[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2011 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2011

To impose certain sanctions on the People's Republic of China, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 23, 1997

Mr. Hutchinson introduced the following bill; which was referred to the 
Committee on International Relations, and in addition to the Committees 
 on Banking and Financial Services, Ways and Means, and the Judiciary, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of 
                        the committee concerned

_______________________________________________________________________

                                 A BILL


 
To impose certain sanctions on the People's Republic of China, 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 ``China Sanctions and Human Rights 
Advancement Act''.

SEC. 2. PURPOSE.

    It is the purpose of this Act--
            (1) to impose certain sanctions on the People's Republic of 
        China in response to the practices of the Government of the 
        People's Republic of China which limit the free exercise of 
        religion and other human rights; and
            (2) to require an annual report from the President on such 
        practices.

SEC. 3. SANCTIONS.

    (a) Denial of Entry of Certain Government Officials.--
            (1) Denial of entry.--Except as provided in paragraph (2), 
        the Secretary of State may not issue any visa to, and the 
        Attorney General may not admit to the United States, any of the 
        following officials of the Government of the People's Republic 
        of China:
                    (A) High-ranking officials of the Public Security 
                Bureau, as determined by the Secretary.
                    (B) High-ranking officials of the Religious Affairs 
                Bureau, as so determined.
                    (C) Other high-ranking officials determined by the 
                Secretary to be involved in the implementation or 
                enforcement of laws and directives of the People's 
                Republic of China which restrict religious freedom.
                    (D) High-ranking officials determined by the 
                Secretary to be involved in the implementation or 
                enforcement of laws and directives of the People's 
                Republic of China on family planning.
                    (E) Officials determined by the Secretary to have 
                been materially involved in ordering or carrying out 
                the massacre of students in Tiananmen Square in 1989.
            (2) Waiver.--
                    (A) In general.--Subject to subparagraph (B), the 
                President may waive the applicability of paragraph (1) 
                with respect to any official otherwise covered by that 
                paragraph if the President determines that the waiver 
                with respect to the official is in the national 
                security interests of the United States.
                    (B) Notice.--
                            (i) Requirement.--The President may not 
                        exercise the authority provided in subparagraph 
                        (A) with respect to an official unless the 
                        President submits to Congress a written 
                        notification of the exercise of the authority.
                            (ii) Contents.--Each notice shall include a 
                        justification of the exercise of the authority, 
                        including--
                                    (I) a statement why the exercise of 
                                the authority is in the national 
                                security interests of the United 
                                States; and
                                    (II) a statement why such interests 
                                supersede the need for the United 
                                States to make the response described 
                                in section 2(1).
    (b) Multilateral Assistance.--
            (1) International bank for reconstruction and 
        development.--
                    (A) Opposition to assistance.--The Secretary of the 
                Treasury shall instruct the United States Executive 
                Director of the International Bank for Reconstruction 
                and Development to vote against any loan or other 
                utilization of the funds of the bank to or for the 
                People's Republic of China.
                    (B) Opposition to modification of single country 
                loan limit.--The Secretary shall instruct the United 
                States Executive Director of the International Bank for 
                Reconstruction and Development to vote against any 
                modification of the limitation on the share of the 
                total funds of the Bank that may be loaned to a single 
                country.
                    (C) Limitation on domestic borrowing.--
                            (i) Limitation.--The Secretary shall 
                        restrict the ability of the International Bank 
                        for Reconstruction and Development to borrow in 
                        United States capital markets in a fiscal year 
                        by an amount equal to the amount of the loans 
                        approved for the People's Republic of China in 
                        the preceding fiscal year 1997 for purposes 
                        other than to meet basic human needs.
                            (ii) Exception.--Clause (i) shall not apply 
                        to borrowing for purposes of meeting basic 
                        human needs.
            (2) Asian development bank.--
                    (A) Opposition to assistance.--The Secretary shall 
                instruct the United States Director of the Asian 
                Development Bank to vote against any loan or other 
                utilization of the funds of the Bank to or for the 
                People's Republic of China.
                    (B) Limitation on domestic borrowing.--
                            (i) Limitation.--The Secretary shall 
                        restrict the ability of the Asian Development 
                        Bank to borrow in United States capital markets 
                        in a fiscal year by an amount equal to the 
                        amount of the loans approved for the People's 
                        Republic of China in the preceding fiscal year 
                        1997 for purposes other than to meet basic 
                        human needs.
                            (ii) Exception.--Clause (i) shall not apply 
                        to borrowing for purposes of meeting basic 
                        human needs.
            (3) International monetary fund.--The Secretary shall 
        instruct the United States Executive Director of the 
        International Monetary Fund to vote against any loan or other 
        utilization of the funds of the Fund to or for the People's 
        Republic of China.
            (4) Reduction in contributions for multilateral 
        assistance.--The amount of the contributions of the United 
        States to a multilateral development bank in or for a fiscal 
        year shall be the amount otherwise available for such 
        contributions in the fiscal year less the amount the committed 
        by the bank to lend, utilize, or otherwise make available to or 
        for the People's Republic of China during the preceding fiscal 
        year for purposes other than basic human needs.
            (5) Definitions.--In this subsection:
                    (A) Basic human needs.--The term, ``basic human 
                needs'' refers to human needs arising from natural 
                disasters or famine.
                    (B) Multilateral development bank.--The term 
                ``multilateral development bank'' means the following:
                            (i) The International Bank for 
                        Reconstruction and Development.
                            (ii) The International Development 
                        Association.
                            (iii) The International Finance 
                        Corporation.
                            (iv) The Asian Development Bank.
    (c) Reduction in Assistance for Organizations Providing Family 
Planning Assistance in China.--
            (1) Reduction.--The amount of financial assistance provided 
        by the United States in a fiscal year to a covered organization 
        shall be the amount otherwise available for financial 
        assistance to the organization in the fiscal year less the 
        amount utilized by the organization for family planning 
services or assistance in or for the People's Republic of China during 
the preceding fiscal year.
            (2) Certification.--
                    (A) Requirement.--In each fiscal year in which a 
                covered organization is provided financial assistance 
                by the United States, the organization shall certify to 
                the Secretary of State the amount, if any, utilized by 
                the organization in the preceding fiscal year for 
                family planning services or assistance in or for the 
                People's Republic of China.
                    (B) Deadline.--A covered organization shall make 
                the certification required for a fiscal year not later 
