I
105TH CONGRESS
1ST SESSION
H. R. 2011
To impose certain sanctions on the People’s Republic of China, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 23, 1997
Mr. HUTCHINSON introduced the following bill; which was referred to the
Committee on International Relations, and in addition to the Committees
on Banking and Financial Services, Ways and Means, and the Judiciary,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of the
committee concerned
A BILL
To impose certain sanctions on 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 Sanctions and
Human Rights Advancement Act’’.
SEC. 2. PURPOSE.
It is the purpose of this Act—
(1) to impose certain sanctions on the People’s
Republic of China in response to the practices of the
Government of the People’s Republic of China which
limit the free exercise of religion and other human
rights; and
(2) to require an annual report from the Presi-
dent on such practices.
SEC. 3. SANCTIONS.
(a) DENIAL OF ENTRY OF CERTAIN GOVERNMENT
OFFICIALS.—
(1) DENIAL OF ENTRY.—Except as provided in
paragraph (2), the Secretary of State may not issue
any visa to, and the Attorney General may not
admit to the United States, any of the following offi-
cials of the Government of the People’s Republic of
China:
(A) High-ranking officials of the Public
Security Bureau, as determined by the Sec-
retary.
(B) High-ranking officials of the Religious
Affairs Bureau, as so determined.
(C) Other high-ranking officials deter-
mined by the Secretary to be involved in the im-
plementation or enforcement of laws and direc-
tives of the People’s Republic of China which
restrict religious freedom.
(D) High-ranking officials determined by
the Secretary to be involved in the implementa-
tion or enforcement of laws and directives of
the People’s Republic of China on family plan-
ning.
(E) Officials determined by the Secretary
to have been materially involved in ordering or
carrying out the massacre of students in
Tiananmen Square in 1989.
(2) WAIVER.—
(A) IN
GENERAL.—Subject to subpara-
graph (B), the President may waive the applica-
bility of paragraph (1) with respect to any offi-
cial otherwise covered by that paragraph if the
President determines that the waiver with re-
spect to the official is in the national security
interests of the United States.
(B) NOTICE.—
(i) REQUIREMENT.—The President
may not exercise the authority provided in
subparagraph (A) with respect to an offi-
cial unless the President submits to Con-
gress a written notification of the exercise
of the authority.
(ii) CONTENTS.—Each notice shall in-
clude a justification of the exercise of the
authority, including—
(I) a statement why the exercise
of the authority is in the national se-
curity interests of the United States;
and
(II) a statement why such inter-
ests supersede the need for the United
States to make the response described
in section 2(1).
(b) MULTILATERAL ASSISTANCE.—
(1) INTERNATIONAL BANK FOR RECONSTRUC-
TION AND DEVELOPMENT.—
(A) OPPOSITION
TO
ASSISTANCE.—The
Secretary of the Treasury shall instruct the
United States Executive Director of the Inter-
national Bank for Reconstruction and Develop-
ment to vote against any loan or other utiliza-
tion of the funds of the bank to or for the Peo-
ple’s Republic of China.
(B) OPPOSITION TO MODIFICATION OF SIN-
GLE
COUNTRY
LOAN
LIMIT.—The Secretary
shall instruct the United States Executive Di-
rector of the International Bank for Recon-
struction and Development to vote against any
modification of the limitation on the share of
the total funds of the Bank that may be loaned
to a single country.
(C) LIMITATION
ON
DOMESTIC
BORROW-
ING.—
(i) LIMITATION.—The Secretary shall
restrict the ability of the International
Bank for Reconstruction and Development
to borrow in United States capital markets
in a fiscal year by an amount equal to the
amount of the loans approved for the Peo-
ple’s Republic of China in the preceding
fiscal year 1997 for purposes other than to
meet basic human needs.
(ii) EXCEPTION.—Clause (i) shall not
apply to borrowing for purposes of meeting
basic human needs.
