[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1368 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 1368

 To impose sanctions with respect to the transfer of arms and related 
materiel by the People's Republic of China to the Russian Federation or 
the evasion or circumvention of United States sanctions or multilateral 
sanctions by the People's Republic of China with respect to the Russian 
                  Federation, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 3, 2023

  Mr. Schiff (for himself, Ms. Titus, Mr. Quigley, Mr. Phillips, Ms. 
Garcia of Texas, Mr. Vicente Gonzalez of Texas, Mr. Crow, Ms. McCollum, 
 Mr. Case, Mr. Swalwell, Ms. Wild, Mr. Krishnamoorthi, Mr. Kildee, and 
 Ms. Tokuda) introduced the following bill; which was referred to the 
Committee on Foreign Affairs, and in addition to the Committees on the 
   Judiciary, Financial Services, Ways and Means, and Oversight and 
   Accountability, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To impose sanctions with respect to the transfer of arms and related 
materiel by the People's Republic of China to the Russian Federation or 
the evasion or circumvention of United States sanctions or multilateral 
sanctions by the People's Republic of China with respect to the Russian 
                  Federation, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Deter PRC Support to the Russian War 
Effort Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The People's Republic of China (in this section 
        referred to as the ``PRC'') and the Russian Federation have, in 
        recent years, forged a closer relationship, based largely on 
        their shared interest in challenging the rules-based 
        international order, in an attempt to reshape that order into 
        one that is more welcoming to their authoritarian systems of 
        government.
            (2) The rhetoric of the PRC's leaders, including Xi 
        Jinping, who called for the unification ``by force'' of Taiwan 
        with the People's Republic of China, mirrors the Russian 
        Federation's justification for invading Ukraine, poses a danger 
        to international peace and security and the agreed to status 
        quo on Taiwan in the Three Communiques exchanged between 
        Beijing and Washington, and should be condemned by the 
        international community.
            (3) On February 24, 2022, Russia launched an unprovoked and 
        unjustified full-scale invasion of Ukraine, and in addition, 
        the United Nation has reported more than 7,800,000 Ukrainian 
        refugees forced to flee across Europe and more than 5,000,000 
        internally displaced in Ukraine since Russia's invasion began.
            (4) The PRC's Foreign Ministry spokesperson refused to 
        categorize Russia's attacks as an ``invasion'' or ``war'' and 
        referred repeatedly to the Russian Federation's statements on 
        Ukraine, including reiterating criticisms of the North Atlantic 
        Treaty Organization (NATO) and blaming the United States for 
        starting the conflict.
            (5) Since Russia's full-scale invasion of Ukraine, the 
        Biden Administration has imposed several tranches of sanctions 
        on Putin's Russia.
            (6) On February 22, 2022, President Biden issued Executive 
        Order 14065, which blocks property of certain persons and 
        prohibits certain transactions with respect to continued 
        Russian efforts to undermine the sovereignty and territorial 
        integrity of Ukraine, and expands the scope of the national 
        emergency declared in Executive Order 13660 of March 6, 2014, 
        Executive Order 13661 of March 16, 2014, and Executive Order 
        13662 of March 20, 2014, and takes additional steps with 
        respect to Executive Order 13685 of December 19, 2014, and 
        Executive Order 13849 of September 20, 2018, finding that the 
        Russian Federation's purported recognition of the so-called 
        Donetsk People's Republic (DNR) or Luhansk People's Republic 
        (LNR) regions of Ukraine contradicts Russia's commitments under 
        the Minsk agreements and further threatens the peace, 
        stability, sovereignty, and territorial integrity of Ukraine, 
        and thereby constitutes an unusual and extraordinary threat to 
        the national security and foreign policy of the United States.
            (7) On March 8, 2022, President Biden issued Executive 
        Order 14066, which prohibits certain imports and new 
        investments with respect to continued Russian Federation 
        efforts to undermine the sovereignty and territorial integrity 
        of Ukraine, and expands the scope of the national emergency 
        declared in Executive Order 14024 of April 15, 2021, and takes 
        additional steps with respect to Executive Order 14039 of 
        August 20, 2021, finding that the Russian Federation's 
        unjustified, unprovoked, unyielding, and unconscionable war 
        against Ukraine, including its recent further invasion in 
        violation of international law, including the United Nations 
        Charter, further threatens the peace, stability, sovereignty, 
        and territorial integrity of Ukraine, and thereby constitutes 
        an unusual and extraordinary threat to the national security 
        and foreign policy of the United States.
            (8) On March 11, 2022, President Biden issued Executive 
        Order 14068, which further prohibits certain imports and new 
        investments with respect to continued Russian Federation 
        efforts to undermine the sovereignty and territorial integrity 
        of Ukraine, and takes additional steps with respect to the 
        national emergency declared in Executive Order 14024 of April 
        15, 2021, and Executive Order 14039 of August 20, 2021, and 
        expanded by Executive Order 14066 of March 8, 2022.
            (9) On April 6, 2022, President Biden issued Executive 
        Order 14071, prohibiting new investment and certain services to 
        the Russian Federation in response to continued Russian 
        Federation aggression, and takes additional steps with respect 
        to the national emergency declared in Executive Order 14024 of 
        April 15, 2021, expanded by Executive Order 14066 of March 8, 
        2022, and relied on for additional steps taken in Executive 
        Order 14039 of August 20, 2021, and Executive Order 14068 of 
        March 11, 2022.
            (10) In March 2022, as the Biden Administration continued 
        to increase pressure on Putin's regime through rollouts of the 
        aforementioned sanctions, the head of the PRC's banking and 
        insurance regulator said the PRC will not participate in the 
        sanctions regime Western nations imposed on Russia and ``will 
        continue to maintain normal economic, trade and financial 
        exchanges'' with Russia despite its aggression against Ukraine.
            (11) Indeed, that same month, according to PRC customs 
        data, Russia bought 9,950 metric tons of alumina from the PRC, 
        which is nearly 10 times more than what it purchased in the 
        same period a year earlier. The PRC's first-quarter exports of 
        alumina to Russia are nearly six times the volume of all of 
        2021, suggesting the PRC may find new ways of providing support 
        to Russia.
            (12) On June 28, 2022, the U.S. Department of Commerce, 
        Bureau of Industry and Security, added five Chinese companies 
        to the Entity List, in response to their continued support to 
        Russia's military efforts since the imposition of export 
        controls in response to Russia's invasion of Ukraine.
            (13) In December 2022, the PRC's foreign minister stated 
        his country would ``deepen strategic mutual trust and mutually 
        beneficial cooperation'' with Russia, and trade between the 
        countries has continued to grow.
            (14) As of February 2023, reports based on customs records 
        indicate Chinese state-owned and private companies have 
        exported parts and equipment to sanctioned Russian entities 
        that could be facilitating Putin's war. This includes shipments 
        of helicopter equipment, jamming technology, drones, and jet-
        fighter parts to sanctioned Russian government-owned defense 
        firms.
            (15) On February 18, 2023, the Secretary of State publicly 
        stated that Chinese companies were already providing non-lethal 
        support to Russia's war effort and the PRC was considering 
        providing lethal support, including weapons and ammunition.

