What This Bill Does
This bill allows the President to punish Chinese people and organizations for activities in the South China Sea and East China Sea. These punishments can include freezing their money in the United States, banning them from entering the country, and stopping American companies from doing business with them.
##
Who It Affects
- Chinese citizens and Chinese companies
- Senior officials of China's government
- American citizens and businesses
- Banks and financial institutions in the United States
- Foreign banks that do business with the United States
##
Key Provisions
- The President can impose penalties against Chinese people who oversee large construction projects or military buildup on disputed islands in the South China Sea (Sec. 2(a)(1))
- The President can penalize those who use force or threats to stop other countries from accessing fishing grounds or oil and gas resources in their own maritime areas (Sec. 2(a)(2))
- Penalties can include freezing all property and money in the United States belonging to the sanctioned person (Sec. 2(b)(1))
- The President can ban sanctioned people from entering the United States and revoke their visas (Sec. 2(b)(2))
- The President can stop American companies from selling goods or technology to sanctioned people (Sec. 2(b)(4))
- The President can prevent American citizens from investing in or lending money to sanctioned people (Sec. 2(b)(6))
##
What Changes
If this bill becomes law, the President gains authority to take economic action against Chinese individuals and companies involved in disputed sea territories. Starting 120 days after the bill passes, the President may freeze their American assets, ban them from the country, and cut off their access to American trade and investment. Congress also states it opposes maps or government documents showing these disputed areas belong to China (Sec. 3).
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Important Definitions
- "Chinese person" means individuals who are Chinese citizens or organizations created under Chinese law (Sec. 2(e)(3))
- "United States person" means American citizens, permanent residents, American companies, and anyone physically in the United States (Sec. 2(e)(7))
- "Alien" means a person who is not a United States citizen (Sec. 2(e)(2))
##
Effective Date
The President may begin imposing sanctions 120 days after the bill is signed into law (Sec. 2(a)). Secretary of State must submit a report within 60 days of enactment and annually for the next three years (Sec. 5(a)).
II
118TH CONGRESS
1ST SESSION
S. 591
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
MARCH 1, 2023
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 Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘South China Sea and
4
East China Sea Sanctions Act of 2023’’.
5
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•S 591 IS
SEC. 2. SANCTIONS WITH RESPECT TO CHINESE PERSONS
1
RESPONSIBLE FOR CHINA’S ACTIVITIES IN
2
THE SOUTH CHINA SEA AND THE EAST CHINA
3
SEA.
4
(a) INITIAL IMPOSITION OF SANCTIONS.—On and
5
after the date that is 120 days after the date of the enact-
6
ment of this Act, the President may impose the sanctions
7
described in subsection (b) with respect to any Chinese
8
person, including any senior official of the Government of
9
the People’s Republic of China, that the President deter-
10
mines—
11
(1) is responsible for or significantly contributes
12
to large-scale reclamation, construction, militariza-
13
tion, or ongoing supply of outposts in disputed areas
14
of the South China Sea;
15
(2) is responsible for or significantly contributes
16
to, or has engaged in, directly or indirectly, actions,
17
including the use of coercion, to inhibit another
18
country from protecting its sovereign rights to ac-
19
cess offshore resources in the South China Sea, in-
20
cluding in such country’s exclusive economic zone,
21
consistent with such country’s rights and obligations
22
under international law;
23
(3) is responsible for or complicit in, or has en-
24
gaged in, directly or indirectly, actions that signifi-
25
cantly threaten the peace, security, or stability of
26
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•S 591 IS
disputed areas of the South China Sea or areas of
1
the East China Sea administered by Japan or the
2
Republic of Korea, including through the use of ves-
3
sels and aircraft by the People’s Republic of China
4
to occupy or conduct extensive research or drilling
5
activity in those areas;
6
(4) has materially assisted, sponsored, or pro-
7
vided financial, material, or technological support
8
for, or goods or services to, or in support of, any
9
person subject to sanctions pursuant to paragraph
10
(1), (2), or (3); or
11
(5) is owned or controlled by, or has acted for
12
or on behalf of, directly or indirectly, any person
13
subject to sanctions pursuant to paragraph (1), (2),
14
or (3).
15
(b) SANCTIONS DESCRIBED.—The sanctions that
16
may be imposed with respect to a person described in sub-
17
section (a) are the following:
18
(1) BLOCKING OF PROPERTY.—The President
19
may, in accordance with the International Emer-
20
gency Economic Powers Act (50 U.S.C. 1701 et
21
seq.), block and prohibit all transactions in all prop-
22
erty and interests in property of the person if such
23
property and interests in property are in the United
24
States, come within the United States, or are or
25
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come within the possession or control of a United
1
States person.
2
(2) INELIGIBILITY FOR VISAS, ADMISSION, OR
3
PAROLE.—
4
(A) VISAS, ADMISSION, OR
PAROLE.—In
5
the case of an alien, the alien may be—
6
(i) inadmissible to the United States;
7
(ii) ineligible to receive a visa or other
8
documentation to enter the United States;
9
and
10
(iii) otherwise ineligible to be admitted
11
or paroled into the United States or to re-
12
ceive any other benefit under the Immigra-
13
tion and Nationality Act (8 U.S.C. 1101 et
14
seq.).