(2) ASIAN DEVELOPMENT BANK.—
(A) OPPOSITION
TO
ASSISTANCE.—The
Secretary shall instruct the United States Di-
rector of the Asian Development Bank to vote
against any loan or other utilization of the
funds of the Bank to or for the People’s Repub-
lic of China.
(B) LIMITATION ON DOMESTIC BORROW-
ING.—
(i) LIMITATION.—The Secretary shall
restrict the ability of the Asian Develop-
ment Bank to borrow in United States
capital markets in a fiscal year by an
amount equal to the amount of the loans
approved for the People’s Republic of
China in the preceding fiscal year 1997 for
purposes other than to meet basic human
needs.
(ii) EXCEPTION.—Clause (i) shall not
apply to borrowing for purposes of meeting
basic human needs.
(3) INTERNATIONAL
MONETARY
FUND.—The
Secretary shall instruct the United States Executive
Director of the International Monetary Fund to vote
against any loan or other utilization of the funds of
the Fund to or for the People’s Republic of China.
(4) REDUCTION IN CONTRIBUTIONS FOR MULTI-
LATERAL
ASSISTANCE.—The amount of the con-
tributions of the United States to a multilateral de-
velopment bank in or for a fiscal year shall be the
otherwise available for financial assistance to the or-
ganization in the fiscal year less the amount utilized
by the organization for family planning services or
assistance in or for the People’s Republic of China
during the preceding fiscal year.
(2) CERTIFICATION.—
(A) REQUIREMENT.—In each fiscal year in
which a covered organization is provided finan-
cial assistance by the United States, the organi-
zation shall certify to the Secretary of State the
amount, if any, utilized by the organization in
the preceding fiscal year for family planning
services or assistance in or for the People’s Re-
public of China.
(B) DEADLINE.—A covered organization
shall make the certification required for a fiscal
year not later than October 31 of that fiscal
year.
(3) DEFINITION.—In this subsection, the term
‘‘covered organization’’ means an organization that
provides family planning services or assistance in or
for the People’s Republic of China.
(d) SANCTIONS REGARDING CHINA NORTH INDUS-
TRIES GROUP AND CHINA POLY GROUP.—
(1) SANCTIONS.—Except as provided in para-
graph (2), the President shall—
(A) prohibit the importation into the Unit-
ed States of all products that are produced,
grown, or manufactured by Poly or Norinco,
the parent company of Poly or Norinco, or any
affiliate, subsidiary, or successor entity of Poly
or Norinco;
(B) deny or impose restrictions on the
entry into the United States of any foreign na-
tional serving as an officer, director, or em-
ployee of an entity described in subparagraph
(A);
(C) prohibit the issuance to a person or en-
tity described in subparagraph (A) of licenses in
connection with the export of any item on the
United States Munitions List;
(D) prohibit the export to a person or en-
tity described in subparagraph (A) of any goods
or technology on which export controls are in
effect under section 5 or 6 of the Export Ad-
ministration Act of 1979;
(E) direct the Export-Import Bank of the
United States not to give approval to the issu-
ance of any guarantee, insurance, extension of
credit, or participation in the extension of cred-
it, with respect to a person or entity described
in subparagraph (A);
(F) prohibit United States nationals from
directly or indirectly issuing any guarantee for
any loan or other investment to, issuing any ex-
tension of credit to, or making any investment
in, a person or entity described in subparagraph
(A); and
(G) prohibit departments and agencies of
the United States and United States nationals
from entering into any contract with a person
or entity described in subparagraph (A) for the
procurement or other provision of goods or
services from such person or entity.
