Sanctions Targeting Aggressors of Neighboring Democracies with Taiwan Act of 2023 or the STAND with Taiwan Act of 2023
This bill requires the imposition of sanctions in the event of a military invasion of Taiwan by China and addresses related issues.
If the President determines that China or any of its proxies has initiated a military invasion of Taiwan, or if a joint resolution making such a determination is enacted, the bill requires
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2372 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 2372
To require the imposition of sanctions with respect to the People's
Republic of China if the People's Liberation Army initiates a military
invasion of Taiwan.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 29, 2023
Mr. Gallagher introduced the following bill; which was referred to the
Committee on Foreign Affairs, and in addition to the Committees on
Financial Services, Ways and Means, the Judiciary, and Rules, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To require the imposition of sanctions with respect to the People's
Republic of China if the People's Liberation Army initiates a military
invasion of Taiwan.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Sanctions Targeting Aggressors of
Neighboring Democracies with Taiwan Act of 2023'' or the ``STAND with
Taiwan Act of 2023''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) Taiwan is a free and prosperous democracy of nearly
24,000,000 people, an important contributor to peace and
stability around the world, and continues to embody and promote
democratic values, freedom, and human rights in Asia.
(2) The policy of the United States toward Taiwan is guided
by the Taiwan Relations Act (22 U.S.C. 3301 et seq.), the
United States-People's Republic of China joint communiques
concluded in 1972, 1978, and 1982, and the Six Assurances that
President Ronald Reagan communicated to Taiwan in 1982.
(3) Under section 2 of the Taiwan Relations Act (22 U.S.C.
3301), it is the policy of the United States--
(A) ``to preserve and promote extensive, close, and
friendly commercial, cultural, and other relations
between the people of the United States and the people
on Taiwan, as well as the people on the China mainland
and all other peoples of the Western Pacific area'';
(B) ``to declare that peace and stability in the
area are in the political, security, and economic
interests of the United States, and are matters of
international concern'';
(C) ``to make clear that the United States decision
to establish diplomatic relations with the People's
Republic of China rests upon the expectation that the
future of Taiwan will be determined by peaceful
means'';
(D) ``to consider any effort to determine the
future of Taiwan by other than peaceful means,
including by boycotts or embargoes, a threat to the
peace and security of the Western Pacific area and of
grave concern to the United States'';
(E) ``to provide Taiwan with arms of a defensive
character''; and
(F) ``to maintain the capacity of the United States
to resist any resort to force or other forms of
coercion that would jeopardize the security, or the
social or economic system, of the people on Taiwan''.
(4) For decades and increasingly since the election of
President Tsai Ing-wen as President of Taiwan in 2016, the
Chinese Communist Party has employed a variety of coercive
military and nonmilitary tactics short of armed conflict in its
efforts to exert existential pressure on Taiwan, including
through diplomatic isolation, restricting tourism,
cyberattacks, spreading disinformation, and controlling the
ability of Taiwan to purchase COVID-19 vaccines from other
countries.
(5) Since 2020, military incursions by the People's
Republic of China into Taiwan's air defense identification zone
have been occurring at a rapidly increasing pace. In 2022, such
incursions occurred 1,700 times, nearly double the total in
2021, which was itself almost triple the 2020 total.
(6) Since 2021, there has been a notable increase in
military provocations by the People's Liberation Army against
Taiwan, including incursions over the midline separating the
People's Republic of China from Taiwan, holding military
exercises in the vicinity of Taiwan's controlled waters, and
performing live-fire exercises in the South China Sea.
(7) In August 2022, the People's Republic of China held
unprecedented live-fire military exercises and a simulated
blockade involving hundreds of military aircraft, dozens of
warships, and launches of short-range ballistic missiles over
the territory of Taiwan.
(8) The People's Republic of China is attempting to erase
the midline separating it from Taiwan, increasing the prospects
for incidental contact between forces of the People's Republic
of China and Taiwan as well as shorting reaction times related
to provocations by the People's Republic of China.
(9) On August 10, 2022, the Taiwan Affairs Office of the
State Council of the People's Republic of China released a
white paper entitled ``The Taiwan Question and China's
Reunification in the New Era'' that reiterated the long-
standing position of the Government of the People's Republic of
China not to renounce the use of force to bring about
unification with Taiwan and to ``always be ready to respond
with the use of force . . . to interference by external forces
or radical action by separatist elements''.
