[116th Congress Public Law 149]
[From the U.S. Government Publishing Office]



[[Page 134 STAT. 663]]

Public Law 116-149
116th Congress

                                 An Act


 
  To impose sanctions with respect to foreign persons involved in the 
 erosion of certain obligations of China with respect to Hong Kong, and 
       for other purposes. <<NOTE: July 14, 2020 -  [H.R. 7440]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Hong Kong 
Autonomy Act. 22 USC 5701 note.>> 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Hong Kong Autonomy 
Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Findings.
Sec. 4. Sense of Congress regarding Hong Kong.
Sec. 5. Identification of foreign persons involved in the erosion of the 
           obligations of China under the Joint Declaration or the Basic 
           Law and foreign financial institutions that conduct 
           significant transactions with those persons.
Sec. 6. Sanctions with respect to foreign persons that contravene the 
           obligations of China under the Joint Declaration or the Basic 
           Law.
Sec. 7. Sanctions with respect to foreign financial institutions that 
           conduct significant transactions with foreign persons that 
           contravene the obligations of China under the Joint 
           Declaration or the Basic Law.
Sec. 8. Waiver, termination, exceptions, and congressional review 
           process.
Sec. 9. Implementation; penalties.
Sec. 10. Rule of construction.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Alien; national; national of the united states.--The 
        terms ``alien'', ``national'', and ``national of the United 
        States'' have the meanings given those terms in section 101 of 
        the Immigration and Nationality Act (8 U.S.C. 1101).
            (2) Appropriate congressional committees and leadership.--
        The term ``appropriate congressional committees and leadership'' 
        means--
                    (A) the Committee on Armed Services, the Committee 
                on Banking, Housing, and Urban Affairs, the Committee on 
                Foreign Relations, the Committee on Homeland Security 
                and Governmental Affairs, the Committee on the 
                Judiciary, the Select Committee on Intelligence, and the 
                majority leader and the minority leader of the Senate; 
                and
                    (B) the Committee on Armed Services, the Committee 
                on Financial Services, the Committee on Foreign Affairs, 
                the Committee on Homeland Security, the Committee on

[[Page 134 STAT. 664]]

                the Judiciary, the Permanent Select Committee on 
                Intelligence, and the Speaker and the minority leader of 
                the House of Representatives.
            (3) Basic law.--The term ``Basic Law'' means the Basic Law 
        of the Hong Kong Special Administrative Region of the People's 
        Republic of China.
            (4) China.--The term ``China'' means the People's Republic 
        of China.
            (5) Entity.--The term ``entity'' means a partnership, joint 
        venture, association, corporation, organization, network, group, 
        or subgroup, or any other form of business collaboration.
            (6) Financial institution.--The term ``financial 
        institution'' means a financial institution specified in section 
        5312(a)(2) of title 31, United States Code.
            (7) Hong kong.--The term ``Hong Kong'' means the Hong Kong 
        Special Administrative Region of the People's Republic of China.
            (8) Joint declaration.--The term ``Joint Declaration'' means 
        the Joint Declaration of the Government of the United Kingdom of 
        Great Britain and Northern Ireland and the Government of the 
        People's Republic of China on the Question of Hong Kong, done at 
        Beijing on December 19, 1984.
            (9) Knowingly.--The term ``knowingly'', with respect to 
        conduct, a circumstance, or a result, means that a person has 
        actual knowledge of the conduct, the circumstance, or the 
        result.
            (10) Person.--The term ``person'' means an individual or 
        entity.
            (11) United states person.--The term ``United States 
        person'' means--
                    (A) any citizen or national of the United States;
                    (B) any alien lawfully admitted for permanent 
                residence in the United States;
                    (C) any 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
                    (D) any person located in the United States.
SEC. 3. FINDINGS.

    Congress makes the following findings:
            (1) The Joint Declaration and the Basic Law clarify certain 
        obligations and promises that the Government of China has made 
        with respect to the future of Hong Kong.
            (2) The obligations of the Government of China under the 
        Joint Declaration were codified in a legally-binding treaty, 
        signed by the Government of the United Kingdom of Great Britain 
        and Northern Ireland and registered with the United Nations.
            (3) The obligations of the Government of China under the 
        Basic Law originate from the Joint Declaration, were passed into 
        the domestic law of China by the National People's Congress, and 
        are widely considered by citizens of Hong Kong as part of the de 
        facto legal constitution of Hong Kong.
            (4) Foremost among the obligations of the Government of 
        China to Hong Kong is the promise that, pursuant to Paragraph 3b 
        of the Joint Declaration, ``the Hong Kong Special Administrative 
        Region will enjoy a high degree of autonomy,

