Title: South China Sea and East China Sea Sanctions Act of 2021
Policy area: International Affairs

Summary:
South China Sea and East China Sea Sanctions Act of 2021
This bill imposes sanctions on Chinese persons and entities that participate in certain activities related to China's territorial disputes in the South China Sea and the East China Sea and addresses other related issues.
The President must impose property-blocking and visa-denial sanctions on Chinese persons and entities that (1) contribute to development projects in parts of the South China Sea contested by a member country of the Association of Southeast Asian Nations, or (2) engage in actions or policies that threaten the peace or stability in disputed South China Sea areas or in an East China Sea area administered by Japan or South Korea. The bill prohibits U.S. entities from investing in or insuring projects involving sanctioned entities in either sea.
The President must also impose prohibitions and restrictions on correspondent and payable-through accounts related to sanctioned entities if the Office of the Director of National Intelligence determines that China has taken certain actions, such as declaring an air defense identification zone over the South China Sea.
The Government Publishing Office may not publish any resources that portray the contested territories in either sea as part of China, with limited exceptions. The Department of Defense, U.S. flagged vessels, or U.S. aircraft may not take any action that implies recognition of China's claimed sovereignty over contested territories.
The Department of State must periodically report to Congress identifying countries that recognize China's claims to the contested territories. Certain types of foreign aid may not be provided to such countries.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1657 Introduced in Senate (IS)]

<DOC>






117th CONGRESS
  1st Session
                                S. 1657

 To impose sanctions with respect to the People's Republic of China in 
 relation to activities in the South China Sea and the East China Sea, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 17, 2021

 Mr. Rubio (for himself and Mr. Cardin) introduced the following bill; 
which was read twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL


 
 To impose sanctions with respect to the People's Republic of China in 
 relation to activities in the South China Sea and the East China Sea, 
                        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.

    This Act may be cited as the ``South China Sea and East China Sea 
Sanctions Act of 2021''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Account; correspondent account; payable-through 
        account.--The terms ``account'', ``correspondent account'', and 
        ``payable-through account'' have the meanings given those terms 
        in section 5318A of title 31, United States Code.
            (2) Alien.--The term ``alien'' has the meaning given that 
        term in section 101(a) of the Immigration and Nationality Act 
        (8 U.S.C. 1101(a)).
            (3) Appropriate committees of congress.--The term 
        ``appropriate committees of Congress'' means--
                    (A) the Committee on Foreign Relations, the 
                Committee on Armed Services, the Committee on Banking, 
                Housing, and Urban Affairs, and the Select Committee on 
                Intelligence of the Senate; and
                    (B) the Committee on Foreign Affairs, the Committee 
                on Armed Services, the Committee on Financial Services, 
                and the Permanent Select Committee on Intelligence of 
                the House of Representatives.
            (4) Chinese person.--The term ``Chinese person'' means--
                    (A) an individual who is a citizen or national of 
                the People's Republic of China; or
                    (B) an entity organized under the laws of the 
                People's Republic of China or otherwise subject to the 
                jurisdiction of the Government of the People's Republic 
                of China.
            (5) Financial institution.--The term ``financial 
        institution'' means a financial institution specified in 
        subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), (J), 
        (K), (M), (N), (P), (R), (T), (Y), or (Z) of section 5312(a)(2) 
        of title 31, United States Code.
            (6) Foreign financial institution.--The term ``foreign 
        financial institution'' has the meaning given that term in 
        section 1010.605 of title 31, Code of Federal Regulations (or 
        any corresponding similar regulation or ruling).
            (7) Knowingly.--The term ``knowingly'', with respect to 
        conduct, a circumstance, or a result, means that a person has 
        actual knowledge, or should have known, of the conduct, the 
        circumstance, or the result.
            (8) Person.--The term ``person'' means any individual or 
        entity.
            (9) United states person.--The term ``United States 
        person'' means--
                    (A) a United States citizen or an alien lawfully 
                admitted for permanent residence to the United States; 
                or
                    (B) an entity organized under the laws of the 
                United States or of any jurisdiction within the United 
                States, including a foreign branch of such an entity.

SEC. 3. SANCTIONS WITH RESPECT TO CHINESE PERSONS RESPONSIBLE FOR 
              CHINA'S ACTIVITIES IN THE SOUTH CHINA SEA AND THE EAST 
              CHINA SEA.