(10) In March 2021, then Commander of the United States
Indo-Pacific Command Admiral Philip Davidson testified that the
threat of a military invasion of Taiwan by the People's
Liberation Army ``is manifest during this decade, in fact in
the next six years''.
(11) In March 2021, then Commander of the United States
Pacific Fleet Admiral John Aquilino testified that the threat
of a military invasion by the People's Liberation Army of
Taiwan is ``much closer to us than most think'' and could
materialize well before 2035.
(12) On February 24, 2022, the Armed Forces of the Russian
Federation initiated an unprovoked and unjustified invasion of
Ukraine, resulting in at least 14,000 civilian casualties,
including more than 5,000 deaths.
(13) The Russian Federation invasion has destabilized
global markets and supply chains, from energy to food,
contributing to high inflation and recession in the United
States and deep cuts to global gross domestic product.
(14) With the assistance of the United States and European
allies, Ukrainian forces have successfully repelled the Russian
Federation invasion and recaptured significant portions of
territory taken by the Russian Federation in the initial stages
of the invasion.
(15) In addition to military power, timely messaging around
the use of economic and financial instruments of United States
power and their potential use can have an important deterrent
effect on the actions of other countries.
SEC. 3. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) it is in the interests of the United States to maintain
a free and open Indo-Pacific region, with peace and stability
in the Taiwan Strait as a critical component;
(2) efforts by the Government of the People's Republic of
China and the Chinese Communist Party to unilaterally determine
the future of Taiwan through non-peaceful means, including
threats and the direct use of force, military coercion,
economic boycotts or embargoes, cyberattacks, and efforts to
internationally isolate or annex Taiwan--
(A) directly undermine the spirit, intent, and
purpose of the Taiwan Relations Act (22 U.S.C. 3301 et
seq.);
(B) undermine peace and stability in the Taiwan
Strait;
(C) limit a free and open Indo-Pacific region; and
(D) are of grave concern to the Government of the
United States;
(3) the initiation of a military invasion of Taiwan by the
People's Liberation Army would--
(A) constitute a threat to the peace and security
of the Western Pacific Area and threaten the peace
stability of the entire globe; and
(B) undermine the core political, security, and
economic interests of the United States at home and
abroad; and
(4) as an important deterrent measure against a military
invasion of Taiwan, the Government of the People's Republic of
China and the Chinese Communist Party must understand that
initiating such an invasion will result in catastrophic
economic and financial consequences for the People's Republic
of China.
SEC. 4. STATEMENT OF POLICY.
The policy of the Government of the United States on Taiwan is
guided by the Taiwan Relations Act (22 U.S.C. 3301 et seq.), the United
States-People's Republic of China joint communiques concluded in 1972,
1978, and 1982, and the Six Assurances that President Ronald Reagan
communicated to Taiwan in 1982, but in the event of the initiation of a
military invasion of Taiwan by the People's Liberation Army, it is the
policy of the United States--
(1) to use and deploy all economic, commercial, and
financial instruments and levers of power, including--
(A) the imposition of sanctions with respect to
leadership of the Chinese Communist Party, key
officials of the Government of the People's Republic of
China, and financial institutions and other entities
affiliated with the Chinese Communist Party or the
Government of the People's Republic of China;
(B) prohibiting the listing or trading of the
securities of Chinese entities on United States
securities exchanges;
(C) prohibiting investments by United States
financial institutions in economic sectors of the
People's Republic of China; and
(D) prohibiting the importation of certain goods
mined, produced, or manufactured in the People's
Republic of China into the United States; and
(2) to work in close coordination with allies and partners
of the United States to encourage those allies and partners to
undertake similar economic, commercial, and financial actions
against the Government of the People's Republic of China and
the Chinese Communist Party.
SEC. 5. DEFINITIONS.
In this Act:
(1) Account; correspondent account; payable-through
account.--The terms ``account'', ``correspondent account'', and
``payable-through account'' have the meanings given those terms
in section 5318A of title 31, United States Code.
(2) Admission; admitted; alien.--The terms ``admission'',
``admitted'', and ``alien'' have the meanings given those terms
in section 101 of the Immigration and Nationality Act (8 U.S.C.
1101).
(3) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations, the
Committee on Armed Services, and the Committee on
Banking, Housing, and Urban Affairs of the Senate; and
(B) the Committee on Foreign Affairs, the Committee
on Armed Services, and the Committee on Financial
Services of the House of Representatives.
