II 118th CONGRESS 2d Session S. 4789 IN THE SENATE OF THE UNITED STATES July 25, 2024 Mr. Sullivan (for himself and Ms. Duckworth ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To require the imposition of sanctions with respect to the People's Republic of China if the People's Liberation Army initiates a military invasion of Taiwan.

1. Short title; table of contents (a) Short title This Act may be cited as the Sanctions Targeting Aggressors of Neighboring Democracies with Taiwan Act of 2024 or the STAND with Taiwan Act of 2024 . (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Findings. Sec. 3. Sense of Congress. Sec. 4. Statement of policy. Sec. 5. Definitions. Sec. 6. Imposition of sanctions with respect to officials of the Government of the People's Republic of China and members of the Chinese Communist Party. Sec. 7. Imposition of sanctions with respect to financial institutions affiliated with the Government of the People's Republic of China. Sec. 8. Imposition of sanctions with respect to entities owned by or affiliated with the Government of the People's Republic of China or the Chinese Communist Party. Sec. 9. Prohibition on transfers of funds involving the People's Republic of China. Sec. 10. Prohibition on listing or trading of Chinese entities on United States securities exchanges. Sec. 11. Prohibition on investments by United States financial institutions that benefit the Government of the People's Republic of China or the Chinese Communist Party. Sec. 12. Prohibition on energy exports to, and investments in energy sector of, the People's Republic of China. Sec. 13. Suspension of normal trade relations with the People’s Republic of China. Sec. 14. Exceptions; waiver. Sec. 15. Implementation; penalties. 2. Findings Congress makes the following findings: (1) Taiwan is a free and prosperous democracy of nearly 24,000,000 people, an important contributor to peace and stability around the world, and continues to embody and promote democratic values, freedom, and human rights in Asia. (2) The policy of the United States toward Taiwan is guided by the Taiwan Relations Act ( 22 U.S.C. 3301 et seq. ), the United States-People's Republic of China joint communiqués concluded in 1972, 1978, and 1982, and the Six Assurances that President Ronald Reagan communicated to Taiwan in 1982. (3) Under section 2 of the Taiwan Relations Act ( 22 U.S.C. 3301 ), it is the policy of the United States— (A) to preserve and promote extensive, close, and friendly commercial, cultural, and other relations between the people of the United States and the people on Taiwan, as well as the people on the China mainland and all other peoples of the Western Pacific area ; (B) to declare that peace and stability in the area are in the political, security, and economic interests of the United States, and are matters of international concern ; (C) to make clear that the United States decision to establish diplomatic relations with the People’s Republic of China rests upon the expectation that the future of Taiwan will be determined by peaceful means ; (D) to consider any effort to determine the future of Taiwan by other than peaceful means, including by boycotts or embargoes, a threat to the peace and security of the Western Pacific area and of grave concern to the United States ; (E) to provide Taiwan with arms of a defensive character ; and (F) to maintain the capacity of the United States to resist any resort to force or other forms of coercion that would jeopardize the security, or the social or economic system, of the people on Taiwan . (4) For decades and increasingly since the election of President Tsai Ing-wen as President of Taiwan in 2016, the Chinese Communist Party has employed a variety of coercive military and nonmilitary tactics short of armed conflict in its efforts to exert existential pressure on Taiwan, including through diplomatic isolation, restricting tourism, cyberattacks, spreading disinformation, and controlling the ability of Taiwan to purchase COVID–19 vaccines from other countries. (5) Since 2020, military incursions by the People's Republic of China into Taiwan’s air defense identification zone have been occurring at a rapidly increasing pace. In 2022, such incursions occurred 1,700 times, nearly double the total in 2021, which was itself almost triple the 2020 total. (6) Since 2021, there has been a notable increase in military provocations by the People’s Liberation Army against Taiwan, including incursions over the midline separating the People's Republic of China from Taiwan, holding military exercises in the vicinity of Taiwan’s controlled waters, and performing live-fire exercises in the South China Sea. (7) In August 2022, the People's Republic of China held unprecedented live-fire military exercises and a simulated blockade involving hundreds of military aircraft, dozens of warships, and launches of short-range ballistic missiles over the territory of Taiwan. (8) The People’s Republic of China is attempting to erase the midline separating it from Taiwan, increasing the prospects for incidental contact between forces of the People's Republic of China and Taiwan as well as shorting reaction times related to provocations by the People's Republic of China. (9) On August 10, 2022, the Taiwan Affairs Office of the State Council of the People's Republic of China released a white paper entitled The Taiwan Question and China’s Reunification in the New Era