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-
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
the Basic Law and the financial institutions 
transacting with those foreign persons; 
(4) the Secretary of State should provide an un-
classified assessment of the reason for imposition of 
certain economic penalties on entities, so as to per-
mit a clear path for the removal of economic pen-
alties if the sanctioned behavior is reversed and 
verified by the Secretary of State; 
(5) relevant Federal agencies should establish a 
multilateral sanctions regime with respect to foreign 
persons involved in the contravention of the obliga-
tions of China under the Joint Declaration and the 
Basic Law; and 
(6) in addition to the penalties on foreign per-
sons, and financial institutions transacting with 
those foreign persons, for the contravention of the 
obligations of China under the Joint Declaration and 
the Basic Law, the United States should take steps, 
in a time of crisis, to assist permanent residents of 
Hong Kong who are persecuted or fear persecution 
as a result of the contravention by China of its obli-
gations under the Joint Declaration and the Basic 
Law to become eligible to obtain lawful entry into 
the United States.
SEC. 5. IDENTIFICATION OF FOREIGN PERSONS INVOLVED 
IN THE EROSION OF THE OBLIGATIONS OF 
CHINA UNDER THE JOINT DECLARATION OR 
THE BASIC LAW AND FOREIGN FINANCIAL IN-
STITUTIONS THAT CONDUCT SIGNIFICANT 
TRANSACTIONS WITH THOSE PERSONS. 
(a) IN GENERAL.—Not later than 90 days after the 
date of the enactment of this Act, 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 ap-
propriate congressional committees and leadership a re-
port that includes— 
(1) an identification of the foreign person; and 
(2) a clear explanation for why the foreign per-
son was identified and a description of the activity 
that resulted in the identification. 
(b) IDENTIFYING FOREIGN FINANCIAL INSTITU-
TIONS.—Not earlier than 30 days and not later than 60 
days after the Secretary of State submits to the appro-
priate 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 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-
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
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;
(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
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.
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-
risdiction of the United States and with respect 
to which the foreign person has any interest; 
(B) dealing in or exercising any right, 
power, or privilege with respect to such prop-
erty; or 
(C) conducting any transaction involving 
such property. 
(2) EXCLUSION
FROM
THE
UNITED
STATES 
AND REVOCATION OF VISA OR OTHER DOCUMENTA-
TION.—In the case of a foreign person who is an in-
dividual, the President may direct the Secretary of 
State to deny a visa to, and the Secretary of Home-
land Security to exclude from the United States, the 
foreign person, subject to regulatory exceptions to 
permit the United States to comply with the Agree-
ment regarding the Headquarters of the United Na-
tions, signed at Lake Success June 26, 1947, and 
entered into force November 21, 1947, between the 
United Nations and the United States, or other ap-
plicable international obligations.
SEC. 7. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL 
INSTITUTIONS THAT CONDUCT SIGNIFICANT 
TRANSACTIONS 
WITH 
FOREIGN 
PERSONS 
THAT CONTRAVENE THE OBLIGATIONS OF 
CHINA UNDER THE JOINT DECLARATION OR 
THE BASIC LAW. 
(a) IMPOSITION OF SANCTIONS.— 
(1) INITIAL SANCTIONS.—Not later than one 
year after the date on which a foreign financial in-
stitution 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 sanc-
tions 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 de-
scribed in subsection (b). 
(b) SANCTIONS
DESCRIBED.—The sanctions de-
scribed in this subsection with respect to a foreign finan-
cial 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 for-
eign financial institution. 
(2) PROHIBITION ON DESIGNATION AS PRIMARY 
DEALER.—Neither the Board of Governors of the 
Federal Reserve System nor the Federal Reserve 
Bank of New York may designate, or permit the 
continuation of any prior designation of, the foreign 
financial institution as a primary dealer in United 
States Government debt instruments. 
(3) PROHIBITION
ON
SERVICE
AS
A
REPOSI-
TORY OF GOVERNMENT FUNDS.—The foreign finan-
cial institution may not serve as agent of the United 
States Government or serve as repository for United 
States Government funds. 
