I 
116TH CONGRESS 
2D SESSION 
H. R. 7083 
To impose sanctions with respect to foreign persons involved in the erosion 
of certain obligations of China with respect to Hong Kong, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 1, 2020 
Mr. SHERMAN (for himself, Mr. YOHO, Mrs. CAROLYN B. MALONEY of New 
York, Mr. CURTIS, Mr. CONNOLLY, Mr. BARR, Mr. SUOZZI, Mr. 
RESCHENTHALER, and Ms. SPANBERGER) introduced the following bill; 
which was referred to the Committee on Foreign Affairs, and in addition 
to the Committees on the Judiciary, Financial Services, Ways and Means, 
and Rules, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To impose sanctions with respect to foreign persons involved 
in the erosion of certain obligations of China with respect 
to Hong Kong, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives 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’’. 
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(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 obliga-
tions 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 obliga-
tions of China under the Joint Declaration or the Basic Law. 
Sec. 7. Sanctions with respect to foreign financial institutions that do business 
with foreign persons that contravene the obligations of China 
under the Joint Declaration or the Basic Law. 
Sec. 8. Waiver, termination, and congressional review process. 
Sec. 9. Rule of construction. 
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 mean-
ings given those terms in section 101 of the Immi-
gration and Nationality Act (8 U.S.C. 1101). 
(2) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES
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 Gov-
ernmental Affairs, the Committee on the Judi-
ciary, the Select Committee on Intelligence, and 
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the majority leader and the minority leader of 
the Senate; and 
(B) the Committee on Armed Services, the 
Committee on Financial Services, the Com-
mittee on Foreign Affairs, the Committee on 
Homeland Security, the Committee on the Judi-
ciary, the Permanent Select Committee on In-
telligence, 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 Adminis-
trative Region of the People’s Republic of China. 
(4) CHINA.—The term ‘‘China’’ means the Peo-
ple’s Republic of China. 
(5) ENTITY.—The term ‘‘entity’’ means a part-
nership, joint venture, association, corporation, orga-
nization, network, group, or subgroup, or any other 
form of business collaboration. 
(6) FINANCIAL
INSTITUTION.—The term ‘‘fi-
nancial institution’’ means a financial institution 
specified in section 5312(a)(2) of title 31, United 
States Code. 
(7) FOREIGN FINANCIAL INSTITUTION.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘‘foreign financial 
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institution’’ means any foreign entity that is en-
gaged in the business of accepting deposits, 
making, granting, transferring, holding, or 
brokering loans or credits, or purchasing or 
selling foreign exchange, securities, commodity 
futures or options, or procuring purchasers and 
sellers thereof, as principal or agent, includ-
ing— 
(i) a depository institution; 
(ii) a bank; 
(iii) a savings bank; 
(iv) a money service business; 
(v) a trust company; 
(vi) a securities broker or dealer; 
(vii) a commodity futures and options 
broker or dealer; 
(viii) a forward contract or foreign ex-
change merchant; 
(ix) a securities or commodities ex-
change; 
(x) a clearing corporation; 
(xi) an investment company; 
(xii) an employee benefit plan; 
(xiii) a dealer in precious metals, 
stones, or jewels; and 
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(xiv) any holding company, affiliate, 
or subsidiary of an entity specified in any 
of clauses (i) through (xiii). 
(B) EXCEPTIONS.—The term ‘‘foreign fi-
nancial institution’’ does not include— 
(i) an international financial institu-
tion, as defined in section 1701(c) of the 
International Financial Institutions Act 
(22 U.S.C. 262r(c)); 
(ii) the International Fund for Agri-
cultural Development; 
(iii) the North American Development 
Bank; or 
(iv) any other international financial 
institution specified by the Office of For-
eign Assets Control of the Department of 
the Treasury. 
(8) FOREIGN PERSON.—The term ‘‘foreign per-
son’’— 
(A) means— 
(i) any citizen or national of a foreign 
country; or 
(ii) any entity not organized under the 
laws of the United States or a jurisdiction 
within the United States; and 
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(B) does not include the government of a 
foreign country. 
(9) HONG
KONG.—The term ‘‘Hong Kong’’ 
means the Hong Kong Special Administrative Re-
gion of the People’s Republic of China. 
(10) 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. 
(11) KNOWINGLY.—The term ‘‘knowingly’’, 
with respect to conduct, a circumstance, or a result, 
means that a person has actual knowledge, or should 
have known, of the conduct, the circumstance, or the 
result. 
(12) PERSON.—The term ‘‘person’’ means an 
individual or entity. 
