II 

114TH CONGRESS 

2D SESSION S. 3509 

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

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

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 6, 2016 

Mr. RUBIO introduced the following bill; which was read twice and referred 

to the Committee on Foreign Relations 

A BILL 

To impose sanctions with respect to the People’s Republic 

of China in relation to activities in the South China 

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

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

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

6 2016’’. 

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

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 


smartinez on DSK3GLQ082PROD with BILLS
2 

•S 3509 IS

Sec. 3. Definitions. 

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

the East China Sea. 

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

China Sea. 

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

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

China Sea and the East China Sea. 

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

East China Sea as part of China. 

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

or the East China Sea. 

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

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

the East China Sea. 

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

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

1 SEC. 2. FINDINGS. 

2 Congress makes the following findings: 

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

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

6 no position on competing sovereignty claims to land 

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

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

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

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

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

14 power of the People’s Republic of China submitted 

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

16 to assert sovereignty claims over features in the 

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


smartinez on DSK3GLQ082PROD with BILLS
3 

•S 3509 IS

1 China continued to use maritime law enforcement 

2 ships and aircraft to patrol near the Senkaku 

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

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

5 land reclamation effort in the Spratly Islands in late 

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

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

9 with any additional territorial or maritime rights 

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

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

13 significantly.’’. 

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

16 Studies, Secretary of Defense Ashton Carter stated 

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

18 is out of step with both the international rules and 

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

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

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

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

25 trade passes through the South China Sea. 


smartinez on DSK3GLQ082PROD with BILLS
4 

•S 3509 IS

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

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

6 disputes through legal means and in accordance with 

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

8 America’s Freedom of Navigation Operations in the 

9 South China Sea have demonstrated, the United 

10 States will continue to fly, sail and operate wherever 

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

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

14 Arbitration’s Tribunal organized pursuant to the 

15 United Nations Convention on the Law of the Sea 

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

19 award is final and binding under that Convention. 

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

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

22 rights to resources in the waters of the South China 

23 Sea, such rights were extinguished to the extent they 

24 were incompatible with the exclusive economic zones 

25 provided for in the Convention. The Tribunal conVerDate Sep 11 2014 01:06 Dec 07, 2016 Jkt 069200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3509.IS S3509

smartinez on DSK3GLQ082PROD with BILLS
5 

•S 3509 IS

1 cluded that there was no legal basis for China to 

2 claim historic rights to resources within the sea 

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

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

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

7 none of the features claimed by China was capable 

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

10 boundary—declare that certain sea areas are within 

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

13 entitlement of China.’’. 

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

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

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

19 failing to prevent Chinese fishermen from fishing in 

20 the zone. The Tribunal also held that fishermen 

21 from the Philippines (like those from China) had 

22 traditional fishing rights at Scarborough Shoal and 

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


smartinez on DSK3GLQ082PROD with BILLS
6 

•S 3509 IS

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

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

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

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

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

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

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

12 based on those awards.’’. 

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

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

16 that— 

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

18 China has sovereignty over the 4 rocks and 

19 shoals in the South China Sea; 

20 (B) claims internal waters, territorial seas, 

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

23 that sovereignty claim; and 

24 (C) continues to claim historic rights in 

25 the South China Sea. 


smartinez on DSK3GLQ082PROD with BILLS
7 

•S 3509 IS

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

2 State and Department of State Spokesperson John 

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

5 territorial and maritime disputes in the South China 

6 Sea peacefully, including through arbitration. . . . 

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

9 as a new opportunity to renew efforts to address 

10 maritime disputes peacefully.’’. 

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

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

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

16 security is threatened, we of course have the right 

17 to set it up’’. 

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

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

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

21 over the South China Sea and that it would become 

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

23 stated that the People’s Liberation Army Air Force 

24 ‘‘will firmly defend national sovereignty, security and 

25 maritime interests, safeguard regional peace and 


smartinez on DSK3GLQ082PROD with BILLS
8 

•S 3509 IS

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

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

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

7 year. 

8 (16) In the Agreement concerning the Ryukyu 

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

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

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

14 the Treaty of Mutual Cooperation and Security, with 

15 Agreed Minute and Exchanges of Notes (11 UST 

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

19 Senkaku Islands. 

20 (17) On October 30, 2010, then-Secretary of 

21 State Hillary Clinton stated that ‘‘. . . with respect 

22 to the Senkaku Islands, the United States has never 

23 taken a position on sovereignty, but we have made 

24 it very clear that the islands are part of our mutual 


smartinez on DSK3GLQ082PROD with BILLS
9 

•S 3509 IS

1 treaty obligations, and the obligation to defend 

2 Japan’’. 

3 (18) In April 2014, President Barack Obama 

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

5 the Senkaku Islands are administered by Japan and 

6 therefore fall within the scope of Article 5 of the 

7 U.S.-Japan Treaty of Mutual Cooperation and Secu8 rity. And we oppose any unilateral attempts to un9 dermine Japan’s administration of these islands.’’. 