(4) FOREIGN EXCHANGE.—The President may, 
pursuant to such regulations as the President may 
prescribe, prohibit any transactions in foreign ex-
change that are subject to the jurisdiction of the 
United States and involve the foreign financial insti-
tution. 
(5) BANKING
TRANSACTIONS.—The President 
may, pursuant to such regulations as the President 
may prescribe, prohibit any transfers of credit or 
payments between financial institutions or by, 
through, or to any financial institution, to the extent
that such transfers or payments are subject to the 
jurisdiction of the United States and involve the for-
eign financial institution. 
(6) PROPERTY TRANSACTIONS.—The President 
may, pursuant to such regulations as the President 
may prescribe, prohibit any person from— 
(A) acquiring, holding, withholding, using, 
transferring, withdrawing, transporting, import-
ing, or exporting any property that is subject to 
the jurisdiction of the United States and with 
respect to which the foreign financial institution 
has any interest; 
(B) dealing in or exercising any right, 
power, or privilege with respect to such prop-
erty; or 
(C) conducting any transaction involving 
such property. 
(7) RESTRICTION
ON
EXPORTS, REEXPORTS, 
AND
TRANSFERS.—The President, in consultation 
with the Secretary of Commerce, may restrict or 
prohibit exports, reexports, and transfers (in-coun-
try) of commodities, software, and technology sub-
ject to the jurisdiction of the United States directly 
or indirectly to the foreign financial institution.
(8) BAN
ON
INVESTMENT
IN
EQUITY
OR 
DEBT.—The President may, pursuant to such regu-
lations or guidelines as the President may prescribe, 
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 Security, to exclude from 
the United States any alien that is determined 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 per-
mit 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 OF-
FICERS.—The President may impose on the prin-
cipal executive officer or officers of the foreign fi-
nancial institution, or on individuals performing 
similar functions and with similar authorities as
such officer or officers, any of the sanctions de-
scribed in paragraphs (1) through (8) that are appli-
cable. 
(c) TIMING OF SANCTIONS.—The President may im-
pose sanctions required under subsection (a) with respect 
to a financial institution included in the report under sec-
tion 5(b) or an update to that report under section 5(e) 
beginning on the day on which the financial institution 
is included in that report or update. 
SEC. 8. WAIVER, TERMINATION, EXCEPTIONS, AND CON-
GRESSIONAL REVIEW PROCESS. 
(a) NATIONAL SECURITY WAIVER.—Unless a dis-
approval resolution 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 deter-
mination and the reasons for the determination. 
(b) TERMINATION
OF SANCTIONS
AND REMOVAL 
FROM REPORT.—Unless a disapproval resolution is en-
acted under subsection (e), the President may terminate 
the application of sanctions under section 6 or 7 with re-
spect to a foreign person or foreign financial institution 
and remove 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 Sec-
retary of the Treasury, determines that the actions taken 
by the foreign person or foreign financial institution that 
led to the imposition of sanctions— 
(1) do not have a significant and lasting nega-
tive effect that contravenes the obligations of China 
under the Joint Declaration and the Basic Law; 
(2) are not likely to be repeated in the future; 
and 
(3) have been reversed or otherwise mitigated 
through positive countermeasures taken by that for-
eign person or foreign financial institution. 
(c) TERMINATION OF ACT.— 
(1) REPORT.— 
(A) IN GENERAL.—Not later than July 1, 
2046, the President, in consultation with the 
Secretary of State, the Secretary of the Treas-
ury, and the heads of such other Federal agen-
cies as the President considers appropriate, 
shall submit to Congress a report evaluating the
implementation of this Act and sanctions im-
posed pursuant to this Act. 
(B) ELEMENTS.—The President shall in-
clude in the report submitted under subpara-
graph (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 sub-
section (e) after July 1, 2047. 
(d) EXCEPTION RELATING
TO IMPORTATION
OF 
GOODS.— 
(1) IN GENERAL.—The authorities and require-
ments to impose sanctions under sections 6 and 7 
shall not include the authority or requirement to im-
pose 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 prod-
uct, including inspection and test equipment, and ex-
cluding technical data. 
(e) CONGRESSIONAL REVIEW.— 
(1) RESOLUTIONS.—