    (a) Initial Imposition of Sanctions.--On and after the date that is 
60 days after the date of the enactment of this Act, the President 
shall impose the sanctions described in subsection (b) with respect 
to--
            (1) any Chinese person that contributes to construction or 
        development projects, including land reclamation, island-
        making, lighthouse construction, building of base stations for 
        mobile communications services, building of electricity and 
        fuel supply facilities, or civil infrastructure projects, or 
        contributes to the ongoing supply of new settlements resulting 
        from such development projects, in areas of the South China Sea 
        contested by one or more members of the Association of 
        Southeast Asian Nations;
            (2) any Chinese person that is responsible for or complicit 
        in, or has engaged in, directly or indirectly, actions or 
        policies that threaten the peace, security, or stability of 
        areas of the South China Sea contested by one or more members 
        of the Association of Southeast Asian Nations or areas of the 
        East China Sea administered by Japan or the Republic of Korea, 
        including through the use of vessels and aircraft to impose the 
        sovereignty of the People's Republic of China in those areas;
            (3) any Chinese person that engages, or attempts to engage, 
        in an activity or transaction that materially contributes to, 
        or poses a risk of materially contributing to, an activity 
        described in paragraph (1) or (2); and
            (4) any person that--
                    (A) is owned or controlled by a person described in 
                paragraph (1), (2), or (3);
                    (B) is acting for or on behalf of such a person; or
                    (C) provides, or attempts to provide--
                            (i) financial, material, technological, or 
                        other support to a person described in 
                        paragraph (1), (2), or (3); or
                            (ii) goods or services in support of an 
                        activity described in paragraph (1), (2), or 
                        (3).
    (b) Sanctions Described.--
            (1) Blocking of property.--The President shall block and 
        prohibit, in accordance with the International Emergency 
        Economic Powers Act (50 U.S.C. 1701 et seq.), all transactions 
        in all property and interests in property of any person subject 
        to subsection (a) if such property and interests in property 
        are in the United States, come within the United States, or are 
        or come within the possession or control of a United States 
        person.
            (2) Exclusion from united states.--The Secretary of State 
        shall deny a visa to, and the Secretary of Homeland Security 
        shall exclude from the United States, any person subject to 
        subsection (a) that is an alien.
            (3) Current visa revoked.--The issuing consular officer, 
        the Secretary of State, or the Secretary of Homeland Security 
        (or a designee of one of such Secretaries) shall revoke any 
        visa or other entry documentation issued to any person subject 
        to subsection (a) that is an alien, regardless of when issued. 
        The revocation shall take effect immediately and shall 
        automatically cancel any other valid visa or entry 
        documentation that is in the alien's possession.
    (c) Exceptions; Penalties.--
            (1) Inapplicability of national emergency requirement.--The 
        requirements of section 202 of the International Emergency 
        Economic Powers Act (50 U.S.C. 1701) shall not apply for 
        purposes of subsection (b)(1).
            (2) Compliance with united nations headquarters 
        agreement.--Paragraphs (2) and (3) of subsection (b) shall not 
        apply if admission of an alien to the United States is 
        necessary 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.
            (3) Penalties.--The penalties provided for in subsections 
        (b) and (c) of section 206 of the International Emergency 
        Economic Powers Act (50 U.S.C. 1705) shall apply to a person 
        that violates, attempts to violate, conspires to violate, or 
        causes a violation of regulations prescribed under subsection 
        (b)(1) to the same extent that such penalties apply to a person 
        that commits an unlawful act described in subsection (a) of 
        such section 206.
    (d) Additional Imposition of Sanctions.--
            (1) In general.--The President shall prohibit the opening, 
        and prohibit or impose strict conditions on the maintaining, in 
        the United States of a correspondent account or a payable-
        through account by a foreign financial institution that the 
        President determines knowingly, on or after the date that is 60 
        days after the date of the enactment of this Act, conducts or 
        facilitates a significant financial transaction for a person 
        subject to subsection (a) if the Director of National 
        Intelligence determines that the Government of the People's 
        Republic of China has--
                    (A) declared an air defense identification zone 
                over any part of the South China Sea;
                    (B) initiated reclamation work at another disputed 
                location in the South China Sea, such as at Scarborough 
                Shoal;
                    (C) seized control of Second Thomas Shoal;
                    (D) deployed surface-to-air missiles to any of the 
                artificial islands the People's Republic of China has 
                built in the Spratly Island chain, including Fiery 
                Cross, Mischief, or Subi Reefs;
                    (E) established territorial baselines around the 
                Spratly Island chain;
                    (F) repeated harassment of Philippine vessels; or
                    (G) repeated provocative actions against the 
                Japanese Coast Guard or Maritime Self-Defense Force or 
                United States forces in the East China Sea.
            (2) Report.--
                    (A) In general.--The determination of the Director 
                of National Intelligence referred to in paragraph (1) 
                shall be submitted in a report to the President and the 
                appropriate committees of Congress.
                    (B) Form of report.--The report required by 
                subparagraph (A) shall be submitted in unclassified 
                form, but may include a classified annex.

