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116TH CONGRESS2D SESSIONS. 3798AN ACTTo impose sanctions with respect to foreign persons involvedin the erosion of certain obligations of China with respectto Hong Kong, and for other purposes.1Be it enacted by the Senate and House of Representa-2 tives of the United States of America in Congress assembled,

21SECTION 1. SHORT TITLE; TABLE OF CONTENTS.2(a) SHORT TITLE.—This Act may be cited as the3 ‘‘Hong Kong Autonomy Act’’.4(b) TABLEOFCONTENTS.—The table of contents for5 this Act is as title; table of contents.Definitions.Findings.Sense of Congress regarding Hong Kong.Identification of foreign persons involved in the erosion of the obligations of China under the Joint Declaration or the Basic Lawand foreign financial institutions that conduct significanttransactions with those persons.6. Sanctions with respect to foreign persons that contravene the obligations of China under the Joint Declaration or the Basic Law.7. Sanctions with respect to foreign financial institutions that conduct significant transactions with foreign persons that contravene theobligations of China under the Joint Declaration or the BasicLaw.8. Waiver, termination, exceptions, and congressional review process.9. Implementation; penalties.10. Rule of construction.6SEC. 2. DEFINITIONS.7In this Act:89(1) ALIEN;NATIONAL;UNITED STATES.—TheNATIONALOFTHEterms ‘‘alien’’, ‘‘national’’,10and ‘‘national of the United States’’ have the mean-11ings given those terms in section 101 of the Immi-12gration and Nationality Act (8 U.S.C. 1101).13(2) APPROPRIATECONGRESSIONALCOMMIT-14TEES AND LEADERSHIP.—The15congressional committees and leadership’’ means—term ‘‘appropriate16(A) the Committee on Armed Services, the17Committee on Banking, Housing, and Urban† S 3798 ES

31Affairs, the Committee on Foreign Relations,2the Committee on Homeland Security and Gov-3ernmental Affairs, the Committee on the Judi-4ciary, the Select Committee on Intelligence, and5the majority leader and the minority leader of6the Senate; and7(B) the Committee on Armed Services, the8Committee on Financial Services, the Com-9mittee on Foreign Affairs, the Committee on10Homeland Security, the Committee on the Judi-11ciary, the Permanent Select Committee on In-12telligence, and the Speaker and the minority13leader of the House of Representatives.14(3) BASICLAW.—Theterm ‘‘Basic Law’’ means15the Basic Law of the Hong Kong Special Adminis-16trative Region of the People’s Republic of China.1718(4) CHINA.—The term ‘‘China’’ means the People’s Republic of China.19(5) ENTITY.—The term ‘‘entity’’ means a part-20nership, joint venture, association, corporation, orga-21nization, network, group, or subgroup, or any other22form of business collaboration.2324(6) FINANCIALINSTITUTION.—Theterm ‘‘fi-nancial institution’’ means a financial institution† S 3798 ES

41specified in section 5312(a)(2) of title 31, United2States Code.3(7) HONGKONG.—Theterm ‘‘Hong Kong’’4means the Hong Kong Special Administrative Re-5gion of the People’s Republic of China.6(8) JOINTDECLARATION.—Theterm ‘‘Joint7Declaration’’ means the Joint Declaration of the8Government of the United Kingdom of Great Britain9and Northern Ireland and the Government of the10People’s Republic of China on the Question of Hong11Kong, done at Beijing on December 19, 1984.12(9) KNOWINGLY.—The term ‘‘knowingly’’, with13respect to conduct, a circumstance, or a result,14means that a person has actual knowledge of the15conduct, the circumstance, or the result.16(10) PERSON.—The term ‘‘person’’ means an17individual or entity.18(11) UNITED19term(A) any citizen or national of the UnitedStates;2223PERSON.—The‘‘United States person’’ means—2021STATES(B) any alien lawfully admitted for permanent residence in the United States;24(C) any entity organized under the laws of25the United States or any jurisdiction within the† S 3798 ES

51United States (including a foreign branch of2such an entity); or3456(D) any person located in the UnitedStates.SEC. 3. FINDINGS.Congress makes the following findings:7(1) The Joint Declaration and the Basic Law8clarify certain obligations and promises that the9Government of China has made with respect to the10future of Hong Kong.11(2) The obligations of the Government of China12under the Joint Declaration were codified in a le-13gally-binding treaty, signed by the Government of14the United Kingdom of Great Britain and Northern15Ireland and registered with the United Nations.16(3) The obligations of the Government of China17under the Basic Law originate from the Joint Dec-18laration, were passed into the domestic law of China19by the National People’s Congress, and are widely20considered by citizens of Hong Kong as part of the21de facto legal constitution of Hong Kong.22(4) Foremost among the obligations of the Gov-23ernment of China to Hong Kong is the promise that,24pursuant to Paragraph 3b of the Joint Declaration,25‘‘the Hong Kong Special Administrative Region will† S 3798 ES

