[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3945 Introduced in Senate (IS)]

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118th CONGRESS
  2d Session
                                S. 3945

To restrict the Chinese Government from accessing United States capital 
  markets and exchanges if it fails to comply with international laws 
               relating to finance, trade, and commerce.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 14, 2024

   Mr. Vance introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To restrict the Chinese Government from accessing United States capital 
  markets and exchanges if it fails to comply with international laws 
               relating to finance, trade, and commerce.

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

SECTION 1. CONDITIONAL ACCESS FOR THE CHINESE GOVERNMENT TO UNITED 
              STATES CAPITAL MARKETS AND EXCHANGES.

    (a) Definitions.--In this section:
            (1) Applicable laws.--The term ``applicable laws'' means--
                    (A) the public international doctrine of state 
                succession, as it relates to international norms and 
                rules of finance, trade, and commerce, including the 
                successor government doctrine with respect to sovereign 
                debt;
                    (B) United States and foreign laws and regulations 
                governing transparency and disclosures applicable to 
                major capital markets, commodities markets, and 
                exchanges; and
                    (C) international laws prohibiting the practice of 
                exclusionary settlement, discriminatory payments, and 
                selective default.
            (2) Applicable united states entity.--The term ``applicable 
        United States entity'' means--
                    (A) a national securities exchange that is 
                registered in accordance with section 6 of the 
                Securities Exchange Act of 1934 (15 U.S.C. 78f);
                    (B) a broker or a dealer (as defined in the 
                Securities Act of 1933 (15 U.S.C. 77a et seq.) or in 
                the Securities Exchange Act of 1934 (15 U.S.C. 78a et 
                seq.));
                    (C) an alternative trading system (as defined in 
                section 242.300 of title 17, Code of Federal 
                Regulations);
                    (D) an investment company (as defined in section 
                3(a)(1) of the Investment Company Act (15 U.S.C. 80a-
                3(a)(1));
                    (E) a commodity pool operator, a futures commission 
                merchant, an introducing broker, a swap dealer, or a 
                swap execution facility (as such terms are defined in 
                section 1a of the Commodity Exchange Act (7 U.S.C. 1a)) 
                or a contract market designated pursuant to section 5 
                of such Act (7 U.S.C. 7);
                    (F) a national bank, a State bank, or a savings 
                association (as such terms are defined in section 2 of 
                the Federal Deposit Insurance Act (12 U.S.C. 1813));
                    (G) a credit union, whether chartered under the 
                Federal Credit Union Act or under State law;
                    (H) a real estate broker registered as such under 
                State law;
                    (I) a Federal, State, or local government agency;
                    (J) a government-sponsored enterprise (as defined 
                in section 3(8) of the Congressional Budget and 
                Impoundment Control Act of 1974 (2 U.S.C. 622(8))); and
                    (K) any other entity authorized to accept 
                investments from, or engage in or effect transactions 
                on behalf of, the Government of the People's Republic 
                of China or any commercial entity under the control of 
                such government designated by the Secretary as an 
                applicable United States entity.
    (b) In General.--If the Secretary of the Treasury, in consultation 
with the Committee on Foreign Investment in the United States, 
determines that the Government of the People's Republic of China is not 
in compliance with applicable laws relating to finance, trade, and 
commerce, as specified in subsection (c) and including the successor 
government doctrine with respect to sovereign debt, the Secretary shall 
prohibit any applicable United States entity, including capital 
markets, bond markets, and exchanges, from accepting any new 
investment, or effecting any transaction for others relating to a new 
investment, from such government or any commercial entities under the 
control of such government.
    (c) Specified International Laws.--The international laws specified 
in this subsection are--
            (1) the public international doctrine of state succession, 
        as it relates to international norms and rules of finance, 
        trade, and commerce;
            (2) the transparency and disclosure rules and regulations 
        applicable to major capital markets and exchanges; and
            (3) international laws prohibiting the practice of 
        exclusionary settlement, discriminatory payments, and selective 
        default.
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