[Congressional Record Volume 170, Number 5 (Wednesday, January 10, 2024)]
[House]
[Pages H33-H35]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PRESSURE REGULATORY ORGANIZATIONS TO END CHINESE THREATS TO TAIWAN ACT
Mr. McHENRY. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 803) to direct certain financial regulators to exclude
representatives of the People's Republic of China from certain banking
organizations upon notice of certain threats or danger, and for other
purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 803
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 ``Pressure Regulatory
Organizations To End Chinese Threats to Taiwan Act'' or the
``PROTECT Taiwan Act''.
SEC. 2. STATEMENT OF POLICY REGARDING THE EXCLUSION OF
REPRESENTATIVES OF THE PEOPLE'S REPUBLIC OF
CHINA FROM CERTAIN BANKING ORGANIZATIONS UPON
NOTICE OF CERTAIN THREATS OR DANGER.
(a) In General.--If the President, pursuant to section 3(c)
of the Taiwan Relations Act (22 U.S.C. 3302(c)), informs the
Congress of any threat to the security or the social or
economic system of the people on Taiwan and any danger to the
interests of the United States arising therefrom resulting
from actions of the People's Republic of China, it is the
policy of the United States to seek to exclude
representatives of the People's Republic of China, to the
maximum extent practicable, from participation in meetings,
proceedings, and other activities of the following
organizations--
(1) the Group of Twenty;
(2) the Bank for International Settlements;
(3) the Financial Stability Board;
(4) the Basel Committee on Banking Supervision;
(5) the International Association of Insurance Supervisors;
and
(6) the International Organization of Securities
Commissions.
(b) Policy Advancement.--The Secretary of the Treasury, the
Board of Governors of the Federal Reserve System, and the
Securities and Exchange Commission, shall take all necessary
steps to advance the policy set forth in subsection (a).
(c) Waiver.--The President may waive the application of
subsection (a) with respect to an
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organization upon submission of a report to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate--
(1) that such waiver is in the national interest of the
United States; and
(2) that contains an explanation of the reasons therefor.
(d) Sunset.--This Act and the requirements of this Act
shall have no force or effect on the date that is the earlier
of--
(1) 5 years after the date of the enactment of this Act; or
(2) 30 days after the date on which the President notifies
Congress that the termination of this Act is in the national
interest of the United States.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
North Carolina (Mr. McHenry) and the gentlewoman from Ohio (Mrs.
Beatty) each will control 20 minutes.
The Chair recognizes the gentleman from North Carolina.
General Leave
Mr. McHENRY. 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 the bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from North Carolina?
There was no objection.
Mr. McHENRY. Mr. Speaker, I yield myself such time as I may consume.
I rise in support of H.R. 803, the PROTECT Taiwan Act, introduced by
the chairman of the Science, Space, and Technology Committee and senior
member of the House Financial Services Committee, Mr. Lucas.
In addition to its hostile rhetoric, China has sought to intimidate
Taiwan by making large incursions into the island's airspace. In fact,
according to the Global Taiwan Institute, there were 563 incursions in
2022. Between January and August 23, 2023, there were 461 median-line
crossings and 560 southwest incursions. Those are a lot of incursions.
If the Xi Jinping regime seeks to provoke war in Taiwan, Congress
must clearly signal the costs that will be imposed on the Chinese
Communist Party if it acts against the island.
One of those costs should be China's exclusion from the international
community, which is a bipartisan pressure point. Chinese leaders must
understand that a threat to Taiwan is a threat to international order,
and a threat to Taiwan is a threat to China's economic growth
opportunities.
As a result, we think China should not be able to participate in
multilateral organizations if they conduct this type of business.
We have already seen Russia's isolation on the international stage
after its invasion of Ukraine. We must be clear that this is what
awaits Beijing if they cross the line in Taiwan.
Mr. Lucas' bill would make China a pariah in key organizations
devoted to ensuring global economic stability. This includes the G20,
the Financial Stability Board, and other gatherings of international
financial regulators. Participation in these groups should be reserved
for countries that take international norms and values seriously.
A Chinese invasion of Taiwan would underscore that Beijing has
surrendered its right to be included. I thank Mr. Lucas for his hard
work on the PROTECT Taiwan Act and Congressman Vicente Gonzalez of
Texas on the Democrat side for being an original cosponsor.
Now more than ever I think we must show that deterring Chinese
aggression against Taiwan is a bipartisan issue for the United States
Congress. I think this bill will send that right signal.
Mr. Speaker, I urge my colleagues to support the bill, and I reserve
the balance of my time.
House of Representatives,
Committee on Foreign Affairs,
Washington, DC, February 28, 2023.
Hon. Patrick McHenry,
Chairman, Committee on Financial Services,
Washington, DC.
Dear Chairman McHenry: Thank you for consulting with the
Committee on Foreign Affairs on H.R. 803, the PROTECT Taiwan
Act.