(4) Covered determination.--The term ``covered
determination'' has the meaning given that term in section
6(a).
(5) Financial institution.--The term ``financial
institution'' means a financial institution specified in
subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), (J),
(M), or (Y) of section 5312(a)(2) of title 31, United States
Code.
(6) Foreign person.--The term ``foreign person'' means an
individual or entity that is not a United States person.
(7) Knowingly.--The term ``knowingly'' with respect to
conduct, a circumstance, or a result, means that a person had
actual knowledge, or should have known, of the conduct, the
circumstance, or the result.
(8) Military invasion.--The term ``military invasion''
includes--
(A) an amphibious landing or assault;
(B) an airborne operation or air assault;
(C) an aerial bombardment or blockade;
(D) missile attacks, including rockets, ballistic
missiles, cruise missiles, and hypersonic missiles;
(E) a naval bombardment or blockade; and
(F) attack on any territory controlled or
administered by the Government of Taiwan, including
offshore islands controlled or administered by that
Government.
(9) United states person.--The term ``United States
person'' means--
(A) a United States citizen or an alien lawfully
admitted for permanent residence to the United States;
or
(B) an entity organized under the laws of the
United States or any jurisdiction within the United
States, including a foreign branch of such an entity.
SEC. 6. DETERMINATION OF THE INITIATION OF A MILITARY INVASION BY THE
PEOPLE'S LIBERATION ARMY OR ITS PROXIES.
(a) Covered Determination Defined.--In this Act, the term ``covered
determination'' means--
(1) a determination by the President, not later than 24
hours after a military invasion of Taiwan by the People's
Liberation Army or any of its proxies, that such an invasion
has occurred; or
(2) the enactment of a joint resolution pursuant to
subsection (b).
(b) Determination by Joint Resolution.--
(1) Covered joint resolution defined.--In this subsection,
the term ``covered joint resolution'' means only a joint
resolution of either House of Congress the sole matter after
the resolving clause of which is as follows: ``That Congress
determines that the People's Liberation Army or one of its
proxies initiated a military invasion of Taiwan on ___.'', with
the blank space being filled with the appropriate date.
(2) Introduction.--A covered joint resolution may be
introduced--
(A) in the House of Representatives, by the
majority leader (or the majority leader's designee) or
the minority leader (or the minority leader's
designee); 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.--
(A) Discharge from committee.--If a committee of
the House of Representatives to which a covered joint
resolution has been referred has not reported the joint
resolution within 2 calendar days after the date of
referral of the joint resolution, the committee shall
be discharged from further consideration of the joint
resolution and the joint resolution shall be placed on
the appropriate calendar.
(B) Moving to consideration.--At any time after a
covered joint resolution has been placed on the
appropriate calendar, it is in order for the sponsor of
the joint resolution (or a designee) to move for the
consideration of that joint resolution.
(C) Points of order; motions.--All points of order
against the covered joint resolution and its
consideration are waived. If the motion under
subparagraph (B) is agreed to, the joint resolution
shall remain the unfinished business of the House until
disposed of, except as provided in paragraph (5).
(D) No amendments.--A covered joint resolution
shall not be subject to amendment in the House of
Representatives.
(E) Debate.--General debate on a covered joint
resolution shall not exceed 4 hours, which shall be
equally divided and controlled by the sponsor of the
joint resolution (or a designee) and an opponent.
(F) Final passage.--At the conclusion of debate,
the previous question shall be considered as ordered on
the resolution, and the House of Representatives shall
vote on final passage without intervening motion.
(4) Consideration in the senate.--
(A) Reporting and discharge.--If the committee of
the Senate to which a covered joint resolution was
referred has not reported the joint resolution within 2
calendar days after the date of referral of the joint
resolution, that committee shall be discharged from
further consideration of the joint resolution and the
joint resolution shall be placed on the appropriate
calendar.
(B) Proceeding to consideration.--Notwithstanding
Rule XXII of the Standing Rules of the Senate, it is in
order at any time after the committee of the Senate to
which a covered joint resolution was referred reports
the joint resolution to the Senate or has been
discharged from consideration of the joint resolution
(even though a previous motion to the same effect has
been disagreed to) to move to proceed to the
consideration of the joint resolution, and all points
of order against the joint resolution (and against
consideration of the joint resolution) are waived. The
motion to proceed is not debatable. The motion is not
subject to a motion to postpone.
