,,ii #aahth ,,congress #ast ,session ,s4 #dha ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #af1 #bjbc,mr4 ,scott of ,florida 7for himself and ,mr4 ,cramer7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to impose sanctions to deter aggression by the ,people's ,republic of ,china against ,taiwan1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,deterring ,communist ,chinese ,aggression against ,taiwan through ,financial ,sanctions ,act of #bjbc4 #b4 ,findings ,congress makes the following findings3 7#a7 ,taiwan is a self-governing polity with all the attributes of a constitutional democratic republic and consistently achieves exceedingly high scores from ,freedom ,house's ,freedom in the ,world ,index4 7#b7 ,taiwan practices and enshrines in law a free market and entrepreneurial economy and consistently achieves exceedingly high scores in the ,heritage ,foundation's ,index of ,economic ,freedom4 7#c7 ,taiwan's government and political culture cherish individual rights and the protection of ethnic minorities1 and do so through respect for the rule of law4 7#d7 ,taiwan's democracy1 free market economy1 and cultural1 industrial1 and scientific achievements have made it a model for the world as it contributes greatly to the peace1 prosperity1 and well-being of the ,united ,states and all other countries that trade and cooperate with ,taiwan despite the constraints on trade and cooperation resulting from the threats and intimidation by the ,communist ,party of ,china against countries that seek relations with ,taiwan4 7#e7 ,section #b7;b7 of the ,taiwan ,relations ,act 7#bb ,u4,s4,c4 #ccja7;b77 asserts that it is the policy of the ,united ,states-- 7,a7 to declare that peace and stability in the area are in the political1 security1 and economic interests of the ,united ,states1 and are matters of international concern2 7,b7 to make clear that the ,united ,states decision to establish diplomatic relations with the ,people's ,republic of ,china rests upon the expectation that the future of ,taiwan will be determined by peaceful means2 7,c7 to consider any effort to determine the future of ,taiwan by other than peaceful means1 including by boycotts or embargoes1 a threat to the peace and security of the ,western ,pacific area and of grave concern to the ,united ,states2 and 7,d7 to maintain the capacity of the ,united ,states to resist any resort to force or other forms of coercion that would jeopardize the security1 or the social or economic system1 of the people on ,taiwan4 7#f7 ,the ,chinese ,communist ,party1 especially under the leadership of ,general ,secretary ,xi ,jinping1 threatens ,taiwan in terms of national security1 trade1 and its relationships with countries and international organizations4 7#g7 ,such threats are designed to intimidate ,taiwan into submission to ,communist ,party rule and to cause other countries and international organizations to shun ,taiwan and cut off relations with it4 7#h7 ,general ,secretary ,xi and the ,communist ,party have made clear their intention to take ,taiwan by force if they so choose1 and they demonstrate that intention with increased provocative and dangerous actions threatening the peace against ,taiwan in the ,taiwan ,straits4 7#i7 ,supporting ,taiwan's defense against such increasingly imminent threats is a vital interest of the ,united ,states for the sake of the national security of the ,united ,states and allies of the ,united ,states in the region1 and the preservation of democracy1 free market economics1 and the rules and norms of the international order4 7#aj7 ,the peace and stability of the entire ,pacific region and the countries in that region require that ,taiwan not be subjected to the rule of the ,communist ,party of ,china4 7#aa7 ,the credibility of the avowal of the ,united ,states to defend the principles of the ,united ,states and the principles the international order is built upon require a policy that can and will deter and thwart any attempt by the ,communist ,party of ,china to dominate ,taiwan by coercion4 #c4 ,statement of policy ,it is the policy of the ,united ,states to sever all financial transactions between the ,united ,states and the ,people's ,republic of ,china1 including any and all public or private entities in the ,people's ,republic of ,china1 if the ,government of the ,people's ,republic of ,china or any forces subject to the control of that ,government-- 7#a7 engage in armed aggression