Bill Summary
The South China Sea and East China Sea Sanctions Act of 2021 is a bill that aims to impose sanctions on Chinese individuals and entities responsible for activities in the disputed South China Sea and East China Sea. These sanctions may include blocking of assets, visa restrictions, exclusion from the US, export sanctions, and limitations on financial transactions. The Act also expresses the sense of Congress that the US should reject China's claims in the South China Sea and support the 2016 Permanent Court of Arbitration's ruling against them. Additionally, the bill requires the Secretary of State to report annually on countries that recognize China's sovereignty over disputed territories in the South China Sea and East China Sea.
Possible Impacts
1. Travel restrictions: The legislation includes a provision that allows the President to deny entry or visas to Chinese individuals who are responsible for or complicit in actions that threaten the peace, security, or stability of disputed areas in the South China Sea or East China Sea. This could affect people who are planning on traveling to the United States from China, as well as Chinese government officials who may be restricted from entering the US.
2. Economic impact: The legislation also allows for the blocking of property and financial transactions related to Chinese individuals and entities involved in activities in the disputed areas. This could have a significant economic impact on these individuals and entities, as well as on the Chinese government. It could also affect businesses and individuals who have relationships with these entities and may be subject to restrictions on financial transactions.
3. Diplomatic tensions: The legislation also calls for the United States to reject the claims and actions of China in the South China Sea and East China Sea, and to support the ruling of the Permanent Court of Arbitration. This could potentially lead to increased diplomatic tensions between the two countries and could also affect other countries in the region who have territorial disputes with China. It could also potentially impact trade and economic relations between the US and China.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1657 Reported in Senate (RS)]
<DOC>
Calendar No. 158
117th CONGRESS
1st Session
S. 1657
To impose sanctions with respect to the People's Republic of China in
relation to activities in the South China Sea and the East China Sea,
and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 17, 2021
Mr. Rubio (for himself, Mr. Cardin, and Mr. Barrasso) introduced the
following bill; which was read twice and referred to the Committee on
Foreign Relations
October 28, 2021
Reported by Mr. Menendez, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
A BILL
To impose sanctions with respect to the People's Republic of China in
relation to activities in the South China Sea and the East China Sea,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``South China Sea and East
China Sea Sanctions Act of 2021''.</DELETED>
<DELETED>SEC. 2. DEFINITIONS.</DELETED>
<DELETED> In this Act:</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (2) Alien.--The term ``alien'' has the meaning
given that term in section 101(a) of the Immigration and
Nationality Act (8 U.S.C. 1101(a)).</DELETED>
<DELETED> (3) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--</DELETED>
<DELETED> (A) the Committee on Foreign Relations,
the Committee on Armed Services, the Committee on
Banking, Housing, and Urban Affairs, and the Select
Committee on Intelligence of the Senate; and</DELETED>
<DELETED> (B) the Committee on Foreign Affairs, the
Committee on Armed Services, the Committee on Financial
Services, and the Permanent Select Committee on
Intelligence of the House of Representatives.</DELETED>
<DELETED> (4) Chinese person.--The term ``Chinese person''
means--</DELETED>
<DELETED> (A) an individual who is a citizen or
national of the People's Republic of China;
or</DELETED>
<DELETED> (B) an entity organized under the laws of
the People's Republic of China or otherwise subject to
the jurisdiction of the Government of the People's
Republic of China.</DELETED>
<DELETED> (5) Financial institution.--The term ``financial
institution'' means a financial institution specified in
subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), (J),
(K), (M), (N), (P), (R), (T), (Y), or (Z) of section 5312(a)(2)
of title 31, United States Code.</DELETED>
<DELETED> (6) Foreign financial institution.--The term
