[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7440 Enrolled Bill (ENR)]

        H.R.7440

                     One Hundred Sixteenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Friday,
            the third day of January, two thousand and twenty


                                 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
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 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, 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, 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.
            (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 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.
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) 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) 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) 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) 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 leadership of the 
    determination and the reasons for the determination.
    (d) 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) 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) 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.
    (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. 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) 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) 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. 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) Imposition of Sanctions.--
        (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) 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.
        (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. 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) determines that the waiver is in the national security 
    interest of the United States; and
        (2) submits to the appropriate congressional committees and 
    leadership a report on the determination and the reasons for the 
    determination.
    (b) 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
        (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) 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) 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) 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 
            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) 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) 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 
        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) 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) 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) 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 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) 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.
  SEC. 10. RULE OF CONSTRUCTION.
    Nothing in this Act shall be construed as an authorization of 
military force against China.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.