                than October 31 of that fiscal year.
            (3) Definition.--In this subsection, the term ``covered 
        organization'' means an organization that provides family 
        planning services or assistance in or for the People's Republic 
        of China.
    (d) Sanctions Regarding China North Industries Group and China Poly 
Group.--
            (1) Sanctions.--Except as provided in paragraph (2), the 
        President shall--
                    (A) prohibit the importation into the United States 
                of all products that are produced, grown, or 
                manufactured by Poly or Norinco, the parent company of 
                Poly or Norinco, or any affiliate, subsidiary, or 
                successor entity of Poly or Norinco;
                    (B) deny or impose restrictions on the entry into 
                the United States of any foreign national serving as an 
                officer, director, or employee of an entity described 
                in subparagraph (A);
                    (C) prohibit the issuance to a person or entity 
                described in subparagraph (A) of licenses in connection 
                with the export of any item on the United States 
                Munitions List;
                    (D) prohibit the export to a person or entity 
                described in subparagraph (A) of any goods or 
                technology on which export controls are in effect under 
                section 5 or 6 of the Export Administration Act of 
                1979;
                    (E) direct the Export-Import Bank of the United 
                States not to give approval to the issuance of any 
                guarantee, insurance, extension of credit, or 
                participation in the extension of credit, with respect 
                to a person or entity described in subparagraph (A);
                    (F) prohibit United States nationals from directly 
                or indirectly issuing any guarantee for any loan or 
                other investment to, issuing any extension of credit 
                to, or making any investment in, a person or entity 
                described in subparagraph (A); and
                    (G) prohibit departments and agencies of the United 
                States and United States nationals from entering into 
                any contract with a person or entity described in 
                subparagraph (A) for the procurement or other provision 
                of goods or services from such person or entity.
            (2) Exceptions.--
                    (A) In general.--The President shall not impose 
                sanctions under this subsection--
                            (i) in the case of the procurement of 
                        defense articles or defense services--
                                    (I) under contracts or subcontracts 
                                that are in effect on October 1, 1997 
                                (including the exercise of options for 
                                production quantities to satisfy United 
                                States operational military 
                                requirements);
                                    (II) if the President determines 
                                that the person or entity to whom the 
                                sanctions would otherwise be applied is 
                                a sole source supplier of essential 
                                defense articles or services and no 
                                alternative supplier can be identified; 
                                or
                                    (III) if the President determines 
                                that such articles or services are 
                                essential to the national security; or
                            (ii) in the case of--
                                    (I) products or services provided 
                                under contracts or binding agreements 
                                (as such terms are defined by the 
                                President in regulations) or joint 
                                ventures entered into before October 1, 
                                1997;
                                    (II) spare parts;
                                    (III) component parts that are not 
                                finished products but are essential to 
                                United States products or production;
                                    (IV) routine servicing and 
                                maintenance of products; or
                                    (V) information and technology 
                                products and services.
                    (B) Immigration restrictions.--The President shall 
                not apply the restrictions described in paragraph 
                (1)(B) to a person described in paragraph (1)(A), if 
                the President, after consultation with the Attorney 
                General, determines that the presence of the person in 
                the United States is necessary for a Federal or State 
                judicial proceeding against a person or entity 
                described in paragraph (1)(A).
            (3) Definitions.--In this subsection:
                    (A) Affiliate.--The term ``affiliate'' does not 
                include any United States national engaged in a 
                business arrangement with a person or entity described 
                in paragraph (1)(A).
                    (B) Component part.--The term ``component part'' 
                means any article that is not usable for its intended 
                function without being embedded or integrated into any 
                other product and, if used in the production of a 
                finished product, would be substantially transformed in 
                that process.
                    (C) Finished product.--The term ``finished 
                product'' means any article that is usable for its 
                intended function without being embedded in or 
                integrated into any other product, but does not include 
                an article produced by a person or entity other than a 
                person or entity described in paragraph (1)(A) that 
                contains parts or components of a person or entity 
                described in paragraph (1)(A) if the parts or 
                components have been substantially transformed during 
                production of the finished product.
                    (D) Investment.--The term ``investment'' includes 
                any contribution or commitment of funds, commodities, 
                services, patents, processes, or techniques, in the 
                form of--
                            (i) a loan or loans;
                            (ii) the purchase of a share of ownership;
                            (iii) participation in royalties, earnings, 
                        or profits; and
                            (iv) the furnishing of commodities or 
                        services pursuant to a lease or other contract,
                but does not include routine maintenance of property.
                    (E) Norinco.--The term ``Norinco'' refers to China 
                North Industries Group.
                    (F) Poly.--The term ``Poly'' refers to China Poly 
                Group, also known as Polytechnologies Incorporated or 
                BAOLI.
                    (G) United states national.--
                            (i) In general.--The term ``United States 
                        national'' means--
                                    (I) any United States citizen; and
                                    (II) any corporation, partnership, 
                                or other organization created under the 
                                laws of the United States, any State, 
                                the District of Columbia, or any 
                                territory or possession of the United 
                                States.
                            (ii) Exception.--The term ``United States 
                        national'' does not include a subsidiary or 
                        affiliate of corporation, partnership, or 
                        organization that is a United States national 
                        if the subsidiary or affiliate is located 
                        outside the United States.
    (e) Consultations With Allies.--
            (1) Sense of congress.--It is the sense of Congress that 
        the President should begin consultations with the major allies 
        and other trading partners of the United States in order to 
        encourage such allies and trading partners to adopt sanctions 
        against the People's Republic of China that are similar to the 
        sanctions imposed on the People's Republic of China by this 
        section.
            (2) Report.--Not later than 45 days after the completion of 
        the first G-7 summit meeting after the date of enactment of 
        this Act, the President shall submit to Congress a report on 
        the results, if any, of consultations referred to in paragraph 
        (1).
    (f) Duration of Sanctions.--Except as provided in subsection 
(e)(2), the requirements and limitations set forth in this section 
shall apply during the period beginning on October 1, 1997, and ending 
on September 30, 1998.