that reiterated the long-standing position of the Government of the People's Republic of China not to renounce the use of force to bring about unification with Taiwan and to always be ready to respond with the use of force … to interference by external forces or radical action by separatist elements . (10) In March 2021, then Commander of the United States Indo-Pacific Command Admiral Philip Davidson testified that the threat of a military invasion of Taiwan by the People’s Liberation Army is manifest during this decade, in fact in the next six years . (11) In March 2021, then Commander of the United States Pacific Fleet Admiral John Aquilino testified that the threat of a military invasion by the People’s Liberation Army of Taiwan is much closer to us than most think and could materialize well before 2035. (12) On February 24, 2022, the Armed Forces of the Russian Federation initiated an unprovoked and unjustified invasion of Ukraine, resulting in at least 14,000 civilian casualties, including more than 5,000 deaths. (13) The Russian Federation invasion has destabilized global markets and supply chains, from energy to food, contributing to high inflation and recession in the United States and deep cuts to global gross domestic product. (14) With the assistance of the United States and European allies, Ukrainian forces have successfully repelled the Russian Federation invasion and recaptured significant portions of territory taken by the Russian Federation in the initial stages of the invasion. (15) In addition to military power, timely messaging around the use of economic and financial instruments of United States power and their potential use can have an important deterrent effect on the actions of other countries. 3. Sense of Congress It is the sense of Congress that— (1) it is in the interests of the United States to maintain a free and open Indo-Pacific region, with peace and stability in the Taiwan Strait as a critical component; (2) efforts by the Government of the People's Republic of China and the Chinese Communist Party to unilaterally determine the future of Taiwan through non-peaceful means, including threats and the direct use of force, military coercion, economic boycotts or embargoes, cyberattacks, and efforts to internationally isolate or annex Taiwan— (A) directly undermine the spirit, intent, and purpose of the Taiwan Relations Act ( 22 U.S.C. 3301 et seq. ); (B) undermine peace and stability in the Taiwan Strait; (C) limit a free and open Indo-Pacific region; and (D) are of grave concern to the Government of the United States; (3) the initiation of a military invasion of Taiwan by the People’s Liberation Army would— (A) constitute a threat to the peace and security of the Western Pacific Area and threaten the peace stability of the entire globe; and (B) undermine the core political, security, and economic interests of the United States at home and abroad; and (4) as an important deterrent measure against a military invasion of Taiwan, the Government of the People's Republic of China and the Chinese Communist Party must understand that initiating such an invasion will result in catastrophic economic and financial consequences for the People’s Republic of China. 4. Statement of policy The policy of the Government of the United States on Taiwan is guided by the Taiwan Relations Act ( 22 U.S.C. 3301 et seq. ), the United States-People’s Republic of China joint communiqués concluded in 1972, 1978, and 1982, and the Six Assurances that President Ronald Reagan communicated to Taiwan in 1982, but in the event of the initiation of a military invasion of Taiwan by the People’s Liberation Army, it is the policy of the United States— (1) to use and deploy all economic, commercial, and financial instruments and levers of power, including— (A) the imposition of sanctions with respect to leadership of the Chinese Communist Party, key officials of the Government of the People's Republic of China, and financial institutions and other entities affiliated with the Chinese Communist Party or the Government of the People's Republic of China; (B) prohibiting the listing or trading of the securities of Chinese entities on United States securities exchanges; (C) prohibiting investments by United States financial institutions in economic sectors of the People’s Republic of China; and (D) prohibiting the importation of certain goods mined, produced, or manufactured in the People’s Republic of China into the United States; and (2) to work in close coordination with allies and partners of the United States to encourage those allies and partners to undertake similar economic, commercial, and financial actions against the Government of the People's Republic of China and the Chinese Communist Party. 5. 