Deterring Communist Chinese Aggression against Taiwan through Financial Sanctions Act of 2022
This bill requires sanctions and other actions if China's government makes any attempt to subject Taiwan to China's control, including by invading Taiwan's territory.
If China's government makes such an attempt, the bill requires certain actions, including (1) the imposition of sanctions against Chinese nationals, citizens, and entities that participate in the attempt; and (2) a prohibition against trading in the securities of Chinese entities on national securities exchanges.
To impose sanctions to deter aggression by the People's Republic of 
             China against Taiwan, 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 ``Deterring Communist Chinese 
Aggression against Taiwan through Financial Sanctions Act of 2022''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) 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 Index.
            (2) 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 
        Freedom.
            (3) Taiwan's government and political culture cherish 
        individual rights and the protection of ethnic minorities, and 
        do so through respect for the rule of law.
            (4) Taiwan's democracy, free market economy, and cultural, 
        industrial, and scientific achievements have made it a model 
        for the world as it contributes greatly to the peace, 
        prosperity, 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 Taiwan.
            (5) Section 2(b) of the Taiwan Relations Act (22 U.S.C. 
        3301(b)) asserts that it is the policy of the United States--
                    (A) ``to declare that peace and stability in the 
                area are in the political, security, and economic 
                interests of the United States, and are matters of 
                international concern'';
                    (B) ``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 
                means'';
                    (C) ``to consider any effort to determine the 
                future of Taiwan by other than peaceful means, 
                including by boycotts or embargoes, a threat to the 
                peace and security of the Western Pacific area and of 
                grave concern to the United States''; and
                    (D) ``to maintain the capacity of the United States 
                to resist any resort to force or other forms of 
                coercion that would jeopardize the security, or the 
                social or economic system, of the people on Taiwan''.
            (6) The Chinese Communist Party, especially under the 
        leadership of General Secretary Xi Jinping, threatens Taiwan in 
        terms of national security, trade, and its relationships with 
        countries and international organizations.
            (7) 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 it.
            (8) General Secretary Xi and the Communist Party have made 
        clear their intention to take Taiwan by force if they so 
        choose, and they demonstrate that intention with increased 
        provocative and dangerous actions threatening the peace against 
        Taiwan in the Taiwan Straits.
            (9) 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 region, and the preservation 
        of democracy, free market economics, and the rules and norms of 
        the international order.
            (10) 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 China.
            (11) 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 coercion.

SEC. 3. 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 
China, including any and all public or private entities in the People's 
Republic of China, if the Government of the People's Republic of China 
or any forces subject to the control of that Government--
            (1) engage in armed aggression against Taiwan;
            (2) invade the territory of Taiwan, including the mainland 
        of Taiwan and any territories under its control, without regard 
        to whether those territories are inhabited or not;
            (3) blockade by sea or air the mainland of Taiwan or 
        territories under its control; or
            (4) attempt to change the status of Taiwan or its 
        government by force or coercive actions.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Banking, Housing, and Urban 
                Affairs and the Committee on Finance of the Senate; and
                    (B) the Committee on Financial Services and the 
                Committee on Ways and Means of the House of 
                Representatives.
            (2) Chinese military company.--The term ``Chinese military 
        company'' means an entity on the most recent list required to 
        be submitted under section 1260H of the William M. (Mac) 
        Thornberry National Defense Authorization Act for Fiscal Year 
        2021 (Public Law 116-283).
            (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) Issuer; security.--The terms ``issuer'' and 
        ``security'' have the meanings given those terms in section 
        3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c).
            (7) National securities exchange.--The term ``national 
        securities exchange'' means an exchange registered as a 
        national securities exchange in accordance with section 6 of 
        the Securities Exchange Act of 1934 (15 U.S.C. 78f).
            (8) 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 
        China, including though any of the following acts:
                    (A) Engaging in armed aggression against Taiwan.
                    (B) Invading the territory of Taiwan, including the 
                mainland of Taiwan and any territories under its 
                control, without regard to whether those territories 
                are inhabited or not.
                    (C) Blockading by sea or air the mainland of Taiwan 
                or territories under its control.
                    (D) Attempt to change the status of Taiwan or its 
                government by force or coercive actions.
            (9) 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;
                    (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; 
                or
                    (C) any person in the United States.

SEC. 5. IMPOSITION OF SANCTIONS WITH RESPECT TO CHINESE PERSONS 
              RESPONSIBLE FOR AGGRESSION AGAINST TAIWAN.

    (a) Initial Imposition of Sanctions.--On and after the date that is 
30 days after a triggering event, the President shall impose the 
sanctions described in subsection (b) with respect to any Chinese 
person, including any senior official of the Government of the People's 
Republic of China, that the President determines participates in a 
triggering event.
    (b) Sanctions Described.--The sanctions to be imposed with respect 
to a person described in subsection (a) are the following:
            (1) Blocking of property.--
                    (A) In general.--The President shall exercise all 
                of the powers granted by the International Emergency 
                Economic Powers Act (50 U.S.C. 1701 et seq.) 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 States, 
                come within the United States, or come within the 
                possession or control of a United States person.
                    (B) 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 subparagraph (A).
            (2) Ineligibility for visas, admission, or parole.--
                    (A) Visas, admission, or parole.--In the case of an 
                alien, the alien shall 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) shall 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) shall--
                                    (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 shall 
        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 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 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 shall, pursuant to such regulations or 
        guidelines as the President may prescribe, prohibit any United 
        States person from investing in or purchasing equity or debt 
        instruments of the person.
            (7) Banking transactions.--The President shall, 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) Exception for intelligence, law enforcement, and 
        national security activities.--Sanctions under this section 
        shall not apply to any authorized intelligence, law 
        enforcement, or national security activities of the United 
        States.
            (2) Compliance with united nations headquarters 
        agreement.--Paragraphs (2) and (3) of subsection (b) 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 Nations, signed at Lake Success, June 26, 1947, 
        and entered into force, November 21, 1947, between the United 
        Nations and the United States.
    (d) 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) Admission; admitted; alien.--The terms ``admission'', 
        ``admitted'', and ``alien'' have the meanings given those terms 
        in section 101 of the Immigration and Nationality Act (8 U.S.C. 
        1101).

