[116th Congress Public Law 149]
[From the U.S. Government Publishing Office]
[[Page 134 STAT. 663]]
Public Law 116-149
116th Congress
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. <<NOTE: July 14, 2020 - [H.R. 7440]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Hong Kong
Autonomy Act. 22 USC 5701 note.>>
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
obligations 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
obligations of China under the Joint Declaration or the Basic
Law.
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.
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 meanings given those terms in section 101 of
the Immigration and Nationality Act (8 U.S.C. 1101).
(2) Appropriate congressional committees and leadership.--
The term ``appropriate congressional committees and leadership''
means--
(A) the Committee on Armed Services, the Committee
on Banking, Housing, and Urban Affairs, the Committee on
Foreign Relations, the Committee on Homeland Security
and Governmental Affairs, the Committee on the
Judiciary, 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 Committee on Foreign Affairs,
the Committee on Homeland Security, the Committee on
[[Page 134 STAT. 664]]
the Judiciary, the Permanent Select Committee on
Intelligence, 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 Administrative Region of the People's
Republic of China.
(4) China.--The term ``China'' means the People's Republic
of China.
(5) Entity.--The term ``entity'' means a partnership, joint
venture, association, corporation, organization, network, group,
or subgroup, or any other form of business collaboration.
(6) Financial institution.--The term ``financial
institution'' means a financial institution 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 Region 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 permanent
residence in the United States;
(C) any entity organized under the laws of the
United States or any jurisdiction within the 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 legally-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 Declaration, 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 Government of
China to Hong Kong is the promise that, pursuant to Paragraph 3b
of the Joint Declaration, ``the Hong Kong Special Administrative
Region will enjoy a high degree of autonomy,
[[Page 134 STAT. 665]]
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 Administrative Region administers on its own in
accordance with this Law.''.
(7) The Joint Declaration and the Basic Law make clear that
additional obligations shall be undertaken by China to ensure
the ``high degree of autonomy'' 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 judicial power, including that of final
adjudication''.
(9) On multiple occasions, the Government of China has
undertaken actions that have contravened the letter or intent of
the obligation described in paragraph (8) of this section,
including the following:
(A) In 1999, the Standing Committee of the National
People's Congress overruled a decision 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 persons 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 candidates 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
(iii) on April 17, 2020, asserted that both
the Liaison Office of China in Hong Kong and the
Hong Kong and Macau Affairs 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 Government of
China over Hong Kong and indicated that Hong Kong must
be governed by ``patriots''.
(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,
[[Page 134 STAT. 666]]
including businessman Xiao Jianhua and bookseller Gui
Minhai.
(G) The Government of Hong Kong, acting with the
support of the Government of China, introduced an
extradition bill that would have permitted the
Government of China to request and enforce extradition
requests for any individual 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 Committee of the
National People's Congress said, ``Whether Hong Kong's
laws are consistent with the Basic Law can only be
judged and decided by the National People's Congress
Standing 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 following:
(A) In 2002, the Government of China pressured the
Government of Hong Kong to introduce ``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-determination in primary and secondary schools,
which infringes on freedom of speech.
(C) The Government of Hong Kong mandated that
Mandarin, and not the native language of Cantonese, be
the language of instruction in Hong Kong schools.
(D) The governments of China and Hong Kong agreed to
a daily quota of mainland immigrants to Hong Kong, which
is widely believed 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
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 following:
(A) On February 26, 2003, the Government of Hong
Kong introduced a national security 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.
[[Page 134 STAT. 667]]
(C) The Hong Kong Police Force selectively blocked
demonstrations and protests expressing opposition to the
governments of China and Hong Kong or the policies of
those governments.
(D) The Government of Hong Kong refused to renew
work visa for a foreign journalist, allegedly for
hosting a speaker from the banned Hong Kong National
Party.
(E) The Justice Department of Hong Kong selectively
prosecuted cases against leaders of the Umbrella
Movement, while failing to prosecute police officers
accused of using excessive 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 organizing a protest march
that took place on August 18, 2019, in which almost
2,000,000 people rallied against a proposed extradition
bill.
(14) Articles 45 and 68 of the Basic Law assert that the
selection of Chief Executive and all members 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 following:
(A) In 2004, the National People's Congress created
new, antidemocratic procedures restricting the adoption
of universal suffrage for the election of the Chief
Executive of Hong Kong.
(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 contravention 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 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
[[Page 134 STAT. 668]]
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
confidence 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 democratization 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
furtherance of the United States-Hong Kong Policy Act of 1992
and the Hong Kong Human Rights and Democracy 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 protections that
Hong Kong has been afforded by the Government 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 unclassified
assessment of the reason for imposition of certain economic
penalties on entities, so as to permit a clear path for the
removal of economic penalties 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 obligations of China under
the Joint Declaration and the Basic Law; and
(6) in addition to the penalties on foreign persons, 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 obligations under the Joint
Declaration and the Basic Law to become eligible to obtain
lawful entry into the United States.