SEC. 4. ANNUAL REPORT ON HUMAN RIGHTS PRACTICES OF THE GOVERNMENT OF 
              THE PEOPLE'S REPUBLIC OF CHINA.

    Not later than 9 months after the date of enactment of this Act, 
and every year thereafter, the President shall submit to Congress a 
report on the practices of the Government of the People's Republic of 
China with respect to the free exercise of religion and other human 
rights during the one-year period preceding the submittal of the 
report. The report shall include a detailed statement of the 
improvements, if any, in such practices.

SEC. 5. PUBLICATION OF LIST OF COMPANIES OWNED BY THE PEOPLE'S 
              LIBERATION ARMY.

    (a) Publication.--Not later than January 31 each year, the 
Secretary of State shall publish in the Federal Register a list of each 
corporation or other business entity that was owned in whole or in part 
by the People's Liberation Army of the People's Republic of China as of 
December 31 of the preceding year.
    (b) Protection of Sources and Methods.--In publishing the list each 
under subsection (a), the Secretary shall take appropriate actions to 
ensure the protection of sources and methods of gathering intelligence.

SEC. 6. TRAINING FOR IMMIGRATION OFFICERS REGARDING RELIGIOUS 
              PERSECUTION.

    Section 235 of the Immigration and Nationality Act (8 U.S.C. 1225) 
is amended by adding at the end the following:
    ``(d) Training on Religious Persecution.--The Attorney General 
shall establish and operate a program to provide to immigration 
officers performing functions under subsection (b), or section 207 or 
208, training on religious persecution, including training on--
            ``(1) the fundamental components of the right to freedom of 
        religion;
            ``(2) the variation in beliefs of religious groups; and
            ``(3) the governmental and nongovernmental methods used in 
        violation of the right to freedom of religion.''.

SEC. 7. PROMOTION OF DEMOCRATIC VALUES IN THE PEOPLE'S REPUBLIC OF 
              CHINA.

