[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7457 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 7457
To hold the Chinese Communist Party accountable for the COVID-19
pandemic that has killed approximately 981,000 Americans.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 7, 2022
Mr. Fitzpatrick (for himself and Mr. Gottheimer) introduced the
following bill; which was referred to the Committee on Foreign Affairs,
and in addition to the Committees on Financial Services, the Judiciary,
Oversight and Reform, Armed Services, Intelligence (Permanent Select),
Ways and Means, Rules, and Education and Labor, 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 hold the Chinese Communist Party accountable for the COVID-19
pandemic that has killed approximately 981,000 Americans.
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 ``Hold CCP
Accountable Act of 2022''.
(b) Table of Contents.--The table of contents is as follows:
Sec. 1. Short title; table of contents.
TITLE I--NO SOVEREIGN IMMUNITY
Sec. 101. Lists of foreign countries based on compliance with
international reporting and monitoring of
outbreaks of novel viruses and diseases.
Sec. 102. Presidential actions with respect to foreign countries on the
Tier 2 list.
Sec. 103. Sovereign immunity waiver.
Sec. 104. Imposition of sanctions with respect to government officials
of foreign countries on the Tier 2 list.
Sec. 105. G-20 investigation of international response to COVID-19.
Sec. 106. International response to wet markets globally.
Sec. 107. Public health emergency of international concern defined.
TITLE II--REVOKING CCP'S ABILITY TO GET VISAS
Sec. 201. Disclosure on certain visa applications.
TITLE III--TIGHTEN UP REGULATIONS ON CONFUCIUS INSTITUTES
Sec. 301. Restrictions on Confucius Institutes.
TITLE IV--DELISTING CHINA FROM STOCK MARKETS
Sec. 401. Prohibitions relating to certain Communist Chinese military
companies.
Sec. 402. Modification of requirements for list of Communist Chinese
military companies.
Sec. 403. Analysis of financial ambitions of the Government of the
People's Republic of China.
TITLE V--REVOKING CHINA'S MOST FAVORED NATION STATUS
Sec. 501. Withdrawal of normal trade relations treatment from the
People's Republic of China.
Sec. 502. Expansion of bases of ineligibility of People's Republic of
China for normal trade relations.
TITLE VI--REMOVAL OF CHINA FROM THE WTO
Sec. 601. Removal of China from the WTO.
TITLE VII--END LENDING TO THE CCP FROM WORLD BANK
Sec. 701. Opposition to provision of assistance to People's Republic of
China by multilateral development banks.
TITLE I--NO SOVEREIGN IMMUNITY
SEC. 101. LISTS OF FOREIGN COUNTRIES BASED ON COMPLIANCE WITH
INTERNATIONAL REPORTING AND MONITORING OF OUTBREAKS OF
NOVEL VIRUSES AND DISEASES.
(a) Lists of Foreign Countries.--
(1) Tier 1 list.--
(A) In general.--Not later than 180 days after the
date of the enactment of this Act, the Secretary of
State shall establish a list of foreign countries that
the Secretary determines meet the requirements
described in subsection (b).
(B) Reference.--The list of foreign countries
established under this paragraph shall be referred to
as the ``Tier 1 list''.
(2) Tier 2 list.--
(A) In general.--Not later than 180 days after the
date of the enactment of this Act, the Secretary of
State shall establish a list of foreign countries that
the Secretary determines do not meet the requirements
described in subsection (b) but are capable of meeting
such requirements.
(B) Review.--The Secretary of State shall conduct a
review on an ongoing basis of each country on the list
established under this paragraph to ensure that the
country is taking appropriate steps to meet the
requirements described in subsection (b).
(C) Reference.--The list of foreign countries
established under this paragraph shall be referred to
as the ``Tier 2 list''.
(3) Tier 3 list.--
(A) In general.--Not later than 180 days after the
date of the enactment of this Act, the Secretary of
State shall establish a list of foreign countries that
the Secretary determines do not meet the requirements
described in subsection (b) because such countries are
not capable, based on financial, security, or
government infrastructure reasons, of meeting such
requirements.
(B) Reference.--The list of foreign countries
established under this paragraph shall be referred to
as the ``Tier 3 list''.
(4) Updates.--The Secretary of State shall submit to the
appropriate congressional committees an updated Tier 1 list
under paragraph (1), an updated Tier 2 list under paragraph
(2), and an updated Tier 3 list under paragraph (3)--
(A) not later than one year after the date of the
enactment of this Act and annually thereafter; and
(B) as new information becomes available.
(b) International Reporting and Monitoring Requirements
Described.--The requirements described in this subsection are the
following:
(1) The foreign country has established procedures and
standards to comply with established international ``sentinel
surveillance'' systems to collect data, identify trends,
identify outbreaks, and provide monitoring with respect to the
burden of disease in a community.
(2) The foreign country has established procedures and
standards to ensure that novel viruses and diseases are
reported such international ``sentinel surveillance'' systems
not later than 3 days after identification.
(c) Rule of Construction.--Nothing in this section may be construed
to apply with respect to the territory of a foreign country with
respect to which the internationally recognized government of the
country does not control due to armed conflict.
(d) Inclusion in Annual United States Government Global Health
Security Strategy.--The President shall ensure that the requirements of
this section are appropriately reflected in the annual United States
Government Global Health Security Strategy.
SEC. 102. PRESIDENTIAL ACTIONS WITH RESPECT TO FOREIGN COUNTRIES ON THE
TIER 2 LIST.