``foreign financial institution'' has the meaning given that
term in section 1010.605 of title 31, Code of Federal
Regulations (or any corresponding similar regulation or
ruling).</DELETED>
<DELETED> (7) Knowingly.--The term ``knowingly'', with
respect to conduct, a circumstance, or a result, means that a
person has actual knowledge, or should have known, of the
conduct, the circumstance, or the result.</DELETED>
<DELETED> (8) Person.--The term ``person'' means any
individual or entity.</DELETED>
<DELETED> (9) United states person.--The term ``United
States person'' means--</DELETED>
<DELETED> (A) a United States citizen or an alien
lawfully admitted for permanent residence to the United
States; or</DELETED>
<DELETED> (B) an entity organized under the laws of
the United States or of any jurisdiction within the
United States, including a foreign branch of such an
entity.</DELETED>
<DELETED>SEC. 3. SANCTIONS WITH RESPECT TO CHINESE PERSONS RESPONSIBLE
FOR CHINA'S ACTIVITIES IN THE SOUTH CHINA SEA AND THE
EAST CHINA SEA.</DELETED>
<DELETED> (a) Initial Imposition of Sanctions.--On and after the
date that is 60 days after the date of the enactment of this Act, the
President shall impose the sanctions described in subsection (b) with
respect to--</DELETED>
<DELETED> (1) any Chinese person that contributes to
construction or development projects, including land
reclamation, island-making, lighthouse construction, building
of base stations for mobile communications services, building
of electricity and fuel supply facilities, or civil
infrastructure projects, or contributes to the ongoing supply
of new settlements resulting from such development projects, in
areas of the South China Sea contested by one or more members
of the Association of Southeast Asian Nations;</DELETED>
<DELETED> (2) any Chinese person that is responsible for or
complicit in, or has engaged in, directly or indirectly,
actions or policies that threaten the peace, security, or
stability of areas of the South China Sea contested by one or
more members of the Association of Southeast Asian Nations or
areas of the East China Sea administered by Japan or the
Republic of Korea, including through the use of vessels and
aircraft to impose the sovereignty of the People's Republic of
China in those areas;</DELETED>
<DELETED> (3) any Chinese person that engages, or attempts
to engage, in an activity or transaction that materially
contributes to, or poses a risk of materially contributing to,
an activity described in paragraph (1) or (2); and</DELETED>
<DELETED> (4) any person that--</DELETED>
<DELETED> (A) is owned or controlled by a person
described in paragraph (1), (2), or (3);</DELETED>
<DELETED> (B) is acting for or on behalf of such a
person; or</DELETED>
<DELETED> (C) provides, or attempts to provide--
</DELETED>
<DELETED> (i) financial, material,
technological, or other support to a person
described in paragraph (1), (2), or (3);
or</DELETED>
<DELETED> (ii) goods or services in support
of an activity described in paragraph (1), (2),
or (3).</DELETED>
<DELETED> (b) Sanctions Described.--</DELETED>
<DELETED> (1) Blocking of property.--The President shall
block and prohibit, in accordance with the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), all
transactions in all property and interests in property of any
person 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.</DELETED>
<DELETED> (2) Exclusion from united states.--The Secretary
of State shall deny a visa to, and the Secretary of Homeland
Security shall exclude from the United States, any person
subject to subsection (a) that is an alien.</DELETED>
<DELETED> (3) Current visa revoked.--The issuing consular
officer, the Secretary of State, or the Secretary of Homeland
Security (or a designee of one of such Secretaries) shall
revoke any visa or other entry documentation issued to any
person subject to subsection (a) that is an alien, regardless
of when issued. The revocation shall take effect immediately
and shall automatically cancel any other valid visa or entry
documentation that is in the alien's possession.</DELETED>
<DELETED> (c) Exceptions; Penalties.--</DELETED>
<DELETED> (1) 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 subsection (b)(1).</DELETED>
<DELETED> (2) Compliance with united nations headquarters
agreement.--Paragraphs (2) and (3) of subsection (b) shall not
apply if admission of an alien to the United States is
necessary 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.</DELETED>