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        except in foreign and defence affairs which are the 
        responsibilities of the Central People's Government''.
            (5) The obligation specified in Paragraph 3b of the Joint 
        Declaration is referenced, reinforced, and extrapolated on in 
        several portions of the Basic Law, including Articles 2, 12, 13, 
        14, and 22.
            (6) Article 22 of the Basic Law establishes that ``No 
        department of the Central People's Government and no province, 
        autonomous region, or municipality directly under the Central 
        Government may interfere in the affairs which the Hong Kong 
        Special Administrative Region administers on its own in 
        accordance with this Law.''.
            (7) The Joint Declaration and the Basic Law make clear that 
        additional obligations shall be undertaken by China to ensure 
        the ``high degree of autonomy'' of Hong Kong.
            (8) Paragraph 3c of the Joint Declaration states, as 
        reinforced by Articles 2, 16, 17, 18, 19, and 22 of the Basic 
        Law, that Hong Kong ``will be vested with executive, legislative 
        and independent judicial power, including that of final 
        adjudication''.
            (9) On multiple occasions, the Government of China has 
        undertaken actions that have contravened the letter or intent of 
        the obligation described in paragraph (8) of this section, 
        including the following:
                    (A) In 1999, the Standing Committee of the National 
                People's Congress overruled a decision by the Hong Kong 
                Court of Final Appeal on the right of abode.
                    (B) On multiple occasions, the Government of Hong 
                Kong, at the advice of the Government of China, is 
                suspected to have not allowed persons entry into Hong 
                Kong allegedly because of their support for democracy 
                and human rights in Hong Kong and China.
                    (C) The Liaison Office of China in Hong Kong has, 
                despite restrictions on interference in the affairs of 
                Hong Kong as detailed in Article 22 of the Basic Law--
                          (i) openly expressed support for candidates in 
                      Hong Kong for Chief Executive and Legislative 
                      Council;
                          (ii) expressed views on various policies for 
                      the Government of Hong Kong and other internal 
                      matters relating to Hong Kong; and
                          (iii) on April 17, 2020, asserted that both 
                      the Liaison Office of China in Hong Kong and the 
                      Hong Kong and Macau Affairs Office of the State 
                      Council ``have the right to exercise supervision * 
                      * * on affairs regarding Hong Kong and the 
                      mainland, in order to ensure correct 
                      implementation of the Basic Law''.
                    (D) The National People's Congress has passed laws 
                requiring Hong Kong to pass laws banning disrespectful 
                treatment of the national flag and national anthem of 
                China.
                    (E) The State Council of China released a white 
                paper on June 10, 2014, that stressed the 
                ``comprehensive jurisdiction'' of the Government of 
                China over Hong Kong and indicated that Hong Kong must 
                be governed by ``patriots''.
                    (F) The Government of China has directed operatives 
                to kidnap and bring to the mainland, or is otherwise 
                responsible for the kidnapping of, residents of Hong 
                Kong,

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                including businessman Xiao Jianhua and bookseller Gui 
                Minhai.
                    (G) The Government of Hong Kong, acting with the 
                support of the Government of China, introduced an 
                extradition bill that would have permitted the 
                Government of China to request and enforce extradition 
                requests for any individual present in Hong Kong, 
                regardless of the legality of the request or the degree 
                to which it compromised the judicial independence of 
                Hong Kong.
                    (H) The spokesman for the Standing Committee of the 
                National People's Congress said, ``Whether Hong Kong's 
                laws are consistent with the Basic Law can only be 
                judged and decided by the National People's Congress 
                Standing Committee. No other authority has the right to 
                make judgments and decisions.''.
            (10) Paragraph 3e of the Joint Declaration states, as 
        reinforced by Article 5 of the Basic Law, that the ``current 
        social and economic systems in Hong Kong will remain unchanged, 
        as so will the life-style.''.
            (11) On multiple occasions, the Government of China has 
        undertaken actions that have contravened the letter or intent of 
        the obligation described in paragraph (10) of this section, 
        including the following:
                    (A) In 2002, the Government of China pressured the 
                Government of Hong Kong to introduce ``patriotic'' 
                curriculum in primary and secondary schools.
                    (B) The governments of China and Hong Kong proposed 
                the prohibition of discussion of Hong Kong independence 
                and self-determination in primary and secondary schools, 
                which infringes on freedom of speech.
                    (C) The Government of Hong Kong mandated that 
                Mandarin, and not the native language of Cantonese, be 
                the language of instruction in Hong Kong schools.
                    (D) The governments of China and Hong Kong agreed to 
                a daily quota of mainland immigrants to Hong Kong, which 
                is widely believed by citizens of Hong Kong to be part 
                of an effort to ``mainlandize'' Hong Kong.
            (12) Paragraph 3e of the Joint Declaration states, as 
        reinforced by Articles 4, 26, 27, 28, 29, 30, 31, 32 33, 34, and 
        39 of the Basic Law, that the ``rights and freedoms, including 
        those of person, of speech, of the press, of assembly, of 
        association, of travel, of movement, of correspondence, of 
        strike, of choice of occupation, of academic research and of 
        religious belief will be ensured by law'' in Hong Kong.
            (13) On multiple occasions, the Government of China has 
        undertaken actions that have contravened the letter or intent of 
        the obligation described in paragraph (12) of this section, 
        including the following:
                    (A) On February 26, 2003, the Government of Hong 
                Kong introduced a national security bill that would have 
                placed restrictions on freedom of speech and other 
                protected rights.
                    (B) The Liaison Office of China in Hong Kong has 
                pressured businesses in Hong Kong not to advertise in 
                newspapers and magazines critical of the governments of 
                China and Hong Kong.