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) Admission; admitted; alien The terms admission , admitted , and alien have the meanings given those terms in section 101 of the Immigration and Nationality Act ( 8 U.S.C. 1101 ). (3) Appropriate congressional committees The term appropriate congressional committees means— (A) the Committee on Foreign Relations, the Committee on Armed Services, and the Committee on Banking, Housing, and Urban Affairs of the Senate; and (B) the Committee on Foreign Affairs, the Committee on Armed Services, and the Committee on Financial Services of the House of Representatives. (4) Covered determination The term covered determination means a determination by the President, not later than 24 hours after a military invasion of Taiwan by the People’s Liberation Army or any of its proxies, that such an invasion has occurred. (5) Financial institution The term financial institution means a financial institution specified in subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), (J), (M), or (Y) of section 5312(a)(2) of title 31, United States Code. (6) Foreign person The term foreign person means an individual or entity that is not a United States person. (7) Knowingly The term knowingly with respect to conduct, a circumstance, or a result, means that a person had actual knowledge, or should have known, of the conduct, the circumstance, or the result. (8) Military invasion The term military invasion includes— (A) an amphibious landing or assault; (B) an airborne operation or air assault; (C) an aerial bombardment or blockade; (D) missile attacks, including rockets, ballistic missiles, cruise missiles, and hypersonic missiles; (E) a naval bombardment or armed blockade; and (F) attack on any territory controlled or administered by the Government of Taiwan, including offshore islands controlled or administered by that Government. (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 any jurisdiction within the United States, including a foreign branch of such an entity. 6. Imposition of sanctions with respect to officials of the Government of the People's Republic of China and members of the Chinese Communist Party (a) In general Not later than 3 days after making a covered determination, the President shall impose the sanctions described in subsection (d) with respect to officials of the Government of the People’s Republic of China and members of the Chinese Communist Party specified in subsection (b), to the extent such officials and members can be identified. (b) Officials specified The officials specified in this subsection shall include— (1) senior civilian and military officials of the People’s Republic of China and military officials who have command or clear and direct decision-making power over military campaigns, military operations, and military planning against Taiwan conducted by the People's Liberation Army; (2) senior civilian and military officials of the People’s Republic of China who have command or clear and direct decision-making power in the Chinese Coast Guard and the Chinese People’s Armed Police and are engaged in planning or implementing activities that involve the use of force against Taiwan; (3) senior or special advisors to the General Secretary of the Chinese Communist Party, the Chairman of the Central Military Commission, or the President of the People’s Republic of China; (4) officials of the Government of the People’s Republic of China who are members of the top decision-making bodies of that Government; (5) the highest-ranking Chinese Communist Party members of the decision-making bodies referred to in paragraph (4); and (6) officials of the Government of the People’s Republic of China in the intelligence agencies or security services who— (A) have clear and direct decision-making power; and (B) have engaged in or implemented activities that— (i) materially undermine the military readiness of Taiwan; (ii) overthrow or decapitate the Taiwan's government; (iii) debilitate Taiwan’s electric grid, critical infrastructure, or cybersecurity systems through offensive electronic or cyber attacks; (iv) undermine Taiwan’s democratic processes through campaigns to spread disinformation; or (v) involve committing serious human rights abuses against citizens of Taiwan, including forceful transfers, enforced disappearances, unjust detainment, or torture. (c) Additional officials (1) List required Not later than 30 days after making a covered determination, and every 90 days thereafter, the President shall submit a list to the appropriate congressional committees that identifies any additional foreign persons who— (A) the President determines are officials specified in subsection (b); and (B) who were not included on any previous list of such officials. (2) Imposition of sanctions Upon the submission of the list required under paragraph (1), the President shall impose the sanctions described in subsection (d) with respect to each official included on the list. (d) Sanctions described The sanctions described in this subsection to be imposed with respect to an official specified in subsection (b) or (c) are the following: (1) Blocking of property (A) In general The President shall exercise all of the powers granted by the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ) to block and prohibit all transactions in all property and interests in property of the official 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. (B) 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 this section. (2) Ineligibility for visas, admission, or parole (A) Visas, admission, or parole The official shall be— (i) inadmissible to the United States; (ii) ineligible to receive a visa or other documentation to enter the United States; and (iii) otherwise ineligible to be admitted or paroled into the United States or to receive any other benefit under the Immigration and Nationality Act ( 8 U.S.C. 1101 et seq. ). (B) Current visas revoked (i) In general The visa or other entry documentation of the official shall be revoked, regardless of when such visa or other entry documentation is or was issued. (ii) Immediate