<DELETED> (3) Penalties.--The penalties provided for in
subsections (b) and (c) of section 206 of the International
Emergency Economic Powers Act (50 U.S.C. 1705) shall apply to a
person that violates, attempts to violate, conspires to
violate, or causes a violation of regulations prescribed under
subsection (b)(1) to the same extent that such penalties apply
to a person that commits an unlawful act described in
subsection (a) of such section 206.</DELETED>
<DELETED> (d) Additional Imposition of Sanctions.--</DELETED>
<DELETED> (1) In general.--The President shall prohibit the
opening, and prohibit or impose strict conditions on the
maintaining, in the United States of a correspondent account or
a payable-through account by a foreign financial institution
that the President determines knowingly, on or after the date
that is 60 days after the date of the enactment of this Act,
conducts or facilitates a significant financial transaction for
a person subject to subsection (a) if the Director of National
Intelligence determines that the Government of the People's
Republic of China has--</DELETED>
<DELETED> (A) declared an air defense identification
zone over any part of the South China Sea;</DELETED>
<DELETED> (B) initiated reclamation work at another
disputed location in the South China Sea, such as at
Scarborough Shoal;</DELETED>
<DELETED> (C) seized control of Second Thomas
Shoal;</DELETED>
<DELETED> (D) deployed surface-to-air missiles to
any of the artificial islands the People's Republic of
China has built in the Spratly Island chain, including
Fiery Cross, Mischief, or Subi Reefs;</DELETED>
<DELETED> (E) established territorial baselines
around the Spratly Island chain;</DELETED>
<DELETED> (F) repeated harassment of Philippine
vessels; or</DELETED>
<DELETED> (G) repeated provocative actions against
the Japanese Coast Guard or Maritime Self-Defense Force
or United States forces in the East China
Sea.</DELETED>
<DELETED> (2) Report.--</DELETED>
<DELETED> (A) In general.--The determination of the
Director of National Intelligence referred to in
paragraph (1) shall be submitted in a report to the
President and the appropriate committees of
Congress.</DELETED>
<DELETED> (B) Form of report.--The report required
by subparagraph (A) shall be submitted in unclassified
form, but may include a classified annex.</DELETED>
<DELETED>SEC. 4. DETERMINATIONS AND REPORT ON CHINESE COMPANIES ACTIVE
IN THE SOUTH CHINA SEA AND THE EAST CHINA SEA.</DELETED>
<DELETED> (a) In General.--The Secretary of State shall submit to
the appropriate committees of Congress a report that identifies each
Chinese person the Secretary determines is engaged in the activities
described in section 3(a).</DELETED>
<DELETED> (b) Consideration.--In preparing the report required under
subsection (a), the Secretary shall make specific findings with respect
to whether each of the following persons is involved in the activities
described in section 3(a):</DELETED>
<DELETED> (1) CCCC Tianjin Dredging Co., Ltd.</DELETED>
<DELETED> (2) CCCC Dredging (Group) Company, Ltd.</DELETED>
<DELETED> (3) China Communications Construction Company
(CCCC), Ltd.</DELETED>
<DELETED> (4) China Petroleum Corporation (Sinopec
Group).</DELETED>
<DELETED> (5) China Mobile.</DELETED>
<DELETED> (6) China Telecom.</DELETED>
<DELETED> (7) China Southern Power Grid.</DELETED>
<DELETED> (8) CNFC Guangzhou Harbor Engineering
Company.</DELETED>
<DELETED> (9) Zhanjiang South Project Construction
Bureau.</DELETED>
<DELETED> (10) Hubei Jiangtian Construction Group.</DELETED>
<DELETED> (11) China Harbour Engineering Company
(CHEC).</DELETED>
<DELETED> (12) Guangdong Navigation Group (GNG) Ocean
Shipping.</DELETED>
<DELETED> (13) Shanghai Leading Energy Shipping.</DELETED>
<DELETED> (14) China National Offshore Oil Corporation
(CNOOC).</DELETED>
<DELETED> (15) China Oilfield Services Limited
(COSL).</DELETED>
<DELETED> (16) China Precision Machinery Import/Export
Corporation (CPMIEC).</DELETED>
<DELETED> (17) China Aerospace Science and Industry
Corporation (CASIC).</DELETED>
<DELETED> (18) Aviation Industry Corporation of China
(AVIC).</DELETED>
<DELETED> (19) Shenyang Aircraft Corporation.</DELETED>
<DELETED> (20) Shaanxi Aircraft Corporation.</DELETED>
<DELETED> (21) China Ocean Shipping (Group) Company
(COSCO).</DELETED>
<DELETED> (22) China Southern Airlines.</DELETED>
<DELETED> (23) Zhan Chaoying.</DELETED>
<DELETED> (24) Sany Group.</DELETED>
<DELETED> (25) Chinese persons affiliated with any of the