SEC. 3. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) Russia's military invasion of Ukraine and the war 
        crimes and human rights violations committed by the Kremlin, 
        Russia's military, and Russia's intelligence and security 
        services against the people of Ukraine should be strongly 
        condemned;
            (2) any country or entity that provides material support 
        for Russia's invasion is furthering Russia's unlawful 
        belligerence and committing of war crimes;
            (3) Chinese Government officials and individuals and 
        entities associated with People's Republic of China that assist 
        the Russian Federation, including Russian Government officials 
        or individuals or entities associated with the Russian 
        Federation, by providing material support or in evading 
        sanctions imposed following the Russian Federation's invasion 
        of Ukraine are, in so doing, supporting the Russian 
        Federation's unprovoked attack on Ukraine and the Ukrainian 
        people, including alleged war crimes committed by Russian Armed 
        Forces against civilians;
            (4) the President should continue to seek unity with 
        European and other key partners and to uphold sanctions that 
        continue to impose costs on Putin's regime and deplete the 
        Russian Federation's war chest;
            (5) the President should impose sanctions with respect to 
        those sectors and individuals and entities of the Russian 
        Federation, including Russian Government officials, that are 
        evading sanctions imposed by the United States and allied 
        nations following Russia's invasion of Ukraine; and
            (6) the President should encourage other European countries 
        and key partners to enact legislation that is similar to the 
        provisions of this Act.

