To impose sanctions with respect to foreign persons involved in the erosion of certain obligations of China with respect to Hong Kong.

SA 2277. Mr. THUNE (for Mr. Toomey (for himself and Mr. Van Hollen))
submitted an amendment intended to be proposed by Mr. Thune to the bill
S. 4049, to authorize appropriations for fiscal year 2021 for military
activities of the Department of Defense, for military construction, and
for defense activities of the Department of Energy, to prescribe
military personnel strengths for such fiscal year, and for other
purposes; which was ordered to lie on the table; as follows:

After title XVI, insert the following:

TITLE XVII--HONG KONG AUTONOMY ACT

SEC. 1701. SHORT TITLE.

This title may be cited as the ``Hong Kong Autonomy Act''.

SEC. 1702. DEFINITIONS.

In this title:
(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.

SEC. 1703. FINDINGS.

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''.

[[Page S3722]]

(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.

SEC. 1704. SENSE OF CONGRESS REGARDING HONG KONG.

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.

SEC. 1705. IDENTIFICATION OF FOREIGN PERSONS INVOLVED IN THE
EROSION OF 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.--

[[Page S3723]]

(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 1706(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 1707(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.

SEC. 1706. SANCTIONS WITH RESPECT TO FOREIGN PERSONS THAT
CONTRAVENE THE 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 1705(a) or an
update to that report under section 1705(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 1705(a) or an update to that report under
section 1705(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.

SEC. 1707. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL
INSTITUTIONS THAT 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 1705(b) or an update to that report
under section 1705(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 1705(b) or an update to that report
under section 1705(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, 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

[[Page S3724]]

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
1705(b) or an update to that report under section 1705(e)
beginning on the day on which the financial institution is
included in that report or update.

SEC. 1708. WAIVER, TERMINATION, EXCEPTIONS, AND CONGRESSIONAL
REVIEW PROCESS.

(a) National Security Waiver.--Unless a disapproval
resolution is enacted under subsection (d), the President may
waive the application of sanctions under section 1706 or 1707
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
(d), the President may terminate the application of sanctions
under section 1706 or 1707 with respect to a foreign person
or foreign financial institution and remove the foreign
person from the report required under section 1705(a) or the
foreign financial institution from the report required under
section 1705(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 title and sanctions imposed pursuant
to this title.
(B) Elements.--The President shall include in the report
submitted under subparagraph (A) an assessment of whether
this title and the sanctions imposed pursuant to this title
should be terminated.
(2) Termination.--This title and the sanctions imposed
pursuant to this title shall remain in effect unless a
termination resolution is enacted under subsection (e) after
July 1, 2047.
(d) 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 1708 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
_______