I 

110TH CONGRESS 

2D SESSION H. R. 5777 

To impose certain restrictions on trade with and investment in the People’s 

Republic of China, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 10, 2008 

Mr. TANCREDO introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Foreign Affairs, Judiciary, and Financial Services, 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 certain restrictions on trade with and investment 

in the People’s Republic of China, 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. 

4 This Act may be cited as the ‘‘China Democracy 

5 Act’’. 

6 SEC. 2. RESTRICTIONS ON TRADE WITH AND INVESTMENT 

7 IN THE PEOPLE’S REPUBLIC OF CHINA. 

8 (a) RESTRICTIONS ON TRADE.— 


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1 (1) IN GENERAL.—Subject to paragraph (2), no 

2 article that is the product of the People’s Republic 

3 of China may be imported into the United States, 

4 and no goods or technology may be exported from 

5 any place in the United States to the People’s Re6 public of China. 

7 (2) EXCEPTION.—Paragraph (1) shall not 

8 apply to— 

9 (A) exports of food or medicine to the Peo10 ple’s Republic of China; or 

11 (B) exports of items that would be author12 ized for export to Cuba, except that such items 

13 shall be subject to the same restrictions relating 

14 to licenses or other approval that apply with re15 spect to exports of such items to Cuba. 

16 (b) RESTRICTIONS ON INVESTMENT IN CHINESE EN17 TERPRISES.—No United States person may, after the end 

18 of the 180-day period beginning on the date of the enact19 ment of this Act, make an investment in any enterprise 

20 in the People’s Republic of China or in any enterprise that 

21 is owned or controlled by the Government of, entities con22 trolled by the Government of, or nationals of, the People’s 

23 Republic of China. 

24 (c) RESTRICTIONS ON INVESTMENT BY CHINESE NA25 TIONALS IN U.S. PERSONS.—No United States person 


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1 may, after the end of the 180-day period beginning on the 

2 date of the enactment of this Act, engage in any trans3 action the purpose of which is to secure an investment 

4 by a Chinese national in any United States person or in 

5 any enterprise owned or controlled by United States per6 sons. 

7 SEC. 3. ENTRY OF VESSELS ENGAGED IN TRADE WITH THE 

8 PEOPLE’S REPUBLIC OF CHINA. 

9 (a) PROHIBITIONS.—Except as specifically author10 ized by the President, by means of regulations, rulings, 

11 instructions, licenses, or otherwise — 

12 (1) no vessel that enters a port or place in the 

13 People’s Republic of China to engage in the trade of 

14 goods or the purchase or provision of services, may 

15 enter a port in the United States for the purpose of 

16 loading or unloading freight for a period of 180 days 

17 after the date on which the vessel departed from a 

18 port or place in the People’s Republic of China; and 

19 (2) no vessel carrying goods to or from the Peo20 ple’s Republic of China or carrying goods in which 

21 the People’s Republic of China or a national of the 

22 People’s Republic of China has an interest may 

23 enter a port in the United States with such goods 

24 on board. 


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1 (b) EXCEPTION.—Subsection (a) shall not apply with 

2 respect to exports of items permitted under section 1. 

3 SEC. 4. ENFORCEMENT. 

4 (a) REGULATORY AUTHORITY.—The President shall 

5 issue such regulations, orders, and licenses as are nec6 essary to carry out this Act. 

7 (b) EXCEPTIONS FROM PROHIBITIONS.—The Presi8 dent may provide for such exceptions from the prohibitions 

9 contained in this Act as are consistent with the Cuban 

10 Assets Control Regulations under part 515 of title 31, 

11 Code of Federal Regulations, as in effect on the date of 

12 the enactment of this Act. 

13 SEC. 5. PENALTIES. 

14 Any person or entity that violates this Act or any reg15 ulation, license, or order issued under this Act shall be 

16 subject to the penalties provided in section 206 of the 

17 International Emergency Economic Powers Act (50 

18 U.S.C. 1705) for violations under that Act. 

19 SEC. 6. SUSPENSION OF VISAS TO CHINESE NATIONALS. 

20 No immigrant or nonimmigrant visa may be issued 

21 to any national of the People’s Republic of China, and any 

22 such visa issued to a national of the People’s Republic of 

23 China before the effective date of this Act may not be ex24 tended on or after such effective date. 


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1 SEC. 7. DOWNGRADING OF DIPLOMATIC RELATIONS. 

