I 
110TH CONGRESS 
2D SESSION 
H. R. 5777 
To impose certain restrictions on trade with and investment in the People’s 
Republic of China, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 10, 2008 
Mr. TANCREDO introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committees on For-
eign Affairs, Judiciary, and Financial Services, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To impose certain restrictions on trade with and investment 
in the People’s Republic of China, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘China Democracy 
Act’’. 
SEC. 2. RESTRICTIONS ON TRADE WITH AND INVESTMENT 
IN THE PEOPLE’S REPUBLIC OF CHINA. 
(a) RESTRICTIONS ON TRADE.— 
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(1) IN GENERAL.—Subject to paragraph (2), no 
article that is the product of the People’s Republic 
of China may be imported into the United States, 
and no goods or technology may be exported from 
any place in the United States to the People’s Re-
public of China. 
(2) EXCEPTION.—Paragraph (1) shall not 
apply to— 
(A) exports of food or medicine to the Peo-
ple’s Republic of China; or 
(B) exports of items that would be author-
ized for export to Cuba, except that such items 
shall be subject to the same restrictions relating 
to licenses or other approval that apply with re-
spect to exports of such items to Cuba. 
(b) RESTRICTIONS ON INVESTMENT IN CHINESE EN-
TERPRISES.—No United States person may, after the end 
of the 180-day period beginning on the date of the enact-
ment of this Act, make an investment in any enterprise 
in the People’s Republic of China or in any enterprise that 
is owned or controlled by the Government of, entities con-
trolled by the Government of, or nationals of, the People’s 
Republic of China. 
(c) RESTRICTIONS ON INVESTMENT BY CHINESE NA-
TIONALS IN U.S. PERSONS.—No United States person 
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may, after the end of the 180-day period beginning on the 
date of the enactment of this Act, engage in any trans-
action the purpose of which is to secure an investment 
by a Chinese national in any United States person or in 
any enterprise owned or controlled by United States per-
sons. 
SEC. 3. ENTRY OF VESSELS ENGAGED IN TRADE WITH THE 
PEOPLE’S REPUBLIC OF CHINA. 
(a) PROHIBITIONS.—Except as specifically author-
ized by the President, by means of regulations, rulings, 
instructions, licenses, or otherwise — 
(1) no vessel that enters a port or place in the 
People’s Republic of China to engage in the trade of 
goods or the purchase or provision of services, may 
enter a port in the United States for the purpose of 
loading or unloading freight for a period of 180 days 
after the date on which the vessel departed from a 
port or place in the People’s Republic of China; and 
(2) no vessel carrying goods to or from the Peo-
ple’s Republic of China or carrying goods in which 
the People’s Republic of China or a national of the 
People’s Republic of China has an interest may 
enter a port in the United States with such goods 
on board. 
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(b) EXCEPTION.—Subsection (a) shall not apply with 
respect to exports of items permitted under section 1. 
SEC. 4. ENFORCEMENT. 
(a) REGULATORY AUTHORITY.—The President shall 
issue such regulations, orders, and licenses as are nec-
essary to carry out this Act. 
(b) EXCEPTIONS FROM PROHIBITIONS.—The Presi-
dent may provide for such exceptions from the prohibitions 
contained in this Act as are consistent with the Cuban 
Assets Control Regulations under part 515 of title 31, 
Code of Federal Regulations, as in effect on the date of 
the enactment of this Act. 
SEC. 5. PENALTIES. 
Any person or entity that violates this Act or any reg-
ulation, license, or order issued under this Act shall be 
subject to the penalties provided in section 206 of the 
International Emergency Economic Powers Act (50 
U.S.C. 1705) for violations under that Act. 
SEC. 6. SUSPENSION OF VISAS TO CHINESE NATIONALS. 
No immigrant or nonimmigrant visa may be issued 
to any national of the People’s Republic of China, and any 
such visa issued to a national of the People’s Republic of 
China before the effective date of this Act may not be ex-
tended on or after such effective date. 