SEC. 4. DETERMINATIONS AND REPORT ON CHINESE COMPANIES ACTIVE IN THE 
              SOUTH CHINA SEA AND THE EAST CHINA SEA.

    (a) In General.--The Secretary of State shall submit to the 
appropriate committees of Congress a report that identifies each 
Chinese person the Secretary determines is engaged in the activities 
described in section 3(a).
    (b) Consideration.--In preparing the report required under 
subsection (a), the Secretary shall make specific findings with respect 
to whether each of the following persons is involved in the activities 
described in section 3(a):
            (1) CCCC Tianjin Dredging Co., Ltd.
            (2) CCCC Dredging (Group) Company, Ltd.
            (3) China Communications Construction Company (CCCC), Ltd.
            (4) China Petroleum Corporation (Sinopec Group).
            (5) China Mobile.
            (6) China Telecom.
            (7) China Southern Power Grid.
            (8) CNFC Guangzhou Harbor Engineering Company.
            (9) Zhanjiang South Project Construction Bureau.
            (10) Hubei Jiangtian Construction Group.
            (11) China Harbour Engineering Company (CHEC).
            (12) Guangdong Navigation Group (GNG) Ocean Shipping.
            (13) Shanghai Leading Energy Shipping.
            (14) China National Offshore Oil Corporation (CNOOC).
            (15) China Oilfield Services Limited (COSL).
            (16) China Precision Machinery Import/Export Corporation 
        (CPMIEC).
            (17) China Aerospace Science and Industry Corporation 
        (CASIC).
            (18) Aviation Industry Corporation of China (AVIC).
            (19) Shenyang Aircraft Corporation.
            (20) Shaanxi Aircraft Corporation.
            (21) China Ocean Shipping (Group) Company (COSCO).
            (22) China Southern Airlines.
            (23) Zhan Chaoying.
            (24) Sany Group.
            (25) Chinese persons affiliated with any of the entities 
        specified in paragraphs (1) through (24).
    (c) Submission and Form.--
            (1) Submission.--The report required by subsection (a) 
        shall be submitted not later than 60 days after the date of the 
        enactment of this Act and every 180 days thereafter until the 
        date that is 3 years after such date of enactment.
            (2) Form.--The report required by subsection (a) shall be 
        submitted in unclassified form, but may include a classified 
        annex if the Secretary determines it is necessary for the 
        national security interests of the United States to do so.
            (3) Public availability.--The Secretary shall publish the 
        unclassified part of the report required by subsection (a) on a 
        publicly available website of the Department of State.

SEC. 5. PROHIBITION AGAINST DOCUMENTS PORTRAYING THE SOUTH CHINA SEA OR 
              THE EAST CHINA SEA AS PART OF CHINA.

    The Government Publishing Office may not publish any map, document, 
record, electronic resource, or other paper of the United States (other 
than materials relating to hearings held by committees of Congress or 
internal work product of a Federal agency) portraying or otherwise 
indicating that it is the position of the United States that the 
territory or airspace in the South China Sea contested by one or more 
members of the Association of Southeast Asian Nations or the territory 
or airspace of areas of the East China Sea administered by Japan or the 
Republic of Korea is part of the territory or airspace of the People's 
Republic of China.

SEC. 6. PROHIBITION ON FACILITATING CERTAIN INVESTMENTS IN THE SOUTH 
              CHINA SEA OR THE EAST CHINA SEA.