entities specified in paragraphs (1) through (24).</DELETED>
<DELETED> (c) Submission and Form.--</DELETED>
<DELETED> (1) Submission.--The report required by subsection
(a) shall be submitted not later than 60 days after the date of
the enactment of this Act and every 180 days thereafter until
the date that is 3 years after such date of
enactment.</DELETED>
<DELETED> (2) Form.--The report required by subsection (a)
shall be submitted in unclassified form, but may include a
classified annex if the Secretary determines it is necessary
for the national security interests of the United States to do
so.</DELETED>
<DELETED> (3) Public availability.--The Secretary shall
publish the unclassified part of the report required by
subsection (a) on a publicly available website of the
Department of State.</DELETED>
<DELETED>SEC. 5. PROHIBITION AGAINST DOCUMENTS PORTRAYING THE SOUTH
CHINA SEA OR THE EAST CHINA SEA AS PART OF
CHINA.</DELETED>
<DELETED> The Government Publishing Office may not publish any map,
document, record, electronic resource, or other paper of the United
States (other than materials relating to hearings held by committees of
Congress or internal work product of a Federal agency) portraying or
otherwise indicating that it is the position of the United States that
the territory or airspace in the South China Sea contested by one or
more members of the Association of Southeast Asian Nations or the
territory or airspace of areas of the East China Sea administered by
Japan or the Republic of Korea is part of the territory or airspace of
the People's Republic of China.</DELETED>
<DELETED>SEC. 6. PROHIBITION ON FACILITATING CERTAIN INVESTMENTS IN THE
SOUTH CHINA SEA OR THE EAST CHINA SEA.</DELETED>
<DELETED> (a) In General.--No United States person may take any
action to approve, facilitate, finance, or guarantee any investment,
provide insurance, or underwriting in the South China Sea or the East
China Sea that involves any person with respect to which sanctions are
imposed under section 3(a).</DELETED>
<DELETED> (b) Enforcement.--The Secretary of the Treasury, in
consultation with the Secretary of State, is authorized to take such
actions, including the promulgation of such rules and regulations, as
may be necessary to carry out the purposes of this section.</DELETED>
<DELETED> (c) Penalties.--The penalties provided for in subsections
(b) and (c) of section 206 of the International Emergency Economic
Powers Act (50 U.S.C. 1705) shall apply to a person that violates,
attempts to violate, conspires to violate, or causes a violation of
regulations prescribed under this section to the same extent that such
penalties apply to a person that commits an unlawful act described in
subsection (a) of such section 206.</DELETED>
<DELETED> (d) Exception.--Subsection (a) shall not apply with
respect to humanitarian assistance, disaster assistance, or emergency
food assistance.</DELETED>
<DELETED>SEC. 7. DEPARTMENT OF JUSTICE AFFIRMATION OF NON-RECOGNITION
OF ANNEXATION.</DELETED>
<DELETED> In any matter before any United States court, upon request
of the court or any party to the matter, the Attorney General shall
affirm the United States policy of not recognizing the de jure or de
facto sovereignty of the People's Republic of China over territory or
airspace contested by one or more members of the Association of
Southeast Asian Nations in the South China Sea or the territory or
airspace of areas of the East China Sea administered by Japan or the
Republic of Korea.</DELETED>
<DELETED>SEC. 8. NON-RECOGNITION OF CHINESE SOVEREIGNTY OVER THE SOUTH
CHINA SEA OR THE EAST CHINA SEA.</DELETED>
<DELETED> (a) United States Armed Forces.--The Secretary of Defense
may not take any action, including any movement of aircraft or vessels
that implies recognition of the sovereignty of the People's Republic of
China over territory or airspace contested by one or more members of
the Association of Southeast Asian Nations in the South China Sea or
the territory or airspace of areas of the East China Sea administered
by Japan or the Republic of Korea.</DELETED>
<DELETED> (b) United States Flagged Vessels.--No vessel that is
issued a certificate of documentation under chapter 121 of title 46,
United States Code, may take any action that implies recognition of the
sovereignty of the People's Republic of China over territory or
airspace contested by one or more members of the Association of
Southeast Asian Nations in the South China Sea or the territory or
airspace of areas of the East China Sea administered by Japan or the
