[Congressional Record Volume 170, Number 64 (Monday, April 15, 2024)]
[House]
[Pages H2374-H2376]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                IRAN-CHINA ENERGY SANCTIONS ACT OF 2023

  Mr. McHENRY. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 5923) to impose restrictions on correspondent and payable-
through accounts in the United States with respect to Chinese financial 
institutions that conduct transactions involving the purchase of 
petroleum or petroleum products from Iran, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 5923

       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 ``Iran-China Energy Sanctions 
     Act of 2023''.

     SEC. 2. SANCTIONS ON FOREIGN FINANCIAL INSTITUTIONS WITH 
                   RESPECT TO THE PURCHASE OF PETROLEUM PRODUCTS 
                   AND UNMANNED AERIAL VEHICLES FROM IRAN.

       Section 1245(d) of the National Defense Authorization Act 
     for Fiscal Year 2012 (22 U.S.C. 8513a(d)) is amended--
       (1) by redesignating paragraph (5) as paragraph (6); and
       (2) by inserting after paragraph (4) the following new 
     paragraph:
       ``(5) Applicability of sanctions with respect to chinese 
     financial institutions.--
       ``(A) In general.--For the purpose of paragraph (1)(A), a 
     `significant financial transaction' includes any 
     transaction--
       ``(i) by a Chinese financial institution (without regard to 
     the size, number, frequency, or nature of the transaction) 
     involving the purchase of petroleum or petroleum products 
     from Iran; and
       ``(ii) by a foreign financial institution (without regard 
     to the size, number, frequency, or nature of the transaction) 
     involving the purchase of Iranian unmanned aerial vehicles 
     (UAVs), UAV parts, or related systems.
       ``(B) Determination required.--Not later than 180 days 
     after the date of the enactment of this paragraph and every 
     year thereafter for 5 years, the President shall--
       ``(i) determine whether any--

       ``(I) Chinese financial institution has engaged in a 
     significant financial transaction as described in paragraph 
     (1)(A)(i); and
       ``(II) financial institution has engaged in a significant 
     financial transaction as described in paragraph (1)(A)(ii); 
     and

       ``(ii) transmit the determination under clause (i) to the 
     Committee on Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
North Carolina (Mr. McHenry) and the gentleman from New Jersey (Mr. 
Gottheimer) each will control 20 minutes.
  The Chair recognizes the gentleman from North Carolina.


                             General Leave

  Mr. McHENRY. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
and include extraneous material on the bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from North Carolina?
  There was no objection.
  Mr. McHENRY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 5923, the Iran-China Energy 
Sanctions Act, sponsored by the gentleman from New York (Mr. Lawler).
  Currently, Iran is subject to a comprehensive set of sanctions, but 
we know there are loopholes. Under current law, the President is 
required to blacklist foreign financial institutions that undertake 
significant transactions with sanctioned Iranian banks.
  However, we know that these significant transactions are leaving much 
of the country's energy trade untouched. Last year, Iran's oil exports 
rose by 50 percent, reaching a 5-year high. Most of these exports went 
to China.
  Mr. Lawler's bill makes clear that any petroleum-related transaction 
between Iran and China, no matter how small, will put Chinese banks at 
risk of being sanctioned. Closing this loophole is essential to 
ensuring China's financial institutions begin to finally crack down on 
this illicit oil trade.
  Additionally, I am pleased to see this legislation includes a 
proposal offered by Mr. Foster of Illinois. When we reported this 
legislation in November, Mr. Foster and Mr. Lawler discussed the 
inclusion of tougher sanctions to target Iran's sales of unmanned 
aerial vehicles, or UAVs. This is now included in the text we are 
considering today.
  News of this weekend's actions by Iran against our most sacred ally 
in the world, Israel, is a good example of why we need this law and 
this bill.
  Iran has become a major supplier of UAV technologies to Russia and 
other rogue regimes--we see this in Ukraine, and we saw that in the 
targeting of Israel this weekend--by providing the ayatollahs with 
funds that can be recycled for terrorism purposes. The sooner we put an 
end to these exports, the better.
  Again, I thank Mr. Lawler for his leadership in authoring this bill, 
and I urge my colleagues on both sides of the aisle to support it.
  Mr. Speaker, I yield such time as he may consume to the gentleman 
from New York (Mr. Lawler).