(a) In General.--The President, in consultation with the Secretary
of State, shall take one or more of the actions described in subsection
(b) (or commensurate action in substitution thereto) with respect to a
foreign country that is on the Tier 2 list established under section
101(a).
(b) Description of Presidential Actions.--The Presidential actions
referred to in this subsection are the following:
(1) A private demarche.
(2) An official public demarche.
(3) A public condemnation.
(4) A public condemnation within one or more multilateral
fora.
(5) The delay or cancellation of one or more scientific
exchanges.
(6) The delay or cancellation of one or more cultural
exchanges.
(7) The denial of one or more working, official, or state
visits.
(8) The delay or cancellation of one or more working,
official, or state visits.
(9) The withdrawal, limitation, or suspension of United
States development assistance in accordance with section 116 of
the Foreign Assistance Act of 1961.
(10) The withdrawal, limitation, or suspension of United
States security assistance in accordance with section 502B of
the Foreign Assistance Act of 1961.
(11) Consistent with section 701 of the International
Financial Institutions Act of 1977, directing the United States
executive directors of international financial institutions to
oppose and vote against loans primarily benefiting the specific
foreign government, agency, instrumentality.
(12) Ordering the heads of the appropriate United States
agencies not to issue any (or a specified number of) specific
licenses, and not to grant any other specific authority (or a
specified number of authorities), to export any goods or
technology to the specific foreign government, agency,
instrumentality under--
(A) the Export Control Reform Act of 2018;
(B) the Arms Export Control Act;
(C) the Atomic Energy Act of 1954; or
(D) any other statute that requires the prior
review and approval of the United States Government as
a condition for the export or reexport of goods or
services.
(13) Prohibiting any United States financial institution
from making loans or providing credits totaling more than
$10,000,000 in any 12-month period to the specific foreign
government, agency, instrumentality.
(14) Prohibiting the United States Government from
procuring, or entering into any contract for the procurement
of, any goods or services from the foreign government,
entities.
(c) Waiver.--The President may waive the application of subsection
(a) with respect to a foreign country if the President determines it is
important to the national interests of the United States to do so.
SEC. 103. SOVEREIGN IMMUNITY WAIVER.
(a) In General.--Chapter 97 of title 28, United States Code, is
amended by inserting after section 1605B the following:
``Sec. 1605C. Responsibility of foreign states for pandemic outbreaks
``(a) Responsibility of Foreign States.--A foreign state shall not
be immune from the jurisdiction of the courts of the United States in
any case in which damages are sought against a foreign state for
physical injury to person or property or death occurring in the United
States and caused by a failure to abide the requirements laid out in
paragraphs (1) and (2) of section 2(b) of the Never Again International
Outbreak Prevention Act or are determined to have intentionally misled
the international community or the WHO on the outbreak or spread of a
health concern that leads to a pandemic.
``(b) Rule of Construction.--A foreign state shall not be subject
to the jurisdiction of the courts of the United States under subsection
(a) on the basis of an omission or a tortious act or acts that
constitute mere negligence.''.
(b) Clerical Amendment.--
(1) The table of sections for chapter 97 of title 28,
United States Code, is amended by inserting after the item
relating to section 1605A the following:
``1605C. Responsibility of foreign states for pandemic outbreaks.''.
(2) Subsection 1605(g)(1)(A) of title 28, United States
Code, is amended by striking ``but for section 1605A or section
1605B'' and inserting ``but for section 1605A, 1605B, or
1605C''.
(c) Stay of Actions Pending State Negotiations.--
(1) Exclusive jurisdiction.--The courts of the United
States shall have exclusive jurisdiction in any action in which
a foreign state is subject to the jurisdiction of a court of
the United States under section 1605C of title 28, United
States Code.
(2) Intervention.--The Attorney General may intervene in
any action in which a foreign state is subject to the
jurisdiction of a court of the United States under section
1605C of title 28, United States Code, for the purpose of
seeking a stay of the civil action, in whole or in part.
(3) Stay.--
(A) In general.--A court of the United States may
stay a proceeding against a foreign state if the
Secretary of State certifies that the United States is
engaged in good faith discussions with the foreign
state defendant concerning the resolution of the claims
against the foreign state, or any other parties as to
whom a stay of claims is sought.
(B) Duration.--
(i) In general.--A stay under this
subsection may be granted for not more than 180
days.
(ii) Extension.--
(I) In general.--The Attorney
General may petition the court for an
extension of the stay for additional
180-day periods.
(II) Recertification.--A court
shall grant an extension under
subclause (I) if the Secretary of State
recertifies that the United States
remains engaged in good faith
discussions with the foreign state
defendant concerning the resolution of
the claims against the foreign state,
or any other parties as to whom a stay
of claims is sought.
SEC. 104. IMPOSITION OF SANCTIONS WITH RESPECT TO GOVERNMENT OFFICIALS
OF FOREIGN COUNTRIES ON THE TIER 2 LIST.
(a) In General.--The President may impose the sanctions described
in subsection (b) with respect to any foreign person the President
determines, based on credible evidence--
(1) is a government official of a foreign country on the
Tier 2 list established under section 101(a), or a senior
associate of such an official, that is responsible for, or
complicit in, ordering, controlling, or otherwise directing, or
financially benefits from, acts intended to deliberately
conceal or distort information about a public health emergency
of international concern, including acts intended to
deliberately withhold information from or obstruct the
activities of the World Health Organization with respect to a
public health emergency of international concern; or
(2) has materially assisted, sponsored, or provided
financial, material, or technological support for, or goods or
services in support of, an act described in paragraph (1).
