110 HR 5777 IH: To impose certain restrictions on trade with and U.S. House of Representatives 2008-04-10 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 2d Session H. R. 5777 IN THE HOUSE OF REPRESENTATIVES April 10, 2008 Mr. Tancredo introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Foreign Affairs, Judiciary, and Financial Services, 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 restrictions on trade with and investment in the People’s Republic of China, and for other purposes.

1.

Short title

This Act may be cited as the China Democracy Act.

2.

Restrictions on trade with and investment in the People’s Republic of China

(a)

Restrictions on trade

(1)

In general

Subject to paragraph (2), no article that is the product of the People’s Republic of China may be imported into the United States, and no goods or technology may be exported from any place in the United States to the People’s Republic of China. (2)

Exception

Paragraph (1) shall not apply to— (A)exports of food or medicine to the People’s Republic of China; or (B)exports of items that would be authorized for export to Cuba, except that such items shall be subject to the same restrictions relating to licenses or other approval that apply with respect to exports of such items to Cuba. (b)

Restrictions on investment in Chinese enterprises

No United States person may, after the end of the 180-day period beginning on the date of the enactment of this Act, make an investment in any enterprise in the People’s Republic of China or in any enterprise that is owned or controlled by the Government of, entities controlled by the Government of, or nationals of, the People’s Republic of China. (c)

Restrictions on investment by Chinese nationals in U.S. persons

No United States person may, after the end of the 180-day period beginning on the date of the enactment of this Act, engage in any transaction the purpose of which is to secure an investment by a Chinese national in any United States person or in any enterprise owned or controlled by United States persons.

3.

Entry of vessels engaged in trade with the People’s Republic of China

(a)

Prohibitions

Except as specifically authorized by the President, by means of regulations, rulings, instructions, licenses, or otherwise — (1)no vessel that enters a port or place in the People’s Republic of China to engage in the trade of goods or the purchase or provision of services, may enter a port in the United States for the purpose of loading or unloading freight for a period of 180 days after the date on which the vessel departed from a port or place in the People’s Republic of China; and (2)no vessel carrying goods to or from the People’s Republic of China or carrying goods in which the People’s Republic of China or a national of the People’s Republic of China has an interest may enter a port in the United States with such goods on board. (b)

Exception

Subsection (a) shall not apply with respect to exports of items permitted under section 1.

4.

Enforcement

(a)

Regulatory authority

The President shall issue such regulations, orders, and licenses as are necessary to carry out this Act. (b)

Exceptions from prohibitions

The President may provide for such exceptions from the prohibitions contained in this Act as are consistent with the Cuban Assets Control Regulations under part 515 of title 31, Code of Federal Regulations, as in effect on the date of the enactment of this Act.

5.

Penalties

Any person or entity that violates this Act or any regulation, license, or order issued under this Act shall be subject to the penalties provided in section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) for violations under that Act.

6.

Suspension of visas to Chinese nationals

No immigrant or nonimmigrant visa may be issued to any national of the People’s Republic of China, and any such visa issued to a national of the People’s Republic of China before the effective date of this Act may not be extended on or after such effective date.

7.

Downgrading of diplomatic relations

The President shall take the necessary steps to downgrade diplomatic relations with the People’s Republic of China to that which existed before the United States recognized the People’s Republic of China in 1979.

8.

Definitions

In this Act: (1)

Food

The term food means— (A)any article used for food or drink for humans; and (B)any article used for a component of an article described in subparagraph (A). (2)

Investment

The term investment means any contribution or commitment of funds, commodities, services, patents, processes, or techniques, in the form of— (A)a loan, (B)the purchase of a share of ownership, (C)participation in royalties, earnings, or profits, (D)the furnishing of commodities or services pursuant to a lease or other contract, or (E)other mechanism, that is made for the production of income.(3)

Medicine

The term medicine has the meaning given the term drug in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321). (4)

National of the People’s Republic of China

The term national of the People’s Republic of China— (A)means— (i)a citizen of or person owing allegiance to the People’s Republic of China; (ii)any corporation, partnership, or other entity organized under the laws of the People’s Republic of China; and (iii)any entity owned or controlled by persons or entities described in clause (i) or (i); and (B)does not include any citizen or person owing allegiance to Taiwan, the Pescadores, or any other island over which the Taiwanese Government exercises control. (5)

People’s Republic of China

The term People’s Republic of China— (A)includes mainland China, Hong Kong, Macao, and any other territory or special administrative region governed by the People’s Republic of China; and (B)does not include Taiwan, the Pescadores, or any other island over which the Taiwanese Government exercises control. (6)

United States

The term United States includes any commonwealth, territory, or possession of the United States, and the customs waters of the United States (as defined in section 401 of the Tariff Act of 1930 (19 U.S.C. 1401)). (7)

United States person

The term United States person means— (A)any United States citizen or alien lawfully admitted for permanent residence to the United States; (B)any corporation, partnership, or other entity organized under the laws of the United States; and (C)any person in the United States. (8)

Vessel

The term vessel includes every description of water craft or other contrivance used, or capable of being used, as a means of transportation in water, but does not include aircraft.

9.

Effective date

This Act shall take effect 180 days after the date of the enactment of this Act.

10.

Termination

This Act shall cease to be effective 30 days after the date on which the President determines and certifies to the Congress that the People’s Republic of China— (1)at the national, provincial, and local levels, is governed by governments that are democratically elected from free and fair elections— (A)conducted under the supervision of internationally recognized observers; and (B)in which— (i)opposition parties were permitted ample time to organize and campaign for such elections; and (ii)all candidates were permitted full access to the media; (2)is showing respect for the basic civil liberties and human rights of the citizens of the People’s Republic of China; (3)has a market-oriented economic system based on the right to own and enjoy property; (4)ensures regular free and fair elections and the full enjoyment of basic civil liberties and human rights by the citizens of the People’s Republic of China; (5)has established an independent judiciary; and (6)is no longer engaging in wide-scale espionage activities directed against the United States.