[[Page 134 STAT. 669]]
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 INSTITUTIONS THAT CONDUCT
SIGNIFICANT TRANSACTIONS WITH THOSE PERSONS.
(a) <<NOTE: Consultation. Determination. Reports.>> 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 appropriate congressional committees and leadership a
report that includes--
(1) an identification of the foreign person; and
(2) a clear explanation for why the foreign person was
identified and a description of the activity that resulted in
the identification.
(b) <<NOTE: Time period. Consultation. Reports.>> Identifying
Foreign Financial Institutions.--Not earlier than 30 days and not later
than 60 days after the Secretary of State submits to the appropriate
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) <<NOTE: Determinations.>> 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 Intelligence determines that such disclosure could
compromise an intelligence operation, activity, source, or
method of the United States.
(2) <<NOTE: Coordination.>> 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 confidential
source, including a State, local, or foreign agency or
authority or any private institution that furnished
information on a confidential basis;
(B) to jeopardize the integrity or success of an
ongoing criminal investigation or prosecution;
(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
[[Page 134 STAT. 670]]
leadership of the determination and the reasons for the
determination.
(d) <<NOTE: President.>> Exclusion or Removal of Foreign Persons
and Foreign Financial Institutions.--
(1) Foreign persons.--The President may exclude a foreign
person from the report under subsection (a), or an update under
subsection (e), or remove 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 future; and
(C) has been reversed or otherwise mitigated 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
significant 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 future; and
(C) has been reversed or otherwise mitigated through
positive countermeasures taken by that foreign financial
institution.
(3) <<NOTE: Determination.>> Notification required.--If the
President 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, updated 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 requirement 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) <<NOTE: Public information.>> In general.--Each report
under subsection (a) or (b) (including updates under subsection
(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.
[[Page 134 STAT. 671]]
(g) Material Contributions Related to Obligations of China
Described.--For purposes of this section, a foreign person materially
contributes to the failure of the Government of China to meet its
obligations under the Joint Declaration or the Basic Law if the person--
(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. <<NOTE: President.>> 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) <<NOTE: Effective date.>> 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 described in subsection (b) with
respect to that foreign person.
(2) <<NOTE: Deadline.>> 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 update 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 described 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 exporting
any property that is subject to the jurisdiction 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 property; or
(C) conducting any transaction involving such
property.
(2) Exclusion from the united states and revocation of visa
or other documentation.--In the case of a foreign person who is
an individual, the President may direct the Secretary of State
to deny a visa to, and the Secretary of Homeland Security to
exclude from the United States, the foreign person, subject to
regulatory exceptions 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, or other applicable international obligations.
SEC. 7. <<NOTE: President.>> 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) <<NOTE: Deadlines.>> Imposition of Sanctions.--
[[Page 134 STAT. 672]]
(1) Initial sanctions.--Not later than one year 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 not fewer than 5 of the
sanctions 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
described in subsection (b).
(b) Sanctions Described.--The sanctions described in this subsection
with respect to a foreign financial 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 foreign 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 repository of government
funds.--The foreign financial 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 exchange that are subject to the
jurisdiction of the United States and involve the foreign
financial institution.
(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 foreign 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, importing, 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 property; or
(C) conducting any transaction involving such
property.
(7) <<NOTE: Consultation.>> Restriction on exports,
reexports, and transfers.--The President, in consultation with
the Secretary of Commerce, may restrict or prohibit exports,
reexports, and transfers (in-country) of commodities, software,
and technology subject to the jurisdiction of the United States
directly or indirectly to the foreign financial institution.
[[Page 134 STAT. 673]]
(8) Ban on investment in equity or debt.--The President may,
pursuant to such regulations 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
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, or other applicable
international obligations.
(10) Sanctions on principal executive officers.--The
President may impose on the principal executive officer or
officers of the foreign financial institution, or on individuals
performing similar functions and with similar authorities as
such officer or officers, any of the sanctions described in
paragraphs (1) through (8) that are applicable.
(c) Timing of Sanctions.--The President may impose sanctions
required under subsection (a) with respect to a financial institution
included in the report under section 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. <<NOTE: President.>> WAIVER, TERMINATION, EXCEPTIONS, AND
CONGRESSIONAL REVIEW PROCESS.
