H. R. 7440 
One Hundred Sixteenth Congress 
of the 
United States of America 
AT THE SECOND SESSION 
Begun and held at the City of Washington on Friday, 
the third day of January, two thousand and twenty 
An Act 
To impose sanctions with respect to foreign persons involved in the erosion of 
certain obligations of China with respect to Hong Kong, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Hong Kong 
Autonomy Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for this Act 
is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Definitions. 
Sec. 3. Findings. 
Sec. 4. Sense of Congress regarding Hong Kong. 
Sec. 5. Identification of foreign persons involved in the erosion of the obligations of 
China under the Joint Declaration or the Basic Law and foreign finan-
cial institutions that conduct significant transactions with those per-
sons. 
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 signifi-
cant transactions with foreign persons that contravene the obligations 
of China under the Joint Declaration or the Basic Law. 
Sec. 8. Waiver, termination, exceptions, and congressional review process. 
Sec. 9. Implementation; penalties. 
Sec. 10. Rule of construction. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) ALIEN; NATIONAL; NATIONAL OF THE UNITED STATES.— 
The terms ‘‘alien’’, ‘‘national’’, and ‘‘national of the United 
States’’ have the meanings given those terms in section 101 
of the Immigration and Nationality Act (8 U.S.C. 1101). 
(2) APPROPRIATE CONGRESSIONAL COMMITTEES AND LEADER-
SHIP.—The term ‘‘appropriate congressional committees and 
leadership’’ means— 
(A) the Committee on Armed Services, the Committee 
on Banking, Housing, and Urban Affairs, the Committee 
on Foreign Relations, the Committee on Homeland Security 
and Governmental Affairs, the Committee on the Judiciary, 
the Select Committee on Intelligence, and the majority 
leader and the minority leader of the Senate; and 
(B) the Committee on Armed Services, the Committee 
on Financial Services, the Committee on Foreign Affairs, 
the Committee on Homeland Security, the Committee on
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the Judiciary, the Permanent Select Committee on Intel-
ligence, and the Speaker and the minority leader of the 
House of Representatives. 
(3) BASIC LAW.—The term ‘‘Basic Law’’ means the Basic 
Law of the Hong Kong Special Administrative Region of the 
People’s Republic of China. 
(4) CHINA.—The term ‘‘China’’ means the People’s Republic 
of China. 
(5) ENTITY.—The term ‘‘entity’’ means a partnership, joint 
venture, association, corporation, organization, network, group, 
or subgroup, or any other form of business collaboration. 
(6) FINANCIAL INSTITUTION.—The term ‘‘financial institu-
tion’’ means a financial institution specified in section 5312(a)(2) 
of title 31, United States Code. 
(7) HONG KONG.—The term ‘‘Hong Kong’’ means the Hong 
Kong Special Administrative Region of the People’s Republic 
of China. 
(8) JOINT
DECLARATION.—The term ‘‘Joint Declaration’’ 
means the Joint Declaration of the Government of the United 
Kingdom of Great Britain and Northern Ireland and the 
Government of the People’s Republic of China on the Question 
of Hong Kong, done at Beijing on December 19, 1984. 
(9) KNOWINGLY.—The term ‘‘knowingly’’, with respect to 
conduct, a circumstance, or a result, means that a person 
has actual knowledge of the conduct, the circumstance, or the 
result. 
(10) PERSON.—The term ‘‘person’’ means an individual or 
entity. 
(11) UNITED STATES PERSON.—The term ‘‘United States per-
son’’ means— 
(A) any citizen or national of the United States; 
(B) any alien lawfully admitted for permanent resi-
dence in the United States; 
(C) any entity organized under the laws of the United 
States or any jurisdiction within the United States 
(including a foreign branch of such an entity); or 
(D) any person located in the United States. 
SEC. 3. FINDINGS. 
Congress makes the following findings: 
(1) The Joint Declaration and the Basic Law clarify certain 
obligations and promises that the Government of China has 
made with respect to the future of Hong Kong. 
(2) The obligations of the Government of China under 
the Joint Declaration were codified in a legally-binding treaty, 
signed by the Government of the United Kingdom of Great 
Britain and Northern Ireland and registered with the United 
Nations. 
(3) The obligations of the Government of China under 
the Basic Law originate from the Joint Declaration, were passed 
into the domestic law of China by the National People’s Con-
gress, and are widely considered by citizens of Hong Kong 
as part of the de facto legal constitution of Hong Kong. 
(4) Foremost among the obligations of the Government 
of China to Hong Kong is the promise that, pursuant to Para-
graph 3b of the Joint Declaration, ‘‘the Hong Kong Special 
Administrative Region will enjoy a high degree of autonomy,
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except in foreign and defence affairs which are the responsibil-
ities 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 depart-
ment of the Central People’s Government and no province, 
autonomous region, or municipality directly under the Central 
Government may interfere in the affairs which the Hong Kong 
Special Administrative Region administers on its own in accord-
ance with this Law.’’. 