effect A revocation under subparagraph (A) shall— (I) take effect immediately; and (II) automatically cancel any other valid visa or entry documentation that is in the official’s possession. (e) Exception for compliance with international obligations and law enforcement activities Sanctions under this section shall not apply with respect to an official if— (1) admitting or paroling the official into the United States is necessary— (A) to permit the United States to comply with the Agreement regarding the Headquarters of the United Nations, signed at Lake Success on June 26, 1947, and entered into force November 21, 1947, between the United Nations and the United States, or other applicable international obligations of the United States; or (B) to carry out or assist law enforcement activity in the United States; or (2) the alien holds a valid, unexpired A–1, A–2, C–2, G–1, or G–2 visa. (f) Top decision-Making bodies defined In this section, the term top decision-making bodies may include— (1) the Political Bureau of the Central Committee of the Chinese Communist Party; (2) the Standing Committee of the Political Bureau of the Central Committee of the Chinese Communist Party; (3) the Central Military Commission of the Chinese Communist Party; (4) the Central Military Commission of the People's Republic of China; (5) the National People's Congress of the People's Republic of China; (6) the Central Committee of the Chinese Communist Party; and (7) the State Council of the People’s Republic of China. 7. Imposition of sanctions with respect to financial institutions affiliated with the Government of the People's Republic of China (a) In general Not later than 3 days after a covered determination is made, the Secretary of the Treasury— (1) shall impose the sanctions described in subsection (b) with respect to— (A) the People's Bank of China; and (B) state-owned banks; and (2) may impose those sanctions with respect to any subsidiary of, or successor entity to, a state-owned bank. (b) Sanctions described The sanctions described in this subsection are the following: (1) Blocking of property (A) In general The President shall exercise all of the powers granted to the President under the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ) to the extent necessary to block and prohibit all transactions in property and interests in property of a financial institution 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. (B) 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 this section. (2) Restrictions on correspondent and payable-through accounts The President shall prohibit the opening, and prohibit or impose strict conditions on the maintaining, in the United States of a correspondent account or payable-through account by a financial institution subject to subsection (a). (c) State-Owned bank defined In this section, the term state-owned bank — (1) means a bank that— (A) is incorporated in the People’s Republic of China; and (B) is owned in whole or part by the Government of the People’s Republic of China; and (2) includes— (A) the Export-Import Bank of China; (B) the China Development Bank; (C) the Agricultural Development Bank of China; (D) the Industrial and Commercial Bank of China; (E) the China Construction Bank; (F) the Bank of Communications; (G) the Agricultural Bank of China; and (H) the Bank of China. 8. Imposition of sanctions with respect to entities owned by or affiliated with the Government of the People's Republic of China or the Chinese Communist Party (a) In general Not later than 3 days after a covered determination is made, the Secretary of the Treasury shall impose the sanctions described in subsection (b) with respect to any entity that— (1) the Government of the People's Republic of China or the Chinese Communist Party has an ownership interest in; or (2) is otherwise affiliated with the Government of the People's Republic of China or the Chinese Communist Party. (b) Blocking of property (1) In general The President shall exercise all of the powers granted to the President under the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ) to the extent necessary to block and prohibit all transactions in property and interests in property of an entity 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) 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 this section. 9. Prohibition on transfers of funds involving the People's Republic of China (a) In general Except as provided by subsection (b), not later than 3 days after a covered determination is made, a depository institution (as defined in section 19(b)(1)(A) of the Federal Reserve Act ( 12 U.S.C. 461(b)(1)(A) )) or a broker or dealer in securities registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq. ) may not process transfers of funds— (1) to or from the People's Republic of China; or (2) for the direct or indirect benefit of officials of the Government of the People's Republic of China or members of the Chinese Communist Party. (b) Exception A depository institution, broker, or dealer described in subsection (a) may process a transfer described in that subsection if the transfer— (1) arises from, and is ordinarily incident and necessary to give effect to, an underlying transaction that is authorized by a specific or general license; and (2) does not involve debiting or crediting an Chinese account. 