[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1307 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 1307
To bar access to United States capital markets to enterprises owned or
controlled by the People's Republic of China, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 2, 2001
Mr. Helms (for himself and Mr. Kyl) introduced the following bill;
which was read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
A BILL
To bar access to United States capital markets to enterprises owned or
controlled by 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 Free Enterprise Act of 2001''.
SEC. 2. FINDINGS.
Congress find that--
(1) an increased number of privatized enterprises and
start-up private enterprises in the People's Republic of China
will serve the interests and quality of life of the people of
the People's Republic of China, given the greater economic
growth potential of market-oriented development;
(2) a limitation on access to United States capital markets
by Chinese state-owned enterprises will indicate a United
States preference for economic transactions with and investment
in privatized enterprises, rather than state-owned enterprises,
and therefore establish an incentive for the Government of the
People's Republic of China to accelerate privatization efforts;
(3) resources given to state-owned enterprises effectively
empower the repressive apparatus of an autocratic government in
the People's Republic of China to perpetuate human and labor
rights abuses, the subjugation of Tibet, the despoiling of the
environment, and suppression of religious freedoms;
(4) investments made available to state-owned enterprises
affiliated with the complex of military and technology
industries in the People's Republic of China would be
particularly inimical to United States interests, given China's
military buildup directed against the United States, Chinese
military policies in the Taiwan Strait and South China Sea, and
arms proliferation efforts destabilizing to the democracies of
the Asia-Pacific region and the already volatile Persian Gulf
region;
(5) state-owned enterprises of the People's Republic of
China which have raised funds in the United States capital
markets have failed to engage in adequate disclosure to United
States investors concerning where these enterprises (as well as
their subsidiaries, parent companies, or other affiliates) are
doing business in the world, and with whom;
(6) the state-owned Petrochina energy enterprise in the
People's Republic of China has offered its securities in the
United States without disclosing that investors' funds would be
directly or indirectly subsidizing operations in Sudan on the
part of its parent company, China National Petroleum Company,
effectively underwriting the systematic religious persecution
and heinous human rights abuses of the Government of Sudan;
(7) a second state-owned enterprise of the People's
Republic of China, China Petroleum and Chemical Company or
``Sinopec'', has offered securities in the United States
without disclosing its recent, and possibly ongoing, investment
activity in Sudan or its negotiations to conclude contracts in
Iran's energy sector, in violation of the Iran-Libya Sanctions
Act of 1993;
(8) a limitation on access to United States capital markets
by Chinese state-owned enterprises will not have a deleterious
effect on United States businesses, consumers, or workers as
trade sanctions may have;
(9) a limitation on access to United States capital markets
by Chinese state-owned enterprises will do no appreciable harm
to United States investors or the free flow of capital into and
out of the United States;
(10) a limitation on access to United States capital
markets by Chinese state-owned enterprises will do no
appreciable harm to the people of the People's Republic of
China, whose welfare and individual liberties it should be the
United States policy to enhance; and
(11) a limitation on access to United States capital
markets by Chinese state-owned enterprises does not violate the
terms of permanent normal trade relations status granted by the
United States to the People's Republic of China, nor the
General Agreement on Tariffs and Trade.
SEC. 3. BAN ON SECURITIES MARKET ACCESS.
Notwithstanding any provision of the securities laws or any other
provision of law, no security issued by, or other interest or
participation in, a state-owned enterprise may be--
(1) listed, or authorized for listing, on the New York
Stock Exchange or the American Stock Exchange, or listed, or
authorized for listing, on the National Market System of the
Nasdaq Stock Market (or any successor to such entities); or
(2) otherwise listed, or authorized for listing, on a
national securities exchange (or tier or segment thereof) or by
a registered securities association.
SEC. 4. DEFINITIONS.
As used in this Act--
(1) the term ``registered securities association'' means a
securities association registered under section 15A of the
Securities Exchange Act of 1934 (15 U.S.C. 78o-3);
(2) the terms ``securities laws'' and ``security'' have the
same meanings as in section 3(a) of the Securities Exchange Act
of 1934 (15 U.S.C. 78c(a)); and
(3) the term ``state-owned enterprise'' means any entity,
not less than 50 percent of the assets of which are owned by
any agency or instrumentality of the Government of the People's
Republic of China (including any agency or instrumentality
thereof), either directly or through a subsidiary, parent
company, or other affiliate, including those located in Hong
Kong or elsewhere.
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