[Congressional Record Volume 167, Number 88 (Thursday, May 20, 2021)]
[Senate]
[Pages S3235-S3236]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1778. Mr. RUBIO (for himself, Mr. Cardin, and Mr. Barrasso) 
submitted an amendment intended to be proposed to amendment SA 1502 
proposed by Mr. Schumer to the bill S. 1260, to establish a new 
Directorate for Technology and Innovation in the National Science 
Foundation, to establish a regional technology hub program, to require 
a strategy and report on economic security, science, research, 
innovation, manufacturing, and job creation, to establish a critical 
supply chain resiliency program, and for other purposes; which was 
ordered to lie on the table; as follows:

        At the end of title II of division E, add the following:

      Subtitle C--South China Sea and East China Sea Sanctions Act

     SEC. 5221. SHORT TITLE.

       This subtitle may be cited as the ``South China Sea and 
     East China Sea Sanctions Act of 2021''.

     SEC. 5222. SANCTIONS WITH RESPECT TO CHINESE PERSONS 
                   RESPONSIBLE FOR CHINA'S ACTIVITIES IN THE SOUTH 
                   CHINA SEA AND THE EAST CHINA SEA.

       (a) Initial Imposition of Sanctions.--On and after the date 
     that is 120 days after the date of the enactment of this Act, 
     the President may impose the sanctions described in 
     subsection (b) with respect to any Chinese person that the 
     President determines--
       (1) is responsible for or significantly contributes to 
     large-scale reclamation, construction, militarization, or 
     ongoing supply of disputed outposts in the South China Sea;
       (2) is responsible for or significantly contributes to, or 
     has engaged in, directly or indirectly, actions or policies 
     using coercion to inhibit another country from protecting its 
     sovereign rights to access offshore resources in the South 
     China Sea, including in such country's exclusive economic 
     zone, consistent with such country's rights and obligations 
     under international law;
       (3) is responsible for or complicit in, or has engaged in, 
     directly or indirectly, actions or policies that 
     significantly threaten the peace, security, or stability of 
     disputed areas of the South China Sea or areas of the East 
     China Sea administered by Japan or the Republic of Korea, 
     including through the use of vessels and aircraft by the 
     People's Republic of China to occupy or conduct extensive 
     research or drilling activity in those areas;
       (4) has materially assisted, sponsored, or provided 
     financial, material, or technological support for, or goods 
     or services to, or in support of, any person subject to 
     sanctions pursuant to paragraphs (1), (2), or (3); or
       (5) is owned or controlled by, or has acted or purported to 
     act for or on behalf of, directly or indirectly, any person 
     subject to sanctions pursuant to paragraph (1), (2), or (3).
       (b) Sanctions Described.--The sanctions that may be imposed 
     with respect to a person described in subsection (a) are the 
     following:
       (1) Blocking of property.--The President may, in accordance 
     with the International Emergency Economic Powers Act (50 
     U.S.C. 1701 et seq.), 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) Ineligibility for visas, admission, or parole.--
       (A) Visas, admission, or parole.--In the case of an alien, 
     the alien may be--
       (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.--
       (i) In general.--An alien described in subparagraph (A) may 
     be subject to revocation of any visa or other entry 
     documentation regardless of when the visa or other entry 
     documentation is or was issued.
       (ii) Immediate effect.--A revocation under clause (i) may--

       (I) take effect immediately; and
       (II) cancel any other valid visa or entry documentation 
     that is in the alien's possession.

