[Congressional Record Volume 169, Number 86 (Monday, May 22, 2023)]
[House]
[Pages H2471-H2472]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             CHINA FINANCIAL THREAT MITIGATION ACT OF 2023

  Mr. LUETKEMEYER. Mr. Speaker, I move to suspend the rules and pass 
the bill (H.R. 1156) to require the Secretary of the Treasury to 
conduct a study and report on the exposure of the United States to the 
financial sector of the People's Republic of China, and for other 
purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1156

       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 ``China Financial Threat 
     Mitigation Act of 2023''.

     SEC. 2. CHINA FINANCIAL THREAT MITIGATION.

       (a) Report.--Not later than one year after the date of the 
     enactment of this Act, the Secretary of the Treasury, in 
     consultation with the Chairman of the Board of Governors of 
     the Federal Reserve System, the Chairman of the Securities 
     and Exchange Commission, the Chairman of the Commodity 
     Futures Trading Commission, and the Secretary of State, shall 
     conduct a study and issue a report on the exposure of the 
     United States to the financial sector of the People's 
     Republic of China that includes--
       (1) an assessment of the effects of reforms to the 
     financial sector of the People's Republic of China on the 
     United States and global financial systems;
       (2) a description of the policies the United States 
     Government is adopting to protect the interests of the United 
     States while the financial sector of the People's Republic of 
     China undergoes such reforms;
       (3) a description and analysis of any risks to the 
     financial stability of the United States and the global 
     economy emanating from the People's Republic of China; and
       (4) recommendations for additional actions the United 
     States Government, including United States representatives at 
     relevant international organizations, should take to 
     strengthen international cooperation to monitor and mitigate 
     such financial stability risks and protect United States 
     interests.
       (b) Transmission of Report.--The Secretary of the Treasury 
     shall transmit the report required under subsection (a) not 
     later than one year after the date of enactment of this Act 
     to the Committees on Financial Services and Foreign Affairs 
     of the House of Representatives, the Committees on Banking, 
     Housing, and Urban Affairs and Foreign Relations of the 
     Senate, and to the United States representatives at relevant 
     international organizations, as appropriate.
       (c) Classification of Report.--The report required under 
     subsection (a) shall be unclassified, but may contain a 
     classified annex.
       (d) Publication of Report.--The Secretary of the Treasury 
     shall publish the report required under subsection (a) (other 
     than any classified annex) on the website of the Department 
     of the Treasury not later than one year after the date of 
     enactment of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Missouri (Mr. Luetkemeyer) and the gentlewoman from Colorado (Ms. 
Pettersen) each will control 20 minutes.
  The Chair recognizes the gentleman from Missouri.


                             General Leave

  Mr. LUETKEMEYER. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days in which to revise and extend their 
remarks and include extraneous material on this bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Missouri?
  There was no objection.
  Mr. LUETKEMEYER. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise in support of H.R. 1156, the China Financial 
Threat Mitigation Act. This is a measure that originated in the 
Committee on Financial Services, where it was first introduced by our 
former colleague, Anthony Gonzalez of Ohio. I am pleased to see his 
cosponsor, Ms. Spanberger, continue to champion the measure in this 
Congress.
  The China Financial Threat Mitigation Act is based on the notion that 
China's financial system is so opaque that it may hide risks for the 
global economy of which we aren't aware. The bill requires the Treasury 
Secretary to study and report on these risks so we can take effective 
countermeasures.
  As we all know, China has been cracking down on Western firms and 
executives due to fears that the private sector's information gathering 
and due diligence efforts pose a threat to the Chinese Communist Party. 
The CCP clearly views transparency as inconsistent with its self-
interest. This should alarm us all.
  Due to the state-owned nature of many Chinese financial institutions, 
there are already fewer market signals that can alert us to problems in 
time, and the central government may be on the hook for liabilities of 
unknown scope.
  The Financial Stability Oversight Council has touched on the 
possibility of risks in the country, including those arising from 
China's housing sector, but these have been broad-brush efforts. We 
need to dig deeper, and that is what the reporting in this legislation 
will require.
  Mr. Speaker, I urge my colleagues to support this measure, and I 
reserve the balance of my time.
  Ms. PETTERSEN. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise in support of H.R. 1156, the China Financial 
Threat Mitigation Act of 2023, sponsored by Representative Spanberger 
of Virginia.
  It is crucial that we closely monitor any risk to our financial 
system and economy that may arise from the financial sector and economy 
of the People's Republic of China.
  Our financial regulators have already raised some concerns about such 
risks. For example, the Financial Stability Oversight Council 
highlighted in their 2022 report that ``difficulties in the real estate 
sector could cause strains across China's financial system, including 
at banks, nonbanks, corporate bond markets, and local government 
finances.''
  However, further analysis is needed, as China's size and 
interconnectedness with the global economy may pose risks to the United 
States if those kinds of risks spill over.
  H.R. 1156 would require a comprehensive report by our Treasury 
Department looking at these different types of financial risks, in 
consultation with relevant agencies, to better inform Congress and 
provide actionable recommendations to our representatives at various 
international bodies, such as the Financial Stability Board, in order 
to mitigate these risks.
  Ranking Member Waters was pleased to work with Chair McHenry last 
Congress to advance this bipartisan bill through the House. I join her 
in hoping that we can pass this bill again with the support of the 
Senate so this work can begin quickly.
  Mr. Speaker, I urge my colleagues to support this bill, and I reserve 
the balance of my time.
  Mr. LUETKEMEYER. Mr. Speaker, I yield such time as he may consume to 
the gentleman from Texas (Mr. Williams), our baseball coach who has 
distinguished himself not only here in Congress but also on the 
baseball field.
  Mr. WILLIAMS of Texas. Mr. Speaker, I thank the chairman for that 
great introduction.
  Mr. Speaker, China is attempting to weaken our country in any way 
possible. The interference and aggression coming from the Chinese 
Communist Party pose a significant threat to our families, businesses, 
and country. The CCP's track record of abusing our financial system is 
jeopardizing our national and economic security.
  H.R. 1156, the China Financial Threat Mitigation Act, requires the 
Department of the Treasury to report on the risks coming from the 
Chinese financial sector, along with recommendations on strengthening 
international cooperation to monitor and mitigate these risks.
  Our top priority should always be to protect our Western values and 
promote the greatest country in the world and the interests of the 
United States.
  My bill is a critical step in holding the CCP accountable for their 
continued abuse of the financial sector.
  Mr. Speaker, I urge all of my colleagues to support this important 
piece of legislation. In God We Trust.