against ,taiwan2 7#b7 invade the territory of ,taiwan1 including the mainland of ,taiwan and any territories under its control1 without regard to whether those territories are inhabited or not2 7#c7 blockade by sea or air the mainland of ,taiwan or territories under its control2 or 7#d7 attempt to change the status of ,taiwan or its government by force or coercive actions4 #d4 ,definitions ,in this ,act3 7#a7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,banking1 ,housing1 and ,urban ,affairs and the ,committee on ,finance of the ,senate2 and 7,b7 the ,committee on ,financial ,services and the ,committee on ,ways and ,means of the ,house of ,representatives4 7#b7 ,chinese military company ,the term ,chinese military company means an entity on the most recent list required to be submitted under section #abfj;,h of the ,william ,m4 7,mac7 ,thornberry ,national ,defense ,authorization ,act for ,fiscal ,year #bjba 7,public ,law #aaf-bhc2 #aj ,u4,s4,c4 #aac note74 7#c7 ,chinese person ,the term ,chinese person means-- 7,a7 an individual who is a citizen or national of the ,people's ,republic of ,china2 or 7,b7 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 ,china4 7#d7 ,financial institution ,the term financial institution means a financial institution specified in subparagraph 7,a71 7,b71 7,c71 7,d71 7,e71 7,f71 7,g71 7,h71 7,i71 7,j71 7,k71 7,m71 7,n71 7,p71 7,r71 7,t71 7,y71 or 7,z7 of section #ecab7;a77#b7 of title #ca1 ,united ,states ,code4 7#e7 ,foreign financial institution ,the term foreign financial institution has the meaning given that term in section #ajaj4fje of title #ca1 ,code of ,federal ,regulations 7or any corresponding similar regulation or ruling74 7#f7 ,issuer2 security ,the terms issuer and security have the meanings given those terms in section #c7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c74 7#g7 ,national securities exchange ,the term national securities exchange means an exchange registered as a national securities exchange in accordance with section #f of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;f74 7#h7 ,triggering event ,the term triggering event means any attempt by the ,government of the ,people's ,republic of ,china or any forces subject to the control of that ,government to subject ,taiwan to the control of the ,people's ,republic of ,china1 including though any of the following acts3 7,a7 ,engaging in armed aggression against ,taiwan4 7,b7 ,invading the territory of ,taiwan1 including the mainland of ,taiwan and any territories under its control1 without regard to whether those territories are inhabited or not4 7,c7 ,blockading by sea or air the mainland of ,taiwan or territories under its control4 7,d7 ,attempting to change the status of ,taiwan or its government by force or coercive actions4 7#i7 ,united states person ,the term ,united ,states person means-- 7,a7 a ,united ,states citizen or an alien lawfully admitted for permanent residence to the ,united ,states2 7,b7 an entity organized under the laws of the ,united ,states or of any jurisdiction within the ,united ,states1 including a foreign branch of such an entity2 or 7,c7 any person in the ,united ,states4 #e4 ,imposition of sanctions with respect to ,chinese persons responsible for aggression against ,taiwan 7a7 ,initial imposition of sanctions ,on and after the date that is #cj days after a triggering event1 the ,president shall impose the sanctions described in subsection 7b7 with respect to any ,chinese person1 including any senior official of the ,government of the ,people's ,republic of ,china1 that the ,president determines participates in a triggering event4 7b7 ,sanctions described ,the sanctions to be imposed with respect to a person described in subsection 7a7 are the following3 7#a7 ,blocking of property 7,a7 ,in general ,the ,president shall exercise all of the powers granted by the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq47 to 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 ,states1 come within the ,united ,states1 or come within the possession or control of a ,united ,states person4 7,b7 ,inapplicability of national emergency requirement ,the requirements of section #bjb of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja7 shall not apply for purposes of subparagraph 7,a74 7#b7 ,ineligibility for visas1 admission1 or parole 7,a7 ,visas1 admission1 or parole ,in the case of an alien1 the alien shall be-- 7i7 inadmissible