(C) No amendments.--An amendment to a covered joint
resolution, or a motion to postpone, or a motion to
proceed to the consideration of other business, or a
motion to recommit a covered joint resolution, is not
in order.
(D) Consideration.--
(i) Limitation on debate.--Consideration in
the Senate of a covered joint resolution shall
be limited to not more than 10 hours, which
shall be equally divided between, and
controlled by, the majority leader and the
minority leader, or by their designees.
(ii) Vote on adoption.--Whenever all the
time for debate on a covered joint resolution
has been used or yielded back, the vote on the
adoption of the resolution shall occur without
any intervening motion or amendment, except
that a single quorum call at the conclusion of
the debate if requested in accordance with the
Rules of the Senate may occur immediately
before such vote.
(E) 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 joint
resolution shall be decided without debate.
(F) Consideration of veto messages.--Debate in the
Senate of any veto message with respect to a covered
joint resolution, including all debatable motions and
appeals in connection with the joint 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 joint resolution in
house.--In the House of Representatives, the following
procedures shall apply to a covered joint resolution
received from the Senate (unless the House has already
passed a joint resolution relating to the same proposed
action):
(i) The joint resolution shall be referred
to the appropriate committees.
(ii) If a committee to which a joint
resolution has been referred has not reported
the joint resolution within 2 calendar days
after the date of referral, that committee
shall be discharged from further consideration
of the joint resolution.
(iii) Beginning on the third legislative
day after the committee to which a joint
resolution has been referred reports the joint
resolution to the House or has been discharged
from further consideration thereof, it shall be
in order to move to proceed to consider the
joint 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
joint 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 joint resolution shall be
considered as read. All points of order against
the joint resolution and against its
consideration are waived. The previous question
shall be considered as ordered on the joint
resolution to final passage without intervening
motion except 4 hours of debate equally divided
and controlled by the sponsor of the joint
resolution (or a designee) and an opponent. A
motion to reconsider the vote on passage of the
joint resolution shall not be in order.
(B) Treatment of house joint resolution in
senate.--
(i) Receipt before passage.--If, before the
passage by the Senate of a covered joint
resolution, the Senate receives an identical
joint resolution from the House of
Representatives, the following procedures shall
apply:
(I) That joint resolution shall not
be referred to a committee.
(II) With respect to that joint
resolution--
(aa) the procedure in the
Senate shall be the same as if
no joint resolution had been
received from the House of
Representatives; but
(bb) the vote on passage
shall be on the joint
resolution from the House of
Representatives.
(ii) Receipt after passage.--If, following
passage of a covered joint resolution in the
Senate, the Senate receives an identical joint
resolution from the House of Representatives,
that joint resolution shall be placed on the
appropriate Senate calendar.
(iii) No companion measure.--If a covered
joint resolution is received from the House,
and no companion joint resolution has been
introduced in the Senate, the Senate procedures
under this subsection shall apply to the House
joint resolution.
(C) Application to revenue measures.--The
provisions of this paragraph shall not apply in the
House of Representatives to a covered joint 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. 7. IMPOSITION OF SANCTIONS WITH RESPECT TO OFFICIALS OF THE
GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA AND MEMBERS
OF THE CHINESE COMMUNIST PARTY.
(a) In General.--Not later than 3 days after making a covered
determination, the President shall impose the sanctions described in
subsection (d) with respect to officials of the Government of the
People's Republic of China and members of the Chinese Communist Party
specified in subsection (b), to the extent such officials and members
can be identified.
(b) Officials Specified.--The officials specified in this
subsection shall include--
(1) senior civilian and military officials of the People's
Republic of China and military officials who have command or
clear and direct decision-making power over military campaigns,
military operations, and military planning against Taiwan
conducted by the People's Liberation Army;
(2) senior civilian and military officials of the People's
Republic of China who have command or clear and direct
decision-making power in the Chinese Coast Guard and the
Chinese People's Armed Police and are engaged in planning or
implementing activities that involve the use of force against
Taiwan;
(3) senior or special advisors to the General Secretary of
the Chinese Communist Party, the Chairman of the Central
Military Commission, or the President of the People's Republic
of China;
(4) officials of the Government of the People's Republic of
China who are members of the top decision-making bodies of that
Government;
(5) the highest-ranking Chinese Communist Party members of
the decision-making bodies referred to in paragraph (4); and
(6) officials of the Government of the People's Republic of
China in the intelligence agencies or security services who--
(A) have clear and direct decision-making power;
and
(B) have engaged in or implemented activities
that--
(i) materially undermine the military
readiness of Taiwan;
(ii) overthrow or decapitate Taiwan's
government;
(iii) debilitate Taiwan's electric grid,
critical infrastructure, or cybersecurity
systems through offensive electronic or cyber
attacks;
(iv) undermine Taiwan's democratic
processes through campaigns to spread
disinformation; or
(v) involve committing serious human rights
abuses against citizens of Taiwan, including
forceful transfers, enforced disappearances,
unjust detainment, or torture.