61enjoy a high degree of autonomy, except in foreign2and defence affairs which are the responsibilities of3the Central People’s Government’’.4(5) The obligation specified in Paragraph 3b of5the Joint Declaration is referenced, reinforced, and6extrapolated on in several portions of the Basic Law,7including Articles 2, 12, 13, 14, and 22.8(6) Article 22 of the Basic Law establishes that9‘‘No department of the Central People’s Government10and no province, autonomous region, or municipality11directly under the Central Government may interfere12in the affairs which the Hong Kong Special Admin-13istrative Region administers on its own in accord-14ance with this Law.’’.15(7) The Joint Declaration and the Basic Law16make clear that additional obligations shall be un-17dertaken by China to ensure the ‘‘high degree of au-18tonomy’’ of Hong Kong.19(8) Paragraph 3c of the Joint Declaration20states, as reinforced by Articles 2, 16, 17, 18, 19,21and 22 of the Basic Law, that Hong Kong ‘‘will be22vested with executive, legislative and independent ju-23dicial power, including that of final adjudication’’.24(9) On multiple occasions, the Government of25China has undertaken actions that have contravened† S 3798 ES

71the letter or intent of the obligation described in2paragraph (8) of this section, including the fol-3lowing:4(A) In 1999, the Standing Committee of5the National People’s Congress overruled a de-6cision by the Hong Kong Court of Final Appeal7on the right of abode.8(B) On multiple occasions, the Government9of Hong Kong, at the advice of the Government10of China, is suspected to have not allowed per-11sons entry into Hong Kong allegedly because of12their support for democracy and human rights13in Hong Kong and China.14(C) The Liaison Office of China in Hong15Kong has, despite restrictions on interference in16the affairs of Hong Kong as detailed in Article1722 of the Basic Law—18(i) openly expressed support for can-19didates in Hong Kong for Chief Executive20and Legislative Council;21(ii) expressed views on various policies22for the Government of Hong Kong and23other internal matters relating to Hong24Kong; and† S 3798 ES

81(iii) on April 17, 2020, asserted that2both the Liaison Office of China in Hong3Kong and the Hong Kong and Macau Af-4fairs Office of the State Council ‘‘have the5right to exercise supervision . . . on affairs6regarding Hong Kong and the mainland,7in order to ensure correct implementation8of the Basic Law’’.9(D) The National People’s Congress has10passed laws requiring Hong Kong to pass laws11banning disrespectful treatment of the national12flag and national anthem of China.13(E) The State Council of China released a14white paper on June 10, 2014, that stressed15the ‘‘comprehensive jurisdiction’’ of the Govern-16ment of China over Hong Kong and indicated17that Hong Kong must be governed by ‘‘patri-18ots’’.19(F) The Government of China has directed20operatives to kidnap and bring to the mainland,21or is otherwise responsible for the kidnapping22of, residents of Hong Kong, including business-23man Xiao Jianhua and bookseller Gui Minhai.24(G) The Government of Hong Kong, acting25with the support of the Government of China,† S 3798 ES

91introduced an extradition bill that would have2permitted the Government of China to request3and enforce extradition requests for any indi-4vidual present in Hong Kong, regardless of the5legality of the request or the degree to which it6compromised the judicial independence of Hong7Kong.8(H) The spokesman for the Standing Com-9mittee of the National People’s Congress said,10‘‘Whether Hong Kong’s laws are consistent11with the Basic Law can only be judged and de-12cided by the National People’s Congress Stand-13ing Committee. No other authority has the14right to make judgments and decisions.’’.15(10) Paragraph 3e of the Joint Declaration16states, as reinforced by Article 5 of the Basic Law,17that the ‘‘current social and economic systems in18Hong Kong will remain unchanged, as so will the19life-style.’’.20(11) On multiple occasions, the Government of21China has undertaken actions that have contravened22the letter or intent of the obligation described in23paragraph (10) of this section, including the fol-24lowing:† S 3798 ES

101(A) In 2002, the Government of China2pressured the Government of Hong Kong to in-3troduce ‘‘patriotic’’ curriculum in primary and4secondary schools.5(B) The governments of China and Hong6Kong proposed the prohibition of discussion of7Hong Kong independence and self-determina-8tion in primary and secondary schools, which9infringes on freedom of speech.10(C) The Government of Hong Kong man-11dated that Mandarin, and not the native lan-12guage of Cantonese, be the language of instruc-13tion in Hong Kong schools.14(D) The governments of China and Hong15Kong agreed to a daily quota of mainland im-16migrants to Hong Kong, which is widely be-17lieved by citizens of Hong Kong to be part of18an effort to ‘‘mainlandize’’ Hong Kong.19(12) Paragraph 3e of the Joint Declaration20states, as reinforced by Articles 4, 26, 27, 28, 29,2130, 31, 32 33, 34, and 39 of the Basic Law, that22the ‘‘rights and freedoms, including those of person,23of speech, of the press, of assembly, of association,24of travel, of movement, of correspondence, of strike,25of choice of occupation, of academic research and of† S 3798 ES