to the ,united ,states2 7ii7 ineligible to receive a visa or other documentation to enter the ,united ,states2 and 7iii7 otherwise ineligible to be admitted or paroled into the ,united ,states or to receive any other benefit under the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaja et seq474 7,b7 ,current visas revoked 7i7 ,in general ,an alien described in subparagraph 7,a7 shall be subject to revocation of any visa or other entry documentation regardless of when the visa or other entry documentation is or was issued4 7ii7 ,immediate effect ,a revocation under clause 7i7 shall-- 7,i7 take effect immediately2 and 7,,ii7 cancel any other valid visa or entry documentation that is in the alien's possession4 7#c7 ,exclusion of corporate officers ,the ,president shall direct the ,secretary of ,state to deny a visa to1 and the ,secretary of ,homeland ,security to exclude from the ,united ,states1 any alien that the ,president determines is a corporate officer or principal of1 or a shareholder with a controlling interest in1 the person4 7#d7 ,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-- 7,a7 the ,export ,control ,reform ,act of #bjah 7#ej ,u4,s4,c4 #dhja et seq472 or 7,b7 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 services4 7#e7 ,inclusion on entity list ,the ,president shall 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 ,no4 #d to part #gdd of the ,export ,administration ,regulations1 for activities contrary to the national security or foreign policy interests of the ,united ,states4 7#f7 ,ban on investment in equity or debt of sanctioned person ,the ,president shall1 pursuant to such regulations or guidelines as the ,president may prescribe1 prohibit any ,united ,states person from investing in or purchasing equity or debt instruments of the person4 7#g7 ,banking transactions ,the ,president shall1 pursuant to such regulations as the ,president may prescribe1 prohibit any transfers of credit or payments between financial institutions or by1 through1 or to any financial institution1 to the extent that such transfers or payments are subject to the jurisdiction of the ,united ,states and involve any interest of the person4 7#h7 ,correspondent and payable-through accounts ,in the case of a foreign financial institution1 the ,president may prohibit the opening1 and prohibit or impose strict conditions on the maintaining1 in the ,united ,states of a correspondent account or a payable-through account by the foreign financial institution4 7c7 ,exceptions 7#a7 ,exception for intelligence1 law enforcement1 and national security activities ,sanctions under this section shall not apply to any authorized intelligence1 law enforcement1 or national security activities of the ,united ,states4 7#b7 ,compliance with united nations headquarters agreement ,paragraphs 7#b7 and 7#c7 of subsection 7b7 shall not apply with respect to the admission of an alien to the ,united ,states if such admission is necessary to permit the ,united ,states to comply with the ,agreement regarding the ,headquarters of the ,united ,nations1 signed at ,lake ,success1 ,june #bf1 #aidg1 and entered into force1 ,november #ba1 #aidg1 between the ,united ,nations and the ,united ,states4 7d7 ,definitions ,in this section3 7#a7 ,account2 correspondent account2 payable-through account ,the terms account1 correspondent account1 and payable-through account have the meanings given those terms in section #ecah;,a of title #ca1 ,united ,states ,code4 7#b7 ,admission2 admitted2 alien ,the terms admission1 admitted1 and alien have the meanings given those terms in section #aja of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaja74 #f4 ,prohibition on listing of ,chinese entities on ,united ,states securities exchanges 7a7 ,in general ,the ,securities and ,exchange ,commission shall prohibit the securities of an issuer described in subsection 7b7 from being traded on a national securities exchange on or after the date that is #fj days after a triggering event4 7b7 ,issuers described ,an issuer described in this subsection is an issuer that is-- 7#a7 a ,chinese person2 7#b7 owned or controlled by a ,chinese person2 or 7#c7 a successor entity to a person described in paragraph 7#a7 or 7#b74 #g4 ,prohibition on transactions in securities of ,chinese military companies 7a7 ,in general ,beginning on the date that is #fj days after a triggering event1 any transaction by any ,united ,states person or within the ,united ,states in any security of an issuer described in subsection 7b71 or any instrument that is derivative of or designed to provide investment exposure to any such security1 is prohibited4 7b7 ,issuers described ,an issuer described in this subsection 7b7 is an issuer that is-- 7#a7 a ,chinese military company2 7#b7 owned or controlled by a ,chinese military company2 or 7#c7 a successor entity to a ,chinese military company4 #h4 ,prohibition on transactions with certain ,chinese software companies 7a7 ,in general ,beginning on the date that is #cj days after a triggering event1 any transaction by a ,united ,states person or within the ,united ,states with any person described in subsection 7b7 is prohibited4 7b7 ,persons described ,a person described in this subsection is a person that-- 7#a7 the ,secretary of ,commerce determines develops or controls a software application described in subsection 7c72 or 7#b7 is owned or controlled by a person described in paragraph 7#a74 7c7 ,software applications specified ,a software application described in this subsection is any of the following3 7#a7 ,alipay4 7#b7 ,cam,scanner4 7#c7 ,,qq ,wallet4 7#d7 ,s,h,a,r,eit4 7#e7 ,tencent ,,qq4 7#f7 ,v,mate4 7#g7 ,we,chat ,pay4 7#h7 ,,wps ,office4 7#i7 ,any other connected software application-- 7,a7 providing digital e-wallet platforms or digital financial messaging systems2 7,b7 developed or operated by a ,chinese person2 and 7,c7 determined by the ,secretary of ,commerce to pose an unacceptable risk to the national security1 foreign policy1 or economy of the ,united ,states4 7d7 ,connected software application defined ,in this section1 the term connected software application means software1 a software program1 or group of software programs1 designed-- 7#a7 to be used by an end user on an end-point computing device and to collect1 process1 or transmit data via the internet as an integral part of its functionality2 or 7#b7 to facilitate international financial transactions1 digital e-wallet services1 digital currency transactions1 mobile payments1 or international financial messaging services4 #i4 ,imposition of sanctions with respect to international financial messaging systems ,if1 on or after the date that is #fj days after the triggering action1 a global financial communications services provider has not terminated the provision of financial communications services to1 and the enabling and facilitation of access to such services for1 the ,central ,bank of ,china and any foreign financial institution subject to sanctions under this ,act1 the ,president shall impose sanctions pursuant to the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq47 with respect to the financial communications services provider and the directors of1 and shareholders with a significant interest in1 the provider4 #aj4 ,prohibition on transactions relating to digital currency issued by the ,people's ,republic of ,china ,any transaction by a ,united ,states person or within the ,united ,states related to1 providing financing for1 and otherwise dealing in1 any digital currency1 digital coin1 or digital token1 that was issued by1 for1 or on behalf of the ,government of the ,people's ,republic of ,china on or after the date that is #cj days after a triggering event1 is prohibited4 #aa4 ,implementation2 penalties 7a7 ,implementation ,the ,president shall exercise all authorities provided to the ,president under sections #bjc and #bje of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agjb and #agjd7 to carry out this ,act4 7b7 ,penalties ,a person that violates1 attempts to violate1 conspires to violate1 or causes a violation of this ,act or any regulation1 license1 or order issued to carry out this ,act shall be subject to the penalties set forth in subsections 7b7 and 7c7 of section #bjf of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agje7 to the same extent as a person that commits an unlawful act described in subsection 7a7 of that section4 #ab4 ,exception relating to importation of goods 7a7 ,in general ,the authority or a requirement to impose sanctions or a prohibition under this ,act shall not include the authority or a requirement to impose sanctions or a prohibition on the importation of goods4 7b7 ,good defined ,in this section1 the term good means any article1 natural or manmade substance1 material1 supply1 or manufactured product1 including inspection and test equipment1 and excluding technical data4