(13) SIGNIFICANT
TRANSACTION.—The term 
‘‘significant transaction’’ means a transaction deter-
mined by the Secretary of the Treasury to be signifi-
cant on the basis of the following factors— 
(A) the size, number, and frequency of the 
transaction; 
(B) the nature of the transaction; 
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(C) whether the transaction is part of a 
pattern of conduct; 
(D) the nexus between the transaction and 
a person subject to sanctions under this Act; 
and 
(E) the impact of the transaction on the 
objectives of this Act. 
(14) UNITED
STATES
PERSON.—The term 
‘‘United States person’’ means— 
(A) any citizen or national of the United 
States; 
(B) any alien lawfully admitted for perma-
nent 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. 
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(2) The obligations of the Government of China 
under the Joint Declaration were codified in a le-
gally 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 Dec-
laration, 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 Gov-
ernment 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, 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 
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directly under the Central Government may interfere 
in the affairs which the Hong Kong Special Admin-
istrative Region administers on its own in accord-
ance with this Law.’’. 
(7) The Joint Declaration and the Basic Law 
make clear that additional obligations shall be un-
dertaken by China to ensure the ‘‘high degree of au-
tonomy’’ 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 ju-
dicial 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 fol-
lowing: 
(A) In 1999, the Standing Committee of 
the National People’s Congress overruled a de-
cision 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 per-
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sons 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 can-
didates 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 Af-
fairs 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 
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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 Govern-
ment of China over Hong Kong and indicated 
that Hong Kong must be governed by ‘‘patri-
ots’’. 
(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, including business-
man 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 indi-
vidual 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 Com-
mittee of the National People’s Congress said, 
‘‘Whether Hong Kong’s laws are consistent 
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with the Basic Law can only be judged and de-
cided by the National People’s Congress Stand-
ing 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 fol-
lowing: 
(A) In 2002, the Government of China 
pressured the Government of Hong Kong to in-
troduce ‘‘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-determina-
tion in primary and secondary schools, which 
infringes on freedom of speech. 
(C) The Government of Hong Kong man-
dated that Mandarin, and not the native lan-
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guage of Cantonese, be the language of instruc-
tion in Hong Kong schools. 
(D) The governments of China and Hong 
Kong agreed to a daily quota of mainland im-
migrants to Hong Kong, which is widely be-
lieved 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 fol-
lowing: 
(A) On February 26, 2003, the Govern-
ment of Hong Kong introduced a national secu-
rity bill that would have placed restrictions on 
freedom of speech and other protected rights. 
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(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. 
(C) The Hong Kong Police Force selec-
tively blocked demonstrations and protests ex-
pressing opposition to the governments of China 
and Hong Kong or the policies of those govern-
ments. 
(D) The Government of Hong Kong re-
fused to renew work visa for a foreign jour-
nalist, allegedly for hosting a speaker from the 
banned Hong Kong National Party. 
(E) The Justice Department of Hong 
Kong selectively prosecuted cases against lead-
ers of the Umbrella Movement, while failing to 
prosecute police officers accused of using exces-
sive 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 orga-
nizing a protest march that took place on Au-
gust 18, 2019, in which almost 2,000,000 peo-
ple rallied against a proposed extradition bill. 
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(14) Articles 45 and 68 of the Basic Law assert 
that the selection of Chief Executive and all mem-
bers 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 fol-
lowing: 
(A) In 2004, the National People’s Con-
gress 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. 
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(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 contraven-
tion 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 U.S.C. 5701 note), which remain consistent with 
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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 States-Hong 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 con-
fidence 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 States-Hong Kong Policy Act of 1992 
(22 U.S.C. 5701(5)), ‘‘Support for democratiza-
tion 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 fur-
therance of the United States-Hong Kong Policy Act 
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tions of China under the Joint Declaration and the 
Basic Law; and 
(6) in addition to the penalties on foreign per-
sons, 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 obli-
gations under the Joint Declaration and the Basic 
Law to become eligible to obtain lawful entry into 
the United States. 
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 IN-
STITUTIONS THAT CONDUCT SIGNIFICANT 
TRANSACTIONS WITH THOSE PERSONS. 
(a) IN GENERAL.—Not later than 90 days after the 
date of the enactment of this Act, and annually thereafter, 
if the Secretary of State 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 
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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; 
(2) a clear explanation for why the foreign per-
son was identified and a description of the activity 
that resulted in the identification; and 
(3) an identification of any foreign financial in-
stitution that knowingly conducts a significant 
transactions with the foreign person. 