(b) Sanctions Described.--The sanctions to be imposed with respect
to a foreign person under subsection (a) are the following:
(1) Inadmissibility of certain individuals.--
(A) Ineligibility for visas, admission, or
parole.--A foreign person who meets any of the criteria
described subsection (a) is--
(i) inadmissible to the United States;
(ii) ineligible to receive a visa or other
documentation to enter the United States; and
(iii) otherwise ineligible to be admitted
or paroled into the United States or to receive
any other benefit under the Immigration and
Nationality Act (8 U.S.C. 1101 et seq.).
(B) Current visas revoked.--A foreign person
subject to subsection (a) is subject to the following:
(i) Revocation of any visa or other entry
documentation regardless of when the visa or
other entry documentation is or was issued.
(ii) A revocation under clause (i) shall--
(I) take effect immediately; and
(II) automatically cancel any other
valid visa or entry documentation that
is in the foreign person's possession.
(2) Blocking of property.--The President shall exercise all
of the powers granted to the President by the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (except
that the requirements of section 202 of such Act (50 U.S.C.
1701) shall not apply) to the extent necessary to block and
prohibit all transactions in property and interests in property
of the person if such property and interests in property are in
the United States, come within the United States, or are or
come within the possession or control of a United States
person.
(c) Consideration of Certain Information in Imposing Sanctions.--In
determining whether to impose sanctions under subsection (a), the
President shall consider--
(1) information provided jointly by the chairperson and
ranking member of each of the appropriate congressional
committees; and
(2) credible information obtained by other countries and
nongovernmental organizations that monitor violations of human
rights and global health issues, including issues related to
infectious disease.
(d) Requests by Appropriate Congressional Committees.--
(1) In general.--Not later than 120 days after receiving a
request that meets the requirements of paragraph (2) with
respect to whether a foreign person is described in subsection
(a), the President shall--
(A) determine if that person is so described; and
(B) submit a classified or unclassified report to
the chairperson and ranking member of the committee or
committees that submitted the request with respect to
that determination that includes--
(i) a statement of whether or not the
President imposed or intends to impose
sanctions with respect to the person; and
(ii) if the President imposed or intends to
impose sanctions, a description of those
sanctions.
(2) Requirements.--A request under paragraph (1) with
respect to whether a foreign person is described in subsection
(a) shall be submitted to the President in writing jointly by
the chairperson and ranking member of one of the appropriate
congressional committees.
(e) Exception To Comply With United Nations Headquarters Agreement
and Law Enforcement Objectives.--Sanctions under subsection (b)(1)
shall not apply to an individual if admitting the individual into the
United States--
(1) would further important law enforcement objectives; or
(2) is necessary 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 of the
United States.
(f) Enforcement of Blocking of Property.--A person that violates,
attempts to violate, conspires to violate, or causes a violation of
subsection (b)(2) or any regulation, license, or order issued to carry
out that subsection 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.
(g) Reports Required.--Not later than 120 days after the date of
the enactment of this Act, and annually thereafter, the President shall
submit to the appropriate congressional committees a report that
includes--
(1) a list of each foreign person with respect to which the
President imposed sanctions under subsection (b) during the
year preceding the submission of the report;
(2) a description of the type of sanctions imposed with
respect to each such person;
(3) the number of foreign persons with respect to which the
President--
(A) imposed sanctions under subsection (b) during
that year; or
(B) terminated sanctions under subsection (h)
during that year;
(4) the dates on which such sanctions were imposed or
terminated, as the case may be;
(5) the reasons for imposing or terminating such sanctions;
and
(6) a description of the efforts of the President to
encourage the governments of other countries to impose
sanctions that are similar to the sanctions authorized by this
section.
(h) Termination of Sanctions.--The President may terminate the
application of sanctions under this section with respect to a person if
the President determines and reports to the appropriate congressional
committees not later than 15 days before the termination of the
sanctions that--
(1) credible information exists that the person did not
engage in the activity for which sanctions were imposed;
(2) the person has been prosecuted appropriately for the
activity for which sanctions were imposed;
(3) the foreign country of the person has been upgraded
from the Tier 2 list to the Tier 1 list established under
section 101(a); and
(4) the termination of the sanctions is in the national
security interests of the United States.
(i) Regulatory Authority.--The President shall issue such
regulations, licenses, and orders as are necessary to carry out this
section.
(j) Exception Relating to Importation of Goods.--
(1) In general.--The authorities and requirements to impose
sanctions under this section shall not include the authority 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.
(k) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Banking, Housing, and Urban
Affairs and the Committee on Foreign Relations of the
Senate; and
(B) the Committee on Financial Services and the
Committee on Foreign Affairs of the House of
Representatives.
(2) Foreign person.--The term ``foreign person'' means a
person that is not a United States person.
(3) Person.--The term ``person'' means an individual or
entity.
(4) United states person.--The term ``United States
person'' means--
(A) an individual who is a United States citizen or
an alien lawfully admitted for permanent residence to
the United States;
(B) an 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
(C) any person in the United States.
SEC. 105. G-20 INVESTIGATION OF INTERNATIONAL RESPONSE TO COVID-19.