                              {time}  1715

  Mr. LAWLER. Mr. Speaker, I thank the gentleman for his leadership in 
getting this bill to the floor, and I thank my colleague from New 
Jersey (Mr. Gottheimer), my co-lead on this bill, for his support.
  Mr. Speaker, I rise in support of this legislation, H.R. 5923, the 
Iran-China Energy Sanctions Act.
  Iran is exporting around 1.5 million barrels of petroleum per day, 
its highest level in 4 years. Around 80 percent of these exports go to 
China, providing Tehran with revenues that keep their coffers filled 
and enable Iran's sponsorship of terrorism abroad, including backing 
Hamas, Hezbollah, and the Houthis.
  Make no mistake, the October 7 attack on Israel would not have been 
possible without Iranian support, and this weekend's brazen assault on 
Israel demonstrates Iran's intentions have not wavered. They want to 
eradicate the State of Israel from the face of the Earth.
  My bill targets independent Chinese oil refiners, so-called teapots, 
which have been driving China's purchases of Iranian crude. Unlike 
state-owned refiners that have retreated from the market, teapots are 
less exposed to blocking sanctions and deal in more

[[Page H2375]]

limited quantities. However, teapots aren't completely beyond our 
reach.
  The United States also wields secondary sanctions that punish foreign 
financial institutions that work with Iran's banks in order to deal in 
Iranian crude. This is where the bill comes in. While these teapots may 
not have economic ties to the U.S. that would make them weary of 
sanctions, Chinese and other foreign financial institutions that work 
with teapots do deal with the U.S. financial system.
  Therefore, my bill expands the law's definition to ensure that any 
dealings they have with Iran's sanctioned financial institutions, 
including the Iranian Central Bank, will lead to the closure of their 
corresponding accounts in our country. These secondary sanctions 
complement the SHIP Act, a bill I sponsored that would impose sanctions 
on ports and refineries that take in petroleum from Iran.
  The House passed the SHIP Act in October and has been waiting for 
Senate Democrats to take up the bill ever since. It is critical that 
the Senate bring this bill and the SHIP Act up for votes. Enough is 
enough. We cannot let Iran continue in its efforts to destroy Israel, 
establish regional dominance, and destabilize the entire free world. 
Addressing their oil-trade revenues is perhaps the best way to 
accomplish this.
  This commonsense, bipartisan piece of legislation would do just that 
and would significantly reduce Iran's ability to project power in the 
region, fund terrorist groups, and attack our closest ally, Israel, 
both on its own or through its proxies.
  Mr. GOTTHEIMER. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise today in support of my bipartisan bill, the Iran-
China Energy Sanctions Act, to hold two members of the axis of evil, 
some of our greatest, most dangerous adversaries, the governments of 
Iran and China, accountable for their nefarious activities.
  I am very proud to lead this legislation with my fellow Problem 
Solvers Caucus member, the gentleman from New York (Mr. Lawler).
  Mr. Speaker, I thank the chairman as well, who always does a 
phenomenal job on the committee.
  China is Iran's biggest customer of oil and a major supplier of 
Iran's missile and drone program. Despite strict U.S. sanctions 
designed to curb the Iranian regime's oil trade, China has tripled its 
imports of Iranian oil over the past 2 years.
  As we speak, Iran is using its oil trade with China to bring in a 
staggering $150 million per day in revenue. By importing millions of 
barrels of oil a day, China keeps the Iranian regime in business and 
provides crucial funds for Tehran's chaos agenda, including missile and 
nuclear weapons development.
  However, China isn't just providing indirect funding. Reporting last 
year indicated that China is considering supplying Iran with ammonium, 
a key chemical compound used to propel ballistic missiles. Just 3 days 
after an unprecedented attack when Iran launched more than 300 drones 
and ballistic and cruise missiles at our key democratic ally, Israel, 
this partnership should sound major alarms.
  If all this wasn't concerning enough, China also disregards Iran's 
backing of terror groups and their proxies, including the Houthis, 
Hezbollah, Palestinian Islamic Jihad, and, of course, Hamas.
  Last month, Chinese diplomats met with Hamas after they brutally 
killed more than 1,200 innocent babies, children, men, women, and the 
elderly, including Americans, and said absolutely nothing about its 
barbaric attack on October 7.
  Unlike China, we cannot and should not stand by in the face of 
terrorism. We must vehemently oppose terror sympathizers, sponsors, and 
supporters in all forms. That is why I am also supporting H.R. 6408, 
which would amend the tax code to terminate the tax-exempt status of 
terrorist-supporting nations, including those who cheer on and provide 
material support to Iran and its proxies.
  Mr. Speaker, I thank my colleagues, Mr. Schneider and Mr. Kustoff for 
their phenomenal leadership.
  Hamas relies on support from the Iranian regime, the leading state 
sponsor of terror. As Iran deepens its ties to China, we are reminded 
that they cannot be trusted. Iran has, directly or through their 
terrorist proxies, killed hundreds of Americans and attacked our bases 
and our allies in the region.
  All of this is why we must pass the bipartisan Iran-China Energy 
Sanctions Act to cut off sources of funding to Iran. This bipartisan 
legislation, which unanimously passed the House Financial Services 
Committee, expands sanctions to cover Chinese financial institutions 
that purchase petroleum products from Iran.
  The bill also requires an annual determination as to whether Chinese 
financial institutions have engaged in sanctionable conduct. We must 
continue to sanction those who are involved in the import of Iranian 
oil, including financial institutions. This bill will do just that.