(c) Additional Officials.--
(1) List required.--Not later than 30 days after making a
covered determination, and every 90 days thereafter, the
President shall submit a list to the appropriate congressional
committees that identifies any additional foreign persons who--
(A) the President determines are officials
specified in subsection (b); and
(B) who were not included on any previous list of
such officials.
(2) Imposition of sanctions.--Upon the submission of the
list required under paragraph (1), the President shall impose
the sanctions described in subsection (d) with respect to each
official included on the list.
(d) Sanctions Described.--The sanctions described in this
subsection to be imposed with respect to an official specified in
subsection (b) or (c) are the following:
(1) Blocking of property.--
(A) In general.--The President shall exercise all
of the powers granted by the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.) to block
and prohibit all transactions in all property and
interests in property of the official if such property
and interests in property are in the United States,
come within the United States, or are or come within
the possession or control of a United States person.
(B) Inapplicability of national emergency
requirement.--The requirements of section 202 of the
International Emergency Economic Powers Act (50 U.S.C.
1701) shall not apply for purposes of this section.
(2) Ineligibility for visas, admission, or parole.--
(A) Visas, admission, or parole.--The official
shall be--
(i) inadmissible to the United States;
(ii) ineligible to receive a visa or other
documentation to enter the United States; and
(iii) otherwise ineligible to be admitted
or paroled into the United States or to receive
any other benefit under the Immigration and
Nationality Act (8 U.S.C. 1101 et seq.).
(B) Current visas revoked.--
(i) In general.--The visa or other entry
documentation of the official shall be revoked,
regardless of when such visa or other entry
documentation is or was issued.
(ii) Immediate effect.--A revocation under
subparagraph (A) shall--
(I) take effect immediately; and
(II) automatically cancel any other
valid visa or entry documentation that
is in the official's possession.
(e) Exception for Compliance With International Obligations and Law
Enforcement Activities.--Sanctions under this section shall not apply
with respect to an official if--
(1) admitting or paroling the official into the United
States is necessary--
(A) to permit the United States to comply with the
Agreement regarding the Headquarters of the United
Nations, signed at Lake Success on June 26, 1947, and
entered into force November 21, 1947, between the
United Nations and the United States, or other
applicable international obligations of the United
States; or
(B) to carry out or assist law enforcement activity
in the United States; or
(2) the alien holds a valid, unexpired A-1, A-2, C-2, G-1,
or G-2 visa.
(f) Top Decision-Making Bodies Defined.--In this section, the term
``top decision-making bodies'' may include--
(1) the Political Bureau of the Central Committee of the
Chinese Communist Party;
(2) the Standing Committee of the Political Bureau of the
Central Committee of the Chinese Communist Party;
(3) the Central Military Commission of the Chinese
Communist Party;
(4) the Central Military Commission of the People's
Republic of China;
(5) the National People's Congress of the People's Republic
of China;
(6) the Central Committee of the Chinese Communist Party;
and
(7) the State Council of the People's Republic of China.
SEC. 8. IMPOSITION OF SANCTIONS WITH RESPECT TO FINANCIAL INSTITUTIONS
AFFILIATED WITH THE GOVERNMENT OF THE PEOPLE'S REPUBLIC
OF CHINA.
(a) In General.--Not later than 3 days after a covered
determination is made, the Secretary of the Treasury--
(1) shall impose the sanctions described in subsection (c)
with respect to each joint-equity bank, national joint-stock
commercial bank, and national state-owned policy bank; and
(2) may impose those sanctions with respect to any
subsidiary of, or successor entity to, a joint-equity bank,
national joint-stock commercial bank, or national state-owned
policy bank.