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                    (C) The Hong Kong Police Force selectively blocked 
                demonstrations and protests expressing opposition to the 
                governments of China and Hong Kong or the policies of 
                those governments.
                    (D) The Government of Hong Kong refused to renew 
                work visa for a foreign journalist, allegedly for 
                hosting a speaker from the banned Hong Kong National 
                Party.
                    (E) The Justice Department of Hong Kong selectively 
                prosecuted cases against leaders of the Umbrella 
                Movement, while failing to prosecute police officers 
                accused of using excessive force during the protests in 
                2014.
                    (F) On April 18, 2020, the Hong Kong Police Force 
                arrested 14 high-profile democracy activists and 
                campaigners for their role in organizing a protest march 
                that took place on August 18, 2019, in which almost 
                2,000,000 people rallied against a proposed extradition 
                bill.
            (14) Articles 45 and 68 of the Basic Law assert that the 
        selection of Chief Executive and all members of the Legislative 
        Council of Hong Kong should be by ``universal suffrage.''.
            (15) On multiple occasions, the Government of China has 
        undertaken actions that have contravened the letter or intent of 
        the obligation described in paragraph (14) of this section, 
        including the following:
                    (A) In 2004, the National People's Congress created 
                new, antidemocratic procedures restricting the adoption 
                of universal suffrage for the election of the Chief 
                Executive of Hong Kong.
                    (B) The decision by the National People's Congress 
                on December 29, 2007, which ruled out universal suffrage 
                in 2012 elections and set restrictions on when and if 
                universal suffrage will be implemented.
                    (C) The decision by the National People's Congress 
                on August 31, 2014, which placed limits on the 
                nomination process for the Chief Executive of Hong Kong 
                as a condition for adoption of universal suffrage.
                    (D) On November 7, 2016, the National People's 
                Congress interpreted Article 104 of the Basic Law in 
                such a way to disqualify 6 elected members of the 
                Legislative Council.
                    (E) In 2018, the Government of Hong Kong banned the 
                Hong Kong National Party and blocked the candidacy of 
                pro-democracy candidates.
            (16) The ways in which the Government of China, at times 
        with the support of a subservient Government of Hong Kong, has 
        acted in contravention of its obligations under the Joint 
        Declaration and the Basic Law, as set forth in this section, are 
        deeply concerning to the people of Hong Kong, the United States, 
        and members of the international community who support the 
        autonomy of Hong Kong.
SEC. 4. SENSE OF CONGRESS REGARDING HONG KONG.

    It is the sense of Congress that--
            (1) the United States continues to uphold the principles and 
        policy established in the United States-Hong Kong Policy Act of 
        1992 (22 U.S.C. 5701 et seq.) and the Hong Kong Human Rights and 
        Democracy Act of 2019 (Public Law 116-76; 22

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        U.S.C. 5701 note), which remain consistent with China's 
        obligations under the Joint Declaration and certain promulgated 
        objectives under the Basic Law, including that--
                    (A) as set forth in section 101(1) of the United 
                States-Hong Kong Policy Act of 1992 (22 U.S.C. 5711(1)), 
                ``The United States should play an active role, before, 
                on, and after July 1, 1997, in maintaining Hong Kong's 
                confidence and prosperity, Hong Kong's role as an 
                international financial center, and the mutually 
                beneficial ties between the people of the United States 
                and the people of Hong Kong.''; and
                    (B) as set forth in section 2(5) of the United 
                States-Hong Kong Policy Act of 1992 (22 U.S.C. 5701(5)), 
                ``Support for democratization is a fundamental principle 
                of United States foreign policy. As such, it naturally 
                applies to United States policy toward Hong Kong. This 
                will remain equally true after June 30, 1997.'';
            (2) although the United States recognizes that, under the 
        Joint Declaration, the Government of China ``resumed the 
        exercise of sovereignty over Hong Kong with effect on 1 July 
        1997'', the United States supports the autonomy of Hong Kong in 
        furtherance of the United States-Hong Kong Policy Act of 1992 
        and the Hong Kong Human Rights and Democracy Act of 2019 and 
        advances the desire of the people of Hong Kong to continue the 
        ``one country, two systems'' regime, in addition to other 
        obligations promulgated by China under the Joint Declaration and 
        the Basic Law;
            (3) in order to support the benefits and protections that 
        Hong Kong has been afforded by the Government of China under the 
        Joint Declaration and the Basic Law, the United States should 
        establish a clear and unambiguous set of penalties with respect 
        to foreign persons determined by the Secretary of State, in 
        consultation with the Secretary of the Treasury, to be involved 
        in the contravention of the obligations of China under the Joint 
        Declaration and the Basic Law and the financial institutions 
        transacting with those foreign persons;
            (4) the Secretary of State should provide an unclassified 
        assessment of the reason for imposition of certain economic 
        penalties on entities, so as to permit a clear path for the 
        removal of economic penalties if the sanctioned behavior is 
        reversed and verified by the Secretary of State;
            (5) relevant Federal agencies should establish a 
        multilateral sanctions regime with respect to foreign persons 
        involved in the contravention of the obligations of China under 
        the Joint Declaration and the Basic Law; and
            (6) in addition to the penalties on foreign persons, and 
        financial institutions transacting with those foreign persons, 
        for the contravention of the obligations of China under the 
        Joint Declaration and the Basic Law, the United States should 
        take steps, in a time of crisis, to assist permanent residents 
        of Hong Kong who are persecuted or fear persecution as a result 
        of the contravention by China of its obligations under the Joint 
        Declaration and the Basic Law to become eligible to obtain 
        lawful entry into the United States.

