The bill, to be introduced by Republican Senator Pat Toomey and Democrat Chris Van Hollen, also would impose secondary sanctions on banks that do business with entities found to violate the law guaranteeing Hong Kong's autonomy.

A Chinese official said on Thursday that China is set to impose new national security legislation on Hong Kong after last year's pro-democracy unrest, drawing a warning from President Donald Trump that Washington would react "very strongly."

"This bipartisan legislation will impose serious penalties on those working to strip Hong Kong of its autonomy," van Hollen said in a statement.

Members of Congress from both parties have been taking a more aggressive tone on China as President Donald Trump has ramped up a war of words with Beijing over responsibility for the global coronavirus pandemic.