    (a) In General.--No United States person may take any action to 
approve, facilitate, finance, or guarantee any investment, provide 
insurance, or underwriting in the South China Sea or the East China Sea 
that involves any person with respect to which sanctions are imposed 
under section 3(a).
    (b) Enforcement.--The Secretary of the Treasury, in consultation 
with the Secretary of State, is authorized to take such actions, 
including the promulgation of such rules and regulations, as may be 
necessary to carry out the purposes of this section.
    (c) Penalties.--The penalties provided for in subsections (b) and 
(c) of section 206 of the International Emergency Economic Powers Act 
(50 U.S.C. 1705) shall apply to a person that violates, attempts to 
violate, conspires to violate, or causes a violation of regulations 
prescribed under this section to the same extent that such penalties 
apply to a person that commits an unlawful act described in subsection 
(a) of such section 206.
    (d) Exception.--Subsection (a) shall not apply with respect to 
humanitarian assistance, disaster assistance, or emergency food 
assistance.

SEC. 7. DEPARTMENT OF JUSTICE AFFIRMATION OF NON-RECOGNITION OF 
              ANNEXATION.

    In any matter before any United States court, upon request of the 
court or any party to the matter, the Attorney General shall affirm the 
United States policy of not recognizing the de jure or de facto 
sovereignty of the People's Republic of China over territory or 
airspace contested by one or more members of the Association of 
Southeast Asian Nations in the South China Sea or the territory or 
airspace of areas of the East China Sea administered by Japan or the 
Republic of Korea.

SEC. 8. NON-RECOGNITION OF CHINESE SOVEREIGNTY OVER THE SOUTH CHINA SEA 
              OR THE EAST CHINA SEA.

    (a) United States Armed Forces.--The Secretary of Defense may not 
take any action, including any movement of aircraft or vessels that 
implies recognition of the sovereignty of the People's Republic of 
China over territory or airspace contested by one or more members of 
the Association of Southeast Asian Nations in the South China Sea or 
the territory or airspace of areas of the East China Sea administered 
by Japan or the Republic of Korea.
    (b) United States Flagged Vessels.--No vessel that is issued a 
certificate of documentation under chapter 121 of title 46, United 
States Code, may take any action that implies recognition of the 
sovereignty of the People's Republic of China over territory or 
airspace contested by one or more members of the Association of 
Southeast Asian Nations in the South China Sea or the territory or 
airspace of areas of the East China Sea administered by Japan or the 
Republic of Korea.
    (c) United States Aircraft.--No aircraft operated by an air carrier 
that holds an air carrier certificate issued under chapter 411 of title 
49, United States Code, may take any action that implies recognition of 
the sovereignty of the People's Republic of China over territory or 
airspace contested by one or more members of the Association of 
Southeast Asian Nations in the South China Sea or the territory or 
airspace of areas of the East China Sea administered by Japan or the 
Republic of Korea.

SEC. 9. PROHIBITION ON CERTAIN ASSISTANCE TO COUNTRIES THAT RECOGNIZE 
              CHINESE SOVEREIGNTY OVER THE SOUTH CHINA SEA OR THE EAST 
              CHINA SEA.

    (a) Prohibition.--Except as provided by subsection (c) or (d), no 
amounts may be obligated or expended to provide foreign assistance to 
the government of any country identified in a report required by 
subsection (b).
    (b) Report Required.--
            (1) In general.--Not later than 60 days after the date of 
        the enactment of this Act, and every 180 days thereafter until 
        the date that is 3 years after such date of enactment, the 
        Secretary of State shall submit to the appropriate committees 
        of Congress a report identifying each country that the 
        Secretary determines recognizes, after such date of enactment, 
        the sovereignty of the People's Republic of China over 
        territory or airspace contested by one or more members of the 
        Association of Southeast Asian Nations in the South China Sea 
        or the territory or airspace of areas of the East China Sea 
        administered by Japan or the Republic of Korea.
            (2) Form.--The report required by paragraph (1) shall be 
        submitted in unclassified form, but may include a classified 
        annex if the Secretary of State determines it is necessary for 
        the national security interests of the United States to do so.
            (3) Public availability.--The Secretary of State shall 
        publish the unclassified part of the report required by 
        paragraph (1) on a publicly available website of the Department 
        of State.
    (c) Exception.--This section shall not apply with respect to 
Taiwan, humanitarian assistance, disaster assistance, emergency food 
assistance, or the Peace Corps.
    (d) Waiver.--The President may waive the application of subsection 
(a) with respect to the government of a country if the President 
determines that the waiver is in the national interests of the United 
States.
                                 <all>