(7) The Joint Declaration and the Basic Law make clear 
that additional obligations shall be undertaken by China to 
ensure the ‘‘high degree of autonomy’’ of Hong Kong. 
(8) Paragraph 3c of the Joint Declaration states, as 
reinforced by Articles 2, 16, 17, 18, 19, and 22 of the Basic 
Law, that Hong Kong ‘‘will be vested with executive, legislative 
and independent judicial power, including that of final adjudica-
tion’’. 
(9) On multiple occasions, the Government of China has 
undertaken actions that have contravened the letter or intent 
of the obligation described in paragraph (8) of this section, 
including the following: 
(A) In 1999, the Standing Committee of the National 
People’s Congress overruled a decision by the Hong Kong 
Court of Final Appeal on the right of abode. 
(B) On multiple occasions, the Government of Hong 
Kong, at the advice of the Government of China, is sus-
pected to have not allowed persons entry into Hong Kong 
allegedly because of their support for democracy and human 
rights in Hong Kong and China. 
(C) The Liaison Office of China in Hong Kong has, 
despite restrictions on interference in the affairs of Hong 
Kong as detailed in Article 22 of the Basic Law— 
(i) openly expressed support for candidates in Hong 
Kong for Chief Executive and Legislative Council; 
(ii) expressed views on various policies for the 
Government of Hong Kong and other internal matters 
relating to Hong Kong; and 
(iii) on April 17, 2020, asserted that both the Liai-
son Office of China in Hong Kong and the Hong Kong 
and Macau Affairs Office of the State Council ‘‘have 
the right to exercise supervision * * * on affairs 
regarding Hong Kong and the mainland, in order to 
ensure correct implementation of the Basic Law’’. 
(D) The National People’s Congress has passed laws 
requiring Hong Kong to pass laws banning disrespectful 
treatment of the national flag and national anthem of 
China. 
(E) The State Council of China released a white paper 
on June 10, 2014, that stressed the ‘‘comprehensive juris-
diction’’ of the Government of China over Hong Kong and 
indicated that Hong Kong must be governed by ‘‘patriots’’. 
(F) The Government of China has directed operatives 
to kidnap and bring to the mainland, or is otherwise respon-
sible for the kidnapping of, residents of Hong Kong,
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including businessman Xiao Jianhua and bookseller Gui 
Minhai. 
(G) The Government of Hong Kong, acting with the 
support of the Government of China, introduced an extra-
dition bill that would have permitted the Government of 
China to request and enforce extradition requests for any 
individual present in Hong Kong, regardless of the legality 
of the request or the degree to which it compromised the 
judicial independence of Hong Kong. 
(H) The spokesman for the Standing Committee of 
the National People’s Congress said, ‘‘Whether Hong Kong’s 
laws are consistent with the Basic Law can only be judged 
and decided by the National People’s Congress Standing 
Committee. No other authority has the right to make judg-
ments and decisions.’’. 
(10) Paragraph 3e of the Joint Declaration states, as 
reinforced by Article 5 of the Basic Law, that the ‘‘current 
social and economic systems in Hong Kong will remain 
unchanged, as so will the life-style.’’. 
(11) On multiple occasions, the Government of China has 
undertaken actions that have contravened the letter or intent 
of the obligation described in paragraph (10) of this section, 
including the following: 
(A) In 2002, the Government of China pressured the 
Government of Hong Kong to introduce ‘‘patriotic’’ cur-
riculum in primary and secondary schools. 
(B) The governments of China and Hong Kong proposed 
the prohibition of discussion of Hong Kong independence 
and self-determination in primary and secondary schools, 
which infringes on freedom of speech. 
(C) The Government of Hong Kong mandated that 
Mandarin, and not the native language of Cantonese, be 
the language of instruction in Hong Kong schools. 
(D) The governments of China and Hong Kong agreed 
to a daily quota of mainland immigrants to Hong Kong, 
which is widely believed by citizens of Hong Kong to be 
part of an effort to ‘‘mainlandize’’ Hong Kong. 
(12) Paragraph 3e of the Joint Declaration states, as 
reinforced by Articles 4, 26, 27, 28, 29, 30, 31, 32 33, 34, 
and 39 of the Basic Law, that the ‘‘rights and freedoms, 
including those of person, of speech, of the press, of assembly, 
of association, of travel, of movement, of correspondence, of 
strike, of choice of occupation, of academic research and of 
religious belief will be ensured by law’’ in Hong Kong. 
(13) On multiple occasions, the Government of China has 
undertaken actions that have contravened the letter or intent 
of the obligation described in paragraph (12) of this section, 
including the following: 
(A) On February 26, 2003, the Government of Hong 
Kong introduced a national security bill that would have 
placed restrictions on freedom of speech and other protected 
rights. 
