[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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