2 The President shall take the necessary steps to down3 grade diplomatic relations with the People’s Republic of 

4 China to that which existed before the United States rec5 ognized the People’s Republic of China in 1979. 

6 SEC. 8. DEFINITIONS. 

7 In this Act: 

8 (1) FOOD.—The term ‘‘food’’ means— 

9 (A) any article used for food or drink for 

10 humans; and 

11 (B) any article used for a component of an 

12 article described in subparagraph (A). 

13 (2) INVESTMENT.—The term ‘‘investment’’ 

14 means any contribution or commitment of funds, 

15 commodities, services, patents, processes, or tech16 niques, in the form of— 

17 (A) a loan, 

18 (B) the purchase of a share of ownership, 

19 (C) participation in royalties, earnings, or 

20 profits, 

21 (D) the furnishing of commodities or serv22 ices pursuant to a lease or other contract, or 

23 (E) other mechanism, 

24 that is made for the production of income. 

25 (3) MEDICINE.—The term ‘‘medicine’’ has the 

26 meaning given the term ‘‘drug’’ in section 201 of the 


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1 Federal Food, Drug, and Cosmetic Act (21 U.S.C. 

2 321). 

3 (4) NATIONAL OF THE PEOPLE’S REPUBLIC OF

4 CHINA.—The term ‘‘national of the People’s Repub5 lic of China’’— 

6 (A) means— 

7 (i) a citizen of or person owing alle8 giance to the People’s Republic of China; 

9 (ii) any corporation, partnership, or 

10 other entity organized under the laws of 

11 the People’s Republic of China; and 

12 (iii) any entity owned or controlled by 

13 persons or entities described in clause (i) 

14 or (i); and 

15 (B) does not include any citizen or person 

16 owing allegiance to Taiwan, the Pescadores, or 

17 any other island over which the Taiwanese Gov18 ernment exercises control. 

19 (5) PEOPLE’S REPUBLIC OF CHINA.—The term 

20 ‘‘People’s Republic of China’’— 

21 (A) includes mainland China, Hong Kong, 

22 Macao, and any other territory or special ad23 ministrative region governed by the People’s 

24 Republic of China; and 


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1 (B) does not include Taiwan, the Pesca2 dores, or any other island over which the Tai3 wanese Government exercises control. 

4 (6) UNITED STATES.—The term ‘‘United 

5 States’’ includes any commonwealth, territory, or 

6 possession of the United States, and the customs 

7 waters of the United States (as defined in section 

8 401 of the Tariff Act of 1930 (19 U.S.C. 1401)). 

9 (7) UNITED STATES PERSON.—The term 

10 ‘‘United States person’’ means— 

11 (A) any United States citizen or alien law12 fully admitted for permanent residence to the 

13 United States; 

14 (B) any corporation, partnership, or other 

15 entity organized under the laws of the United 

16 States; and 

17 (C) any person in the United States. 

18 (8) VESSEL.—The term ‘‘vessel’’ includes every 

19 description of water craft or other contrivance used, 

20 or capable of being used, as a means of transpor21 tation in water, but does not include aircraft. 

22 SEC. 9. EFFECTIVE DATE. 

23 This Act shall take effect 180 days after the date of 

24 the enactment of this Act. 


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1 SEC. 10. TERMINATION. 

2 This Act shall cease to be effective 30 days after the 

3 date on which the President determines and certifies to 

4 the Congress that the People’s Republic of China— 

5 (1) at the national, provincial, and local levels, 

6 is governed by governments that are democratically 

7 elected from free and fair elections— 

8 (A) conducted under the supervision of 

9 internationally recognized observers; and 

10 (B) in which— 

11 (i) opposition parties were permitted 

12 ample time to organize and campaign for 

13 such elections; and 

14 (ii) all candidates were permitted full 

15 access to the media; 

16 (2) is showing respect for the basic civil lib17 erties and human rights of the citizens of the Peo18 ple’s Republic of China; 

19 (3) has a market-oriented economic system 

20 based on the right to own and enjoy property; 

21 (4) ensures regular free and fair elections and 

22 the full enjoyment of basic civil liberties and human 

23 rights by the citizens of the People’s Republic of 

24 China; 

25 (5) has established an independent judiciary; 

26 and 


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1 (6) is no longer engaging in wide-scale espio2 nage activities directed against the United States. 

Æ 


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