       (3) 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.
       (4) Export sanction.--The President may order the United 
     States Government not to issue any specific license and not 
     to grant any other specific permission or authority to export 
     any goods or technology to the person under--
       (A) the Export Control Reform Act of 2018 (50 U.S.C. 4801 
     et seq.); or
       (B) 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.
       (5) Inclusion on entity list.--The President may include 
     the entity on 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 Export 
     Administration Regulations, for activities contrary to the 
     national security or foreign policy interests of the United 
     States.
       (6) Ban on investment in equity or debt of sanctioned 
     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.
       (7) 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.
       (8) Correspondent and payable-through accounts.--In the 
     case of a foreign financial institution, the President may 
     prohibit the opening, and prohibit or impose strict 
     conditions on the maintaining, in the United States of a 
     correspondent account or a payable-through account by the 
     foreign financial institution.
       (c) Exceptions.--
       (1) Inapplicability of national emergency requirement.--The 
     requirements of section 202 of the International Emergency 
     Economic Powers Act (50 U.S.C. 1701) shall not apply for 
     purposes of subsection (b)(1).
       (2) Compliance with united nations headquarters 
     agreement.--Paragraphs (2) and (3) of subsection (b) shall 
     not apply if admission of an alien to the United States 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.
       (3) Exception relating to importation of goods.--
       (A) In general.--The authority or a requirement to impose 
     sanctions under this section shall not include the authority 
     or a requirement to impose sanctions on the importation of 
     goods.
       (B) Good defined.--In this paragraph, the term ``good'' 
     means any article, natural or manmade substance, material, 
     supply, or manufactured product, including inspection and 
     test equipment, and excluding technical data.
       (d) 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) shall apply to a person 
     that violates, attempts to violate, conspires to violate, or 
     causes a violation of regulations prescribed under subsection 
     (b)(1) to the same extent that such penalties apply to a 
     person that commits an unlawful act described in subsection 
     (a) of such section 206.
       (e) Definitions.--In this section:
       (1) Account; correspondent account; payable-through 
     account.--The terms ``account'', ``correspondent account'', 
     and ``payable-through account'' have the meanings given those 
     terms in section 5318A of title 31, United States Code.
       (2) Alien.--The term ``alien'' has the meaning given that 
     term in section 101(a) of the Immigration and Nationality Act 
     (8 U.S.C. 1101(a)).
       (3) Chinese person.--The term ``Chinese person'' means--
       (A) an individual who is a citizen or national of the 
     People's Republic of China; or
       (B) an entity organized under the laws of the People's 
     Republic of China or otherwise subject to the jurisdiction of 
     the Government of the People's Republic of China.
       (4) Financial institution.--The term ``financial 
     institution'' means a financial institution specified in 
     subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), 
     (J), (K), (M), (N), (P), (R), (T), (Y), or (Z) of section 
     5312(a)(2) of title 31, United States Code.
       (5) Foreign financial institution.--The term ``foreign 
     financial institution'' has the meaning given that term in 
     section 1010.605 of title 31, Code of Federal Regulations (or 
     any corresponding similar regulation or ruling).
       (6) Person.--The term ``person'' means any individual or 
     entity.
       (7) 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.

[[Page S3236]]

  


     SEC. 5223. PROHIBITION AGAINST DOCUMENTS PORTRAYING THE SOUTH 
                   CHINA SEA OR THE EAST CHINA SEA AS PART OF 
                   CHINA.

       The Government Publishing Office may not publish any map, 
     document, record, electronic resource, or other paper of the 
     United States (other than materials relating to hearings held 
     by committees of Congress or internal work product of a 
     Federal agency) portraying or otherwise indicating that it is 
     the position of the United States that the territory or 
     airspace in the South China Sea that is disputed among two or 
     more parties or the territory or airspace of areas 
     administered by Japan or the Republic of Korea, including in 
     the East China Sea, is part of the territory or airspace of 
     the People's Republic of China.

     SEC. 5224. AUTHORIZATION TO PROHIBIT CERTAIN ASSISTANCE TO 
                   COUNTRIES THAT RECOGNIZE CHINESE SOVEREIGNTY 
                   OVER THE SOUTH CHINA SEA OR THE EAST CHINA SEA.

       (a) Prohibition.--Except as provided by subsection (c) or 
     (d), no amounts may be obligated or expended to provide 
     foreign assistance to the government of any country 
     identified in a report required by subsection (b).
       (b) Report Required.--
       (1) In general.--Not later than 60 days after the date of 
     the enactment of this Act, and annually thereafter until the 
     date that is 3 years after such date of enactment, the 
     Secretary of State shall submit to the appropriate committees 
     of Congress a report identifying each country that the 
     Secretary determines has taken an official and stated 
     position to recognize, after such date of enactment, the 
     sovereignty of the People's Republic of China over territory 
     or airspace disputed by one or more countries in the South 
     China Sea or the territory or airspace of areas of the East 
     China Sea administered by Japan or the Republic of Korea.
       (2) Form.--The report required by paragraph (1) shall be 
     submitted in unclassified form, but may include a classified 
     annex if the Secretary of State determines it is necessary 
     for the national security interests of the United States to 
     do so.
       (3) Public availability.--The Secretary of State shall 
     publish the unclassified part of the report required by 
     paragraph (1) on a publicly available website of the 
     Department of State.
       (c) Exception.--This section shall not apply with respect 
     to Taiwan, counterterrorism activities, counternarcotics 
     activities, global health assistance, humanitarian 
     assistance, disaster assistance, or emergency food 
     assistance.
       (d) Waiver.--The President may waive the application of 
     subsection (a) with respect to the government of a country if 
     the President determines that the waiver is in the national 
     interests of the United States.
       (e) Appropriate Committees of Congress Defined.--In this 
     section, the term ``appropriate committees of Congress'' 
     means--
       (1) the Committee on Foreign Relations, the Committee on 
     Armed Services, the Committee on Banking, Housing, and Urban 
     Affairs, and the Select Committee on Intelligence of the 
     Senate; and
       (2) the Committee on Foreign Affairs, the Committee on 
     Armed Services, the Committee on Financial Services, and the 
     Permanent Select Committee on Intelligence of the House of 
     Representatives.
                                 ______