(a) In General.--The President shall seek to work with the heads of
other Group of Twenty (commonly referred to as the ``G-20'') countries
and international organizations to--
(1) investigate and prepare a report on the international
response to the coronavirus disease 2019 (commonly known as
``COVID-19''); and
(2) conduct an audit of the World Health Organization
relating to its actions in response to COVID-19.
(b) United Nations Actions.--The Permanent United States
Representative to the United Nations shall request the United Nations
Office of Internal Oversight Services to establish a panel with
representatives from each G-20 country and international organization
to--
(1) conduct a review of the World Health Organization's
response to COVID-19; and
(2) make recommendations to the United Nations and the
United Nations Security Council on actions that can be taken
to--
(A) ensure improved future responses; and
(B) ensure accountability of World Health
Organization officials for identified failures.
SEC. 106. INTERNATIONAL RESPONSE TO WET MARKETS GLOBALLY.
(a) In General.--The Permanent United States Representative to the
United Nations shall use the voice, vote, and influence of the United
States to seek the adoption in the United Nations General Assembly or
Security Council of a resolution to ban wet markets described in
subsection (b) globally.
(b) Wet Markets Described.--A wet market described in this
subsection is a market where--
(1) animals are sold, dead or alive, for human consumption;
(2) the origin of such animals and their health cannot be
certified; and
(3) the conditions in which such animals are raised, kept,
or sold are unhygienic.
SEC. 107. PUBLIC HEALTH EMERGENCY OF INTERNATIONAL CONCERN DEFINED.
In this Act, the term ``public health emergency of international
concern'' means a public health emergency determined to be a public
health emergency of international concern by the World Health
Organization.
TITLE II--REVOKING CCP'S ABILITY TO GET VISAS
SEC. 201. DISCLOSURE ON CERTAIN VISA APPLICATIONS.
(a) Disclosure Requirement for F and M Visas.--Not later than 180
days after the date of the enactment of this Act, the Secretary of
Homeland Security shall update Form I-20, or a successor form with
respect to eligibility for nonimmigrant student status, to require an
alien submitting such form to report--
(1) whether the alien has received or plans to receive
certain funds;
(2) the amount of any certain funds received by the alien;
and
(3) a description of the entity providing any certain funds
to the alien.
(b) Disclosure Requirement for J Visas.--Not later than 180 days
after the date of the enactment of this Act, the Secretary of State
shall update Form DS-2019, or a successor form with respect to
eligibility for a exchange visitor status, to require an alien
submitting such form to report--
(1) whether the alien has received or plans to receive
certain funds;
(2) the amount of any certain funds received by the alien;
and
(3) a description of the entity providing any certain funds
to the alien.
(c) Updated Disclosure Requirement.--
(1) In general.--An alien who receives certain funds after
receiving a visa under subparagraph (F), (J), or (M) of section
101(a)(15) of the Immigration and Nationality Act (8 U.S.C.
1101(a)(15)) shall report to the Secretary of Homeland Security
and the Secretary of State the receipt of such funds not more
than 90 days after the date on which such funds are received.
(2) Provisional revocation based on failure to comply with
disclosure requirement.--An alien who receives certain funds
and does not report such receipt pursuant to paragraph (1) is
subject to revocation of any visa or other entry documentation
regardless of when the visa or other entry documentation was
issued.
(d) Disclosure for Alien Spouse and Minor Children.--The disclosure
requirements under subsections (a) through (c) shall apply to an alien
spouse or any minor children applying for or receiving a visa under
subparagraph (F), (J), or (M) of section 101(a)(15) of the Immigration
and Nationality Act (8 U.S.C. 1101(a)(15)).
(e) Applicability.--Not later than 180 days after the date of the
enactment of this Act, an alien, alien spouse, or any minor children
who have a valid visa under subparagraph (F), (J), or (M) of section
101(a)(15) of the Immigration and Nationality Act (8 U.S.C.
1101(a)(15)) on the date of the enactment of this Act, shall report to
the Secretary of Homeland Security--
(1) whether such alien has received or plans to receive
certain funds;
(2) the amount of any certain funds received by the alien;
and
(3) a description of the entity providing any certain funds
to the alien.
(f) Certain Funds Defined.--In this section, the term ``certain
funds'' includes any amount of money provided to an alien from the
Chinese Communist Party or any entity owned or controlled by the
Chinese Communist Party.
TITLE III--TIGHTEN UP REGULATIONS ON CONFUCIUS INSTITUTES
SEC. 301. RESTRICTIONS ON CONFUCIUS INSTITUTES.
(a) Definition.--In this section, the term ``Confucius Institute''
means a cultural institute directly or indirectly funded by the
Government of the People's Republic of China.
(b) Restrictions on Confucius Institutes.--An institution of higher
education or other postsecondary educational institution (referred to
in this section as an ``institution'') shall not be eligible to receive
Federal funds from the Department of Education (except funds under
title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.)
or other Department of Education funds that are provided directly to
students) unless the institution ensures that any contract or agreement
between the institution and a Confucius Institute includes clear
provisions that--
(1) protect academic freedom at the institution;
(2) prohibit the application of any foreign law on any
campus of the institution; and
(3) grant full managerial authority of the Confucius
Institute to the institution, including full control over what
is being taught, the activities carried out, the research
grants that are made, and who is employed at the Confucius
Institute.
TITLE IV--DELISTING CHINA FROM STOCK MARKETS
SEC. 401. PROHIBITIONS RELATING TO CERTAIN COMMUNIST CHINESE MILITARY
COMPANIES.
