[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7440 Enrolled Bill (ENR)]
H.R.7440
One Hundred Sixteenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Friday,
the third day of January, two thousand and twenty
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,

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(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:

96a55cabd97c7b7dbce726d74a595f7a2202dbc4622a4ecedbed4bd58d60b60a

obligations of China under the Joint Declaration or the Basic
Law and foreign financial institutions that conduct
significant transactions with those persons.

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obligations of China under the Joint Declaration or the Basic
Law.

a7c338b5378eecdc12746bb4331d44316d61bdf384f80e2ae9d4d307a54d86a2

conduct significant transactions with foreign persons that
contravene the obligations of China under the Joint
Declaration or the Basic Law.

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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 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.

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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, 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, 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.
(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.

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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 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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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 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.
(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.

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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.

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CONDUCT SIGNIFICANT TRANSACTIONS WITH FOREIGN PERSONS THAT CONTRAVENE
THE OBLIGATIONS OF CHINA UNDER THE JOINT DECLARATION OR THE BASIC LAW.
(a) Imposition of Sanctions.--
(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.
(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.

20e61135efe827c4c2c21c591e01c5f15ee09b9915ef98b9e8fc7486f20af3fc

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
(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
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
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 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.

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(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.

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Nothing in this Act shall be construed as an authorization of
military force against China.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

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Hong Kong Autonomy Act

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