Republic of Korea.</DELETED>
<DELETED> (c) United States Aircraft.--No aircraft operated by an
air carrier that holds an air carrier certificate issued under chapter
411 of title 49, United States Code, may take any action that implies
recognition of the sovereignty of the People's Republic of China over
territory or airspace contested by one or more members of the
Association of Southeast Asian Nations in the South China Sea or the
territory or airspace of areas of the East China Sea administered by
Japan or the Republic of Korea.</DELETED>
<DELETED>SEC. 9. PROHIBITION ON CERTAIN ASSISTANCE TO COUNTRIES THAT
RECOGNIZE CHINESE SOVEREIGNTY OVER THE SOUTH CHINA SEA OR
THE EAST CHINA SEA.</DELETED>
<DELETED> (a) Prohibition.--Except as provided by subsection (c) or
(d), no amounts may be obligated or expended to provide foreign
assistance to the government of any country identified in a report
required by subsection (b).</DELETED>
<DELETED> (b) Report Required.--</DELETED>
<DELETED> (1) In general.--Not later than 60 days after the
date of the enactment of this Act, and every 180 days
thereafter until the date that is 3 years after such date of
enactment, the Secretary of State shall submit to the
appropriate committees of Congress a report identifying each
country that the Secretary determines recognizes, after such
date of enactment, the sovereignty of the People's Republic of
China over territory or airspace contested by one or more
members of the Association of Southeast Asian Nations in the
South China Sea or the territory or airspace of areas of the
East China Sea administered by Japan or the Republic of
Korea.</DELETED>
<DELETED> (2) Form.--The report required by paragraph (1)
shall be submitted in unclassified form, but may include a
classified annex if the Secretary of State determines it is
necessary for the national security interests of the United
States to do so.</DELETED>
<DELETED> (3) Public availability.--The Secretary of State
shall publish the unclassified part of the report required by
paragraph (1) on a publicly available website of the Department
of State.</DELETED>
<DELETED> (c) Exception.--This section shall not apply with respect
to Taiwan, humanitarian assistance, disaster assistance, emergency food
assistance, or the Peace Corps.</DELETED>
<DELETED> (d) Waiver.--The President may waive the application of
subsection (a) with respect to the government of a country if the
President determines that the waiver is in the national interests of
the United States.</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``South China Sea and East China Sea
Sanctions Act of 2021''.
SEC. 2. SANCTIONS WITH RESPECT TO CHINESE PERSONS RESPONSIBLE FOR
CHINA'S ACTIVITIES IN THE SOUTH CHINA SEA AND THE EAST
CHINA SEA.
(a) Initial Imposition of Sanctions.--On and after the date that is
120 days after the date of the enactment of this Act, the President may
impose the sanctions described in subsection (b) with respect to any
Chinese person, including any senior official of the Government of the
People's Republic of China, that the President determines--
(1) is responsible for or significantly contributes to
large-scale reclamation, construction, militarization, or
ongoing supply of outposts in disputed areas of the South China
Sea;
(2) is responsible for or significantly contributes to, or
has engaged in, directly or indirectly, actions, including the
use of coercion, to inhibit another country from protecting its
sovereign rights to access offshore resources in the South
China Sea, including in such country's exclusive economic zone,
consistent with such country's rights and obligations under
international law;
(3) is responsible for or complicit in, or has engaged in,
directly or indirectly, actions that significantly threaten the
peace, security, or stability of disputed areas of the South
China Sea or areas of the East China Sea administered by Japan
or the Republic of Korea, including through the use of vessels
and aircraft by the People's Republic of China to occupy or
conduct extensive research or drilling activity in those areas;
(4) has materially assisted, sponsored, or provided
financial, material, or technological support for, or goods or
services to, or in support of, any person subject to sanctions
pursuant to paragraph (1), (2), or (3); or
(5) is owned or controlled by, or has acted for or on
behalf of, directly or indirectly, any person subject to
sanctions pursuant to paragraph (1), (2), or (3).