(a) Definitions.--In this section:
(1) Commission.--The term ``Commission'' means the
Securities and Exchange Commission.
(2) Control; insurance company.--The terms ``control'' and
``insurance company'' have the meaning given the terms in
section 2(a) of the Investment Company Act of 1940 (15 U.S.C.
80a-2(a)).
(3) Covered entity.--
(A) In general.--The term ``covered entity''--
(i) means an entity on--
(I) the list of Communist Chinese
military companies required by section
1237(b) of the Strom Thurmond National
Defense Authorization Act for Fiscal
Year 1999 (Public Law 105-261; 50
U.S.C. 1701 note); or
(II) the entity list maintained by
the Bureau of Industry and Security of
the Department of Commerce and set
forth in Supplement No. 4 to part 744
of the title 15, Code of Federal
Regulations; and
(ii) includes a parent, subsidiary, or
affiliate of, or an entity controlled by, an
entity described in clause (i).
(B) Grace period.--For the purposes of this Act,
and the amendments made by this Act, an entity shall be
considered to be a covered entity beginning on the date
that is 1 year after the date on which the entity first
qualifies under the applicable provision of
subparagraph (A).
(4) Exchange; security.--The terms ``exchange'' and
``security'' have the meanings given those terms in section
3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).
(b) Prohibitions.--
(1) Listing on exchange.--Beginning on the date that is 1
year after the date of enactment of this Act, the Commission
shall prohibit a covered entity from offering to sell or
selling on an exchange (or through any other method that is
within the jurisdiction of the Commission to regulate,
including through the method of trading that is commonly
referred to as the ``over-the-counter'' trading of securities)
securities issued by the covered entity, including pursuant to
an exemption to section 5 of the Securities Act of 1933 (15
U.S.C. 77e).
(2) Investments; limitation on actions.--
(A) In general.--The Investment Company Act of 1940
(15 U.S.C. 80a-1 et seq.) is amended--
(i) in section 12(d) (15 U.S.C. 80a-12(d)),
by adding at the end the following:
``(4)(A) It shall be unlawful for any investment company,
or any person that would be an investment company but for the
application of paragraph (1) or (7) of section 3(c), to invest
in a covered entity.
``(B) In this paragraph, the term `covered entity' has the
meaning given the term in section 2(a) of the American
Financial Markets Integrity and Security Act.''; and
(ii) in section 13(c)(1) (15 U.S.C. 80a-
13(c)(1))--
(I) in subparagraph (A), by
striking ``or'' at the end;
(II) in subparagraph (B), by
striking the period at the end and
inserting ``or''; and
(III) by adding at the end the
following:
``(C) are covered entities, as that term is defined
in section 12(d)(4)(B).''.
(B) Effective date.--The amendments made by
subparagraph (A) shall take effect on the date that is
1 year after the date of enactment of this Act.
(3) Federal funds.--
(A) In general.--Except as provided in subparagraph
(B), on and after the date that is 180 days after the
date of enactment of this Act, no Federal funds may be
used to enter into, extend, or renew a contract or
purchasing agreement with a covered entity.
(B) Waiver.--The head of a Federal agency may issue
a national security waiver to the prohibition in
subparagraph (A) for a period of not more than 2 years
with respect to a covered entity if the agency head
submits to Congress a notification that includes--
(i) a written justification for the waiver;
and
(ii) a plan for a phase-out of the goods or
services provided by the covered entity.
(4) Investments by insurance companies.--
(A) In general.--On and after the date of enactment
of this Act, an insurance company may not invest in a
covered entity.
(B) Certification of compliance.--
(i) In general.--Each insurance company
shall, on an annual basis, submit to the
Secretary of the Treasury a certification of
compliance with subparagraph (A).
(ii) Responsibilities of the secretary.--
The Secretary of the Treasury shall create a
form for the submission required under clause
(i) in such a manner that minimizes the
reporting burden on an insurance company making
the submission.
(C) Sharing information.--The Secretary of the
Treasury, acting through the Federal Insurance Office,
shall share the information received under subparagraph
(B) and coordinate verification of compliance with
State insurance offices.
(c) Qualified Trusts, etc.--
(1) In general.--Subsection (a) of section 401 of the
Internal Revenue Code of 1986 is amended by inserting after
paragraph (38) the following new paragraph:
``(39) Prohibited investments.--A trust which is part of a
plan shall not be treated as a qualified trust under this
subsection unless the plan provides that no part of the plan's
assets will be invested in any covered entity (as defined in
section 12(d)(6)(B) of the Investment Company Act of 1940).''.
(2) IRAs.--Paragraph (3) of section 408(a) of such Code is
amended by striking ``contracts'' and inserting ``contracts or
in any covered entity (as defined in section 12(d)(6)(B) of the
Investment Company Act of 1940)''.
(3) Fiduciary duty.--Section 404 of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1104) is amended by
adding at the end the following new subsection:
``(f) Prohibited Investments.--No fiduciary shall cause any assets
of a plan to be invested in any covered entity (as defined in section
12(d)(6)(B) of the Investment Company Act of 1940 (15 U.S.C. 80a-
12(d)(6)(B))).''.
(4) Effective date.--
(A) In general.--Except as provided in subparagraph
(B), the amendments made by this subsection shall apply
to plan years beginning after the date which is 180
days after the date of the enactment of this Act.