(2) EXCEPTIONS.—
(A) IN GENERAL.—The President shall not
impose sanctions under this subsection—
(i) in the case of the procurement of
defense articles or defense services—
(I) under contracts or sub-
contracts that are in effect on October
1, 1997 (including the exercise of op-
tions for production quantities to sat-
isfy United States operational military
requirements);
(II) if the President determines
that the person or entity to whom the
sanctions would otherwise be applied
is a sole source supplier of essential
defense articles or services and no al-
ternative supplier can be identified; or
(III) if the President determines
that such articles or services are es-
sential to the national security; or
(ii) in the case of—
(I) products or services provided
under contracts or binding agree-
ments (as such terms are defined by
the President in regulations) or joint
ventures entered into before October
1, 1997;
(II) spare parts;
(III) component parts that are
not finished products but are essential
to United States products or produc-
tion;
(IV) routine servicing and main-
tenance of products; or
(V) information and technology
products and services.
(B) 
IMMIGRATION
RESTRICTIONS.—The
President shall not apply the restrictions de-
scribed in paragraph (1)(B) to a person de-
scribed in paragraph (1)(A), if the President,
after consultation with the Attorney General,
determines that the presence of the person in
the United States is necessary for a Federal or
State judicial proceeding against a person or
entity described in paragraph (1)(A).
(3) DEFINITIONS.—In this subsection:
(A) AFFILIATE.—The term ‘‘affiliate’’ does
not include any United States national engaged
in a business arrangement with a person or en-
tity described in paragraph (1)(A).
(B) COMPONENT PART.—The term ‘‘com-
ponent part’’ means any article that is not usa-
ble for its intended function without being em-
bedded or integrated into any other product
and, if used in the production of a finished
product, would be substantially transformed in
that process.
(C) FINISHED PRODUCT.—The term ‘‘fin-
ished product’’ means any article that is usable
for its intended function without being embed-
ded in or integrated into any other product, but
does not include an article produced by a per-
son or entity other than a person or entity de-
scribed in paragraph (1)(A) that contains parts
or components of a person or entity described
in paragraph (1)(A) if the parts or components
have been substantially transformed during pro-
duction of the finished product.
(D) INVESTMENT.—The term ‘‘invest-
ment’’ includes any contribution or commitment
of funds, commodities, services, patents, proc-
esses, or techniques, in the form of—
(i) a loan or loans;
(ii) the purchase of a share of owner-
ship;
(iii) participation in royalties, earn-
ings, or profits; and
(iv) the furnishing of commodities or
services pursuant to a lease or other con-
tract,
but does not include routine maintenance of
property.
(E) NORINCO.—The term ‘‘Norinco’’ refers
to China North Industries Group.
(F) POLY.—The term ‘‘Poly’’ refers to
China 
Poly 
Group, 
also 
known 
as
Polytechnologies Incorporated or BAOLI.
(G) UNITED STATES NATIONAL.—
(i) IN GENERAL.—The term ‘‘United
States national’’ means—
(I) any United States citizen; and
(II) any corporation, partnership,
or other organization created under
the laws of the United States, any
State, the District of Columbia, or
any territory or possession of the
United States.
(ii) EXCEPTION.—The term ‘‘United
States national’’ does not include a sub-
sidiary or affiliate of corporation, partner-
ship, or organization that is a United
States national if the subsidiary or affiliate
is located outside the United States.
(e) CONSULTATIONS WITH ALLIES.—
(1) SENSE OF CONGRESS.—It is the sense of
Congress that the President should begin consulta-
tions with the major allies and other trading part-
ners of the United States in order to encourage such
allies and trading partners to adopt sanctions
against the People’s Republic of China that are simi-
lar to the sanctions imposed on the People’s Repub-
lic of China by this section.
(2) REPORT.—Not later than 45 days after the
completion of the first G–7 summit meeting after
the date of enactment of this Act, the President
shall submit to Congress a report on the results, if
any, of consultations referred to in paragraph (1).
(f) DURATION OF SANCTIONS.—Except as provided
in subsection (e)(2), the requirements and limitations set
forth in this section shall apply during the period begin-
ning on October 1, 1997, and ending on September 30,
1998.
SEC. 4. ANNUAL REPORT ON HUMAN RIGHTS PRACTICES
OF THE GOVERNMENT OF THE PEOPLE’S RE-
PUBLIC OF CHINA.