(a) National Security Waiver.--Unless a disapproval 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) <<NOTE: Determination.>> determines that the waiver is
in the national security interest of the United States; and
(2) <<NOTE: Reports.>> submits to the appropriate
congressional committees and leadership a report on the
determination and the reasons for the determination.
(b) <<NOTE: Consultation. Determination.>> Termination of Sanctions
and Removal From Report.--Unless a disapproval resolution is enacted
under subsection (e), the President may terminate the application of
sanctions under section 6 or 7 with respect 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 Secretary 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 negative 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
[[Page 134 STAT. 674]]
(3) have been reversed or otherwise mitigated through
positive countermeasures taken by that foreign person or foreign
financial institution.
(c) Termination of Act.--
(1) Report.--
(A) <<NOTE: Consultation. Evaluation.>> In
general.--Not later than July 1, 2046, the President, in
consultation with the Secretary of State, the Secretary
of the Treasury, and the heads of such other Federal
agencies as the President considers appropriate, shall
submit to Congress a report evaluating the
implementation of this Act and sanctions imposed
pursuant to this Act.
(B) <<NOTE: Assessment.>> Elements.--The President
shall include in the report submitted under subparagraph
(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 subsection (e) after July 1, 2047.
(d) Exception Relating to Importation of Goods.--
(1) In general.--The authorities and requirements to impose
sanctions under sections 6 and 7 shall not include the authority
or requirement to impose 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 product, including inspection and test
equipment, and excluding technical data.
(e) Congressional Review.--
(1) <<NOTE: Definitions.>> Resolutions.--
(A) Disapproval resolution.--In this section, the
term ``disapproval resolution'' means only a joint
resolution of either House of Congress--
(i) the title of which is as follows: ``A
joint resolution disapproving the waiver or
termination of sanctions with respect to a foreign
person that contravenes the obligations of China
with respect to Hong Kong or a foreign financial
institution that conducts a significant
transaction with that person.''; and
(ii) the sole matter after the resolving
clause of which is the following: ``Congress
disapproves of the action under section 8 of the
Hong Kong Autonomy Act relating to the application
of sanctions imposed with respect to a foreign
person that contravenes the obligations of China
with respect to Hong Kong, or a foreign financial
institution that conducts a significant
transaction with that person, on _______ relating
to ________.'', with the first blank space being
filled with the appropriate date and the second
blank space being filled with a short description
of the proposed action.
(B) Termination resolution.--In this section, the
term ``termination resolution'' means only a joint
resolution of either House of Congress--
(i) the title of which is as follows: ``A
joint resolution terminating sanctions with
respect to foreign persons that contravene the
obligations of China with
[[Page 134 STAT. 675]]
respect to Hong Kong and foreign financial
institutions that conduct significant transactions
with those persons.''; and
(ii) the sole matter after the resolving
clause of which is the following: ``The Hong Kong
Autonomy Act and any sanctions imposed pursuant to
that Act shall terminate on ____.'', with the
blank space being filled with the termination
date.
(C) Covered resolution.--In this subsection, the
term ``covered resolution'' means a disapproval
resolution or a termination resolution.
(2) Introduction.--A covered resolution may be introduced--
(A) in the House of Representatives, by the majority
leader or the minority leader; and
(B) in the Senate, by the majority leader (or the
majority leader's designee) or the minority leader (or
the minority leader's designee).
(3) <<NOTE: Deadline.>> Floor consideration in house of
representatives.--If a committee of the House of Representatives
to which a covered resolution has been referred has not reported
the resolution within 10 legislative days after the date of
referral, that committee shall be discharged from further
consideration of the resolution.
(4) Consideration in the senate.--
(A) Committee referral.--
(i) Disapproval resolution.--A disapproval
resolution introduced in the Senate shall be--
(I) referred to the Committee on
Banking, Housing, and Urban Affairs if
the resolution relates to an action that
is not intended to significantly alter
United States foreign policy with regard
to China; and
(II) referred to the Committee on
Foreign Relations if the resolution
relates to an action that is intended to
significantly alter United States
foreign policy with regard to China.
(ii) Termination resolution.--A termination
resolution introduced in the Senate shall be
referred to the Committee on Banking, Housing, and
Urban Affairs and the Committee on Foreign
Relations.
(B) <<NOTE: Deadline.>> Reporting and discharge.--
If a committee to which a covered resolution was
referred has not reported the resolution within 10
legislative days after the date of referral of the
resolution, that committee shall be discharged from
further consideration of the resolution and the
resolution shall be placed on the appropriate calendar.