10 SEC. 3. DEFINITIONS. 

11 In this Act: 

12 (1) ACCOUNT; CORRESPONDENT ACCOUNT; PAY13 ABLE-THROUGH ACCOUNT.—The terms ‘‘account’’, 

14 ‘‘correspondent account’’, and ‘‘payable-through ac15 count’’ have the meanings given those terms in sec16 tion 5318A of title 31, United States Code. 

17 (2) APPROPRIATE CONGRESSIONAL COMMIT18 TEES.—The term ‘‘appropriate congressional com19 mittees’’ means— 

20 (A) the Committee on Foreign Relations, 

21 the Committee on Armed Services, the Com22 mittee on Banking, Housing, and Urban Af23 fairs, and the Select Committee on Intelligence 

24 of the Senate; and 


smartinez on DSK3GLQ082PROD with BILLS
10 

•S 3509 IS

1 (B) the Committee on Foreign Affairs, the 

2 Committee on Armed Services, the Committee 

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

5 Representatives. 

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

7 person’’ means— 

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

10 (B) an entity organized under the laws of 

11 the People’s Republic of China or otherwise 

12 subject to the jurisdiction of the Government of 

13 the People’s Republic of China. 

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

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

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

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

19 States Code. 

20 (5) FOREIGN FINANCIAL INSTITUTION.—The 

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

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

23 of Federal Regulations (or any corresponding similar 

24 regulation or ruling). 


smartinez on DSK3GLQ082PROD with BILLS
11 

•S 3509 IS

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

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

3 means that a person has actual knowledge, or should 

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

5 result. 

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

7 individual or entity. 

8 (8) UNITED STATES PERSON.—The term 

9 ‘‘United States person’’ means— 

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

12 United States; or 

13 (B) an entity organized under the laws of 

14 the United States or of any jurisdiction within 

15 the United States, including a foreign branch of 

16 such an entity. 

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

18 THE SOUTH CHINA SEA AND THE EAST CHINA 

19 SEA. 

20 It is the policy of the United States— 

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

24 (2) to reaffirm its unwavering commitment and 

25 support for allies and partners in the Asia-Pacific 


smartinez on DSK3GLQ082PROD with BILLS
12 

•S 3509 IS

1 region, including longstanding United States pol2 icy— 

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

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

6 and the Philippines; and 

7 (B) that Article V of the Mutual Defense 

8 Assistance Agreement, with Annexes, signed at 

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

10 the United States and Japan, applies to the 

11 Senkaku Islands, which are administered by 

12 Japan; and 

13 (3) to support the principle of freedom of the 

14 seas and to continue to use the sea and airspace 

15 wherever international law allows. 

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

17 SOUTH CHINA SEA AND THE EAST CHINA SEA. 

18 It is the sense of Congress that— 

19 (1) the People’s Republic of China cannot and 

20 should not be allowed to interfere in any way with 

21 the free use of waters and airspace in the South 

22 China Sea and the East China Sea by civilian and 

23 military ships and aircraft of all countries consistent 

24 with international law; 


smartinez on DSK3GLQ082PROD with BILLS
13 

•S 3509 IS

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

2 be allowed to continue to pursue illegitimate claims 

3 and to militarize an area that is essential to global 

4 security; 

5 (3) the United States should— 

6 (A) continue and expand freedom of navi7 gation operations and overflights; 

8 (B) reconsider the traditional policy of not 

9 taking a position on individual claims; and 

10 (C) respond to provocations by the Peo11 ple’s Republic of China with commensurate ac12 tions that impose costs on any attempts to un13 dermine security in the region; 

14 (4) the Senkaku Islands are covered by Article 

15 V of the Mutual Defense Assistance Agreement, with 

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

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

18 (5) the United States should firmly oppose any 

19 unilateral actions by the People’s Republic of China 

20 that seek to undermine Japan’s control of the 

21 Senkaku Islands. 


smartinez on DSK3GLQ082PROD with BILLS
14 

•S 3509 IS

1 SEC. 6. SANCTIONS WITH RESPECT TO CHINESE PERSONS 

2 RESPONSIBLE FOR CHINA’S ACTIVITIES IN 

3 THE SOUTH CHINA SEA AND THE EAST CHINA 

4 SEA. 

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

6 after the date that is 60 days after the date of the enact7 ment of this Act, the President shall impose the sanctions 