(b) Additional People's Republic of China Financial Institutions.--
(1) List required.--Not later than 30 days after a covered
determination is made, and every 90 days thereafter, the
President shall submit a list to the appropriate congressional
committees that identifies any foreign persons that the
President determines--
(A) are significant financial institutions owned or
operated by the Government of the People's Republic of
China; and
(B) should be sanctioned in the interest of United
States national security.
(2) Imposition of sanctions.--Upon the submission of each
list required under paragraph (1), the President shall impose
the sanctions described in subsection (c) with respect to each
foreign person identified on such list.
(c) Sanctions Described.--The sanctions described in this
subsection are the following:
(1) Blocking of property.--
(A) In general.--The President shall exercise all
of the powers granted to the President under the
International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.) to the extent necessary to block and
prohibit all transactions in property and interests in
property of a foreign person subject to subsection (a)
or (b) if such property and interests in property are
in the United States, come within the United States, or
are or come within the possession or control of a
United States person.
(B) Inapplicability of national emergency
requirement.--The requirements of section 202 of the
International Emergency Economic Powers Act (50 U.S.C.
1701) shall not apply for purposes of this section.
(2) Restrictions on correspondent and payable-through
accounts.--The President shall prohibit the opening, and
prohibit or impose strict conditions on the maintaining, in the
United States of a correspondent account or payable-through
account by a foreign person subject to subsection (a) or (b).
(d) Definitions.--In this section:
(1) Joint-equity bank.--The term ``joint-equity bank''
means a bank under the jurisdiction of the People's Republic of
China in which--
(A) the bank's equity is owned jointly by the
shareholders; and
(B) the Government of the People's Republic of
China holds an interest.
(2) National joint-stock commercial bank.--The term
``national joint-stock commercial bank'' means a bank under the
jurisdiction of the People's Republic of China in which--
(A) the bank's stock is owned jointly by the
shareholders; and
(B) the Government of the People's Republic of
China holds an interest.
(3) National state-owned policy bank.--The term ``national
state-owned policy bank'' means a bank that--
(A) is incorporated in the People's Republic of
China; and
(B) was established by the Government of the
People's Republic of China to advance investments in
specific policy domains that advance the interests and
goals of the People's Republic of China.
SEC. 9. IMPOSITION OF SANCTIONS WITH RESPECT TO ENTITIES OWNED BY OR
AFFILIATED WITH THE GOVERNMENT OF THE PEOPLE'S REPUBLIC
OF CHINA OR THE CHINESE COMMUNIST PARTY.
(a) In General.--Not later than 3 days after a covered
determination is made, the Secretary of the Treasury shall impose the
sanctions described in subsection (b) with respect to any entity that--
(1) the Government of the People's Republic of China or the
Chinese Communist Party has an ownership interest in; or
(2) is otherwise affiliated with the Government of the
People's Republic of China or the Chinese Communist Party.
(b) Blocking of Property.--
(1) In general.--The President shall exercise all of the
powers granted to the President under the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the
extent necessary to block and prohibit all transactions in
property and interests in property of an entity in an industry
subject to subsection (a) if such property and interests in
property are in the United States, come within the United
States, or are or come within the possession or control of a
United States person.
(2) Inapplicability of national emergency requirement.--The
requirements of section 202 of the International Emergency
Economic Powers Act (50 U.S.C. 1701) shall not apply for
purposes of this section.
SEC. 10. PROHIBITION ON TRANSFERS OF FUNDS INVOLVING THE PEOPLE'S
REPUBLIC OF CHINA.
(a) In General.--Except as provided by subsection (b), not later
than 3 days after a covered determination is made, a depository
institution (as defined in section 19(b)(1)(A) of the Federal Reserve
Act (12 U.S.C. 461(b)(1)(A))) or a broker or dealer in securities
registered with the Securities and Exchange Commission under the
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) may not process
transfers of funds--
(1) to or from the People's Republic of China; or
(2) for the direct or indirect benefit of officials of the
Government of the People's Republic of China or members of the
Chinese Communist Party.
(b) Exception.--A depository institution, broker, or dealer
described in subsection (a) may process a transfer described in that
subsection if the transfer--
(1) arises from, and is ordinarily incident and necessary
to give effect to, an underlying transaction that is authorized
by a specific or general license; and
(2) does not involve debiting or crediting an Chinese
account.
SEC. 11. PROHIBITION ON LISTING OR TRADING OF CHINESE ENTITIES ON
UNITED STATES SECURITIES EXCHANGES.