(C) Proceeding to consideration.--Notwithstanding
Rule XXII of the Standing Rules of the Senate, it is in
order at any time after the Committee on Banking,
Housing, and Urban Affairs or the Committee on Foreign
Relations, as the case may be, reports a covered
resolution to the Senate or has been discharged from
consideration of such a resolution (even though a
previous motion to the same effect has been disagreed
to) to move to proceed to the consideration of the
resolution, and all points of order against the
resolution (and against consideration of
[[Page 134 STAT. 676]]
the resolution) are waived. The motion to proceed is not
debatable. The motion is not subject to a motion to
postpone. A motion to reconsider the vote by which the
motion is agreed to or disagreed to shall not be in
order.
(D) Rulings of the chair on procedure.--Appeals from
the decisions of the Chair relating to the application
of the rules of the Senate, as the case may be, to the
procedure relating to a covered resolution shall be
decided without debate.
(E) Consideration of veto messages.--Debate in the
Senate of any veto message with respect to a covered
resolution, including all debatable motions and appeals
in connection with the resolution, shall be limited to
10 hours, to be equally divided between, and controlled
by, the majority leader and the minority leader or their
designees.
(5) <<NOTE: Procedures. Applicability.>> Rules relating to
senate and house of representatives.--
(A) Treatment of senate resolution in house.--In the
House of Representatives, the following procedures shall
apply to a covered resolution received from the Senate
(unless the House has already passed a resolution
relating to the same proposed action):
(i) The resolution shall be referred to the
appropriate committees.
(ii) <<NOTE: Deadline.>> If a committee to
which a resolution has been referred has not
reported the resolution within 10 legislative days
after the date of referral, that committee shall
be discharged from further consideration of the
resolution.
(iii) <<NOTE: Effective date.>> Beginning on
the third legislative day after each committee to
which a resolution has been referred reports the
resolution to the House or has been discharged
from further consideration thereof, it shall be in
order to move to proceed to consider the
resolution in the House. All points of order
against the motion are waived. Such a motion shall
not be in order after the House has disposed of a
motion to proceed on the resolution. The previous
question shall be considered as ordered on the
motion to its adoption without intervening motion.
The motion shall not be debatable. A motion to
reconsider the vote by which the motion is
disposed of shall not be in order.
(iv) The resolution shall be considered as
read. All points of order against the resolution
and against its consideration are waived. The
previous question shall be considered as ordered
on the resolution to final passage without
intervening motion except 2 hours of debate
equally divided and controlled by the offeror of
the motion to proceed (or a designee) and an
opponent. A motion to reconsider the vote on
passage of the resolution shall not be in order.
(B) Treatment of house resolution in senate.--
(i) Received before passage of senate
resolution.--If, before the passage by the Senate
of a covered resolution, the Senate receives an
identical resolution
[[Page 134 STAT. 677]]
from the House of Representatives, the following
procedures shall apply:
(I) That resolution shall not be
referred to a committee.
(II) With respect to that
resolution--
(aa) the procedure in the
Senate shall be the same as if
no resolution had been received
from the House of
Representatives; but
(bb) the vote on passage
shall be on the resolution from
the House of Representatives.
(ii) Received after passage of senate
resolution.--If, following passage of a covered
resolution in the Senate, the Senate receives an
identical resolution from the House of
Representatives, that resolution shall be placed
on the appropriate Senate calendar.
(iii) No senate companion.--If a covered
resolution is received from the House of
Representatives, and no companion resolution has
been introduced in the Senate, the Senate
procedures under this subsection shall apply to
the resolution from the House of Representatives.
(C) Application to revenue measures.--The provisions
of this paragraph shall not apply in the House of
Representatives to a covered resolution that is a
revenue measure.
(6) Rules of house of representatives and senate.--This
subsection is enacted by Congress--
(A) as an exercise of the rulemaking power of the
Senate and the House of Representatives, respectively,
and as such is deemed a part of the rules of each House,
respectively, and supersedes other rules only to the
extent that it is inconsistent with such rules; and
(B) with full recognition of the constitutional
right of either House to change the rules (so far as
relating to the procedure of that House) at any time, in
the same manner, and to the same extent as in the case
of any other rule of that House.
SEC. 9. IMPLEMENTATION; PENALTIES.
(a) <<NOTE: President.>> 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
the extent necessary to carry out this Act.
(b) Penalties.--A person that violates, attempts to violate,
conspires to violate, or causes a violation of section 6 or 7 or any
regulation, license, or order issued to carry out that section 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.
[[Page 134 STAT. 678]]
SEC. 10. RULE OF CONSTRUCTION.
Nothing in this Act shall be construed as an authorization of
military force against China.
Approved July 14, 2020.
LEGISLATIVE HISTORY--H.R. 7440:
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CONGRESSIONAL RECORD, Vol. 166 (2020):
July 1, considered and passed House.
July 2, considered and passed Senate.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2020):
July 14, Presidential statement.
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