    [United States Statutes at Large, Volume 134, 116th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    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. <>

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

    [[Page 665]]

    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,

    [[Page 666]]

    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.

    [[Page 667]]

    (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

    [[Page 668]]

    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.

    [[Page 669]]

    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) <>  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) <>  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) <>  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) <>  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) <>  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) <>  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) <>  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. <>  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) <>  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) <>  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. <>  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) <>  Imposition of Sanctions.--

    [[Page 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) 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 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. <>  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) <>  determines that the waiver is
    in the national security interest of the United States; and
    (2) <>  submits to the appropriate
    congressional committees and leadership a report on the
    determination and the reasons for the determination.

    (b) 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 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) <>  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) <>  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) <>  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 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) 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) <>  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 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) <>  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) <>  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) <>  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 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) <>  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 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.