(B) The Liaison Office of China in Hong Kong has 
pressured businesses in Hong Kong not to advertise in 
newspapers and magazines critical of the governments of 
China and Hong Kong.
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(C) The Hong Kong Police Force selectively blocked 
demonstrations and protests expressing opposition to the 
governments of China and Hong Kong or the policies of 
those governments. 
(D) The Government of Hong Kong refused to renew 
work visa for a foreign journalist, allegedly for hosting 
a speaker from the banned Hong Kong National Party. 
(E) The Justice Department of Hong Kong selectively 
prosecuted cases against leaders of the Umbrella Move-
ment, while failing to prosecute police officers accused of 
using excessive force during the protests in 2014. 
(F) On April 18, 2020, the Hong Kong Police Force 
arrested 14 high-profile democracy activists and cam-
paigners for their role in organizing a protest march that 
took place on August 18, 2019, in which almost 2,000,000 
people rallied against a proposed extradition bill. 
(14) Articles 45 and 68 of the Basic Law assert that the 
selection of Chief Executive and all members of the Legislative 
Council of Hong Kong should be by ‘‘universal suffrage.’’. 
(15) On multiple occasions, the Government of China has 
undertaken actions that have contravened the letter or intent 
of the obligation described in paragraph (14) of this section, 
including the following: 
(A) In 2004, the National People’s Congress created 
new, antidemocratic procedures restricting the adoption 
of universal suffrage for the election of the Chief Executive 
of Hong Kong. 
(B) The decision by the National People’s Congress 
on December 29, 2007, which ruled out universal suffrage 
in 2012 elections and set restrictions on when and if uni-
versal suffrage will be implemented. 
(C) The decision by the National People’s Congress 
on August 31, 2014, which placed limits on the nomination 
process for the Chief Executive of Hong Kong as a condition 
for adoption of universal suffrage. 
(D) On November 7, 2016, the National People’s Con-
gress interpreted Article 104 of the Basic Law in such 
a way to disqualify 6 elected members of the Legislative 
Council. 
(E) In 2018, the Government of Hong Kong banned 
the Hong Kong National Party and blocked the candidacy 
of pro-democracy candidates. 
(16) The ways in which the Government of China, at times 
with the support of a subservient Government of Hong Kong, 
has acted in contravention of its obligations under the Joint 
Declaration and the Basic Law, as set forth in this section, 
are deeply concerning to the people of Hong Kong, the United 
States, and members of the international community who sup-
port the autonomy of Hong Kong. 
SEC. 4. SENSE OF CONGRESS REGARDING HONG KONG. 
It is the sense of Congress that— 
(1) the United States continues to uphold the principles 
and policy established in the United States-Hong Kong Policy 
Act of 1992 (22 U.S.C. 5701 et seq.) and the Hong Kong Human 
Rights and Democracy Act of 2019 (Public Law 116–76; 22
H. R. 7440—6 
U.S.C. 5701 note), which remain consistent with China’s obliga-
tions 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 confidence 
and prosperity, Hong Kong’s role as an international finan-
cial 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 democratization is a fundamental principle of United 
States foreign policy. As such, it naturally applies to United 
States policy toward Hong Kong. This will remain equally 
true after June 30, 1997.’’; 
(2) although the United States recognizes that, under the 
Joint Declaration, the Government of China ‘‘resumed the exer-
cise of sovereignty over Hong Kong with effect on 1 July 1997’’, 
the United States supports the autonomy of Hong Kong in 
furtherance of the United States-Hong Kong Policy Act of 1992 
and the Hong Kong Human Rights and Democracy Act of 
2019 and advances the desire of the people of Hong Kong 
to continue the ‘‘one country, two systems’’ regime, in addition 
to other obligations promulgated by China under the Joint 
Declaration and the Basic Law; 
(3) in order to support the benefits and protections that 
Hong Kong has been afforded by the Government of China 
under the Joint Declaration and the Basic Law, the United 
States should establish a clear and unambiguous set of pen-
alties with respect to foreign persons determined by the Sec-
retary of State, in consultation with the Secretary of the 
Treasury, to be involved in the contravention of the obligations 
of China under the Joint Declaration and the Basic Law and 
the financial institutions transacting with those foreign persons; 
(4) the Secretary of State should provide an unclassified 
assessment of the reason for imposition of certain economic 
penalties on entities, so as to permit a clear path for the 
removal of economic penalties if the sanctioned behavior is 
reversed and verified by the Secretary of State; 
(5) relevant Federal agencies should establish a multilat-
eral sanctions regime with respect to foreign persons involved 
in the contravention of the obligations of China under the 
Joint Declaration and the Basic Law; and 
(6) in addition to the penalties on foreign persons, and 
financial institutions transacting with those foreign persons, 
for the contravention of the obligations of China under the 
Joint Declaration and the Basic Law, the United States should 
take steps, in a time of crisis, to assist permanent residents 
of Hong Kong who are persecuted or fear persecution as a 
result of the contravention by China of its obligations under 
the Joint Declaration and the Basic Law to become eligible 
to obtain lawful entry into the United States.
