[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1657 Introduced in Senate (IS)]
<DOC>
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 and Mr. Cardin) introduced the following bill;
which was read twice and referred to the Committee on Foreign Relations
_______________________________________________________________________
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,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``South China Sea and East China Sea
Sanctions Act of 2021''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Account; correspondent account; payable-through
account.--The terms ``account'', ``correspondent account'', and
``payable-through account'' have the meanings given those terms
in section 5318A of title 31, United States Code.
(2) 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) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(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
(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.
(4) 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.
(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.
(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).
(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.
(8) Person.--The term ``person'' means any individual or
entity.
(9) United states person.--The term ``United States
person'' means--
(A) a United States citizen or an alien lawfully
admitted for permanent residence to the United States;
or
(B) an entity organized under the laws of the
United States or of any jurisdiction within the United
States, including a foreign branch of such an entity.
SEC. 3. 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
60 days after the date of the enactment of this Act, the President
shall impose the sanctions described in subsection (b) with respect
to--
(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;
(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;
(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
(4) any person that--
(A) is owned or controlled by a person described in
paragraph (1), (2), or (3);
(B) is acting for or on behalf of such a person; or
(C) provides, or attempts to provide--
(i) financial, material, technological, or
other support to a person described in
paragraph (1), (2), or (3); or
(ii) goods or services in support of an
activity described in paragraph (1), (2), or
(3).
(b) Sanctions Described.--
(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.
(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.
(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.
(c) Exceptions; Penalties.--
(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) 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.
(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.
(d) Additional Imposition of Sanctions.--
(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--
(A) declared an air defense identification zone
over any part of the South China Sea;
(B) initiated reclamation work at another disputed
location in the South China Sea, such as at Scarborough
Shoal;
(C) seized control of Second Thomas Shoal;
(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;
(E) established territorial baselines around the
Spratly Island chain;
(F) repeated harassment of Philippine vessels; or
(G) repeated provocative actions against the
Japanese Coast Guard or Maritime Self-Defense Force or
United States forces in the East China Sea.
(2) Report.--
(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.
(B) Form of report.--The report required by
subparagraph (A) shall be submitted in unclassified
form, but may include a classified annex.
SEC. 4. DETERMINATIONS AND REPORT ON CHINESE COMPANIES ACTIVE IN THE
SOUTH CHINA SEA AND THE EAST CHINA SEA.
(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).
(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):
(1) CCCC Tianjin Dredging Co., Ltd.
(2) CCCC Dredging (Group) Company, Ltd.
(3) China Communications Construction Company (CCCC), Ltd.
(4) China Petroleum Corporation (Sinopec Group).
(5) China Mobile.
(6) China Telecom.
(7) China Southern Power Grid.
(8) CNFC Guangzhou Harbor Engineering Company.
(9) Zhanjiang South Project Construction Bureau.
(10) Hubei Jiangtian Construction Group.
(11) China Harbour Engineering Company (CHEC).
(12) Guangdong Navigation Group (GNG) Ocean Shipping.
(13) Shanghai Leading Energy Shipping.
(14) China National Offshore Oil Corporation (CNOOC).
(15) China Oilfield Services Limited (COSL).
(16) China Precision Machinery Import/Export Corporation
(CPMIEC).
(17) China Aerospace Science and Industry Corporation
(CASIC).
(18) Aviation Industry Corporation of China (AVIC).
(19) Shenyang Aircraft Corporation.
(20) Shaanxi Aircraft Corporation.
(21) China Ocean Shipping (Group) Company (COSCO).
(22) China Southern Airlines.
(23) Zhan Chaoying.
(24) Sany Group.
(25) Chinese persons affiliated with any of the entities
specified in paragraphs (1) through (24).
(c) Submission and Form.--
(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.
(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.
(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.
SEC. 5. PROHIBITION AGAINST DOCUMENTS PORTRAYING THE SOUTH CHINA SEA OR
THE EAST CHINA SEA AS PART OF CHINA.
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.
SEC. 6. PROHIBITION ON FACILITATING CERTAIN INVESTMENTS IN THE SOUTH
CHINA SEA OR THE EAST CHINA SEA.
(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).
(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.
(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.
(d) Exception.--Subsection (a) shall not apply with respect to
humanitarian assistance, disaster assistance, or emergency food
assistance.
SEC. 7. DEPARTMENT OF JUSTICE AFFIRMATION OF NON-RECOGNITION OF
ANNEXATION.
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.
SEC. 8. NON-RECOGNITION OF CHINESE SOVEREIGNTY OVER THE SOUTH CHINA SEA
OR THE EAST CHINA SEA.
(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.
(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.
(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.
SEC. 9. PROHIBITION ON CERTAIN ASSISTANCE TO COUNTRIES THAT RECOGNIZE
CHINESE SOVEREIGNTY OVER THE SOUTH CHINA SEA OR THE EAST
CHINA SEA.
(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).
(b) Report Required.--
(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.
(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.
(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.
(c) Exception.--This section shall not apply with respect to
Taiwan, humanitarian assistance, disaster assistance, emergency food
assistance, or the Peace Corps.
(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.
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