10. Prohibition on listing or trading of Chinese entities on United States securities exchanges (a) In general The Securities and Exchange Commission shall prohibit the securities of an issuer described in subsection (b) from being traded on a national securities exchange on and after the date that is 3 days after a covered determination is made. (b) Issuers An issuer described in this subsection is an issuer that is— (1) an official of or individual affiliated with the Government of the People's Republic of China or the Chinese Communist Party; or (2) an entity that— (A) the Government of the People's Republic of China or the Chinese Communist Party has an ownership interest in; or (B) is otherwise affiliated with the Government of the People's Republic of China or the Chinese Communist Party. (c) Definitions In this section: (1) Issuer; security The terms issuer and security have the meanings given those terms in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c ). (2) National securities exchange The term national securities exchange means an exchange registered as a national securities exchange in accordance with section 6 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78f ). 11. Prohibition on investments by United States financial institutions that benefit the Government of the People's Republic of China or the Chinese Communist Party (a) In general Not later than 3 days after a covered determination is made, the Secretary of the Treasury shall prohibit any United States financial institution from making any investments described in subsection (b). (b) Investments described An investment described in this subsection is a monetary investment— (1) to— (A) an entity owned or controlled by the Government of the People's Republic of China or the Chinese Communist Party; or (B) the People’s Liberation Army; or (2) for the benefit of any priority industrial sector identified in the Made in China 2025 plan or the 14th Five Year Smart Manufacturing Development Plan , including— (A) agriculture machinery; (B) information technology; (C) artificial intelligence, machine learning, and robotics; (D) green energy and green vehicles; (E) aerospace equipment; (F) ocean engineering and high tech ships; (G) railway equipment; (H) power equipment; (I) new materials; (J) medicine and medical devices; (K) fifth generation and future generation telecommunications and other advanced wireless networking technologies; (L) semiconductor manufacturing; (M) biotechnology; (N) quantum computing; (O) surveillance technologies, including facial recognition technologies and censorship software; (P) fiber optic cables; and (Q) mining and resource development. (c) United States financial institution defined In this section, the term United States financial institution — (1) means any financial institution that is a United States person; and (2) includes an investment company, private equity company, venture capital company, or hedge fund that is a United States person. 12. Prohibition on energy exports to, and investments in energy sector of, the People's Republic of China (a) Prohibition on exports (1) In general On and after the date that is 3 days after a covered determination is made, the Secretary of Commerce shall prohibit, under the Export Control Reform Act of 2018 ( 50 U.S.C. 4801 et seq. ), the export, reexport, or in-country transfer to or in the People's Republic of China any energy or energy product produced in the United States. (2) Definitions In this subsection, the terms export , in-country transfer , reexport , and United States person have the meanings given those terms in section 1742 of the Export Control Reform Act of 2018 ( 50 U.S.C. 4801 ). (b) Prohibition on investments On and after the date that is 3 days after a covered determination is made, a United States person may not make an investment in the energy sector of the People's Republic of China. 13. Suspension of normal trade relations with the People’s Republic of China Notwithstanding the provisions of title I of Public Law 106–286 (114 Stat. 880) or any other provision of law, beginning on the date that is 3 days after a covered determination is made, normal trade relations treatment shall not apply pursuant to section 101(a) of that Act to the products of the People’s Republic of China. 14. Exceptions; waiver (a) Exception for intelligence activities This Act shall not apply with respect to activities subject to the reporting requirements under title V of the National Security Act of 1947 ( 50 U.S.C. 3091 et seq. ) or any authorized intelligence activities of the United States. (b) National security waiver The President may waive the imposition of sanctions under this Act with respect to a person if the President— (1) determines that such a waiver is in the national security interests of the United States; and (2) submits to the appropriate congressional committees a notification of the waiver and the reasons for the waiver. 15. Implementation; penalties (a) Implementation The President may exercise all authorities provided under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this Act. (b) Penalties A person that violates, attempts to violate, conspires to violate, or causes a violation of this Act or any regulation, license, or order issued to carry out this Act shall be subject to the penalties set forth in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act ( 50 U.S.C. 1705 ) to the same extent as a person that commits an unlawful act described in subsection (a) of that section.