(B) Plan amendments.--If subparagraph (C) applies
to any retirement plan or contract amendment--
(i) such plan or contract shall not fail to
be treated as being operated in accordance with
the terms of the plan during the period
described in subparagraph (C)(ii) solely
because the plan operates in accordance with
the amendments made by this subsection; and
(ii) except as provided by the Secretary of
the Treasury (or the Secretary's delegate),
such plan or contract shall not fail to meet
the any requirements of the Internal Revenue
Code of 1986 or the Employee Retirement Income
Security Act of 1974 by reason of such
amendment.
(C) Amendments to which paragraph applies.--
(i) In general.--This subparagraph shall
apply to any amendment to any plan or annuity
contract which--
(I) is made pursuant to the
provisions of this section; and
(II) is made on or before the last
day of the first plan year beginning on
or after the date which is 2 years
after the date of the enactment of this
Act (4 years after such date of
enactment, in the case of a
governmental plan).
(ii) Conditions.--This subparagraph shall
not apply to any amendment unless--
(I) during the period beginning on
the date which is 180 days after the
date of the enactment of this Act, and
ending on the date described in clause
(i)(II) (or, if earlier, the date the
plan or contract amendment is adopted),
the plan or contract is operated as if
such plan or contract amendment were in
effect; and
(II) such plan or contract
amendment applies retroactively for
such period.
(D) Subsequent amendments.--Rules similar to the
rules of subparagraphs (B) and (C) shall apply in the
case of any amendment to any plan or annuity contract
made pursuant to any update of the list of Communist
Chinese military companies required by section 1237(b)
of the Strom Thurmond National Defense Authorization
Act for Fiscal Year 1999 (Public Law 105-261; 50 U.S.C.
1701 note) which is made after the effective date of
the amendments made by this subsection.
SEC. 402. MODIFICATION OF REQUIREMENTS FOR LIST OF COMMUNIST CHINESE
MILITARY COMPANIES.
Section 1237(b) of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 50 U.S.C.
1701 note) is amended--
(1) by striking paragraph (2) and inserting the following:
``(2) Revisions to the list.--
``(A) Additions.--The Secretary of Defense, the
Secretary of Commerce, or the Director of National
Intelligence may add a person to the list required by
paragraph (1) at any time.
``(B) Removals.--A person may be removed from the
list required by paragraph (1) if the Secretary of
Defense, the Secretary of Commerce, and the Director of
National Intelligence agree to remove the person from
the list.
``(C) Submission of updates to congress.--Not later
than February 1 of each year, the Secretary of Defense
shall submit a version of the list required in
paragraph (1), updated to include any additions or
removals under this paragraph, to the committees and
officers specified in paragraph (1).'';
(2) by striking paragraph (3) and inserting the following:
``(3) Consultation.--In carrying out paragraphs (1) and
(2), the Secretary of Defense, the Secretary of Commerce, and
the Director of National Intelligence shall consult with each
other, the Attorney General, and the Director of the Federal
Bureau of Investigation.''; and
(3) in paragraph (4), in the matter preceding subparagraph
(A), by striking ``making the determination required by
paragraph (1) and of carrying out paragraph (2)'' and inserting
``this section''.
SEC. 403. ANALYSIS OF FINANCIAL AMBITIONS OF THE GOVERNMENT OF THE
PEOPLE'S REPUBLIC OF CHINA.
(a) Analysis Required.--The Director of the Office of Commercial
and Economic Analysis of the Air Force shall conduct an analysis of--
(1) the strategic importance to the Government of the
People's Republic of China of inflows of United States dollars
through capital markets to the People's Republic of China;
(2) the methods by which that Government seeks to manage
such inflows;
(3) how the inclusion of the securities of Chinese entities
in stock or bond indexes affects such inflows and serves the
financial ambitions of that Government; and
(4) how the listing of the securities of Chinese entities
on exchanges in the United States assists in--
(A) meeting the strategic goals of that Government,
including defense, surveillance, and intelligence
goals; and
(B) the fusion of the civilian and military
components of that Government.
(b) Submission to Congress.--The Director of the Office of
Commercial and Economic Analysis of the Air Force shall submit to
Congress a report--
(1) setting forth the results of the analysis conducted
under subsection (a); and
(2) based on that analysis, making recommendations for best
practices to mitigate any national security and economic risks
to the United States relating to the financial ambitions of the
Government of the People's Republic of China.
TITLE V--REVOKING CHINA'S MOST FAVORED NATION STATUS
SEC. 501. WITHDRAWAL OF NORMAL TRADE RELATIONS TREATMENT FROM THE
PEOPLE'S REPUBLIC OF CHINA.
Notwithstanding the provisions of title I of Public Law 106-286
(114 Stat. 880) or any other provision of law, effective on the date of
the enactment of this Act--
(1) normal trade relations treatment shall not apply
pursuant to section 101 of that Act to the products of the
People's Republic of China;
(2) normal trade relations treatment may thereafter be
extended to the products of the People's Republic of China only
in accordance with the provisions of chapter 1 of title IV of
the Trade Act of 1974 (19 U.S.C. 2431 et seq.), as in effect
with respect to the products of the People's Republic of China
on the day before the effective date of the accession of the
People's Republic of China to the World Trade Organization; and
(3) the extension of waiver authority that was in effect
with respect to the People's Republic of China under section
402(d)(1) of the Trade Act of 1974 (19 U.S.C. 2432(d)(1)) on
the day before the effective date of the accession of the
People's Republic of China to the World Trade Organization
shall, upon the enactment of this Act, be deemed not to have
expired, and shall continue in effect until the date that is 90
days after the date of such enactment.