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SEC. 5. IDENTIFICATION OF FOREIGN PERSONS INVOLVED IN THE EROSION 
                    OF THE OBLIGATIONS OF CHINA UNDER THE JOINT 
                    DECLARATION OR THE BASIC LAW AND FOREIGN 
                    FINANCIAL INSTITUTIONS THAT CONDUCT 
                    SIGNIFICANT TRANSACTIONS WITH THOSE PERSONS.

    (a) <<NOTE: Consultation. Determination. Reports.>>  In General.--
Not later than 90 days after the date of the enactment of this Act, if 
the Secretary of State, in consultation with the Secretary of the 
Treasury, determines that a foreign person is materially contributing 
to, has materially contributed to, or attempts to materially contribute 
to the failure of the Government of China to meet its obligations under 
the Joint Declaration or the Basic Law, the Secretary of State shall 
submit to the appropriate congressional committees and leadership a 
report that includes--
            (1) an identification of the foreign person; and
            (2) a clear explanation for why the foreign person was 
        identified and a description of the activity that resulted in 
        the identification.

    (b) <<NOTE: Time period. Consultation. Reports.>>  Identifying 
Foreign Financial Institutions.--Not earlier than 30 days and not later 
than 60 days after the Secretary of State submits to the appropriate 
congressional committees and leadership the report under subsection (a), 
the Secretary of the Treasury, in consultation with the Secretary of 
State, shall submit to the appropriate congressional committees and 
leadership a report that identifies any foreign financial institution 
that knowingly conducts a significant transaction with a foreign person 
identified in the report under subsection (a).

    (c) <<NOTE: Determinations.>>  Exclusion of Certain Information.--
            (1) Intelligence.--The Secretary of State shall not disclose 
        the identity of a person in a report submitted under subsection 
        (a) or (b), or an update under subsection (e), if the Director 
        of National Intelligence determines that such disclosure could 
        compromise an intelligence operation, activity, source, or 
        method of the United States.
            (2) <<NOTE: Coordination.>>  Law enforcement.--The Secretary 
        of State shall not disclose the identity of a person in a report 
        submitted under subsection (a) or (b), or an update under 
        subsection (e), if the Attorney General, in coordination, as 
        appropriate, with the Director of the Federal Bureau of 
        Investigation, the head of any other appropriate Federal law 
        enforcement agency, and the Secretary of the Treasury, 
        determines that such disclosure could reasonably be expected--
                    (A) to compromise the identity of a confidential 
                source, including a State, local, or foreign agency or 
                authority or any private institution that furnished 
                information on a confidential basis;
                    (B) to jeopardize the integrity or success of an 
                ongoing criminal investigation or prosecution;
                    (C) to endanger the life or physical safety of any 
                person; or
                    (D) to cause substantial harm to physical property.
            (3) Notification required.--If the Director of National 
        Intelligence makes a determination under paragraph (1) or the 
        Attorney General makes a determination under paragraph (2), the 
        Director or the Attorney General, as the case may be, shall 
        notify the appropriate congressional committees and

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        leadership of the determination and the reasons for the 
        determination.