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SEC. 7. DOWNGRADING OF DIPLOMATIC RELATIONS. 
The President shall take the necessary steps to down-
grade diplomatic relations with the People’s Republic of 
China to that which existed before the United States rec-
ognized the People’s Republic of China in 1979. 
SEC. 8. DEFINITIONS. 
In this Act: 
(1) FOOD.—The term ‘‘food’’ means— 
(A) any article used for food or drink for 
humans; and 
(B) any article used for a component of an 
article described in subparagraph (A). 
(2) INVESTMENT.—The term ‘‘investment’’ 
means any contribution or commitment of funds, 
commodities, services, patents, processes, or tech-
niques, in the form of— 
(A) a loan, 
(B) the purchase of a share of ownership, 
(C) participation in royalties, earnings, or 
profits, 
(D) the furnishing of commodities or serv-
ices pursuant to a lease or other contract, or 
(E) other mechanism, 
that is made for the production of income. 
(3) MEDICINE.—The term ‘‘medicine’’ has the 
meaning given the term ‘‘drug’’ in section 201 of the 
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Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
321). 
(4) NATIONAL OF THE PEOPLE’S REPUBLIC OF 
CHINA.—The term ‘‘national of the People’s Repub-
lic of China’’— 
(A) means— 
(i) a citizen of or person owing alle-
giance to the People’s Republic of China; 
(ii) any corporation, partnership, or 
other entity organized under the laws of 
the People’s Republic of China; and 
(iii) any entity owned or controlled by 
persons or entities described in clause (i) 
or (i); and 
(B) does not include any citizen or person 
owing allegiance to Taiwan, the Pescadores, or 
any other island over which the Taiwanese Gov-
ernment exercises control. 
(5) PEOPLE’S REPUBLIC OF CHINA.—The term 
‘‘People’s Republic of China’’— 
(A) includes mainland China, Hong Kong, 
Macao, and any other territory or special ad-
ministrative region governed by the People’s 
Republic of China; and 
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(B) does not include Taiwan, the Pesca-
dores, or any other island over which the Tai-
wanese Government exercises control. 
(6) 
UNITED
STATES.—The 
term 
‘‘United 
States’’ includes any commonwealth, territory, or 
possession of the United States, and the customs 
waters of the United States (as defined in section 
401 of the Tariff Act of 1930 (19 U.S.C. 1401)). 
(7) 
UNITED
STATES
PERSON.—The 
term 
‘‘United States person’’ means— 
(A) any United States citizen or alien law-
fully admitted for permanent residence to the 
United States; 
(B) any corporation, partnership, or other 
entity organized under the laws of the United 
States; and 
(C) any person in the United States. 
(8) VESSEL.—The term ‘‘vessel’’ includes every 
description of water craft or other contrivance used, 
or capable of being used, as a means of transpor-
tation in water, but does not include aircraft. 
SEC. 9. EFFECTIVE DATE. 
This Act shall take effect 180 days after the date of 
the enactment of this Act. 
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SEC. 10. TERMINATION. 
This Act shall cease to be effective 30 days after the 
date on which the President determines and certifies to 
the Congress that the People’s Republic of China— 
(1) at the national, provincial, and local levels, 
is governed by governments that are democratically 
elected from free and fair elections— 
(A) conducted under the supervision of 
internationally recognized observers; and 
(B) in which— 
(i) opposition parties were permitted 
ample time to organize and campaign for 
such elections; and 
(ii) all candidates were permitted full 
access to the media; 
(2) is showing respect for the basic civil lib-
erties and human rights of the citizens of the Peo-
ple’s Republic of China; 
(3) has a market-oriented economic system 
based on the right to own and enjoy property; 
(4) ensures regular free and fair elections and 
the full enjoyment of basic civil liberties and human 
rights by the citizens of the People’s Republic of 
China; 
(5) has established an independent judiciary; 
and 
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(6) is no longer engaging in wide-scale espio-
nage activities directed against the United States. 
Æ 
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