II 
116TH CONGRESS 
2D SESSION 
H. R. 7440 
IN THE SENATE OF THE UNITED STATES 
JULY 1, 2020 
Received 
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 Representa-
tives of the United States of America in Congress assembled, 
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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 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 conduct sig-
nificant 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 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 
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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 
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 
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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 Re-
gion 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 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 
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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 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 
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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 
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 
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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-
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 
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(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 
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, 
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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 
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: 
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(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-
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 
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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. 
(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. 
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(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. 
(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. 
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(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. 
(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 
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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 
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-
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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 
of 1992 and the Hong Kong Human Rights and De-
mocracy 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 protec-
tions that Hong Kong has been afforded by the Gov-
ernment of China under the Joint Declaration and 
the Basic Law, the United States should establish a 
clear and unambiguous set of penalties with respect 
to foreign persons determined by the Secretary 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 
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the appropriate congressional committees and leadership 
a report that identifies any foreign financial institution 
that knowingly conducts 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 disclose 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 In-
telligence determines that such disclosure could com-
promise 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 con-
fidential source, including a State, local, or for-
eign agency or authority or any private institu-
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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. 
(d) EXCLUSION OR REMOVAL OF FOREIGN PERSONS 
AND FOREIGN FINANCIAL INSTITUTIONS.— 
(1) FOREIGN
PERSONS.—The President may 
exclude a foreign person from the report under sub-
section (a), or an update under subsection (e), or re-
move 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 
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subsection (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 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 (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 sig-
nificant transaction or significant transactions of the 
foreign financial 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; 
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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. 
(3) NOTIFICATION
REQUIRED.—If the Presi-
dent 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 determination. 
(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, up-
dated 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 re-
quirement 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 
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United States-Hong Kong Policy Act of 1992 (22 
U.S.C. 5731). 
(f) FORM OF REPORTS.— 
(1) IN
GENERAL.—Each report under sub-
section (a) or (b) (including updates under sub-
section (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. 
(g) 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 
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. 
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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 the report 
under section 5(a) or an update to that report under 
section 5(e), the President may impose sanctions de-
scribed 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 up-
date to that report under section 5(e), the President 
shall impose sanctions described in subsection (b) 
with respect to that foreign person. 
(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-
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