    (d) <<NOTE: President.>>  Exclusion or Removal of Foreign Persons 
and Foreign Financial Institutions.--
            (1) Foreign persons.--The President may exclude a foreign 
        person from the report under subsection (a), or an update under 
        subsection (e), or remove a foreign person from the report or 
        update prior to the imposition of sanctions under section 6(a) 
        if the material contribution (as described in subsection (g)) 
        that merited inclusion in that report or update--
                    (A) does not have a significant and lasting negative 
                effect that contravenes the obligations of China under 
                the Joint Declaration and the Basic Law;
                    (B) is not likely to be repeated in the future; and
                    (C) has been reversed or otherwise mitigated through 
                positive countermeasures taken by that foreign person.
            (2) Foreign financial institutions.--The President may 
        exclude a foreign financial institution from the report under 
        subsection (b), or an update under subsection (e), or remove a 
        foreign financial institution from the report or update prior to 
        the imposition of sanctions under section 7(a) if the 
        significant transaction or significant transactions of the 
        foreign financial institution that merited inclusion in that 
        report or update--
                    (A) does not have a significant and lasting negative 
                effect that contravenes the obligations of China under 
                the Joint Declaration and the Basic Law;
                    (B) is not likely to be repeated in the future; and
                    (C) has been reversed or otherwise mitigated through 
                positive countermeasures taken by that foreign financial 
                institution.
            (3) <<NOTE: Determination.>>  Notification required.--If the 
        President makes a determination under paragraph (1) or (2) to 
        exclude or remove a foreign person or foreign financial 
        institution from a report under subsection (a) or (b), as the 
        case may be, the President shall notify the appropriate 
        congressional committees and leadership of the determination and 
        the reasons for the determination.

    (e) Update of Reports.--
            (1) In general.--Each report submitted under subsections (a) 
        and (b) shall be updated in an ongoing manner and, to the extent 
        practicable, updated reports shall be resubmitted with the 
        annual report under section 301 of the United States-Hong Kong 
        Policy Act of 1992 (22 U.S.C. 5731).
            (2) Rule of construction.--Nothing in this subsection shall 
        be construed to terminate the requirement to update the reports 
        under subsections (a) and (b) upon the termination of the 
        requirement to submit the annual report under section 301 of the 
        United States-Hong Kong Policy Act of 1992 (22 U.S.C. 5731).

    (f) Form of Reports.--
            (1) <<NOTE: Public information.>>  In general.--Each report 
        under subsection (a) or (b) (including updates under subsection 
        (e)) shall be submitted in unclassified form and made available 
        to the public.
            (2) Classified annex.--The explanations and descriptions 
        included in the report under subsection (a)(2) (including 
        updates under subsection (e)) may be expanded on in a classified 
        annex.

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    (g) Material Contributions Related to Obligations of China 
Described.--For purposes of this section, a foreign person materially 
contributes to the failure of the Government of China to meet its 
obligations under the Joint Declaration or the Basic Law if the person--
            (1) took action that resulted in the inability of the people 
        of Hong Kong--
                    (A) to enjoy freedom of assembly, speech, press, or 
                independent rule of law; or
                    (B) to participate in democratic outcomes; or
            (2) otherwise took action that reduces the high degree of 
        autonomy of Hong Kong.
SEC. 6. <<NOTE: President.>>  SANCTIONS WITH RESPECT TO FOREIGN 
                    PERSONS THAT CONTRAVENE THE OBLIGATIONS OF 
                    CHINA UNDER THE JOINT DECLARATION OR THE BASIC 
                    LAW.

    (a) Imposition of Sanctions.--
            (1) <<NOTE: Effective date.>>  In general.--On and after the 
        date on which a foreign person is included in the report under 
        section 5(a) or an update to that report under section 5(e), the 
        President may impose sanctions described in subsection (b) with 
        respect to that foreign person.
            (2) <<NOTE: Deadline.>>  Mandatory sanctions.--Not later 
        than one year after the date on which a foreign person is 
        included in the report under section 5(a) or an update to that 
        report under section 5(e), the President shall impose sanctions 
        described in subsection (b) with respect to that foreign person.

    (b) Sanctions Described.--The sanctions described in this subsection 
with respect to a foreign person are the following:
            (1) Property transactions.--The President may, pursuant to 
        such regulations as the President may prescribe, prohibit any 
        person from--
                    (A) acquiring, holding, withholding, using, 
                transferring, withdrawing, transporting, or exporting 
                any property that is subject to the jurisdiction of the 
                United States and with respect to which the foreign 
                person has any interest;
                    (B) dealing in or exercising any right, power, or 
                privilege with respect to such property; or
                    (C) conducting any transaction involving such 
                property.
            (2) Exclusion from the united states and revocation of visa 
        or other documentation.--In the case of a foreign person who is 
        an individual, 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, the foreign person, subject to 
        regulatory exceptions 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.
SEC. 7. <<NOTE: President.>>  SANCTIONS WITH RESPECT TO FOREIGN 
                    FINANCIAL INSTITUTIONS THAT CONDUCT 
                    SIGNIFICANT TRANSACTIONS WITH FOREIGN PERSONS 
                    THAT CONTRAVENE THE OBLIGATIONS OF CHINA UNDER 
                    THE JOINT DECLARATION OR THE BASIC LAW.

