China Democracy Act - Prohibits, with specified exceptions, the import of products from the People's Republic of China (PRC) into the United States or the export of goods or technology from the United States to the PRC.
Prohibits persons from the United States from: (1) making investments in PRC enterprises or enterprises owned or controlled by the PRC government, entities controlled by the PRC government, or by PRC nationals; or (2) engaging in any transaction to secure an investment by a Chinese national in any U.S. person or any enterprise owned or controlled by a U.S. person.
Prohibits entry into the United States, for a specified period, of vessels engaged in trade with the PRC.
Subjects violators of this Act to certain penalties.
Prohibits the issuance of visas to PRC nationals. Suspends visas issued to PRC nationals before the effective date of this Act.
Requires the President to take the necessary steps to downgrade diplomatic relations with the PRC.
Terminates this Act upon certification by the President that the PRC has: (1) met certain democratic, civil liberties, and human rights principles; and (2) established a market-oriented economic system.