Not later than 9 months after the date of enactment
of this Act, and every year thereafter, the President shall
submit to Congress a report on the practices of the Gov-
ernment of the People’s Republic of China with respect
to the free exercise of religion and other human rights dur-
ing the one-year period preceding the submittal of the re-
port. The report shall include a detailed statement of the
improvements, if any, in such practices.
SEC. 5. PUBLICATION OF LIST OF COMPANIES OWNED BY
THE PEOPLE’S LIBERATION ARMY.
(a) PUBLICATION.—Not later than January 31 each
year, the Secretary of State shall publish in the Federal
Register a list of each corporation or other business entity
that was owned in whole or in part by the People’s Libera-
tion Army of the People’s Republic of China as of Decem-
ber 31 of the preceding year.
(b) PROTECTION OF SOURCES AND METHODS.—In
publishing the list each under subsection (a), the Sec-
retary shall take appropriate actions to ensure the protec-
tion of sources and methods of gathering intelligence.
SEC. 6. TRAINING FOR IMMIGRATION OFFICERS REGARD-
ING RELIGIOUS PERSECUTION.
Section 235 of the Immigration and Nationality Act
(8 U.S.C. 1225) is amended by adding at the end the fol-
lowing:
‘‘(d) TRAINING ON RELIGIOUS PERSECUTION.—The
Attorney General shall establish and operate a program
to provide to immigration officers performing functions
under subsection (b), or section 207 or 208, training on
religious persecution, including training on—
‘‘(1) the fundamental components of the right
to freedom of religion;
‘‘(2) the variation in beliefs of religious groups;
and
‘‘(3) the governmental and nongovernmental
methods used in violation of the right to freedom of
religion.’’.
SEC. 7. PROMOTION OF DEMOCRATIC VALUES IN THE PEO-
PLE’S REPUBLIC OF CHINA.
(a) STUDENT, CULTURAL, AND LEGISLATIVE EX-
CHANGE PROGRAMS.—Notwithstanding any other provi-
sion of law, the aggregate amount utilized and made avail-
able by the Director of the United States Information
Agency in fiscal year 1998 for programs and grants relat-
ing to student, cultural, and legislative exchange activities
in or with the People’s Republic of China may not be less
than an amount equal to twice the aggregate amount uti-
lized and made available for such programs and grants
in fiscal year 1997.
(b) RADIO FREE ASIA.—Notwithstanding any other
provision of law, the total amount of grants made to Radio
Free Asia in fiscal year 1998 under section 309 of the
United States International Broadcasting Act of 1994 (22
U.S.C. 6208) may not be less than an amount equal to
twice the amount of grants made to Radio Free Asia in
fiscal year 1997 under that section.
(c) NATIONAL ENDOWMENT FOR DEMOCRACY.—Not-
withstanding any other provision of law, the amount of
the grant made to the National Endowment for Democ-
racy by the Director of the United States Information
Agency in fiscal year 1998 for purposes of programs relat-
ing to the People’s Republic of China may not be less than
an amount equal to twice the amount of the grant made
to the Endowment in fiscal year 1997 for purposes of such
programs.
SEC. 8. TRANSFERS OF SENSITIVE EQUIPMENT AND TECH-
NOLOGY BY THE PEOPLE’S REPUBLIC OF
CHINA.
(a) FINDINGS.—Congress makes the following find-
ings:
(1) Credible allegations exist that the People’s
Republic of China has transferred equipment and
technology as follows:
(A) Gyroscopes, accelerometers, and test
equipment for missiles to Iran.
(B) Chemical weapons equipment and
technology to Iran.
(C) Missile guidance systems and comput-
erized machine tools to Iran.
(D) Industrial furnace equipment and high
technology diagnostic equipment to a nuclear
facility in Pakistan.
(E) Blueprints and equipment to manufac-
ture M–11 missiles to Pakistan.