SEC. 4. SANCTIONS WITH RESPECT TO THE TRANSFER OF ARMS AND RELATED 
              MATERIEL BY CHINA TO RUSSIA.

    (a) Imposition of Sanctions.--
            (1) In general.--The President is authorized to impose on a 
        PRC person one or more of the sanctions described in subsection 
        (b) if the President determines that such person has, on or 
        after the date of the enactment of this Act, knowingly--
                    (A) exported, transferred, or otherwise provided to 
                Russia financial, material, or technological support 
                that contributes materially to the ability of the 
                Government of Russia to undertake military action in 
                Ukraine, such as--
                            (i) acquiring chemical, biological, or 
                        nuclear weapons or related technologies;
                            (ii) acquiring ballistic or cruise missile 
                        capabilities;
                            (iii) acquiring advanced conventional 
                        weapons;
                            (iv) acquiring significant defense 
                        articles, defense services, or defense 
                        information (as such terms are defined under 
                        the Arms Export Control Act (22 U.S.C. 2751 et 
                        seq.)); or
                            (v) acquiring items designated by the 
                        President for purposes of the United States 
                        Munitions List under section 38(a)(1) of the 
                        Arms Export Control Act (22 U.S.C. 2778(a)(1)); 
                        or
                    (B) facilitated or assisted in the evasion or 
                circumvention of United States sanctions or 
                multilateral sanctions with respect to the Russia.
            (2) Applicability to other prc persons.--The sanctions 
        described in subsection (b) may also be imposed on any PRC 
        person that--
                    (A) is a successor entity to a PRC person described 
                in paragraph (1); or
                    (B) is owned or controlled by, or has acted for or 
                on behalf of, a PRC person described in paragraph (1) 
                and has engaged in a sanctionable activity described in 
                such paragraph.
    (b) Sanctions Described.--The sanctions described in this 
subsection are the following:
            (1) Blocking of property.--The President shall exercise all 
        powers granted 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 
        all 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.
            (2) Inadmissibility of certain individuals.--
                    (A) Ineligibility for visas and admission to the 
                united states.--An individual determined by the 
                President to be a person described in 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.--An individual 
                determined by the President to be a person described in 
                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 
                        cancel any other valid visa or entry 
                        documentation that is in the person's 
                        possession in accordance with section 221(i) of 
                        the Immigration and Nationality Act.
            (3) Other sanctions.--
                    (A) Export-import bank assistance for exports.--The 
                President may direct the Export-Import Bank of the 
                United States not to give approval to the issuance of 
                any guarantee, insurance, extension of credit, or 
                participation in the extension of credit in connection 
                with the export of any goods or services to the person.
                    (B) Loans from united states financial 
                institutions.--The President may prohibit any United 
                States financial institution from making loans or 
                providing credits to the person in any 12-month period 
                unless the person is engaged in activities to relieve 
                human suffering and the loans or credits are provided 
                for such activities.
                    (C) Loans from international financial 
                institutions.--The President should direct the United 
                States Executive Director to each international 
                financial institution to use the voice and vote of the 
                United States to oppose any loan from the international 
                financial institution that would benefit the person.
                    (D) Prohibitions on financial institutions.--The 
                following prohibitions may be imposed against the 
                person if that person is a financial institution:
                            (i) 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 
                        financial institution as a primary dealer in 
                        United States Government debt instruments.
                            (ii) Prohibition on service as a repository 
                        of government funds.--The financial institution 
                        may not serve as agent of the United States 
                        Government or serve as repository for United 
                        States Government funds.
                    (E) Procurement sanction.--The United States 
                Government may not procure, or enter into any contract 
                for the procurement of, any goods or services from the 
                person.
                    (F) 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 in 
                which the person has any interest.
                    (G) 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 any interest of the 
                person.
                    (H) Property transactions.--The President may, 
