Thread by @julianku

I know yet another sanctions bill against China is no longer big news, but the "HK Autonomy Act" (which passed the Senate today) has some potentially new sanctions over HK. toomey.senate.gov/files/document…

Under existing US law, @potus CAN sanction individuals over violations of HKers human rights, and he can also withdraw HK's special status under US law for trade and other intl purposes. But all is left to @potus' discretion. But the new HK Autonomy Act is MANDATORY.

Moreover, unlike the existing US laws which focus on HK or CN govt officials, the new HK Autonomy Act seems to require sanctions on "foreign financial institutions" that "knowingly that knowingly conducts a significant transaction with" a sanctioned HK or CN govt official.

There is a little wiggle room allowing exclusions for certain foreign financial institutions, but non-US banks that conduct transactions with sanctioned individuals face potential mandatory sanctions that include (gulp!) bans on currency transactions (no more USD for you!).

Non-US banks could have a hard time complying with this law, bu they will have little choice or risk losing access to the US market. So this could be a pretty big deal.

One last thought: a bill imposing potentially new restrictions on financial institutions is not going to face tons of opposition in the House. So this bill, which sailed unanimously through the Senate, may actually have a reasonable chance of becoming law.

(Actually, one more note.) The text of Section 10 of the new HK Autonomy Act shows just how bad US-China relations are these days. "SEC. 10. RULE OF CONSTRUCTION.
Nothing in this Act shall be construed as an authorization of military force against China." Good to know!