H. R. 7440—7 
SEC. 5. IDENTIFICATION OF FOREIGN PERSONS INVOLVED IN THE 
EROSION OF THE OBLIGATIONS OF CHINA UNDER THE JOINT 
DECLARATION OR THE BASIC LAW AND FOREIGN FINANCIAL 
INSTITUTIONS THAT CONDUCT SIGNIFICANT TRANSACTIONS 
WITH THOSE PERSONS. 
(a) IN GENERAL.—Not later than 90 days after the date of 
the enactment of this Act, if the Secretary of State, in consultation 
with the Secretary of the Treasury, determines that a foreign person 
is materially contributing to, has materially contributed to, or 
attempts to materially contribute to the failure of the Government 
of China to meet its obligations under the Joint Declaration or 
the Basic Law, the Secretary of State shall submit to the appro-
priate congressional committees and leadership a report that 
includes— 
(1) an identification of the foreign person; and 
(2) a clear explanation for why the foreign person was 
identified and a description of the activity that resulted in 
the identification. 
(b) IDENTIFYING FOREIGN FINANCIAL INSTITUTIONS.—Not earlier 
than 30 days and not later than 60 days after the Secretary of 
State submits to the appropriate congressional committees and 
leadership the report under subsection (a), the Secretary of the 
Treasury, in consultation with the Secretary of State, shall submit 
to the appropriate congressional committees and leadership a report 
that identifies any foreign financial institution that knowingly con-
ducts a significant transaction with a foreign person identified 
in the report under subsection (a). 
(c) EXCLUSION OF CERTAIN INFORMATION.— 
(1) INTELLIGENCE.—The Secretary of State shall not dis-
close the identity of a person in a report submitted under 
subsection (a) or (b), or an update under subsection (e), if 
the Director of National Intelligence determines that such 
disclosure could compromise an intelligence operation, activity, 
source, or method of the United States. 
(2) LAW ENFORCEMENT.—The Secretary of State shall not 
disclose the identity of a person in a report submitted under 
subsection (a) or (b), or an update under subsection (e), if 
the Attorney General, in coordination, as appropriate, with 
the Director of the Federal Bureau of Investigation, the head 
of any other appropriate Federal law enforcement agency, and 
the Secretary of the Treasury, determines that such disclosure 
could reasonably be expected— 
(A) to compromise the identity of a confidential source, 
including a State, local, or foreign agency or authority 
or any private institution that furnished information on 
a confidential basis; 
(B) to jeopardize the integrity or success of an ongoing 
criminal investigation or prosecution; 
(C) to endanger the life or physical safety of any person; 
or 
(D) to cause substantial harm to physical property. 
(3) NOTIFICATION REQUIRED.—If the Director of National 
Intelligence makes a determination under paragraph (1) or 
the Attorney General makes a determination under paragraph 
(2), the Director or the Attorney General, as the case may 
be, shall notify the appropriate congressional committees and
H. R. 7440—8 
leadership of the determination and the reasons for the deter-
mination. 
(d) EXCLUSION OR REMOVAL OF FOREIGN PERSONS AND FOREIGN 
FINANCIAL INSTITUTIONS.— 
(1) FOREIGN PERSONS.—The President may exclude a for-
eign person from the report under subsection (a), or an update 
under subsection (e), or remove a foreign person from the 
report or update prior to the imposition of sanctions under 
section 6(a) if the material contribution (as described in sub-
section (g)) that merited inclusion in that report or update— 
(A) does not have a significant and lasting negative 
effect that contravenes the obligations of China under the 
Joint Declaration and the Basic Law; 
(B) is not likely to be repeated in the future; and 
(C) has been reversed or otherwise mitigated through 
positive countermeasures taken by that foreign person. 
(2) FOREIGN FINANCIAL INSTITUTIONS.—The President may 
exclude a foreign financial institution from the report under 
subsection (b), or an update under subsection (e), or remove 
a foreign financial institution from the report or update prior 
to the imposition of sanctions under section 7(a) if the signifi-
cant transaction or significant transactions of the foreign finan-
cial institution that merited inclusion in that report or update— 
(A) does not have a significant and lasting negative 
effect that contravenes the obligations of China under the 
Joint Declaration and the Basic Law; 
(B) is not likely to be repeated in the future; and 
(C) has been reversed or otherwise mitigated through 
positive countermeasures taken by that foreign financial 
institution. 
(3) NOTIFICATION
REQUIRED.—If the President makes a 
determination under paragraph (1) or (2) to exclude or remove 
a foreign person or foreign financial institution from a report 
under subsection (a) or (b), as the case may be, the President 
shall notify the appropriate congressional committees and 
leadership of the determination and the reasons for the deter-
mination. 
