Deterring Communist Chinese Aggression against Taiwan through Financial Sanctions Act of 2023
Impact
The bill is anticipated to have a significant impact on current U.S. laws regarding economic transactions with Chinese entities. It establishes stringent measures that will prohibit financial operations with a range of Chinese companies, particularly those related to military and technology sectors, and outlines severe penalties for violations. A noteworthy provision is the prohibition on the trading of securities belonging to Chinese military companies and the ban on specific digital currencies and software applications linked to the Chinese government, aiming to further isolate such companies from U.S. financial markets.
Summary
SB481, known as the 'Deterring Communist Chinese Aggression against Taiwan through Financial Sanctions Act of 2023', aims to impose financial sanctions to deter Chinese aggression towards Taiwan. This Act outlines a comprehensive framework where specific sanctions will be deployed in the event of aggressions from the Chinese government against Taiwan, including armed attacks or blockades. It places significant constraints on transactions involving certain Chinese entities or technologies determined to pose threats to U.S. national security.
Contention
Discussions around SB481 raised concerns over the potential economic implications for U.S.-China relations and the broader ramifications for global trade. Critics express worry that such financial sanctions might prompt retaliatory actions from China, complicating diplomatic and economic interactions. Additionally, the bill's broader implications on digital economy practices and technology sharing with allied nations could elicit mixed reactions, as it may force countries to align more closely with U.S. stances regarding China.
Hamas International Financing Prevention Act This bill imposes sanctions targeting Hamas, the Palestinian Islamic Jihad, and any affiliate or successor groups. The President must periodically report to Congress a list of each foreign person (individual or entity) that knowingly provides significant support or services to or is involved in a significant transaction with a senior member or supporter of the targeted groups. The President must impose two or more sanctions on the named persons. Specifically, the person may be (1) denied credit and services from the Export-Import Bank, (2) barred from purchasing certain controlled defense articles, (3) denied exports of items on the U.S. Munitions List, (4) prevented from receiving exports of certain goods or technology controlled for national security reasons, (5) prohibited from receiving financing of more than $10 million from any U.S. financial institution, or (6) subject to property-blocking restrictions. The President must periodically report to Congress a list of foreign governments that have repeatedly provided material support for the targeted groups' terrorist activities. The President shall bar these governments from receiving for one year (1) U.S. assistance, or (2) exports of controlled munitions. The Department of the Treasury must instruct U.S. leadership of international financial institutions to oppose providing assistance to an identified government for one year. The bill provides for certain exceptions and waivers, such as for transactions that would serve U.S. national interests. The President must report to Congress and periodically provide briefings on other specified topics related to the targeted groups, such as where these groups secure financing and surveillance equipment.
Protecting Personal Data from Foreign Adversaries Act This bill authorizes sanctions and other prohibitions relating to software that engages in user data theft on behalf of certain foreign countries or entities. The President may regulate or prohibit transactions using software that engages in the theft or unauthorized transmission of user data and provides access to such data to (1) a communist country, (2) the Chinese Communist Party (CCP), (3) a foreign adversary, or (4) a state sponsor of terrorism. The President may also impose visa- and property-blocking sanctions on developers and owners of software that makes unauthorized transmissions of user data to servers located in China that are accessible by China's government or the CCP. The Department of State shall report to Congress a determination regarding whether WeChat or TikTok fall within certain regulations and prohibitions, including those provided under this bill. (WeChat and TikTok are software programs developed by China-based companies.)