    (a) <<NOTE: Deadlines.>>  Imposition of Sanctions.--

[[Page 134 STAT. 672]]

            (1) Initial sanctions.--Not later than one year after the 
        date on which a foreign financial institution is included in the 
        report under section 5(b) or an update to that report under 
        section 5(e), the President shall impose not fewer than 5 of the 
        sanctions described in subsection (b) with respect to that 
        foreign financial institution.
            (2) Expanded sanctions.--Not later than two years after the 
        date on which a foreign financial institution is included in the 
        report under section 5(b) or an update to that report under 
        section 5(e), the President shall impose each of the sanctions 
        described in subsection (b).

    (b) Sanctions Described.--The sanctions described in this subsection 
with respect to a foreign financial institution are the following:
            (1) Loans from united states financial institutions.--The 
        United States Government may prohibit any United States 
        financial institution from making loans or providing credits to 
        the foreign financial institution.
            (2) 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 foreign financial 
        institution as a primary dealer in United States Government debt 
        instruments.
            (3) Prohibition on service as a repository of government 
        funds.--The foreign financial institution may not serve as agent 
        of the United States Government or serve as repository for 
        United States Government funds.
            (4) 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 involve the foreign 
        financial institution.
            (5) 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 the foreign financial 
        institution.
            (6) Property transactions.--The President may, pursuant to 
        such regulations as the President may prescribe, prohibit any 
        person from--
                    (A) 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 foreign financial institution has any 
                interest;
                    (B) dealing in or exercising any right, power, or 
                privilege with respect to such property; or
                    (C) conducting any transaction involving such 
                property.
            (7) <<NOTE: Consultation.>>  Restriction on exports, 
        reexports, and transfers.--The President, in consultation with 
        the Secretary of Commerce, may restrict or prohibit exports, 
        reexports, and transfers (in-country) of commodities, software, 
        and technology subject to the jurisdiction of the United States 
        directly or indirectly to the foreign financial institution.

[[Page 134 STAT. 673]]

            (8) Ban on investment in equity or debt.--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 foreign financial institution.
            (9) Exclusion of corporate officers.--The President may 
        direct the Secretary of State, in consultation with the 
        Secretary of the Treasury and the Secretary of Homeland 
        Security, to exclude from the United States any alien that is 
        determined to be a corporate officer or principal of, or a 
        shareholder with a controlling interest in, the foreign 
        financial institution, subject to regulatory exceptions 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.
            (10) Sanctions on principal executive officers.--The 
        President may impose on the principal executive officer or 
        officers of the foreign financial institution, or on individuals 
        performing similar functions and with similar authorities as 
        such officer or officers, any of the sanctions described in 
        paragraphs (1) through (8) that are applicable.

    (c) Timing of Sanctions.--The President may impose sanctions 
required under subsection (a) with respect to a financial institution 
included in the report under section 5(b) or an update to that report 
under section 5(e) beginning on the day on which the financial 
institution is included in that report or update.
SEC. 8. <<NOTE: President.>>  WAIVER, TERMINATION, EXCEPTIONS, AND 
                    CONGRESSIONAL REVIEW PROCESS.

    (a) National Security Waiver.--Unless a disapproval resolution is 
enacted under subsection (e), the President may waive the application of 
sanctions under section 6 or 7 with respect to a foreign person or 
foreign financial institution if the President--
            (1) <<NOTE: Determination.>>  determines that the waiver is 
        in the national security interest of the United States; and
            (2) <<NOTE: Reports.>>  submits to the appropriate 
        congressional committees and leadership a report on the 
        determination and the reasons for the determination.

    (b) <<NOTE: Consultation. Determination.>>  Termination of Sanctions 
and Removal From Report.--Unless a disapproval resolution is enacted 
under subsection (e), the President may terminate the application of 
sanctions under section 6 or 7 with respect to a foreign person or 
foreign financial institution and remove the foreign person from the 
report required under section 5(a) or the foreign financial institution 
from the report required under section 5(b), as the case may be, if the 
Secretary of State, in consultation with the Secretary of the Treasury, 
determines that the actions taken by the foreign person or foreign 
financial institution that led to the imposition of sanctions--
            (1) do not have a significant and lasting negative effect 
        that contravenes the obligations of China under the Joint 
        Declaration and the Basic Law;
            (2) are not likely to be repeated in the future; and

[[Page 134 STAT. 674]]

            (3) have been reversed or otherwise mitigated through 
        positive countermeasures taken by that foreign person or foreign 
        financial institution.