(e) UPDATE OF REPORTS.— 
(1) IN GENERAL.—Each report submitted under subsections 
(a) and (b) shall be updated in an ongoing manner and, to 
the extent practicable, updated reports shall be resubmitted 
with the annual report under section 301 of the United 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 requirement to update 
the reports under subsections (a) and (b) upon the termination 
of the requirement to submit the annual report under section 
301 of the United States-Hong Kong Policy Act of 1992 (22 
U.S.C. 5731). 
(f) FORM OF REPORTS.— 
(1) IN GENERAL.—Each report under subsection (a) or (b) 
(including updates under subsection (e)) shall be submitted 
in unclassified form and made available to the public. 
(2) CLASSIFIED ANNEX.—The explanations and descriptions 
included in the report under subsection (a)(2) (including updates 
under subsection (e)) may be expanded on in a classified annex.
H. R. 7440—9 
(g) MATERIAL CONTRIBUTIONS RELATED
TO OBLIGATIONS
OF 
CHINA DESCRIBED.—For purposes of this section, a foreign person 
materially contributes to the failure of the Government of China 
to meet its obligations under the Joint Declaration or the Basic 
Law if the person— 
(1) took action that resulted in the inability of the people 
of Hong Kong— 
(A) to enjoy freedom of assembly, speech, press, or 
independent rule of law; or 
(B) to participate in democratic outcomes; or 
(2) otherwise took action that reduces the high degree 
of autonomy of Hong Kong. 
SEC. 6. SANCTIONS WITH RESPECT TO FOREIGN PERSONS THAT CON-
TRAVENE THE OBLIGATIONS OF CHINA UNDER THE JOINT 
DECLARATION OR THE BASIC LAW. 
(a) IMPOSITION OF SANCTIONS.— 
(1) IN GENERAL.—On and after the date on which a foreign 
person is included in the report under section 5(a) or an update 
to that report under section 5(e), the President may impose 
sanctions described in subsection (b) with respect to that foreign 
person. 
(2) MANDATORY SANCTIONS.—Not later than one year after 
the date on which a foreign person is included in the report 
under section 5(a) or an update to that report under section 
5(e), the President shall impose sanctions described in sub-
section (b) with respect to that foreign person. 
(b) SANCTIONS DESCRIBED.—The sanctions described in this 
subsection with respect to a foreign person are the following: 
(1) PROPERTY TRANSACTIONS.—The President may, pursu-
ant to such regulations as the President may prescribe, prohibit 
any person from— 
(A) acquiring, holding, withholding, using, transferring, 
withdrawing, transporting, or exporting any property that 
is subject to the jurisdiction of the United States and 
with respect to which the foreign person has any interest; 
(B) dealing in or exercising any right, power, or privi-
lege with respect to such property; or 
(C) conducting any transaction involving such property. 
(2) EXCLUSION FROM THE UNITED STATES AND REVOCATION 
OF VISA OR OTHER DOCUMENTATION.—In the case of a foreign 
person who is an individual, the President may direct the 
Secretary of State to deny a visa to, and the Secretary of 
Homeland Security to exclude from the United States, the 
foreign person, subject to regulatory exceptions to permit the 
United States to comply with the Agreement regarding the 
Headquarters of the United Nations, signed at Lake Success 
June 26, 1947, and entered into force November 21, 1947, 
between the United Nations and the United States, or other 
applicable international obligations. 
SEC. 7. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL INSTITU-
TIONS THAT CONDUCT SIGNIFICANT TRANSACTIONS WITH 
FOREIGN PERSONS THAT CONTRAVENE THE OBLIGATIONS 
OF CHINA UNDER THE JOINT DECLARATION OR THE BASIC 
LAW. 
(a) IMPOSITION OF SANCTIONS.—
H. R. 7440—10 
(1) INITIAL SANCTIONS.—Not later than one year after the 
date on which a foreign financial institution is included in 
the report under section 5(b) or an update to that report under 
section 5(e), the President shall impose not fewer than 5 of 
the sanctions described in subsection (b) with respect to that 
foreign financial institution. 
(2) EXPANDED SANCTIONS.—Not later than two years after 
the date on which a foreign financial institution is included 
in the report under section 5(b) or an update to that report 
under section 5(e), the President shall impose each of the 
sanctions described in subsection (b). 
(b) SANCTIONS DESCRIBED.—The sanctions described in this 
subsection with respect to a foreign financial institution are the 
following: 
(1) LOANS FROM UNITED STATES FINANCIAL INSTITUTIONS.— 
The United States Government may prohibit any United States 
financial institution from making loans or providing credits 
to the foreign financial institution. 