(a) In General.--The Securities and Exchange Commission shall
prohibit the securities of an issuer described in subsection (b) from
being traded on a national securities exchange on and after the date
that is 3 days after a covered determination is made.
(b) Issuers.--An issuer described in this subsection is an issuer
that is--
(1) an official of or individual affiliated with the
Government of the People's Republic of China or the Chinese
Communist Party; or
(2) an entity that--
(A) the Government of the People's Republic of
China or the Chinese Communist Party has an ownership
interest in; or
(B) is otherwise affiliated with the Government of
the People's Republic of China or the Chinese Communist
Party.
(c) Definitions.--In this section:
(1) Issuer; security.--The terms ``issuer'' and
``security'' have the meanings given those terms in section
3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c).
(2) National securities exchange.--The term ``national
securities exchange'' means an exchange registered as a
national securities exchange in accordance with section 6 of
the Securities Exchange Act of 1934 (15 U.S.C. 78f).
SEC. 12. PROHIBITION ON INVESTMENTS BY UNITED STATES FINANCIAL
INSTITUTIONS THAT BENEFIT THE GOVERNMENT OF THE PEOPLE'S
REPUBLIC OF CHINA OR THE CHINESE COMMUNIST PARTY.
(a) In General.--Not later than 3 days after a covered
determination is made, the Secretary of the Treasury shall prohibit any
United States financial institution from making any investments
described in subsection (b).
(b) Investments Described.--An investment described in this
subsection is a monetary investment--
(1) to--
(A) an entity owned or controlled by the Government
of the People's Republic of China or the Chinese
Communist Party; or
(B) the People's Liberation Army; or
(2) for the benefit of any priority industrial sector
identified in the ``Made in China 2025'' plan or the ``14th
Five Year Smart Manufacturing Development Plan'', including--
(A) agriculture machinery;
(B) information technology;
(C) artificial intelligence, machine learning, and
robotics;
(D) green energy and green vehicles;
(E) aerospace equipment;
(F) ocean engineering and high tech ships;
(G) railway equipment;
(H) power equipment;
(I) new materials;
(J) medicine and medical devices;
(K) fifth generation and future generation
telecommunications and other advanced wireless
networking technologies;
(L) semiconductor manufacturing;
(M) biotechnology;
(N) quantum computing;
(O) surveillance technologies, including facial
recognition technologies and censorship software;
(P) fiber optic cables; and
(Q) mining and resource development.
(c) United States Financial Institution Defined.--In this section,
the term ``United States financial institution''--
(1) means any financial institution that is a United States
person; and
(2) includes an investment company, private equity company,
venture capital company, or hedge fund that is a United States
person.
SEC. 13. PROHIBITION ON IMPORTATION OF CERTAIN GOODS MADE IN THE
PEOPLE'S REPUBLIC OF CHINA.
(a) In General.--Except as provided in subsection (b), on and after
the date that is 3 days after a covered determination is made, all
goods mined, produced, or manufactured wholly or in part in the
People's Republic of China, or by a person working for or affiliated
with an entity or industry wholly financed by the Government of the
People's Republic of China or the Chinese Communist Party or in which
the Government of the People's Republic of China or the Chinese
Communist Party has a majority ownership interest, shall not be
entitled to entry at any of the ports of the United States and the
importation of such goods is prohibited.
(b) Exception.--The prohibition under subsection (a) shall not
apply with respect to a good if the President--
(1) determines that the good is necessary to the national
security, economic security, or public health of the United
States; and
(2) submits to the appropriate congressional committees and
make available to the public a report on that determination.
SEC. 14. EXCEPTIONS; WAIVER.
(a) Exception for Intelligence Activities.--This Act shall not
apply with respect to activities subject to the reporting requirements
under title V of the National Security Act of 1947 (50 U.S.C. 3091 et
seq.) or any authorized intelligence activities of the United States.
(b) National Security Waiver.--The President may waive the
imposition of sanctions under this Act with respect to a person if the
President--
(1) determines that such a waiver is in the national
security interests of the United States; and
(2) submits to the appropriate congressional committees a
notification of the waiver and the reasons for the waiver.
SEC. 15. 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 carry out this Act.
(b) Penalties.--A person that violates, attempts to violate,
conspires to violate, or causes a violation of this Act or any
regulation, license, or order issued to carry out this Act 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.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, the Judiciary, and Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, the Judiciary, and Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, the Judiciary, and Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, the Judiciary, and Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, the Judiciary, and Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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Referred to the Subcommittee on Trade.