                pursuant to such regulations as the President may 
                prescribe, prohibit any other person from--
                            (i) 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 person has 
                        any interest;
                            (ii) dealing in or exercising any right, 
                        power, or privilege with respect to such 
                        property; or
                            (iii) conducting any transaction involving 
                        such property.
                    (I) Ban on investment in equity or debt of 
                person.--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 person.
                    (J) Exclusion of corporate officers.--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, any alien that the President 
                determines is a corporate officer or principal of, or a 
                shareholder with a controlling interest in, the person.
                    (K) Sanctions on principal executive officers.--The 
                President may impose on the principal executive officer 
                or officers of the person, or on persons performing 
                similar functions and with similar authorities as such 
                officer or officers, any of the sanctions under this 
                subsection.
    (c) Exceptions.--
            (1) Exception for intelligence activities.--Sanctions under 
        this section shall not apply to any activity subject to the 
        reporting requirements under title V of the National Security 
        Act of 1947 (50 U.S.C. 3091 et seq.) or any authorized 
        intelligence activities of the United States.
            (2) Exception to comply with international obligations and 
        for law enforcement activities.--Sanctions under subsection 
        (b)(2) shall not apply with respect to an alien if admitting or 
        paroling the alien into the United States is necessary--
                    (A) 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; or
                    (B) to carry out or assist law enforcement activity 
                in the United States.
            (3) Exception relating to importation of goods.--
                    (A) In general.--The authority to block and 
                prohibit all transactions in all property and interests 
                in property under subsection (b)(1) shall not include 
                the authority to impose sanctions on the importation of 
                goods.
                    (B) Good defined.--In this paragraph, the term 
                ``good'' means any article, natural or man-made 
                substance, material, supply or manufactured product, 
                including inspection and test equipment and excluding 
                technical data.
    (d) Waiver.--The President may waive the application of sanctions 
under subsection (b) with respect to a PRC person described in 
subsection (a) if the President determines that such a waiver is in the 
national interest of the United States.
    (e) Implementation; Penalties.--
            (1) 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 carry out the purposes of this section.
            (2) Penalties.--The penalties provided for in subsections 
        (b) and (c) of section 206 of the International Emergency 
        Economic Powers Act (50 U.S.C. 1705) may apply to a person that 
        violates, attempts to violate, or conspires to violate, or 
        causes a violation of, subsection (a) of this section, or an 
        order or regulation prescribed under either such subsection, to 
        the same extent that such penalties apply to a person that 
        commits an unlawful act described in section 206(a) of the 
        International Emergency Economic Powers Act.
    (f) Definitions.--In this section:
            (1) China.--The term ``China'' means the People's Republic 
        of China.
            (2) Financial, material, or technological support.--The 
        term ``financial, material, or technological support'' has the 
        meaning given such term in section 542.304 of title 31, Code of 
        Federal Regulations (or any corresponding similar regulation or 
        ruling).
            (3) PRC person.--The term ``PRC person''--
                    (A) means--
                            (i) any citizen or national of China; or
                            (ii) any entity organized under the laws of 
                        China or any jurisdiction within China; and
                    (B) includes the Government of China, the Chinese 
                Communist Party, and any Chinese State-owned 
                enterprise.
            (4) International financial institution.--The term 
        ``international financial institution'' has the meaning given 
        that term in section 1701(c) of the International Financial 
        Institutions Act (22 U.S.C. 262r(c)).
            (5) Russia.--The term ``Russia'' means the Russian 
        Federation.
            (6) United states person.--The term ``United States 
        person'' means--
                    (A) a United States citizen or an alien lawfully 
                admitted for permanent residence to the United States; 
                or
                    (B) an entity organized under the laws of the 
                United States or of any jurisdiction within the United 
                States, including a foreign branch of such an entity.

SEC. 5. SUNSET.

    The provisions of this Act shall take effect on the date of the 
enactment of this Act, and such provisions, including any sanctions or 
penalties imposed under this Act, shall terminate on the earlier of--
            (1) the date on which the President determines the conflict 
        in Ukraine has ended; or
            (2) the date that is 2 years after such date of enactment.
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