[[Page H2472]]

  

  Ms. PETTERSEN. Mr. Speaker, I yield such time as she may consume to 
the gentlewoman from Ohio (Mrs. Beatty).
  Mrs. BEATTY. Mr. Speaker, I thank the gentlewoman for yielding me 
time.
  Mr. Speaker, I am pleased to rise in support of the China Financial 
Threat Mitigation Act, or H.R. 1156.
  Certainly, I agree with my colleague and friends across the aisle 
that we need to dig deeper. We understand that, yes, China is trying to 
weaken our country. Because of its size and deep connection to the 
global economy, the People's Republic of China represents a potential 
threat to our economy and our financial system.

  We must have a clear picture of the systemic risks we face so we can 
respond appropriately to safeguard our economic interests and mitigate 
these threats.
  Mr. Speaker, this bipartisan bill will require the Treasury 
Department to study and issue a report that analyzes risks to the 
United States' financial stability and the global economy stemming from 
China.
  I thank my colleague, the vice chair of this subcommittee, for 
participating today, along with our Republican colleagues.
  As the ranking member of the Financial Services Subcommittee on 
National Security, Illicit Finance, and International Financial 
Institutions, I am very happy to work across the aisle to address the 
issues of competitiveness with China.
  Mr. Speaker, this is the right thing to do, and I urge all Members to 
support this bipartisan bill.
  Mr. Speaker, lastly, I don't think I need to remind my colleagues 
that this legislation was brought three times in the last Congress. I 
certainly thank then-Congressman Gonzalez from Ohio, who sponsored this 
legislation.
  Mr. LUETKEMEYER. Mr. Speaker, I reserve the balance of my time.

                              {time}  1630

  Ms. PETTERSEN. Mr. Speaker, I yield myself the balance of my time.
  I commend Representative Spanberger for her leadership on these 
important issues and her work in drafting this bipartisan bill.
  I also thank Chair McHenry and Representative Williams of Texas on 
the other side of the aisle for working with us Democrats on this 
important legislation.
  This bipartisan work resulted in a vote of 40-0 on this bill during a 
Financial Services Committee markup earlier this year.
  I, again, urge my colleagues to support this bill, and I yield back 
the balance of my time.
  Mr. LUETKEMEYER. Mr. Speaker, I yield myself the balance of my time.
  I thank the sponsors of the bill, Mr. Williams, Mrs. Beatty, and Ms. 
Spanberger for their hard work on this good piece of legislation. I 
think it is something that is very important. They have already 
expressed the need for it.
  Mr. Speaker, I urge adoption of this bill, and I yield back the 
balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Missouri (Mr. Luetkemeyer) that the House suspend the 
rules and pass the bill, H.R. 1156, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. LUETKEMEYER. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

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