8 described in subsection (b) with respect to— 

9 (1) any Chinese person that contributes to con10 struction or development projects, including land 

11 reclamation, island-making, lighthouse construction, 

12 building of base stations for mobile communications 

13 services, building of electricity and fuel supply facili14 ties, or civil infrastructure projects, in areas of the 

15 South China Sea contested by one or more members 

16 of the Association of Southeast Asian Nations; 

17 (2) any Chinese person that is responsible for 

18 or complicit in, or has engaged in, directly or indi19 rectly, actions or policies that threaten the peace, se20 curity, or stability of areas of the South China Sea 

21 contested by one or more members of the Associa22 tion of Southeast Asian Nations or areas of the East 

23 China Sea administered by Japan, including through 

24 the use of vessels and aircraft to impose the sov25 ereignty of the People’s Republic of China in those 

26 areas; 


smartinez on DSK3GLQ082PROD with BILLS
15 

•S 3509 IS

1 (3) any Chinese person that engages, or at2 tempts to engage, in an activity or transaction that 

3 materially contributes to, or poses a risk of materi4 ally contributing to, an activity described in para5 graph (1) or (2); and 

6 (4) any person that— 

7 (A) is owned or controlled by a person de8 scribed in paragraph (1), (2), or (3); 

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

10 person; or 

11 (C) provides, or attempts to provide— 

12 (i) financial, material, technological, 

13 or other support to a person described in 

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

15 (ii) goods or services in support of an 

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

17 (3). 

18 (b) SANCTIONS DESCRIBED.— 

19 (1) BLOCKING OF PROPERTY.—The President 

20 shall block, in accordance with the International 

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

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

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

24 if such property and interests in property are in the 

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


smartinez on DSK3GLQ082PROD with BILLS
16 

•S 3509 IS

1 or come within the possession or control of a United 

2 States person. 

3 (2) EXCLUSION FROM UNITED STATES.—The 

4 Secretary of State shall deny a visa to, and the Sec5 retary of Homeland Security shall exclude from the 

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

7 that is an alien. 

8 (3) CURRENT VISA REVOKED.—The issuing 

9 consular officer, the Secretary of State, or the Sec10 retary of Homeland Security (or a designee of one 

11 of such Secretaries) shall revoke any visa or other 

12 entry documentation issued to any person subject to 

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

14 issued. The revocation shall take effect immediately 

15 and shall automatically cancel any other valid visa or 

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

17 (c) EXCEPTIONS; PENALTIES.— 

18 (1) INAPPLICABILITY OF NATIONAL EMER19 GENCY REQUIREMENT.—The requirements of section 

20 202 of the International Emergency Economic Pow21 ers Act (50 U.S.C. 1701) shall not apply for pur22 poses of subsection (b)(1). 

23 (2) COMPLIANCE WITH UNITED NATIONS HEAD24 QUARTERS AGREEMENT.—Paragraphs (2) and (3) of 

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


smartinez on DSK3GLQ082PROD with BILLS
17 

•S 3509 IS

1 United States is necessary to permit the United 

2 States to comply with the Agreement regarding the 

3 Headquarters of the United Nations, signed at Lake 

4 Success June 26, 1947, and entered into force No5 vember 21, 1947, between the United Nations and 

6 the United States. 

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

8 subsections (b) and (c) of section 206 of the Inter9 national Emergency Economic Powers Act (50 

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

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

12 violation of regulations prescribed under subsection 

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

14 to a person that commits an unlawful act described 

15 in subsection (a) of such section 206. 

16 (d) ADDITIONAL IMPOSITION OF SANCTIONS.— 

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

18 the opening, and prohibit or impose strict conditions 

19 on the maintaining, in the United States of a cor20 respondent account or a payable-through account by 

21 a foreign financial institution that the President de22 termines knowingly, on or after the date that is 60 

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

24 conducts or facilitates a significant financial trans25 action for a person subject to subsection (a) if the 


smartinez on DSK3GLQ082PROD with BILLS
18 

•S 3509 IS

1 Director of National Intelligence determines that the 

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

3 (A) declared an air defense identification 

4 zone over any part of the South China Sea; 

5 (B) initiated reclamation work at another 

6 disputed location in the South China Sea, such 

7 as at Scarborough Shoal; 