SEC. 502. EXPANSION OF BASES OF INELIGIBILITY OF PEOPLE'S REPUBLIC OF
CHINA FOR NORMAL TRADE RELATIONS.
(a) In General.--Section 402 of the Trade Act of 1974 (19 U.S.C.
2432) is amended--
(1) in the section heading, by striking ``freedom of
emigration in east-west trade'' and inserting ``east-west trade
and human rights''; and
(2) by adding at the end the following:
``(f) Additional Bases of Ineligibility of People's Republic of
China for Normal Trade Relations.--
``(1) In general.--Products from the People's Republic of
China shall not be eligible to receive nondiscriminatory
treatment (normal trade relations), the People's Republic of
China shall not participate in any program of the Government of
the United States which extends credits or credit guarantees or
investment guarantees, directly or indirectly, and the
President shall not conclude any commercial agreement with the
People's Republic of China, during the period--
``(A) beginning with the date on which the
President determines that the People's Republic of
China--
``(i) is in violation of paragraph (1),
(2), or (3) of subsection (a);
``(ii) uses or provides for the use of
slave labor;
``(iii) operates `vocational training and
education centers' or other concentration camps
where people are held against their will;
``(iv) performs or otherwise orders forced
abortion or sterilization procedures;
``(v) harvests the organs of prisoners
without their consent;
``(vi) hinders the free exercise of
religion;
``(vii) intimidates or harasses nationals
of the People's Republic of China living
outside the People's Republic of China; or
``(viii) engages in systematic economic
espionage against the United States, including
theft of the intellectual property of United
States persons; and
``(B) ending on the date on which the President
determines that the People's Republic of China is no
longer in violation of any of clauses (i) through
(viii) of subparagraph (A).
``(2) Report required.--
``(A) In general.--After the date of the enactment
of this subsection, products of the People's Republic
of China may be eligible to receive nondiscriminatory
treatment (normal trade relations), the People's
Republic of China may participate in any program of the
Government of the United States which extends credits
or credit guarantees or investment guarantees, and the
President may conclude a commercial agreement with the
People's Republic of China, only after the President
has submitted to Congress a report indicating that the
People's Republic of China is not in violation of any
of clauses (i) through (viii) of paragraph (1)(A).
``(B) Elements.--The report required by
subparagraph (A) shall include information as to the
nature and implementation of laws and policies of the
People's Republic of China relating to the matters
specified in clauses (i) through (viii) of paragraph
(1)(A).
``(C) Deadlines.--The report required by
subparagraph (A) shall be submitted on or before each
June 30 and December 31 of each year for as long as
products of the People's Republic of China receive
nondiscriminatory treatment (normal trade relations),
the People's Republic of China participates in any
program of the Government of the United States which
extends credits or credit guarantees or investment
guarantees, or a commercial agreement with the People's
Republic of China is in effect.
``(3) Waiver.--
``(A) In general.--The President is authorized to
waive by Executive order the application of paragraphs
(1) and (2) for a 12-month period if the President
submits to Congress a report that the President--
``(i) has determined that such waiver will
substantially promote the objectives of this
subsection; and
``(ii) has received assurances that the
practices of the People's Republic of China
relating to the matters specified in clauses
(i) through (viii) of paragraph (1)(A) will in
the future lead substantially to the
achievement of the objectives of this
subsection.
``(B) Termination of waiver.--A waiver under
subparagraph (A) shall terminate on the earlier of--
``(i) the day after the waiver authority
granted by this paragraph ceases to be
effective under paragraph (4); or
``(ii) the effective date of an Executive
order providing for termination of the waiver.
``(4) Extension of waiver authority.--
``(A) Recommendations.--If the President determines
that the further extension of the waiver authority
granted under paragraph (3) will substantially promote
the objectives of this subsection, the President may
recommend further extensions of such authority for
successive 12-month periods. Any such recommendations
shall--
``(i) be made not later than 30 days before
the expiration of such authority;
``(ii) be made in a document submitted to
the House of Representatives and the Senate
setting forth the reasons of the President for
recommending the extension of such authority;
and
``(iii) include--
``(I) a determination that
continuation of the waiver will
substantially promote the objectives of
this subsection; and
``(II) a statement setting forth
the reasons of the President for such
determination.
``(B) Continuation in effect of waiver.--If the
President recommends under subparagraph (A) the further
extension of the waiver authority granted under
paragraph (3), such authority shall continue in effect
until the end of the 12-month period following the end
of the previous 12-month extension, unless--
``(i) Congress adopts and transmits to the
President a joint resolution of disapproval
under paragraph (5) before the end of the 60-
day period beginning on the date the waiver
authority would expire but for an extension
under subparagraph (A); and
``(ii) if the President vetoes the joint
resolution, each House of Congress votes to
override the veto on or before the later of--
``(I) the last day of the 60-day
period referred to in clause (i); or
``(II) the last day of the 15-day
period (excluding any day described in
section 154(b)) beginning on the date
on which Congress receives the veto
message from the President.
``(C) Termination of waiver pursuant to joint
resolution of disapproval.--If a joint resolution of
disapproval is enacted into law pursuant to paragraph
(5), the waiver authority granted under paragraph (3)
shall cease to be effective as of the day after the 60-
day period beginning on the date of the enactment of
the joint resolution.
