[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4658 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 4658
To prohibit securities investments that finance certain companies of
the People's Republic of China and to expand the Non-Specially
Designated Nationals Chinese Military-Industrial Complex Companies List
of the Office of Foreign Assets Control, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 14, 2023
Mr. Self introduced the following bill; which was referred to the
Committee on Foreign Affairs, and in addition to the Committee on
Financial Services, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To prohibit securities investments that finance certain companies of
the People's Republic of China and to expand the Non-Specially
Designated Nationals Chinese Military-Industrial Complex Companies List
of the Office of Foreign Assets Control, 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 ``Sanction Transactions Originating
from Pernicious Chinese Companies and Policies Act of 2023'' or the
``STOP CCP Act of 2023''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Chinese entity.--The term ``Chinese entity'' means 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.
(2) Publicly traded securities.--The term ``publicly traded
securities'' includes--
(A) any security (as defined in section 3(a) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)))
denominated in any currency that trades on a securities
exchange, or through the method of trading that is
commonly referred to as ``over-the-counter'', in any
jurisdiction; and
(B) any security that is derivative of or designed
to provide investment exposure to a security described
in subparagraph (A).
(3) United states person.--The term ``United States
person'' means--
(A) an individual who is 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 any jurisdiction within the United
States, including a foreign branch of such an entity;
or
(C) any person in the United States.
SEC. 3. PROHIBITION ON SECURITIES INVESTMENTS THAT FINANCE CERTAIN
COMPANIES OF THE PEOPLE'S REPUBLIC OF CHINA.
The following activities by a United States person are prohibited:
(1) The purchase or sale of any publicly traded securities,
or any publicly traded securities that are derivative of such
securities or are designed to provide investment exposure to
such securities, issued by any person determined by the
Secretary of the Treasury, in consultation with the Secretary
of State, and, as the Secretary of the Treasury deems
appropriate, the Secretary of Defense--
(A) to operate or have operated in the defense and
related materiel sector or the surveillance technology
sector of the economy of the People's Republic of
China; or
(B) to own or control, or to be owned or controlled
by, directly or indirectly, a person described in
subparagraph (A).
(2) The execution, support, or servicing of a purchase or
sale described in paragraph (1).
(3) Any transaction that evades or avoids, has the purpose
of evading or avoiding, causes a violation of, or attempts to
violate the prohibition under paragraph (1).
(4) Any conspiracy formed to violate the prohibition under
paragraph (1).
SEC. 4. EXPANSION OF NON-SPECIALLY DESIGNATED NATIONALS CHINESE
MILITARY-INDUSTRIAL COMPLEX COMPANIES LIST.
Not later than 180 days after the date of the enactment of this
Act, the Secretary of the Treasury shall prescribe regulations to
expand the Non-Specially Designated Nationals Chinese Military-
Industrial Complex Companies List (commonly referred to as the ``NS-
CMIC List'') of the Office of Foreign Assets Control to include--
(1) any entity engaged in supporting the Chinese military-
industrial complex;
(2) any entity that is owned or controlled by an entity
described in paragraph (1);
(3) any entity that is formed from a spin-off, merger or
acquisition, or sale of a business unit involving an entity
described in paragraph (1) or is otherwise a successor to such
an entity; and
(4) any entity that provides financial services for an
entity described in paragraph (1), (2), or (3).
SEC. 5. CLOSING SANCTIONS LOOPHOLES.
(a) In General.--If sanctions are imposed with respect to a Chinese
entity under any statute or Executive order described in subsection
(b), sanctions shall be imposed with respect to the Chinese entity
under each other applicable statute and Executive order described in
subsection (b) unless--
(1) the President waives the imposition of such sanctions;
or
(2) a waiver provided for under such other statute or
Executive order applies.
(b) Statutes and Executive Orders Described.--A statute or
Executive order described in this subsection is a statute or Executive
order that provides for the imposition of sanctions.
(c) National Security Waiver.--
(1) In general.--The President may waive the application of
any sanction imposed with respect to any person under
subsection (a) if the President determines and certifies to
Congress that such a waiver is important to the national
security interests of the United States.
(2) Notification of and report to congress.--If the
President decides to exercise the waiver authority provided
under paragraph (1), the President shall, not less than 20 days
before the waiver takes effect, submit to Congress a report--
(A) notifying Congress of the decision to exercise
the waiver authority; and
(B) fully articulating the rationale and
circumstances that led to the decision.
(d) Termination of Sanctions To Be Reported to Congress.--Not later
than 20 days after the termination of any sanction under subsection
(a), the President shall promptly submit to Congress a report on that
termination and the reasons for the termination.
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