8 (C) seized control of Second Thomas 

9 Shoal; 

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

11 of the artificial islands the People’s Republic of 

12 China has built in the Spratly Island chain, in13 cluding Fiery Cross, Mischief, or Subi Reefs; 

14 (E) established territorial baselines around 

15 the Spratly Island chain; 

16 (F) increased harassment of Philippine 

17 vessels; or 

18 (G) increased provocative actions against 

19 the Japanese Coast Guard or Maritime Self-De20 fense Force or U.S. forces in the East China 

21 Sea. 

22 (2) REPORT.— 

23 (A) IN GENERAL.—The determination of 

24 the Director of National Intelligence referred to 

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


smartinez on DSK3GLQ082PROD with BILLS
19 

•S 3509 IS

1 to the President and the appropriate congres2 sional committees. 

3 (B) FORM OF REPORT.—The report re4 quired by subparagraph (A) shall be submitted 

5 in unclassified form, but may include a classi6 fied annex. 

7 SEC. 7. DETERMINATIONS AND REPORT ON CHINESE COM8 PANIES ACTIVE IN THE SOUTH CHINA SEA 

9 AND THE EAST CHINA SEA. 

10 (a) IN GENERAL.—The Secretary of State shall sub11 mit to the appropriate congressional committees a report 

12 that identifies each Chinese person the Secretary deter13 mines is engaged in the activities described in section 6(a). 

14 (b) CONSIDERATION.—In preparing the report re15 quired under subsection (a), the Secretary of State shall 

16 make specific findings with respect to— 

17 (1) CCCC Tianjin Dredging Co., Ltd.; 

18 (2) CCCC Dredging (Group) Company, Ltd.; 

19 (3) China Communications Construction Com20 pany (CCCC), Ltd.; 

21 (4) China Petroleum Corporation (Sinopec 

22 Group); 

23 (5) China Mobile; 

24 (6) China Telecom; 

25 (7) China Southern Power Grid; 


smartinez on DSK3GLQ082PROD with BILLS
20 

•S 3509 IS

1 (8) CNFC Guangzhou Harbor Engineering 

2 Company; 

3 (9) Zhanjiang South Project Construction Bu4 reau; 

5 (10) Hubei Jiangtian Construction Group; 

6 (11) China Harbour Engineering Company 

7 (CHEC); 

8 (12) Guangdong Navigation Group (GNG) 

9 Ocean Shipping; 

10 (13) Shanghai Leading Energy Shipping; 

11 (14) China National Offshore Oil Corporation 

12 (CNOOC); 

13 (15) China Oilfield Services Limited (COSL); 

14 (16) China Precision Machinery Import/Export 

15 Corporation (CPMIEC); 

16 (17) China Aerospace Science and Industry 

17 Corporation (CASIC); 

18 (18) Aviation Industry Corporation of China 

19 (AVIC); 

20 (19) Shenyang Aircraft Corporation; 

21 (20) Shaanxi Aircraft Corporation; 

22 (21) China Ocean Shipping (Group) Company 

23 (COSCO); 

24 (22) China Southern Airlines; 

25 (23) Zhan Chaoying; 


smartinez on DSK3GLQ082PROD with BILLS
21 

•S 3509 IS

1 (24) Sany Group; and 

2 (25) affiliated Chinese persons. 

3 (c) SUBMISSION AND FORM.— 

4 (1) SUBMISSION.—The report required by sub5 section (a) shall be submitted not later than 60 days 

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

7 180 days until the date that is 3 years after the date 

8 of the enactment of this Act. 

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

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

11 include a classified annex if the Secretary of State 

12 determines it is necessary for the national security 

13 interests of the United States to do so. 

14 (3) PUBLIC AVAILABILITY.—The Secretary of 

15 State shall publish the unclassified part of the report 

16 required by subsection (a) on a publicly available 

17 website of the Department of State. 

18 SEC. 8. PROHIBITION AGAINST DOCUMENTS PORTRAYING 

19 THE SOUTH CHINA SEA OR THE EAST CHINA 

20 SEA AS PART OF CHINA. 

21 The Government Publishing Office may not publish 

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

23 paper of the United States (other than materials relating 

24 to hearings held by committees of Congress or internal 

25 work product of a Federal agency) portraying or otherwise 


smartinez on DSK3GLQ082PROD with BILLS
22 

•S 3509 IS

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

2 the territory or airspace in the South China Sea contested 

3 by one or more members of the Association of Southeast 

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

5 East China Sea administered by Japan is part of the terri6 tory or airspace of the People’s Republic of China. 

7 SEC. 9. PROHIBITION ON FACILITATING CERTAIN INVEST8 MENTS IN THE SOUTH CHINA SEA OR THE 

9 EAST CHINA SEA. 

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

11 take any action to approve, facilitate, finance, or guar12 antee any investment, provide insurance, or underwriting 

13 in the South China Sea or the East China Sea that in14 volves any person with respect to which sanctions are im15 posed under section 6(a). 