(2) PROHIBITION ON DESIGNATION AS PRIMARY DEALER.— 
Neither the Board of Governors of the Federal Reserve System 
nor the Federal Reserve Bank of New York may designate, 
or permit the continuation of any prior designation of, the 
foreign financial institution as a primary dealer in United 
States Government debt instruments. 
(3) PROHIBITION ON SERVICE AS A REPOSITORY OF GOVERN-
MENT FUNDS.—The foreign financial institution may not serve 
as agent of the United States Government or serve as repository 
for United States Government funds. 
(4) FOREIGN EXCHANGE.—The President may, pursuant to 
such regulations as the President may prescribe, prohibit any 
transactions in foreign exchange that are subject to the jurisdic-
tion of the United States and involve the foreign financial 
institution. 
(5) BANKING TRANSACTIONS.—The President may, pursuant 
to such regulations as the President may prescribe, prohibit 
any transfers of credit or payments between financial institu-
tions or by, through, or to any financial institution, to the 
extent that such transfers or payments are subject to the juris-
diction of the United States and involve the foreign financial 
institution. 
(6) PROPERTY TRANSACTIONS.—The President may, pursu-
ant to such regulations as the President may prescribe, prohibit 
any person from— 
(A) acquiring, holding, withholding, using, transferring, 
withdrawing, transporting, importing, or exporting any 
property that is subject to the jurisdiction of the United 
States and with respect to which the foreign financial 
institution has any interest; 
(B) dealing in or exercising any right, power, or privi-
lege with respect to such property; or 
(C) conducting any transaction involving such property. 
(7) RESTRICTION ON EXPORTS, REEXPORTS, AND TRANSFERS.— 
The President, in consultation with the Secretary of Commerce, 
may restrict or prohibit exports, reexports, and transfers (in- 
country) of commodities, software, and technology subject to 
the jurisdiction of the United States directly or indirectly to 
the foreign financial institution.
H. R. 7440—11 
(8) BAN ON INVESTMENT IN EQUITY OR DEBT.—The President 
may, pursuant to such regulations or guidelines as the Presi-
dent may prescribe, prohibit any United States person from 
investing in or purchasing significant amounts of equity or 
debt instruments of the foreign financial institution. 
(9) EXCLUSION
OF
CORPORATE
OFFICERS.—The President 
may direct the Secretary of State, in consultation with the 
Secretary of the Treasury and the Secretary of Homeland Secu-
rity, to exclude from the United States any alien that is deter-
mined to be a corporate officer or principal of, or a shareholder 
with a controlling interest in, the foreign financial institution, 
subject to regulatory exceptions to permit the United States 
to comply with the Agreement regarding the Headquarters 
of the United Nations, signed at Lake Success June 26, 1947, 
and entered into force November 21, 1947, between the United 
Nations and the United States, or other applicable international 
obligations. 
(10) SANCTIONS ON PRINCIPAL EXECUTIVE OFFICERS.—The 
President may impose on the principal executive officer or 
officers of the foreign financial institution, or on individuals 
performing similar functions and with similar authorities as 
such officer or officers, any of the sanctions described in para-
graphs (1) through (8) that are applicable. 
(c) TIMING OF SANCTIONS.—The President may impose sanctions 
required under subsection (a) with respect to a financial institution 
included in the report under section 5(b) or an update to that 
report under section 5(e) beginning on the day on which the finan-
cial institution is included in that report or update. 
SEC. 8. WAIVER, TERMINATION, EXCEPTIONS, AND CONGRESSIONAL 
REVIEW PROCESS. 
(a) NATIONAL SECURITY WAIVER.—Unless a disapproval resolu-
tion is enacted under subsection (e), the President may waive the 
application of sanctions under section 6 or 7 with respect to a 
foreign person or foreign financial institution if the President— 
(1) determines that the waiver is in the national security 
interest of the United States; and 
(2) submits to the appropriate congressional committees 
and leadership a report on the determination and the reasons 
for the determination. 
(b) TERMINATION OF SANCTIONS AND REMOVAL FROM REPORT.— 
Unless a disapproval resolution is enacted under subsection (e), 
the President may terminate the application of sanctions under 
section 6 or 7 with respect to a foreign person or foreign financial 
institution and remove the foreign person from the report required 
under section 5(a) or the foreign financial institution from the 
report required under section 5(b), as the case may be, if the 
Secretary of State, in consultation with the Secretary of the 
Treasury, determines that the actions taken by the foreign person 
or foreign financial institution that led to the imposition of sanc-
tions— 
(1) do not have a significant and lasting negative effect 
that contravenes the obligations of China under the Joint Dec-
laration and the Basic Law; 
(2) are not likely to be repeated in the future; and
H. R. 7440—12 
(3) have been reversed or otherwise mitigated through posi-
tive countermeasures taken by that foreign person or foreign 
financial institution. 