    (a) Student, Cultural, and Legislative Exchange Programs.--
Notwithstanding any other provision of law, the aggregate amount 
utilized and made available by the Director of the United States 
Information Agency in fiscal year 1998 for programs and grants relating 
to student, cultural, and legislative exchange activities in or with 
the People's Republic of China may not be less than an amount equal to 
twice the aggregate amount utilized and made available for such 
programs and grants in fiscal year 1997.
    (b) Radio Free Asia.--Notwithstanding any other provision of law, 
the total amount of grants made to Radio Free Asia in fiscal year 1998 
under section 309 of the United States International Broadcasting Act 
of 1994 (22 U.S.C. 6208) may not be less than an amount equal to twice 
the amount of grants made to Radio Free Asia in fiscal year 1997 under 
that section.
    (c) National Endowment for Democracy.--Notwithstanding any other 
provision of law, the amount of the grant made to the National 
Endowment for Democracy by the Director of the United States 
Information Agency in fiscal year 1998 for purposes of programs 
relating to the People's Republic of China may not be less than an 
amount equal to twice the amount of the grant made to the Endowment in 
fiscal year 1997 for purposes of such programs.

SEC. 8. TRANSFERS OF SENSITIVE EQUIPMENT AND TECHNOLOGY BY THE PEOPLE'S 
              REPUBLIC OF CHINA.

    (a) Findings.--Congress makes the following findings:
            (1) Credible allegations exist that the People's Republic 
        of China has transferred equipment and technology as follows:
                    (A) Gyroscopes, accelerometers, and test equipment 
                for missiles to Iran.
                    (B) Chemical weapons equipment and technology to 
                Iran.
                    (C) Missile guidance systems and computerized 
                machine tools to Iran.
                    (D) Industrial furnace equipment and high 
                technology diagnostic equipment to a nuclear facility 
                in Pakistan.
                    (E) Blueprints and equipment to manufacture M-11 
                missiles to Pakistan.
                    (F) M-11 missiles and components to Pakistan.
            (2) The Department of State has failed to determine whether 
        most such transfers violate provisions of relevant United 
        States and Executive orders relating to the proliferation of 
        sensitive equipment and technology, including the Arms Export 
        Control Act, the Nuclear Proliferation Prevention Act of 1994, 
        the Export Administration Act of 1979, the Export-Import Bank 
        Act of 1945, and the Iran-Iraq Arms Non-Proliferation Act of 
        1992, and Executive Order 12938.
            (3) Where the Department of State has made such 
        determinations, it has imposed the least onerous form of 
        sanction, which significantly weakens the intended deterrent 
        effect of the sanctions provided for in such laws.
            (4) The Clinton Administration decided not to impose 
        sanctions on the People's Republic of China for its transfer of 
        C-802 anti-ship cruise missiles to Iran, finding that the 
        transfer was not ``destabilizing''.
            (5) That finding is contrary to the judgment of the 
        commander of the United States Fifth Fleet, elements of which 
        are frequently deployed in and around the Persian Gulf.
            (6) Despite the fact that officials of the People's 
        Republic of China were responsible for the sale to Pakistan of 
        specialized ring magnets, which are used to enrich uranium for 
        use in nuclear weapons, the Clinton Administration did not 
        impose sanctions on either the People's Republic of China or 
        Pakistan for such sale, even though sanctions are required for 
        such sale under law.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the transfers of equipment and technology by the 
        People's Republic of China described in subsection (a)(1) pose 
        a threat to the national security interests of the United 
        States;
            (2) the failure of the Clinton Administration to initiate a 
        formal process to determine whether to impose sanctions for 
        such transfers under United States laws intended to halt the 
        proliferation of sensitive equipment and technology contributes 
        to the threat posed to the national security interests of the 
        United States by the proliferation of such equipment and 
        technology; and
            (3) the President should immediately initiate the 
        procedures necessary to determine whether sanctions should be 
        imposed under United States law for such transfers.
    (c) Report.--Not later than 60 days after the date of enactment of 
this Act, the President shall submit to Congress a report, in both 
classified and unclassified form, setting forth--
            (1) the date, if any, of the commencement and of the 
        conclusion of each formal process conducted by the Department 
        of State to determine whether to impose sanctions for each 
        transfer described in subsection (a)(1);
            (2) the facts providing the basis for each determination 
        not to impose sanctions on the Government of the People's 
        Republic of China, or entities within or having a relationship 
        with that government, for each transfer, and the legal analysis 
        supporting such determination; and
            (3) a schedule for initiating a formal process described in 
        paragraph (1) for each transfer not yet addressed by such 
        formal process and an explanation for the failure to commence 
        such formal process with respect to such transfer before the 
        date of the report.
                                 <all>