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

17 in consultation with the Secretary of State, is authorized 

18 to take such actions, including the promulgation of such 

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

20 the purposes of this section. 

21 (c) PENALTIES.—The penalties provided for in sub22 sections (b) and (c) of section 206 of the International 

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

24 apply to a person that violates, attempts to violate, con25 spires to violate, or causes a violation of regulations preVerDate Sep 11 2014 01:06 Dec 07, 2016 Jkt 069200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\S3509.IS S3509

smartinez on DSK3GLQ082PROD with BILLS
23 

•S 3509 IS

1 scribed under this section to the same extent that such 

2 penalties apply to a person that commits an unlawful act 

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

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

5 respect to humanitarian assistance, disaster assistance, or 

6 emergency food assistance. 

7 SEC. 10. DEPARTMENT OF JUSTICE AFFIRMATION OF NON8 RECOGNITION OF ANNEXATION. 

9 In any matter before any United States court, upon 

10 request of the court or any party to the matter, the Attor11 ney General shall affirm the United States policy of not 

12 recognizing the de jure or de facto sovereignty of the Peo13 ple’s Republic of China over territory or airspace contested 

14 by one or more members of the Association of Southeast 

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

16 airspace of areas of the East China Sea administered by 

17 Japan. 

18 SEC. 11. NON-RECOGNITION OF CHINESE SOVEREIGNTY 

19 OVER THE SOUTH CHINA SEA OR THE EAST 

20 CHINA SEA. 

21 (a) UNITED STATES ARMED FORCES.—The Sec22 retary of Defense may not take any action, including any 

23 movement of aircraft or vessels that implies recognition 

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

25 territory or airspace contested by one or more members 


smartinez on DSK3GLQ082PROD with BILLS
24 

•S 3509 IS

1 of the Association of Southeast Asian Nations in the 

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

3 the East China Sea administered by Japan. 

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

5 that is issued a certificate of documentation under chapter 

6 121 of title 46, United States Code, may take any action 

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

8 Republic of China over territory or airspace contested by 

9 one or more members of the Association of Southeast 

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

11 airspace of areas of the East China Sea administered by 

12 Japan. 

13 (c) UNITED STATES AIRCRAFT.—No aircraft oper14 ated by an air carrier that holds an air carrier certificate 

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

16 may take any action that implies recognition of the sov17 ereignty of the People’s Republic of China over territory 

18 or airspace contested by one or more members of the Asso19 ciation of Southeast Asian Nations in the South China Sea 

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

21 Sea administered by Japan. 


smartinez on DSK3GLQ082PROD with BILLS
25 

•S 3509 IS

1 SEC. 12. PROHIBITION ON CERTAIN ASSISTANCE TO COUN2 TRIES THAT RECOGNIZE CHINESE SOV3 EREIGNTY OVER THE SOUTH CHINA SEA OR 

4 THE EAST CHINA SEA. 

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

6 (c), no amounts may be obligated or expended to provide 

7 foreign assistance to the government of any country iden8 tified in a report required by subsection (b). 

9 (b) REPORT REQUIRED.— 

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

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

12 days thereafter until the date that is 3 years after 

13 such date of enactment, the Secretary of State shall 

14 submit to the appropriate congressional committees 

15 a report identifying each country that the Secretary 

16 determines recognizes, after the date of the enact17 ment of this Act, the sovereignty of the People’s Re18 public of China over territory or airspace contested 

19 by one or more members of the Association of 

20 Southeast Asian Nations in the South China Sea or 

21 the territory or airspace of areas of the East China 

22 Sea administered by Japan. 

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

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

25 include a classified annex if the Secretary of State 


smartinez on DSK3GLQ082PROD with BILLS
26 

•S 3509 IS

1 determines it is necessary for the national security 

2 interests of the United States to do so. 

3 (3) PUBLIC AVAILABILITY.—The Secretary of 

4 State shall publish the unclassified part of the report 

5 required by paragraph (1) on a publicly available 

6 website of the Department of State. 

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

8 respect to Taiwan, humanitarian assistance, disaster as9 sistance, emergency food assistance, or the Peace Corps. 

Æ 


smartinez on DSK3GLQ082PROD with BILLS