HR 5777
110th CONGRESS
2d Session
H. R. 5777
To impose certain restrictions on trade with and investment in the
People's Republic of China, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
April 10, 2008
Mr. TANCREDO introduced the following bill; which was referred to the Committee
on Ways and Means, and in addition to the Committees on Foreign Affairs, Judiciary,
and 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 impose certain restrictions on trade with and investment in the
People's Republic of China, 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 `China Democracy Act'.
SEC. 2. RESTRICTIONS ON TRADE WITH AND INVESTMENT IN THE PEOPLE'S REPUBLIC
OF CHINA.
(a) Restrictions on Trade-
(1) IN GENERAL- Subject to paragraph (2), no article that is the product
of the People's Republic of China may be imported into the United States,
and no goods or technology may be exported from any place in the United
States to the People's Republic of China.
(2) EXCEPTION- Paragraph (1) shall not apply to--
(A) exports of food or medicine to the People's Republic of China; or
(B) exports of items that would be authorized for export to Cuba, except
that such items shall be subject to the same restrictions relating to
licenses or other approval that apply with respect to exports of such
items to Cuba.
(b) Restrictions on Investment in Chinese Enterprises- No United States person
may, after the end of the 180-day period beginning on the date of the enactment
of this Act, make an investment in any enterprise in the People's Republic
of China or in any enterprise that is owned or controlled by the Government
of, entities controlled by the Government of, or nationals of, the People's
Republic of China.
(c) Restrictions on Investment by Chinese Nationals in U.S. Persons- No United
States person may, after the end of the 180-day period beginning on the date
of the enactment of this Act, engage in any transaction the purpose of which
is to secure an investment by a Chinese national in any United States person
or in any enterprise owned or controlled by United States persons.
SEC. 3. ENTRY OF VESSELS ENGAGED IN TRADE WITH THE PEOPLE'S REPUBLIC OF
CHINA.
(a) Prohibitions- Except as specifically authorized by the President, by means
of regulations, rulings, instructions, licenses, or otherwise --
(1) no vessel that enters a port or place in the People's Republic of China
to engage in the trade of goods or the purchase or provision of services,
may enter a port in the United States for the purpose of loading or unloading
freight for a period of 180 days after the date on which the vessel departed
from a port or place in the People's Republic of China; and
(2) no vessel carrying goods to or from the People's Republic of China or
carrying goods in which the People's Republic of China or a national of
the People's Republic of China has an interest may enter a port in the United
States with such goods on board.
(b) Exception- Subsection (a) shall not apply with respect to exports of items
permitted under section 1.
SEC. 4. ENFORCEMENT.
(a) Regulatory Authority- The President shall issue such regulations, orders,
and licenses as are necessary to carry out this Act.
(b) Exceptions From Prohibitions- The President may provide for such exceptions
from the prohibitions contained in this Act as are consistent with the Cuban
Assets Control Regulations under part 515 of title 31, Code of Federal Regulations,
as in effect on the date of the enactment of this Act.
SEC. 5. PENALTIES.
Any person or entity that violates this Act or any regulation, license, or
order issued under this Act shall be subject to the penalties provided in
section 206 of the International Emergency Economic Powers Act (50 U.S.C.
1705) for violations under that Act.
SEC. 6. SUSPENSION OF VISAS TO CHINESE NATIONALS.
No immigrant or nonimmigrant visa may be issued to any national of the People's
Republic of China, and any such visa issued to a national of the People's
Republic of China before the effective date of this Act may not be extended
on or after such effective date.
SEC. 7. DOWNGRADING OF DIPLOMATIC RELATIONS.
The President shall take the necessary steps to downgrade diplomatic relations
with the People's Republic of China to that which existed before the United
States recognized the People's Republic of China in 1979.
SEC. 8. DEFINITIONS.
(1) FOOD- The term `food' means--
(A) any article used for food or drink for humans; and
(B) any article used for a component of an article described in subparagraph
(A).
(2) INVESTMENT- The term `investment' means any contribution or commitment
of funds, commodities, services, patents, processes, or techniques, in the
form of--
(B) the purchase of a share of ownership,
(C) participation in royalties, earnings, or profits,
(D) the furnishing of commodities or services pursuant to a lease or other
contract, or
that is made for the production of income.
(3) MEDICINE- The term `medicine' has the meaning given the term `drug'
in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).
(4) NATIONAL OF THE PEOPLE'S REPUBLIC OF CHINA- The term `national of the
People's Republic of China'--
(i) a citizen of or person owing allegiance to the People's Republic
of China;
(ii) any corporation, partnership, or other entity organized under the
laws of the People's Republic of China; and
(iii) any entity owned or controlled by persons or entities described
in clause (i) or (i); and
(B) does not include any citizen or person owing allegiance to Taiwan,
the Pescadores, or any other island over which the Taiwanese Government
exercises control.
(5) People's REPUBLIC OF CHINA- The term `People's Republic of China'--
(A) includes mainland China, Hong Kong, Macao, and any other territory
or special administrative region governed by the People's Republic of
China; and
(B) does not include Taiwan, the Pescadores, or any other island over
which the Taiwanese Government exercises control.
(6) UNITED STATES- The term `United States' includes any commonwealth, territory,
or possession of the United States, and the customs waters of the United
States (as defined in section 401 of the Tariff Act of 1930 (19 U.S.C. 1401)).
(7) UNITED STATES PERSON- The term `United States person' means--
(A) any United States citizen or alien lawfully admitted for permanent
residence to the United States;
(B) any corporation, partnership, or other entity organized under the
laws of the United States; and
(C) any person in the United States.
(8) VESSEL- The term `vessel' includes every description of water craft
or other contrivance used, or capable of being used, as a means of transportation
in water, but does not include aircraft.
SEC. 9. EFFECTIVE DATE.
This Act shall take effect 180 days after the date of the enactment of this
Act.
SEC. 10. TERMINATION.
This Act shall cease to be effective 30 days after the date on which the President
determines and certifies to the Congress that the People's Republic of China--
(1) at the national, provincial, and local levels, is governed by governments
that are democratically elected from free and fair elections--
(A) conducted under the supervision of internationally recognized observers;
and
(i) opposition parties were permitted ample time to organize and campaign
for such elections; and
(ii) all candidates were permitted full access to the media;
(2) is showing respect for the basic civil liberties and human rights of
the citizens of the People's Republic of China;
(3) has a market-oriented economic system based on the right to own and
enjoy property;
(4) ensures regular free and fair elections and the full enjoyment of basic
civil liberties and human rights by the citizens of the People's Republic
of China;
(5) has established an independent judiciary; and
(6) is no longer engaging in wide-scale espionage activities directed against
the United States.
END