  The Iran-China Energy Sanctions Act is urgently needed to cut off and 
deny resources to the world's leading state sponsor of terrorism. China 
can no longer remain Iran's top customer.
  I will continue to fight against Iran's growing influence and make 
sure we do everything in our power to protect the U.S. and its allies, 
including Israel, from Iran. I hope my colleagues on both sides of the 
aisle will join us to support this commonsense, bipartisan legislation.
  Mr. Speaker, I yield 3 minutes to the gentleman from Illinois (Mr. 
Foster), my friend and a great leader.
  Mr. FOSTER. Mr. Speaker, I thank Representative Gottheimer, as well 
as Chair McHenry, Representative Lawler, and my Republican and 
Democratic colleagues who have made this bill come to the floor.
  Mr. Speaker, I rise in support of H.R. 5923, the Iran-China Energy 
Sanctions Act. Thanks to Representative Lawler's bipartisan efforts, 
this legislation now includes an amendment that I proposed during the 
Financial Services Committee's consideration of this bill, which would 
empower the administration to go after Iran's production of unmanned 
aerial vehicles, or drones, that are now being used against our allies 
abroad.
  It is essential for us to work aggressively to cut off the flow of 
money that Iran, a known sponsor of terrorist groups like Hamas, 
Hezbollah, and the Houthis, is using to fund violence and disrupt 
commerce around the world.
  Just last weekend, Iran sent more than 300 drones to attack Israel. 
According to the Atlantic Council, it is a steady supply of Iranian 
drones that allows Russia to continue its intensive bombing campaign 
against Ukraine. We also know that Iran is building drones and sharing 
its technology and expertise with its proxies in the Middle East.
  Drones and related technologies are changing the tactics used on the 
modern battlefield. They can be deployed in large numbers, as they were 
in Israel last weekend, in an attempt to overwhelm air defenses and 
strike critical infrastructure far from the front lines. Small and 
commercially available drones are also being used and converted to 
carry munitions capable of inflicting significant damage at relatively 
low cost.
  This legislation will crack down on the financing that makes Iran's 
support of our adversaries possible. Specifically, the language that I 
drafted will empower the Treasury to sanction any financial institution 
involved in the purchase of Iranian drones, parts, or related systems.
  We have seen the damage that drones are doing in Israel and Ukraine, 
and expanding this legislation to go after Iran's drone production is 
an important step to support our allies abroad.
  Mr. Speaker, I support this legislation and encourage my colleagues 
to vote ``yes.''
  Mr. McHENRY. Mr. Speaker, I reserve the balance of my time.
  Mr. GOTTHEIMER. Mr. Speaker, I yield myself the balance of my time to 
close.
  Mr. Speaker, I close by saying we must all continue to fight against 
Iran's growing influence and ensure we do everything in our power to 
protect the United States and its allies, including Israel, from Iran, 
especially after what we saw this weekend. It only reinforces what Iran 
is capable of, either directly or through its proxies, Hamas, 
Hezbollah, Palestinian Islamic Jihad, the Houthis.
  There are so many areas where Iran continues to not just attack our 
key

[[Page H2376]]

allies, including Israel, but also the United States of America. I hope 
my colleagues on both sides of the aisle will join us to support this 
commonsense, bipartisan legislation.
  Again, I thank the gentleman from New York (Mr. Lawler), for his 
leadership, and Chairman McHenry for his leadership, and I yield back 
the balance of my time.
  Mr. McHENRY. Mr. Speaker, I yield myself the balance of my time to 
close.
  Mr. Speaker, this is an important bill that is quite timely. We 
reported this bill out in November when we could have had more 
restrictive action against the Iranian regime than is currently in 
place by this administration and a more aggressive stance against 
regimes that want to do harm globally.
  This is an important bill that is bipartisan out of the House 
Financial Services Committee. I commend Mr. Gottheimer and Mr. Lawler 
for their work here, as well as Mr. Foster's important addition to the 
bill since the bipartisan product that is quite timely for us to put 
further restrictions on the Iranian regime.
  Mr. Speaker, I ask support from my colleagues and ask for a ``yes'' 
vote and yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from North Carolina (Mr. McHenry) that the House suspend the 
rules and pass the bill, H.R. 5923, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. McHENRY. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

                          ____________________