15
(B) CURRENT VISAS REVOKED.—
16
(i) IN GENERAL.—An alien described
17
in subparagraph (A) may be subject to rev-
18
ocation of any visa or other entry docu-
19
mentation regardless of when the visa or
20
other entry documentation is or was
21
issued.
22
(ii) IMMEDIATE
EFFECT.—A revoca-
23
tion under clause (i) may—
24
(I) take effect immediately; and
25
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•S 591 IS
(II) cancel any other valid visa or
1
entry documentation that is in the
2
alien’s possession.
3
(3) EXCLUSION
OF
CORPORATE
OFFICERS.—
4
The President may direct the Secretary of State to
5
deny a visa to, and the Secretary of Homeland Secu-
6
rity to exclude from the United States, any alien
7
that the President determines is a corporate officer
8
or principal of, or a shareholder with a controlling
9
interest in, the person.
10
(4) EXPORT
SANCTION.—The President may
11
order the United States Government not to issue
12
any specific license and not to grant any other spe-
13
cific permission or authority to export any goods or
14
technology to the person under—
15
(A) the Export Control Reform Act of
16
2018 (50 U.S.C. 4801 et seq.); or
17
(B) any other statute that requires the
18
prior review and approval of the United States
19
Government as a condition for the export or re-
20
export of goods or services.
21
(5) INCLUSION ON ENTITY LIST.—The Presi-
22
dent may include the entity on the entity list main-
23
tained by the Bureau of Industry and Security of
24
the Department of Commerce and set forth in Sup-
25
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•S 591 IS
plement No. 4 to part 744 of the Export Adminis-
1
tration Regulations, for activities contrary to the na-
2
tional security or foreign policy interests of the
3
United States.
4
(6) BAN ON INVESTMENT IN EQUITY OR DEBT
5
OF SANCTIONED PERSON.—The President may, pur-
6
suant to such regulations or guidelines as the Presi-
7
dent may prescribe, prohibit any United States per-
8
son from investing in or purchasing equity or debt
9
instruments of the person.
10
(7) BANKING
TRANSACTIONS.—The President
11
may, pursuant to such regulations as the President
12
may prescribe, prohibit any transfers of credit or
13
payments between financial institutions or by,
14
through, or to any financial institution, to the extent
15
that such transfers or payments are subject to the
16
jurisdiction of the United States and involve any in-
17
terest of the person.
18
(8) CORRESPONDENT AND PAYABLE-THROUGH
19
ACCOUNTS.—In the case of a foreign financial insti-
20
tution, the President may prohibit the opening, and
21
prohibit or impose strict conditions on the maintain-
22
ing, in the United States of a correspondent account
23
or a payable-through account by the foreign finan-
24
cial institution.
25
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•S 591 IS
(c) EXCEPTIONS.—
1
(1) INAPPLICABILITY
OF
NATIONAL
EMER-
2
GENCY REQUIREMENT.—The requirements of section
3
202 of the International Emergency Economic Pow-
4
ers Act (50 U.S.C. 1701) shall not apply for pur-
5
poses of subsection (b)(1).
6
(2) EXCEPTION FOR INTELLIGENCE, LAW EN-
7
FORCEMENT,
AND
NATIONAL
SECURITY
ACTIVI-
8
TIES.—Sanctions under this section shall not apply
9
to any authorized intelligence, law enforcement, or
10
national security activities of the United States.
11
(3) COMPLIANCE WITH UNITED NATIONS HEAD-
12
QUARTERS AGREEMENT.—Paragraphs (2) and (3) of
13
subsection (b) shall not apply if admission of an
14
alien to the United States is necessary to permit the
15
United States to comply with the Agreement regard-
16
ing the Headquarters of the United Nations, signed
17
at Lake Success, June 26, 1947, and entered into
18
force, November 21, 1947, between the United Na-
19
tions and the United States.
20
(4) EXCEPTION RELATING TO IMPORTATION OF
21
GOODS.—
22
(A) IN GENERAL.—The authority or a re-
23
quirement to impose sanctions under this sec-
24
tion shall not include the authority or a require-
25
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•S 591 IS
ment to impose sanctions on the importation of
1
goods.
2
(B) GOOD DEFINED.—In this paragraph,
3
the term ‘‘good’’ means any article, natural or
4
manmade substance, material, supply, or manu-
5
factured product, including inspection and test
6
equipment, and excluding technical data.
7
(d) IMPLEMENTATION; PENALTIES.—
8
(1) IMPLEMENTATION.—The President may ex-
9
ercise all authorities provided under sections 203
10
and 205 of the International Emergency Economic
11
Powers Act (50 U.S.C. 1702 and 1704) to carry out
12
this section.