    (c) Termination of Act.--
            (1) Report.--
                    (A) <<NOTE: Consultation. Evaluation.>>  In 
                general.--Not later than July 1, 2046, the President, in 
                consultation with the Secretary of State, the Secretary 
                of the Treasury, and the heads of such other Federal 
                agencies as the President considers appropriate, shall 
                submit to Congress a report evaluating the 
                implementation of this Act and sanctions imposed 
                pursuant to this Act.
                    (B) <<NOTE: Assessment.>>  Elements.--The President 
                shall include in the report submitted under subparagraph 
                (A) an assessment of whether this Act and the sanctions 
                imposed pursuant to this Act should be terminated.
            (2) Termination.--This Act and the sanctions imposed 
        pursuant to this Act shall remain in effect unless a termination 
        resolution is enacted under subsection (e) after July 1, 2047.

    (d) Exception Relating to Importation of Goods.--
            (1) In general.--The authorities and requirements to impose 
        sanctions under sections 6 and 7 shall not include the authority 
        or requirement 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.

    (e) Congressional Review.--
            (1) <<NOTE: Definitions.>>  Resolutions.--
                    (A) Disapproval resolution.--In this section, the 
                term ``disapproval resolution'' means only a joint 
                resolution of either House of Congress--
                          (i) the title of which is as follows: ``A 
                      joint resolution disapproving the waiver or 
                      termination of sanctions with respect to a foreign 
                      person that contravenes the obligations of China 
                      with respect to Hong Kong or a foreign financial 
                      institution that conducts a significant 
                      transaction with that person.''; and
                          (ii) the sole matter after the resolving 
                      clause of which is the following: ``Congress 
                      disapproves of the action under section 8 of the 
                      Hong Kong Autonomy Act relating to the application 
                      of sanctions imposed with respect to a foreign 
                      person that contravenes the obligations of China 
                      with respect to Hong Kong, or a foreign financial 
                      institution that conducts a significant 
                      transaction with that person, on _______ relating 
                      to ________.'', with the first blank space being 
                      filled with the appropriate date and the second 
                      blank space being filled with a short description 
                      of the proposed action.
                    (B) Termination resolution.--In this section, the 
                term ``termination resolution'' means only a joint 
                resolution of either House of Congress--
                          (i) the title of which is as follows: ``A 
                      joint resolution terminating sanctions with 
                      respect to foreign persons that contravene the 
                      obligations of China with

[[Page 134 STAT. 675]]

                      respect to Hong Kong and foreign financial 
                      institutions that conduct significant transactions 
                      with those persons.''; and
                          (ii) the sole matter after the resolving 
                      clause of which is the following: ``The Hong Kong 
                      Autonomy Act and any sanctions imposed pursuant to 
                      that Act shall terminate on ____.'', with the 
                      blank space being filled with the termination 
                      date.
                    (C) Covered resolution.--In this subsection, the 
                term ``covered resolution'' means a disapproval 
                resolution or a termination resolution.
            (2) Introduction.--A covered resolution may be introduced--
                    (A) in the House of Representatives, by the majority 
                leader or the minority leader; and
                    (B) in the Senate, by the majority leader (or the 
                majority leader's designee) or the minority leader (or 
                the minority leader's designee).
            (3) <<NOTE: Deadline.>>  Floor consideration in house of 
        representatives.--If a committee of the House of Representatives 
        to which a covered resolution has been referred has not reported 
        the resolution within 10 legislative days after the date of 
        referral, that committee shall be discharged from further 
        consideration of the resolution.
            (4) Consideration in the senate.--
                    (A) Committee referral.--
                          (i) Disapproval resolution.--A disapproval 
                      resolution introduced in the Senate shall be--
                                    (I) referred to the Committee on 
                                Banking, Housing, and Urban Affairs if 
                                the resolution relates to an action that 
                                is not intended to significantly alter 
                                United States foreign policy with regard 
                                to China; and
                                    (II) referred to the Committee on 
                                Foreign Relations if the resolution 
                                relates to an action that is intended to 
                                significantly alter United States 
                                foreign policy with regard to China.
                          (ii) Termination resolution.--A termination 
                      resolution introduced in the Senate shall be 
                      referred to the Committee on Banking, Housing, and 
                      Urban Affairs and the Committee on Foreign 
                      Relations.
                    (B) <<NOTE: Deadline.>>  Reporting and discharge.--
                If a committee to which a covered resolution was 
                referred has not reported the resolution within 10 
                legislative days after the date of referral of the 
                resolution, that committee shall be discharged from 
                further consideration of the resolution and the 
                resolution shall be placed on the appropriate calendar.
                    (C) Proceeding to consideration.--Notwithstanding 
                Rule XXII of the Standing Rules of the Senate, it is in 
                order at any time after the Committee on Banking, 
                Housing, and Urban Affairs or the Committee on Foreign 
                Relations, as the case may be, reports a covered 
                resolution to the Senate or has been discharged from 
                consideration of such a resolution (even though a 
                previous motion to the same effect has been disagreed 
                to) to move to proceed to the consideration of the 
                resolution, and all points of order against the 
                resolution (and against consideration of