(b) Sanctions Described.--The sanctions that may be imposed with
respect to a person described in subsection (a) are the following:
(1) Blocking of property.--The President may, in accordance
with the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.), block and prohibit all transactions in all
property and interests in property of the person 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) Ineligibility for visas, admission, or parole.--
(A) Visas, admission, or parole.--In the case of an
alien, the alien may 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.--An alien described in
subparagraph (A) may be subject to revocation
of any visa or other entry documentation
regardless of when the visa or other entry
documentation is or was issued.
(ii) Immediate effect.--A revocation under
clause (i) may--
(I) take effect immediately; and
(II) cancel any other valid visa or
entry documentation that is in the
alien's possession.
(3) Exclusion of corporate officers.--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, any alien that the President determines is a corporate
officer or principal of, or a shareholder with a controlling
interest in, the person.
(4) Export sanction.--The President may order the United
States Government not to issue any specific license and not to
grant any other specific permission or authority to export any
goods or technology to the person under--
(A) the Export Control Reform Act of 2018 (50
U.S.C. 4801 et seq.); or
(B) any other statute that requires the prior
review and approval of the United States Government as
a condition for the export or reexport of goods or
services.
(5) Inclusion on entity list.--The President may include
the entity on the entity list maintained by the Bureau of
Industry and Security of the Department of Commerce and set
forth in Supplement No. 4 to part 744 of the Export
Administration Regulations, for activities contrary to the
national security or foreign policy interests of the United
States.
(6) Ban on investment in equity or debt of sanctioned
person.--The President may, pursuant to such regulations or
guidelines as the President may prescribe, prohibit any United
States person from investing in or purchasing equity or debt
instruments of the person.
(7) 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 any interest of the person.
(8) Correspondent and payable-through accounts.--In the
case of a foreign financial institution, the President may
prohibit the opening, and prohibit or impose strict conditions
on the maintaining, in the United States of a correspondent
account or a payable-through account by the foreign financial
institution.
(c) Exceptions.--
(1) 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 subsection (b)(1).
(2) Exception for intelligence, law enforcement, and
national security activities.--Sanctions under this section
shall not apply to any authorized intelligence, law
enforcement, or national security activities of the United
States.
(3) Compliance with united nations headquarters
agreement.--Paragraphs (2) and (3) of subsection (b) shall not
apply if admission of an alien to the United States is
necessary 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.
(4) Exception relating to importation of goods.--
(A) In general.--The authority or a requirement to
impose sanctions under this section shall not include
the authority or a requirement to impose sanctions on
the importation of goods.
(B) Good defined.--In this paragraph, the term
``good'' means any article, natural or manmade
substance, material, supply, or manufactured product,
including inspection and test equipment, and excluding
technical data.
(d) Implementation; Penalties.--
(1) 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 section.
(2) Penalties.--The penalties provided for in subsections
(b) and (c) of section 206 of the International Emergency
Economic Powers Act (50 U.S.C. 1705) shall apply to a person
that violates, attempts to violate, conspires to violate, or
causes a violation of regulations prescribed under subsection
(b)(1) to the same extent that such penalties apply to a person
that commits an unlawful act described in subsection (a) of
such section 206.
(e) Definitions.--In this section:
(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) Alien.--The term ``alien'' has the meaning given that
term in section 101(a) of the Immigration and Nationality Act
(8 U.S.C. 1101(a)).
(3) Chinese person.--The term ``Chinese person'' means--
(A) an individual who is a citizen or national of
the People's Republic of China; or
(B) an entity organized under the laws of the
People's Republic of China or otherwise subject to the
jurisdiction of the Government of the People's Republic
of China.
(4) Financial institution.--The term ``financial
institution'' means a financial institution specified in
subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), (J),
(K), (M), (N), (P), (R), (T), (Y), or (Z) of section 5312(a)(2)
of title 31, United States Code.