13
(2) PENALTIES.—The penalties provided for in
14
subsections (b) and (c) of section 206 of the Inter-
15
national Emergency Economic Powers Act (50
16
U.S.C. 1705) shall apply to a person that violates,
17
attempts to violate, conspires to violate, or causes a
18
violation of regulations prescribed under subsection
19
(b)(1) to the same extent that such penalties apply
20
to a person that commits an unlawful act described
21
in subsection (a) of such section 206.
22
(e) DEFINITIONS.—In this section:
23
(1) ACCOUNT; CORRESPONDENT ACCOUNT; PAY-
24
ABLE-THROUGH
ACCOUNT.—The terms ‘‘account’’,
25
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•S 591 IS
‘‘correspondent account’’, and ‘‘payable-through ac-
1
count’’ have the meanings given those terms in sec-
2
tion 5318A of title 31, United States Code.
3
(2) ALIEN.—The term ‘‘alien’’ has the meaning
4
given that term in section 101(a) of the Immigration
5
and Nationality Act (8 U.S.C. 1101(a)).
6
(3) CHINESE
PERSON.—The term ‘‘Chinese
7
person’’ means—
8
(A) an individual who is a citizen or na-
9
tional of the People’s Republic of China; or
10
(B) an entity organized under the laws of
11
the People’s Republic of China or otherwise
12
subject to the jurisdiction of the Government of
13
the People’s Republic of China.
14
(4) FINANCIAL
INSTITUTION.—The term ‘‘fi-
15
nancial institution’’ means a financial institution
16
specified in subparagraph (A), (B), (C), (D), (E),
17
(F), (G), (H), (I), (J), (K), (M), (N), (P), (R), (T),
18
(Y), or (Z) of section 5312(a)(2) of title 31, United
19
States Code.
20
(5) FOREIGN
FINANCIAL
INSTITUTION.—The
21
term ‘‘foreign financial institution’’ has the meaning
22
given that term in section 1010.605 of title 31, Code
23
of Federal Regulations (or any corresponding similar
24
regulation or ruling).
25
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•S 591 IS
(6) PERSON.—The term ‘‘person’’ means any
1
individual or entity.
2
(7)
UNITED
STATES
PERSON.—The
term
3
‘‘United States person’’ means—
4
(A) a United States citizen or an alien law-
5
fully admitted for permanent residence to the
6
United States;
7
(B) an entity organized under the laws of
8
the United States or of any jurisdiction within
9
the United States, including a foreign branch of
10
such an entity; or
11
(C) any person in the United States.
12
SEC. 3. SENSE OF CONGRESS REGARDING PORTRAYALS OF
13
THE SOUTH CHINA SEA OR THE EAST CHINA
14
SEA AS PART OF CHINA.
15
It is the sense of Congress that the Government Pub-
16
lishing Office should not publish any map, document,
17
record, electronic resource, or other paper of the United
18
States (other than materials relating to hearings held by
19
committees of Congress or internal work product of a Fed-
20
eral agency) portraying or otherwise indicating that it is
21
the position of the United States that the territory or air-
22
space in the South China Sea that is disputed among two
23
or more parties or the territory or airspace of areas ad-
24
ministered by Japan or the Republic of Korea, including
25
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•S 591 IS
in the East China Sea, is part of the territory or airspace
1
of the People’s Republic of China.
2
SEC. 4. SENSE OF CONGRESS ON 2016 PERMANENT COURT
3
OF ARBITRATION’S TRIBUNAL RULING ON AR-
4
BITRATION
CASE
BETWEEN
PHILIPPINES
5
AND PEOPLE’S REPUBLIC OF CHINA.
6
(a) FINDING.—Congress finds that on July 12, 2016,
7
a tribunal of the Permanent Court of Arbitration found
8
in the arbitration case between the Philippines and the
9
People’s Republic of China under the United Nations Con-
10
vention on the Law of the Sea that the People’s Republic
11
of China’s claims, including those to offshore resources
12
and ‘‘historic rights’’, were unlawful, and that the tribu-
13
nal’s ruling is final and legally binding on both parties.
14
(b) SENSE OF CONGRESS.—It is the sense of Con-
15
gress that—
16
(1) the United States and the international
17
community should reject the unlawful claims of the
18
People’s Republic of China within the exclusive eco-
19
nomic zone or on the continental shelf of the Phil-
20
ippines, as well as the maritime claims of the Peo-
21
ple’s Republic of China beyond a 12-nautical-mile
22
territorial sea from the islands it claims in the South
23
China Sea;
24
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•S 591 IS
(2) the provocative behavior of the People’s Re-
1
public of China, including coercing other countries
2
with claims in the South China Sea and preventing
3
those countries from accessing offshore resources,
4
undermines peace and stability in the South China
5
Sea;
6
(3) the international community should—
7
(A) support and adhere to the ruling de-
8
scribed in subsection (a) in compliance with
9
international law; and
10
(B) take all necessary steps to support the
11
rules-based international order in the South
12
China Sea; and
13
(4) all claimants in the South China Sea
14
should—
15
(A) refrain from engaging in destabilizing
16
activities, including illegal occupatio
[Text truncated for display. Full text available on Congress.gov.]