[[Page 134 STAT. 676]]

                the resolution) are waived. The motion to proceed is not 
                debatable. The motion is not subject to a motion to 
                postpone. A motion to reconsider the vote by which the 
                motion is agreed to or disagreed to shall not be in 
                order.
                    (D) Rulings of the chair on procedure.--Appeals from 
                the decisions of the Chair relating to the application 
                of the rules of the Senate, as the case may be, to the 
                procedure relating to a covered resolution shall be 
                decided without debate.
                    (E) Consideration of veto messages.--Debate in the 
                Senate of any veto message with respect to a covered 
                resolution, including all debatable motions and appeals 
                in connection with the resolution, shall be limited to 
                10 hours, to be equally divided between, and controlled 
                by, the majority leader and the minority leader or their 
                designees.
            (5) <<NOTE: Procedures. Applicability.>>  Rules relating to 
        senate and house of representatives.--
                    (A) Treatment of senate resolution in house.--In the 
                House of Representatives, the following procedures shall 
                apply to a covered resolution received from the Senate 
                (unless the House has already passed a resolution 
                relating to the same proposed action):
                          (i) The resolution shall be referred to the 
                      appropriate committees.
                          (ii) <<NOTE: Deadline.>>  If a committee to 
                      which a resolution has been referred has not 
                      reported the resolution within 10 legislative days 
                      after the date of referral, that committee shall 
                      be discharged from further consideration of the 
                      resolution.
                          (iii) <<NOTE: Effective date.>>  Beginning on 
                      the third legislative day after each committee to 
                      which a resolution has been referred reports the 
                      resolution to the House or has been discharged 
                      from further consideration thereof, it shall be in 
                      order to move to proceed to consider the 
                      resolution in the House. All points of order 
                      against the motion are waived. Such a motion shall 
                      not be in order after the House has disposed of a 
                      motion to proceed on the resolution. The previous 
                      question shall be considered as ordered on the 
                      motion to its adoption without intervening motion. 
                      The motion shall not be debatable. A motion to 
                      reconsider the vote by which the motion is 
                      disposed of shall not be in order.
                          (iv) The resolution shall be considered as 
                      read. All points of order against the resolution 
                      and against its consideration are waived. The 
                      previous question shall be considered as ordered 
                      on the resolution to final passage without 
                      intervening motion except 2 hours of debate 
                      equally divided and controlled by the offeror of 
                      the motion to proceed (or a designee) and an 
                      opponent. A motion to reconsider the vote on 
                      passage of the resolution shall not be in order.
                    (B) Treatment of house resolution in senate.--
                          (i) Received before passage of senate 
                      resolution.--If, before the passage by the Senate 
                      of a covered resolution, the Senate receives an 
                      identical resolution

[[Page 134 STAT. 677]]

                      from the House of Representatives, the following 
                      procedures shall apply:
                                    (I) That resolution shall not be 
                                referred to a committee.
                                    (II) With respect to that 
                                resolution--
                                            (aa) the procedure in the 
                                        Senate shall be the same as if 
                                        no resolution had been received 
                                        from the House of 
                                        Representatives; but
                                            (bb) the vote on passage 
                                        shall be on the resolution from 
                                        the House of Representatives.
                          (ii) Received after passage of senate 
                      resolution.--If, following passage of a covered 
                      resolution in the Senate, the Senate receives an 
                      identical resolution from the House of 
                      Representatives, that resolution shall be placed 
                      on the appropriate Senate calendar.
                          (iii) No senate companion.--If a covered 
                      resolution is received from the House of 
                      Representatives, and no companion resolution has 
                      been introduced in the Senate, the Senate 
                      procedures under this subsection shall apply to 
                      the resolution from the House of Representatives.
                    (C) Application to revenue measures.--The provisions 
                of this paragraph shall not apply in the House of 
                Representatives to a covered resolution that is a 
                revenue measure.
            (6) Rules of house of representatives and senate.--This 
        subsection is enacted by Congress--
                    (A) as an exercise of the rulemaking power of the 
                Senate and the House of Representatives, 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 rules; and
                    (B) 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.
SEC. 9. IMPLEMENTATION; PENALTIES.

    (a) <<NOTE: President.>>  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 
the extent necessary to carry out this Act.

    (b) Penalties.--A person that violates, attempts to violate, 
conspires to violate, or causes a violation of section 6 or 7 or any 
regulation, license, or order issued to carry out that section 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.

[[Page 134 STAT. 678]]

SEC. 10. RULE OF CONSTRUCTION.

    Nothing in this Act shall be construed as an authorization of 
military force against China.

    Approved July 14, 2020.

LEGISLATIVE HISTORY--H.R. 7440:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 166 (2020):
            July 1, considered and passed House.
            July 2, considered and passed Senate.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2020):
            July 14, Presidential statement.

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