S.Amdt. 1778

SA 1778. Mr. RUBIO (for himself, Mr. Cardin, and Mr. Barrasso)
submitted an amendment intended to be proposed to amendment SA 1502
proposed by Mr. Schumer to the bill S. 1260, to establish a new
Directorate for Technology and Innovation in the National Science
Foundation, to establish a regional technology hub program, to require
a strategy and report on economic security, science, research,
innovation, manufacturing, and job creation, to establish a critical
supply chain resiliency program, and for other purposes; which was
ordered to lie on the table; as follows:

At the end of title II of division E, add the following:

Subtitle C--South China Sea and East China Sea Sanctions Act

SEC. 5221. SHORT TITLE.

This subtitle may be cited as the ``South China Sea and
East China Sea Sanctions Act of 2021''.

SEC. 5222. 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 that the
President determines--
(1) is responsible for or significantly contributes to
large-scale reclamation, construction, militarization, or
ongoing supply of disputed outposts in the South China Sea;
(2) is responsible for or significantly contributes to, or
has engaged in, directly or indirectly, actions or policies
using 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 or policies 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 paragraphs (1), (2), or (3); or
(5) is owned or controlled by, or has acted or purported to
act 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
significant amounts of 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) 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) 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) 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; 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.

[[Page S3236]]

SEC. 5223. 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 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. 5224. AUTHORIZATION TO PROHIBIT 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 annually 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 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.
(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, counterterrorism activities, counternarcotics
activities, global health assistance, humanitarian
assistance, disaster assistance, or emergency food
assistance.
(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.
(e) Appropriate Committees of Congress Defined.--In this
section, the term ``appropriate committees of Congress''
means--
(1) 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
(2) 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.
______