 resolution shall be placed on the appro25 priate Senate calendar. 
40 

•HR 7440 EH

1 (iii) NO SENATE COMPANION.—If a 

2 covered resolution is received from the 

3 House of Representatives, and no com4 panion resolution has been introduced in 

5 the Senate, the Senate procedures under 

6 this subsection shall apply to the resolution 

7 from the House of Representatives. 

8 (C) APPLICATION TO REVENUE MEAS9 URES.—The provisions of this paragraph shall 

10 not apply in the House of Representatives to a 

11 covered resolution that is a revenue measure. 

12 (6) RULES OF HOUSE OF REPRESENTATIVES

13 AND SENATE.—This subsection is enacted by Con14 gress— 

15 (A) as an exercise of the rulemaking power 

16 of the Senate and the House of Representa17 tives, respectively, and as such is deemed a part 

18 of the rules of each House, respectively, and su19 persedes other rules only to the extent that it 

20 is inconsistent with such rules; and 

21 (B) with full recognition of the constitu22 tional right of either House to change the rules 

23 (so far as relating to the procedure of that 

24 House) at any time, in the same manner, and 
41 

•HR 7440 EH

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

2 rule of that House. 

3 SEC. 9. IMPLEMENTATION; PENALTIES. 

4 (a) IMPLEMENTATION.—The President may exercise 

5 all authorities provided under sections 203 and 205 of the 

6 International Emergency Economic Powers Act (50 

7 U.S.C. 1702 and 1704) to the extent necessary to carry 

8 out this Act. 

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

10 violate, conspires to violate, or causes a violation of section 

11 6 or 7 or any regulation, license, or order issued to carry 

12 out that section shall be subject to the penalties set forth 

13 in subsections (b) and (c) of section 206 of the Inter14 national Emergency Economic Powers Act (50 U.S.C. 

15 1705) to the same extent as a person that commits an 

16 unlawful act described in subsection (a) of that section. 

17 SEC. 10. RULE OF CONSTRUCTION. 

18 Nothing in this Act shall be construed as an author19 ization of military force against China. 

Passed the House of Representatives July 1, 2020. 

Attest: 

Clerk. 
116TH CONGRESS 

2D SESSION H. R. 7440 

AN ACT 

To impose sanctions with respect to foreign persons 

purposes. China with respect to Hong Kong, and for other involved in the erosion of certain obligations of