``(5) Joint resolution of disapproval.--
``(A) Joint resolution of disapproval defined.--In
this paragraph, the term `joint resolution of
disapproval' means a joint resolution the matter after
the resolving clause of which is as follows: `That
Congress does not approve the extension of the
authority contained in paragraph (3) of section 402(f)
of the Trade Act of 1974 with respect to the People's
Republic of China recommended by the President to
Congress under paragraph (4) of that section on ___.',
with the blank space being filled with the appropriate
date.
``(B) Procedures in house and senate.--The
provisions of subsections (b) through (f) of section
152 shall apply with respect to a joint resolution of
approval to the same extent and in the same manner as
such provisions apply with respect to a resolution
described in subsection (a) of that section, except
that subsection (e)(2) of that section shall be applied
and administered by substituting `Consideration' for
`Debate'.
``(C) Rules of the house of representatives and
senate.--This paragraph is enacted by Congress--
``(i) as an exercise of the rulemaking
power of the House of Representatives and the
Senate, 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 other rules;
and
``(ii) 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.''.
(b) Clerical Amendment.--The table of contents for the Trade Act of
1974 is amended by striking the item relating to section 402 and
inserting the following:
``Sec. 402. East-West trade and human rights.''.
TITLE VI--REMOVAL OF CHINA FROM THE WTO
SEC. 601. REMOVAL OF CHINA FROM THE WTO.
The President shall direct the U.S. Permanent Mission to the World
Trade Organization (WTO) to use the voice, vote, and influence of the
United States to seek the removal of the People's Republic of China
from the WTO.
TITLE VII--END LENDING TO THE CCP FROM WORLD BANK
SEC. 701. OPPOSITION TO PROVISION OF ASSISTANCE TO PEOPLE'S REPUBLIC OF
CHINA BY MULTILATERAL DEVELOPMENT BANKS.
(a) Findings.--Congress makes the following findings:
(1) The People's Republic of China is the world's second
largest economy and a major global lender.
(2) In February 2021, the foreign exchange reserves of the
People's Republic of China totaled more than
$3,200,000,000,000.
(3) The World Bank classifies the People's Republic of
China as having an upper-middle-income economy.
(4) On February 25, 2021, President Xi Jinping announced
``complete victory'' over extreme poverty in the People's
Republic of China.
(5) The Government of the People's Republic of China
utilizes state resources to create and promote the Asian
Infrastructure Investment Bank, the New Development Bank, and
the Belt and Road Initiative.
(6) The People's Republic of China is the world's largest
official creditor.
(7) Through a multilateral development bank, countries are
eligible to borrow until they can manage long-term development
and access to capital markets without financial resources from
the bank.
(8) The World Bank reviews the graduation of a country from
eligibility to borrow from the International Bank for
Reconstruction and Development once the country reaches the
graduation discussion income, which is equivalent to the gross
national income. For fiscal year 2021, the graduation
discussion income is a gross national income per capita
exceeding $7,065.
(9) Many of the other multilateral development banks, such
as the Asian Development Bank, use the gross national income
per capita benchmark used by the International Bank for
Reconstruction and Development to trigger the graduation
process.
(10) The People's Republic of China exceeded the graduation
discussion income threshold in 2016.
(11) Since 2016, the International Bank for Reconstruction
and Development has approved projects totaling $8,930,000,000
to the People's Republic of China.
(12) Since 2016, the Asian Development Bank has continued
to approve loans and technical assistance to the People's
Republic of China totaling $7,600,000,000. The Bank has also
approved non-sovereign commitments in the People's Republic of
China totaling $1,800,000,000 since 2016.
(13) The World Bank calculates the People's Republic of
China's most recent year (2019) gross national income per
capita as $10,390.
(b) Statement of Policy.--It is the policy of the United States to
oppose any additional lending from the multilateral development banks,
including the International Bank for Reconstruction and Development and
the Asian Development Bank, to the People's Republic of China as a
result of the People's Republic of China's successful graduation from
the eligibility requirements for assistance from those banks.
(c) Opposition to Lending to People's Republic of China.--The
Secretary of the Treasury shall instruct the United States Executive
Director at each multilateral development bank to use the voice, vote,
and influence of the United States--
(1) to oppose any loan or extension of financial or
technical assistance by the bank to the People's Republic of
China; and
(2) to end lending and assistance to countries that exceed
the graduation discussion income of the bank.
(d) Report Required.--Not later than one year after the date of the
enactment of this Act, and annually thereafter, the Secretary of the
Treasury shall submit to the appropriate congressional committees a
report that includes--
(1) an assessment of the status of borrowing by the
People's Republic of China from each multilateral development
bank;
(2) a description of voting power, shares, and
representation by the People's Republic of China at each such
bank;
(3) a list of countries that have exceeded the graduation
discussion income at each such bank;
(4) a list of countries that have graduated from
eligibility for assistance from each such bank; and
(5) a full description of the efforts taken by the United
States to graduate countries from such eligibility once they
exceed the graduation discussion income at each such bank.
(e) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations of the
Senate; and
(B) the Committee on Financial Services and the
Committee on Foreign Affairs of the House of
Representatives.
(2) Multilateral development banks.--The term
``multilateral development banks'' has the meaning given that
term in section 1701(c) of the International Financial
Institutions Act (22 U.S.C. 262r(c)).
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