(c) TERMINATION OF ACT.— 
(1) REPORT.— 
(A) IN
GENERAL.—Not later than July 1, 2046, the 
President, in consultation with the Secretary of State, the 
Secretary of the Treasury, and the heads of such other 
Federal agencies as the President considers appropriate, 
shall submit to Congress a report evaluating the 
implementation of this Act and sanctions imposed pursuant 
to this Act. 
(B) ELEMENTS.—The President shall include in the 
report submitted under subparagraph (A) an assessment 
of whether this Act and the sanctions imposed pursuant 
to this Act should be terminated. 
(2) TERMINATION.—This Act and the sanctions imposed 
pursuant to this Act shall remain in effect unless a termination 
resolution is enacted under subsection (e) after July 1, 2047. 
(d) EXCEPTION RELATING TO IMPORTATION OF GOODS.— 
(1) IN
GENERAL.—The authorities and requirements to 
impose sanctions under sections 6 and 7 shall not include 
the authority or requirement to impose sanctions on the 
importation of goods. 
(2) GOOD DEFINED.—In this subsection, the term ‘‘good’’ 
means any article, natural or manmade substance, material, 
supply, or manufactured product, including inspection and test 
equipment, and excluding technical data. 
(e) CONGRESSIONAL REVIEW.— 
(1) RESOLUTIONS.— 
(A) DISAPPROVAL
RESOLUTION.—In this section, the 
term ‘‘disapproval resolution’’ means only a joint resolution 
of either House of Congress— 
(i) the title of which is as follows: ‘‘A joint resolu-
tion disapproving the waiver or termination of sanc-
tions with respect to a foreign person that contravenes 
the obligations of China with respect to Hong Kong 
or a foreign financial institution that conducts a signifi-
cant transaction with that person.’’; and 
(ii) the sole matter after the resolving clause of 
which is the following: ‘‘Congress disapproves of the 
action under section 8 of the Hong Kong Autonomy 
Act relating to the application of sanctions imposed 
with respect to a foreign person that contravenes the 
obligations of China with respect to Hong Kong, or 
a foreign financial institution that conducts a signifi-
cant transaction with that person, on lllllll 
relating to llllllll.’’, with the first blank 
space being filled with the appropriate date and the 
second blank space being filled with a short description 
of the proposed action. 
(B) TERMINATION
RESOLUTION.—In this section, the 
term ‘‘termination resolution’’ means only a joint resolution 
of either House of Congress— 
(i) the title of which is as follows: ‘‘A joint resolu-
tion terminating sanctions with respect to foreign per-
sons that contravene the obligations of China with
H. R. 7440—13 
respect to Hong Kong and foreign financial institutions 
that conduct significant transactions with those per-
sons.’’; and 
(ii) the sole matter after the resolving clause of 
which is the following: ‘‘The Hong Kong Autonomy 
Act and any sanctions imposed pursuant to that Act 
shall terminate on llll.’’, with the blank space 
being filled with the termination date. 
(C) COVERED
RESOLUTION.—In this subsection, the 
term ‘‘covered resolution’’ means a disapproval resolution 
or a termination resolution. 
(2) INTRODUCTION.—A covered resolution may be intro-
duced— 
(A) in the House of Representatives, by the majority 
leader or the minority leader; and 
(B) in the Senate, by the majority leader (or the 
majority leader’s designee) or the minority leader (or the 
minority leader’s designee). 
(3) FLOOR CONSIDERATION IN HOUSE OF REPRESENTATIVES.— 
If a committee of the House of Representatives to which a 
covered resolution has been referred has not reported the reso-
lution within 10 legislative days after the date of referral, 
that committee shall be discharged from further consideration 
of the resolution. 
(4) CONSIDERATION IN THE SENATE.— 
(A) COMMITTEE REFERRAL.— 
(i) DISAPPROVAL RESOLUTION.—A disapproval reso-
lution 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 signifi-
cantly alter United States foreign policy with 
regard to China; and 
(II) referred to the Committee on Foreign Rela-
tions if the resolution relates 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 referred has not reported 
the resolution within 10 legislative days after the date 
of referral of the resolution, that committee shall be dis-
charged from further consideration of the resolution and 
the resolution shall be placed on the appropriate calendar. 
(C) PROCEEDING TO CONSIDERATION.—Notwithstanding 
Rule XXII of the Standing Rules of the Senate, it is in 
order at any time after the Committee on Banking, 
Housing, and Urban Affairs or the Committee on Foreign 
Relations, as the case may be, reports a covered resolution 
to the Senate or has been discharged from consideration 
of such a resolution (even though a previous motion to 
the same effect has been disagreed to) to move to proceed 
to the consideration of the resolution, and all points of 
order against the resolution (and against consideration of
H. R. 7440—14 
the resolution) are waived. The motion to proceed is not 
debatable. The motion is not subject to a motion to post-
pone. A motion to reconsider the vote by which the motion 
is agreed to or disagreed to shall not be in order. 