(5) Foreign financial institution.--The term ``foreign
financial institution'' has the meaning given that term in
section 1010.605 of title 31, Code of Federal Regulations (or
any corresponding similar regulation or ruling).
(6) Person.--The term ``person'' means any individual or
entity.
(7) 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;
(B) an entity organized under the laws of the
United States or of any jurisdiction within the United
States, including a foreign branch of such an entity;
or
(C) any person in the United States.
SEC. 3. SENSE OF CONGRESS REGARDING PORTRAYALS OF THE SOUTH CHINA SEA
OR THE EAST CHINA SEA AS PART OF CHINA.
It is the sense of Congress that the Government Publishing Office
should not publish any map, document, record, electronic resource, or
other paper of the United States (other than materials relating to
hearings held by committees of Congress or internal work product of a
Federal agency) portraying or otherwise indicating that it is the
position of the United States that the territory or airspace in the
South China Sea that is disputed among two or more parties or the
territory or airspace of areas administered by Japan or the Republic of
Korea, including in the East China Sea, is part of the territory or
airspace of the People's Republic of China.
SEC. 4. SENSE OF CONGRESS ON 2016 PERMANENT COURT OF ARBITRATION'S
TRIBUNAL RULING ON ARBITRATION CASE BETWEEN PHILIPPINES
AND PEOPLE'S REPUBLIC OF CHINA.
(a) Finding.--Congress finds that on July 12, 2016, a tribunal of
the Permanent Court of Arbitration found in the arbitration case
between the Philippines and the People's Republic of China under the
United Nations Convention on the Law of the Sea that the People's
Republic of China's claims, including those to offshore resources and
``historic rights'', were unlawful, and that the tribunal's ruling is
final and legally binding on both parties.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the United States and the international community
should reject the unlawful claims of the People's Republic of
China within the exclusive economic zone or on the continental
shelf of the Philippines, as well as the maritime claims of the
People's Republic of China beyond a 12-nautical-mile
territorial sea from the islands it claims in the South China
Sea;
(2) the provocative behavior of the People's Republic of
China, including coercing other countries with claims in the
South China Sea and preventing those countries from accessing
offshore resources, undermines peace and stability in the South
China Sea;
(3) the international community should--
(A) support and adhere to the ruling described in
subsection (a) in compliance with international law;
and
(B) take all necessary steps to support the rules-
based international order in the South China Sea; and
(4) all claimants in the South China Sea should--
(A) refrain from engaging in destabilizing
activities, including illegal occupation or efforts to
unlawfully assert control over disputed claims;
(B) ensure that disputes are managed without
intimidation, coercion, or force;
(C) clarify or adjust claims in accordance with
international law; and
(D) uphold the principle that territorial and
maritime claims, including over territorial waters or
territorial seas, must be derived from land features
and otherwise comport with international law.
SEC. 5. REPORT ON COUNTRIES THAT RECOGNIZE CHINESE SOVEREIGNTY OVER THE
SOUTH CHINA SEA OR THE EAST CHINA SEA.
(a) In General.--Not later than 60 days after the date of the
enactment of this Act, and annually thereafter until the date that is 3
years after such date of enactment, the Secretary of State shall submit
to the Committee on Foreign Relations of the Senate and the Committee
on Foreign Affairs of the House of Representatives a report identifying
each country that the Secretary determines has taken an official and
stated position to recognize, after such date of enactment, the
sovereignty of the People's Republic of China over territory or
airspace disputed by one or more countries in the South China Sea or
the territory or airspace of areas of the East China Sea administered
by Japan or the Republic of Korea.
(b) Form.--The report required by subsection (a) shall be submitted
in unclassified form, but may include a classified annex if the
Secretary of State determines it is necessary for the national security
interests of the United States to do so.
(c) Public Availability.--The Secretary of State shall publish the
unclassified part of the report required by subsection (a) on a
publicly available website of the Department of State.
Calendar No. 158
117th CONGRESS
1st Session
S. 1657
_______________________________________________________________________
A BILL
To impose sanctions with respect to the People's Republic of China in
relation to activities in the South China Sea and the East China Sea,
and for other purposes.
_______________________________________________________________________
October 28, 2021
Reported with an amendment