111religious belief will be ensured by law’’ in Hong2Kong.3(13) On multiple occasions, the Government of4China has undertaken actions that have contravened5the letter or intent of the obligation described in6paragraph (12) of this section, including the fol-7lowing:8(A) On February 26, 2003, the Govern-9ment of Hong Kong introduced a national secu-10rity bill that would have placed restrictions on11freedom of speech and other protected rights.12(B) The Liaison Office of China in Hong13Kong has pressured businesses in Hong Kong14not to advertise in newspapers and magazines15critical of the governments of China and Hong16Kong.17(C) The Hong Kong Police Force selec-18tively blocked demonstrations and protests ex-19pressing opposition to the governments of China20and Hong Kong or the policies of those govern-21ments.22(D) The Government of Hong Kong re-23fused to renew work visa for a foreign jour-24nalist, allegedly for hosting a speaker from the25banned Hong Kong National Party.† S 3798 ES

121(E) The Justice Department of Hong2Kong selectively prosecuted cases against lead-3ers of the Umbrella Movement, while failing to4prosecute police officers accused of using exces-5sive force during the protests in 2014.6(F) On April 18, 2020, the Hong Kong7Police Force arrested 14 high-profile democracy8activists and campaigners for their role in orga-9nizing a protest march that took place on Au-10gust 18, 2019, in which almost 2,000,000 peo-11ple rallied against a proposed extradition bill.12(14) Articles 45 and 68 of the Basic Law assert13that the selection of Chief Executive and all mem-14bers of the Legislative Council of Hong Kong should15be by ‘‘universal suffrage.’’.16(15) On multiple occasions, the Government of17China has undertaken actions that have contravened18the letter or intent of the obligation described in19paragraph (14) of this section, including the fol-20lowing:21(A) In 2004, the National People’s Con-22gress created new, antidemocratic procedures23restricting the adoption of universal suffrage24for the election of the Chief Executive of Hong25Kong.† S 3798 ES

131(B) The decision by the National People’s2Congress on December 29, 2007, which ruled3out universal suffrage in 2012 elections and set4restrictions on when and if universal suffrage5will be implemented.6(C) The decision by the National People’s7Congress on August 31, 2014, which placed8limits on the nomination process for the Chief9Executive of Hong Kong as a condition for10adoption of universal suffrage.11(D) On November 7, 2016, the National12People’s Congress interpreted Article 104 of the13Basic Law in such a way to disqualify 6 elected14members of the Legislative Council.15(E) In 2018, the Government of Hong16Kong banned the Hong Kong National Party17and blocked the candidacy of pro-democracy18candidates.19(16) The ways in which the Government of20China, at times with the support of a subservient21Government of Hong Kong, has acted in contraven-22tion of its obligations under the Joint Declaration23and the Basic Law, as set forth in this section, are24deeply concerning to the people of Hong Kong, the25United States, and members of the international† S 3798 ES

141community who support the autonomy of Hong2Kong.34SEC. 4. SENSE OF CONGRESS REGARDING HONG KONG.It is the sense of Congress that—5(1) the United States continues to uphold the6principles and policy established in the United7States-Hong Kong Policy Act of 1992 (22 U.S.C.85701 et seq.) and the Hong Kong Human Rights9and Democracy Act of 2019 (Public Law 116–76;1022 U.S.C. 5701 note), which remain consistent with11China’s obligations under the Joint Declaration and12certain promulgated objectives under the Basic Law,13including that—14(A) as set forth in section 101(1) of the15United States-Hong Kong Policy Act of 199216(22 U.S.C. 5711(1)), ‘‘The United States17should play an active role, before, on, and after18July 1, 1997, in maintaining Hong Kong’s con-19fidence and prosperity, Hong Kong’s role as an20international financial center, and the mutually21beneficial ties between the people of the United22States and the people of Hong Kong.’’; and23(B) as set forth in section 2(5) of the24United States-Hong Kong Policy Act of 199225(22 U.S.C. 5701(5)), ‘‘Support for democratiza-† S 3798 ES