(D) RULINGS OF THE CHAIR ON PROCEDURE.—Appeals 
from the decisions of the Chair relating to the application 
of the rules of the Senate, as the case may be, to the 
procedure relating to a covered resolution shall be decided 
without debate. 
(E) CONSIDERATION OF VETO MESSAGES.—Debate in the 
Senate of any veto message with respect to a covered 
resolution, including all debatable motions and appeals 
in connection with the resolution, shall be limited to 10 
hours, to be equally divided between, and controlled by, 
the majority leader and the minority leader or their des-
ignees. 
(5) RULES RELATING TO SENATE AND HOUSE OF REPRESENTA-
TIVES.— 
(A) TREATMENT OF SENATE RESOLUTION IN HOUSE.— 
In the House of Representatives, the following procedures 
shall apply to a covered resolution received from the Senate 
(unless the House has already passed a resolution relating 
to the same proposed action): 
(i) The resolution shall be referred to the appro-
priate committees. 
(ii) If a committee to which a resolution has been 
referred has not reported the resolution within 10 legis-
lative days after the date of referral, that committee 
shall be discharged from further consideration of the 
resolution. 
(iii) Beginning on the third legislative day after 
each committee to which a resolution has been referred 
reports the resolution to the House or has been dis-
charged from further consideration thereof, it shall 
be in order to move to proceed to consider the resolu-
tion in the House. All points of order against the motion 
are waived. Such a motion shall not be in order after 
the House has disposed of a motion to proceed on 
the resolution. The previous question shall be consid-
ered as ordered on the motion to its adoption without 
intervening motion. The motion shall not be debatable. 
A motion to reconsider the vote by which the motion 
is disposed of shall not be in order. 
(iv) The resolution shall be considered as read. 
All points of order against the resolution and against 
its consideration are waived. The previous question 
shall be considered as ordered on the resolution to 
final passage without intervening motion except 2 
hours of debate equally divided and controlled by the 
offeror of the motion to proceed (or a designee) and 
an opponent. A motion to reconsider the vote on pas-
sage of the resolution shall not be in order. 
(B) TREATMENT OF HOUSE RESOLUTION IN SENATE.— 
(i) RECEIVED BEFORE PASSAGE OF SENATE RESOLU-
TION.—If, before the passage by the Senate of a covered 
resolution, the Senate receives an identical resolution
H. R. 7440—15 
from the House of Representatives, the following proce-
dures shall apply: 
(I) That resolution shall not be referred to 
a committee. 
(II) With respect to that resolution— 
(aa) the procedure in the Senate shall be 
the same as if no resolution had been received 
from the House of Representatives; but 
(bb) the vote on passage shall be on the 
resolution from the House of Representatives. 
(ii) RECEIVED AFTER PASSAGE OF SENATE RESOLU-
TION.—If, following passage of a covered resolution in 
the Senate, the Senate receives an identical resolution 
from the House of Representatives, that resolution 
shall be placed on the appropriate Senate calendar. 
(iii) NO SENATE COMPANION.—If a covered resolu-
tion is received from the House of Representatives, 
and no companion resolution has been introduced in 
the Senate, the Senate procedures under this sub-
section shall apply to the resolution from the House 
of Representatives. 
(C) APPLICATION TO REVENUE MEASURES.—The provi-
sions of this paragraph shall not apply in the House of 
Representatives to a covered resolution that is a revenue 
measure. 
(6) RULES OF HOUSE OF REPRESENTATIVES AND SENATE.— 
This subsection is enacted by Congress— 
(A) as an exercise of the rulemaking power of the 
Senate and the House of Representatives, respectively, and 
as such is deemed a part of the rules of each House, 
respectively, and supersedes other rules only to the extent 
that it is inconsistent with such rules; and 
(B) with full recognition of the constitutional right 
of either House to change the rules (so far as relating 
to the procedure of that House) at any time, in the same 
manner, and to the same extent as in the case of any 
other rule of that House. 
SEC. 9. IMPLEMENTATION; PENALTIES. 
(a) IMPLEMENTATION.—The President may exercise all authori-
ties provided under sections 203 and 205 of the International Emer-
gency Economic Powers Act (50 U.S.C. 1702 and 1704) to the 
extent necessary to carry out this Act. 
(b) PENALTIES.—A person that violates, attempts to violate, 
conspires to violate, or causes a violation of section 6 or 7 or 
any regulation, license, or order issued to carry out that section 
shall be subject to the penalties set forth in subsections (b) and 
(c) of section 206 of the International Emergency Economic Powers 
Act (50 U.S.C. 1705) to the same extent as a person that commits 
an unlawful act described in subsection (a) of that section.
H. R. 7440—16 
SEC. 10. RULE OF CONSTRUCTION. 
Nothing in this Act shall be construed as an authorization 
of military force against China. 
Speaker of the House of Representatives. 
Vice President of the United States and
President of the Senate.