(b) 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) 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) if the Attor-
ney General, in coordination, as appropriate, with 
the Director of the Federal Bureau of Investigation, 
the head of any other appropriate Federal law en-
forcement agency, and the Secretary of the Treas-
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ury, determines that such disclosure could reason-
ably be expected— 
(A) to compromise the identity of a con-
fidential source, including a State, local, or for-
eign agency or authority or any private institu-
tion that furnished information on a confiden-
tial basis; 
(B) to jeopardize the integrity or success 
of an ongoing criminal investigation or prosecu-
tion; 
(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 
leadership of the determination and the reasons for 
the determination. 
(c) EXCLUSION OF FOREIGN PERSONS AND FOREIGN 
FINANCIAL INSTITUTIONS.— 
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(1) FOREIGN
PERSONS.—The President may 
exclude a foreign person from the report under sub-
section (a) if the material contribution (as described 
in subsection (d)) that merited inclusion in that re-
port— 
(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 fu-
ture; and 
(C) has been reversed or otherwise miti-
gated 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 (a) if the signifi-
cant transaction or significant transactions of the 
foreign financial institution that merited inclusion in 
that report— 
(A) does not have a significant and lasting 
negative effect that contravenes the obligations 
of China under the Joint Declaration and the 
Basic Law; 
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(B) is not likely to be repeated in the fu-
ture; and 
(C) has been reversed or otherwise miti-
gated through positive countermeasures taken 
by that foreign financial institution. 
(d) FORM
OF REPORT.—Each report under sub-
section (a) shall be submitted in unclassified form but may 
include a classified annex. 
(e) TIMING OF REPORT.— 
(1) IN
GENERAL.—Each report under sub-
section (a), to the extent practicable, shall be sub-
mitted with the annual report under section 301 of 
the United States-Hong Kong Policy Act of 1992 
(22 U.S.C. 5731). 
(2) RULE OF CONSTRUCTION.—Nothing in this 
subsection shall be construed to terminate the re-
quirement to submit the report under subsection (a) 
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) MATERIAL CONTRIBUTIONS RELATED TO OBLI-
GATIONS OF CHINA DESCRIBED.—For purposes of this 
section, a foreign person materially contributes to the fail-
ure of the Government of China to meet its obligations 
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under the Joint Declaration or the Basic Law if the per-
son— 
(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 a report under 
section 5(a)(1), the President may impose sanctions 
described in subsection (b) with respect to that for-
eign person. 
(2) MANDATORY SANCTIONS.—On and after the 
date on which a foreign person is included in 2 re-
ports submitted under section 5(a)(1), the President 
shall impose sanctions described in subsection (b) 
with respect to that foreign person. 
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(b) SANCTIONS
DESCRIBED.—The sanctions de-
scribed 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 ex-
porting any property that is subject to the ju-
risdiction 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 prop-
erty; or 
(C) conducting any transaction involving 
such property. 
(2) EXCLUSION
FROM
THE
UNITED
STATES 
AND REVOCATION OF VISA OR OTHER DOCUMENTA-
TION.—In the case of a foreign person who is an in-
dividual, the President may direct the Secretary of 
State to deny a visa to, and the Secretary of Home-
land Security to exclude from the United States, the 
foreign person, subject to regulatory exceptions to 
permit the United States to comply with the Agree-
ment regarding the Headquarters of the United Na-
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tions, signed at Lake Success June 26, 1947, and 
entered into force November 21, 1947, between the 
United Nations and the United States, or other ap-
plicable international obligations. 
SEC. 7. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL 
INSTITUTIONS THAT DO BUSINESS WITH FOR-
EIGN PERSONS THAT CONTRAVENE THE OB-
LIGATIONS OF CHINA UNDER THE JOINT 
DECLARATION OR THE BASIC LAW. 
(a) IMPOSITION OF SANCTIONS.—With respect to any 
financial institution included in a report under section 
5(a)(3)— 
(1) not later than one year after the submittal 
of the report, the President shall impose not fewer 
than five of the sanctions described in subsection 
(b); and 
(2) not later than 2 years after the submittal 
of the report, the President shall impose each of the 
sanctions described in subsection (b). 
(b) SANCTIONS DESCRIBED.—The sanctions that 
may imposed with respect to a foreign financial institution 
included in the report under section 5(a)(3) are the fol-
lowing: 
(1) LOANS FROM UNITED STATES FINANCIAL 
INSTITUTIONS.—The United States Government 
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may prohibit any United States financial institution 
from making loans or providing credits to the for-
eign 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
REPOSI-
TORY OF GOVERNMENT FUNDS.—The foreign finan-
cial 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 ex-
change that are subject to the jurisdiction of the 
United States and in which the foreign financial in-
stitution has any interest. 