151tion is a fundamental principle of United States2foreign policy. As such, it naturally applies to3United States policy toward Hong Kong. This4will remain equally true after June 30, 1997.’’;5(2) although the United States recognizes that,6under the Joint Declaration, the Government of7China ‘‘resumed the exercise of sovereignty over8Hong Kong with effect on 1 July 1997’’, the United9States supports the autonomy of Hong Kong in fur-10therance of the United States-Hong Kong Policy Act11of 1992 and the Hong Kong Human Rights and De-12mocracy Act of 2019 and advances the desire of the13people of Hong Kong to continue the ‘‘one country,14two systems’’ regime, in addition to other obligations15promulgated by China under the Joint Declaration16and the Basic Law;17(3) in order to support the benefits and protec-18tions that Hong Kong has been afforded by the Gov-19ernment of China under the Joint Declaration and20the Basic Law, the United States should establish a21clear and unambiguous set of penalties with respect22to foreign persons determined by the Secretary of23State, in consultation with the Secretary of the24Treasury, to be involved in the contravention of the25obligations of China under the Joint Declaration and† S 3798 ES

161the Basic Law and the financial institutions2transacting with those foreign persons;3(4) the Secretary of State should provide an un-4classified assessment of the reason for imposition of5certain economic penalties on entities, so as to per-6mit a clear path for the removal of economic pen-7alties if the sanctioned behavior is reversed and8verified by the Secretary of State;9(5) relevant Federal agencies should establish a10multilateral sanctions regime with respect to foreign11persons involved in the contravention of the obliga-12tions of China under the Joint Declaration and the13Basic Law; and14(6) in addition to the penalties on foreign per-15sons, and financial institutions transacting with16those foreign persons, for the contravention of the17obligations of China under the Joint Declaration and18the Basic Law, the United States should take steps,19in a time of crisis, to assist permanent residents of20Hong Kong who are persecuted or fear persecution21as a result of the contravention by China of its obli-22gations under the Joint Declaration and the Basic23Law to become eligible to obtain lawful entry into24the United States.† S 3798 ES

171SEC. 5. IDENTIFICATION OF FOREIGN PERSONS INVOLVED2IN THE EROSION OF THE OBLIGATIONS OF3CHINA UNDER THE JOINT DECLARATION OR4THE BASIC LAW AND FOREIGN FINANCIAL IN-5STITUTIONS THAT CONDUCT SIGNIFICANT6TRANSACTIONS WITH THOSE PERSONS.7(a) IN GENERAL.—Not later than 90 days after the8 date of the enactment of this Act, if the Secretary of9 State, in consultation with the Secretary of the Treasury,10 determines that a foreign person is materially contributing11 to, has materially contributed to, or attempts to materially12 contribute to the failure of the Government of China to13 meet its obligations under the Joint Declaration or the14 Basic Law, the Secretary of State shall submit to the ap15 propriate congressional committees and leadership a re16 port that includes—17(1) an identification of the foreign person; and18(2) a clear explanation for why the foreign per-19son was identified and a description of the activity20that resulted in the identification.21(b) IDENTIFYING FOREIGN FINANCIAL INSTITU-22TIONS.—Notearlier than 30 days and not later than 6023 days after the Secretary of State submits to the appro24 priate congressional committees and leadership the report25 under subsection (a), the Secretary of the Treasury, in26 consultation with the Secretary of State, shall submit to† S 3798 ES

181 the appropriate congressional committees and leadership2 a report that identifies any foreign financial institution3 that knowingly conducts a significant transaction with a4 foreign person identified in the report under subsection5 (a).6(c) EXCLUSION OF CERTAIN INFORMATION.—7(1) INTELLIGENCE.—The Secretary of State8shall not disclose the identity of a person in a report9submitted under subsection (a) or (b), or an update10under subsection (e), if the Director of National In-11telligence determines that such disclosure could com-12promise an intelligence operation, activity, source, or13method of the United States.14(2) LAWENFORCEMENT.—TheSecretary of15State shall not disclose the identity of a person in16a report submitted under subsection (a) or (b), or an17update under subsection (e), if the Attorney General,18in coordination, as appropriate, with the Director of19the Federal Bureau of Investigation, the head of any20other appropriate Federal law enforcement agency,21and the Secretary of the Treasury, determines that22such disclosure could reasonably be expected—23(A) to compromise the identity of a con-24fidential source, including a State, local, or for-25eign agency or authority or any private institu-† S 3798 ES

191tion that furnished information on a confiden-2tial basis;3(B) to jeopardize the integrity or success4of an ongoing criminal investigation or prosecu-5tion;6(C) to endanger the life or physical safety7of any person; or8(D) to cause substantial harm to physical9property.10(3) NOTIFICATIONR

6 cision by the Hong Kong Court of Final Appeal 7 on the right of abode. 8 (B) On multiple occasions, the Government 9 of Hong Kong, at the advice of the Government 10 of China, is suspected to have not allowed per-11 sons entry into Hong Kong allegedly because of 12 their support for democracy and human rights 13 in Hong Kong and China.