SEC. 6. PROHIBITION ON LISTING OF CHINESE ENTITIES ON UNITED STATES 
              SECURITIES EXCHANGES.

    (a) In General.--The Securities and Exchange Commission shall 
prohibit the securities of an issuer described in subsection (b) from 
being traded on a national securities exchange on or after the date 
that is 60 days after a triggering event.
    (b) Issuers Described.--An issuer described in this subsection is 
an issuer that is--
            (1) a Chinese person;
            (2) owned or controlled by a Chinese person; or
            (3) a successor entity to a person described in paragraph 
        (1) or (2).

SEC. 7. PROHIBITION ON TRANSACTIONS IN SECURITIES OF CHINESE MILITARY 
              COMPANIES.

    (a) In General.--Beginning on the date that is 60 days after a 
triggering event, any transaction by any United States person or within 
the United States in any security of an issuer described in subsection 
(b), or any instrument that is derivative of or designed to provide 
investment exposure to any such security, is prohibited.
    (b) Issuers Described.--An issuer described in this subsection (b) 
is an issuer that is--
            (1) a Chinese military company;
            (2) owned or controlled by a Chinese military company; or
            (3) a successor entity to a Chinese military company.

SEC. 8. PROHIBITION ON TRANSACTIONS WITH CERTAIN CHINESE SOFTWARE 
              COMPANIES.

    (a) In General.--Beginning on the date that is 30 days after a 
triggering event, any transaction by a United States person or within 
the United States with any person described in subsection (b) is 
prohibited.
    (b) Persons Described.--A person described in this subsection is a 
person that--
            (1) the Secretary of Commerce determines develops or 
        controls a software application described in subsection (c); or
            (2) is owned or controlled by a person described in 
        paragraph (1).
    (c) Software Applications Specified.--A software application 
described in this subsection is any of the following:
            (1) Alipay.
            (2) CamScanner.
            (3) QQ Wallet.
            (4) SHAREit.
            (5) Tencent QQ.
            (6) VMate.
            (7) WeChat Pay.
            (8) WPS Office.
            (9) Any other connected software application--
                    (A) providing digital e-wallet platforms or digital 
                financial messaging systems;
                    (B) developed or operated by a Chinese person; and
                    (C) determined by the Secretary of Commerce to pose 
                an unacceptable risk to the national security, foreign 
                policy, or economy of the United States.
    (d) Connected Software Application Defined.--In this section, the 
term ``connected software application'' means software, a software 
program, or group of software programs, designed--
            (1) to be used by an end user on an end-point computing 
        device and to collect, process, or transmit data via the 
        internet as an integral part of its functionality; or
            (2) to facilitate international financial transactions, 
        digital e-wallet services, digital currency transactions, 
        mobile payments, or international financial messaging services.

SEC. 9. IMPOSITION OF SANCTIONS WITH RESPECT TO INTERNATIONAL FINANCIAL 
              MESSAGING SYSTEMS.

    If, on or after the date that is 60 days after the triggering 
action, a global financial communications services provider has not 
terminated the provision of financial communications services to, and 
the enabling and facilitation of access to such services for, the 
Central Bank of China and any foreign financial institution subject to 
sanctions under this Act, the President shall impose sanctions pursuant 
to the International Emergency Economic Powers Act (50 U.S.C. 1701 et 
seq.) with respect to the financial communications services provider 
and the directors of, and shareholders with a significant interest in, 
the provider.

SEC. 10. 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 to, providing financing for, and otherwise dealing in, 
any digital currency, digital coin, or digital token, that was issued 
by, for, or on behalf of the Government of the People's Republic of 
China on or after the date that is 30 days after a triggering event, is 
prohibited.

SEC. 11. IMPLEMENTATION; PENALTIES.

    (a) Implementation.--The President shall exercise all authorities 
provided to the President under sections 203 and 205 of the 
International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) 
to carry out this Act.
    (b) Penalties.--A person that violates, attempts to violate, 
conspires to violate, or causes a violation of this Act or any 
regulation, license, or order issued to carry out this Act shall be 
subject to the penalties set forth in subsections (b) and (c) of 
section 206 of the International Emergency Economic Powers Act (50 
U.S.C. 1705) to the same extent as a person that commits an unlawful 
act described in subsection (a) of that section.

SEC. 12. EXCEPTION RELATING TO IMPORTATION OF GOODS.

    (a) 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 
goods.
    (b) Good Defined.--In this section, the term ``good'' means any 
article, natural or manmade substance, material, supply, or 
manufactured product, including inspection and test equipment, and 
excluding technical data.
                                 <all>
Deterring Communist Chinese Aggression against Taiwan through Financial Sanctions Act of 2022
A bill to impose sanctions to deter aggression by the People's Republic of China against Taiwan, and for other purposes.
Deterring Communist Chinese Aggression against Taiwan through Financial Sanctions Act of 2022
Sen. Scott, Rick