(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, 
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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 any in-
terest of 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, import-
ing, 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 prop-
erty; or 
(C) conducting any transaction involving 
such property. 
(7) RESTRICTION ON EXPORTS.—The President 
may restrict or prohibit exports of goods, technology, 
or services, directly or indirectly, from the United 
States to the foreign financial institution. 
(8) BAN
ON
INVESTMENT
IN
EQUITY
OR 
DEBT.—The President may, pursuant to such regu-
lations or guidelines as the President may prescribe, 
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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 to 
deny a visa to, and the Secretary of Homeland Secu-
rity to exclude from the United States, any alien 
that the President determines is a corporate officer 
or principal of, or a shareholder with a controlling 
interest in, the foreign financial institution. 
(10) SANCTIONS ON PRINCIPAL EXECUTIVE OF-
FICERS.—The President may impose on the prin-
cipal executive officer or officers of the foreign fi-
nancial institution, or on individuals performing 
similar functions and with similar authorities as 
such officer or officers, any of the sanctions de-
scribed in paragraphs (1) through (8) that are appli-
cable. 
(c) TIMING OF SANCTIONS.—The President may im-
pose sanctions required under subsection (a) with respect 
to a financial institution included in a report under section 
5(a)(3) beginning on the day on which the financial insti-
tution is included in that report. 
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SEC. 8. WAIVER, TERMINATION, AND CONGRESSIONAL RE-
VIEW PROCESS. 
(a) NATIONAL SECURITY WAIVER.—Unless a dis-
approval resolution is enacted under subsection (d), 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 deter-
mination and the reasons for the determination. 
(b) TERMINATION
OF SANCTIONS
AND REMOVAL 
FROM REPORT.—Unless a disapproval resolution is en-
acted under subsection (d), the President may terminate 
the application of sanctions under section 6 or 7 with re-
spect to a foreign person or foreign financial institution 
and remove that foreign person or foreign financial insti-
tution from the report required under section 5(a) if the 
Secretary of State 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 nega-
tive effect that contravenes the obligations of China 
under the Joint Declaration and the Basic Law; 
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(2) are not likely to be repeated in the future; 
and 
(3) have been reversed or otherwise mitigated 
through positive countermeasures taken by that for-
eign 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 Treas-
ury, and the heads of such other Federal agen-
cies as the President considers appropriate, 
shall submit to Congress a report evaluating the 
implementation of this Act and sanctions im-
posed pursuant to this Act. 
(B) ELEMENTS.—The President shall in-
clude in the report submitted under paragraph 
(1) 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 sub-
section (d) after July 1, 2047. 
(d) CONGRESSIONAL REVIEW.— 
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(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 obliga-
tions of China with respect to Hong Kong 
or a foreign financial institution that pro-
vides services to 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 con-
travenes the obligations of China with re-
spect to Hong Kong, or a foreign financial 
institution that provides services to 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 
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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 respect to 
Hong Kong and foreign financial institu-
tions that provide services to those per-
sons.’’; and 
(ii) the sole matter after the resolving 
clause of which is the following: ‘‘The 
Hong Kong Autonomy Act and any sanc-
tions imposed pursuant to that Act shall 
terminate on llll.’’, with the blank 
space being filled with the termination 
date. 
(C) COVERED RESOLUTION.—In this sub-
section, the term ‘‘covered resolution’’ means a 
disapproval resolution or a termination resolu-
tion. 
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(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 mi-
nority leader (or the minority leader’s des-
ignee). 
(3) FLOOR CONSIDERATION IN HOUSE OF REP-
RESENTATIVES.—If a committee of the House of 
Representatives to which a covered resolution has 
been referred has not reported the resolution within 
10 calendar days after the date of referral, that 
committee shall be discharged from further consider-
ation 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 
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alter United States foreign policy with 
regard to China; and 
(II) referred to the Committee on 
Foreign Relations if the resolution re-
lates to an action that is intended to 
significantly alter United States for-
eign 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 re-
ferred has not reported the resolution within 10 
calendar 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 appro-
priate 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 Re-
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lations, 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 con-
sideration of the resolution) are waived. The 
motion to proceed is not debatable. The motion 
is not subject to a motion to postpone. A mo-
tion 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 PROCE-
DURE.—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 re-
lating to a covered resolution shall be decided 
without debate. 
(E) 
CONSIDERATION
OF
VETO
MES-
SAGES.—Debate in the Senate of any veto mes-
sage with respect to a covered resolution, in-
cluding all debatable motions and appeals in 
connection with the resolution, shall be limited 
to 10 hours, to be equally divided between, and 
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