I agree that the Foreign Affairs Committee may be
discharged from further action on this measure, subject to
the understanding that this waiver does not in any way
diminish or alter the jurisdiction of the Foreign Affairs
Committee, or prejudice its jurisdictional prerogatives on
this bill or similar legislation in the future. The Committee
also reserves the right to seek an appropriate number of
conferees to any House-Senate conference involving this bill
and would appreciate your support for any such request.
I ask that you place our exchange of letters into the
Congressional Record during floor consideration of the bill.
I appreciate your cooperation, and look forward to continuing
to work with you as this measure moves through the
legislative process.
Sincerely,
Michael T. McCaul,
Chairman.
____
House of Representatives,
Committee on Financial Services,
Washington, DC, March 1, 2023.
Hon. Michael McCaul,
Chairman, Committee on Foreign Affairs, House of
Representatives, Washington, DC.
Dear Chairman McCall: Thank you for agreeing to be
discharged from further consideration of H.R. 803, the
PROTECT Taiwan Act, so that it may proceed expeditiously to
the House Floor. I agree that by foregoing consideration of
H.R. 803 at this time, you do not waive any jurisdiction over
the subject matter contained in this or similar legislation,
and that you will be appropriately consulted and involved on
this or similar legislation as it moves forward.
As discussed, I will seek to place a copy of our exchange
of letters on this bill in the Congressional Record during
floor consideration thereof.
Sincerely,
Patrick McHenry,
Chairman, Committee on Financial Services.
Mrs. BEATTY. Mr. Speaker, I yield myself such time as I may consume.
I rise in support of H.R. 803, the PROTECT Taiwan Act, sponsored by
Congressman Lucas of Oklahoma and Congressman Vicente Gonzalez of
Texas.
This bill would impose financial consequences on China if it launched
a major act of aggression against Taiwan. Specifically, this bill would
require Treasury, the Federal Reserve, and the Securities and Exchange
Commission to seek China's exclusion from the proceedings of the major
financial institutions and international organizations. These include
the G20, the Bank for International Settlements, the Financial
Stability Board, the Basel Committee on Banking Supervision, the
International Association of Insurance Supervisors, and the
International Organization of Securities Commissions.
In short, this bill would deny China the economic, political, and
diplomatic benefits of participation in the international organizations
that ensure stability of financial markets and businesses if it were to
engage in a major act of aggression against Taiwan.
This bill imposes a high threshold with regard to what kind of
aggression would trigger this action. Specifically, it requires a
Presidential notification to Congress under section 3(c) of the Taiwan
Relations Act, which would only occur if there were a substantial
threat to Taiwan. For reference, section 3(c) was not triggered during
the tensions of the Third Taiwan Straits Crisis of the 1990s.
I also thank the bill's sponsor for working with Democrats to adopt
changes to the bill that ensures it closely mirrors a similar law
passed in the last Congress aimed at Russia following its unlawful
invasion of Ukraine.
{time} 1500
Accordingly, the United States is now actively seeking Russia's
exclusion from these international bodies.
If China were to cross the line Russia crossed by invading Ukraine,
we would similarly seek to exclude them from these international
bodies.
For all of these reasons, I urge my colleagues to support the passage
of this bill, and I reserve the balance of my time.
Mr. McHENRY. Mr. Speaker, I yield such time as he may consume to the
gentleman from Oklahoma (Mr. Lucas), the chair of the Committee on
Science, Space, and Technology and a senior member of the House
Financial Services Committee.
Mr. LUCAS. Mr. Speaker, I thank Chairman McHenry for yielding time to
me on this bill.
First, before I address the topic at hand, I would like to take a
moment to note that I have served with Chairman McHenry for his tenure
in the United States Congress.
I can proudly say this is a body that everyone comes in brand new and
full of fire and vinegar, but it is a body where people develop into
their skills, where their natural talents are honed and sharpened, and
where many of our friends become great statesmen and stateswomen.
I note for just a moment that Chairman McHenry, when he joined this
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body, represented that fire and vinegar, that intensity.
In his time here, he has developed into a statesman, a chairman of
great regard, and someone who ultimately, when he leaves this body at
the end of the session, will be missed.
My colleague, and I would like to think I can call you my friend, but
most assuredly I note my respect for your legislative skills.
The bill before us is a bipartisan piece of legislation, as my
colleagues have noted, to send a clear message: If China intends to
engage in conflict against Taiwan, then China should be prepared to
withstand the consequences.
Under the Taiwan Relations Act, the President is required to notify
Congress if China poses an immediate threat to Taiwan's security.
If this notification is triggered, my bill states it is U.S. policy
to exclude Chinese representatives from key international
organizations: The G20, the Financial Stability Board, and the Basel
Committee on Banking Supervision.
A threat to Taiwan is a threat to the international order. Now, let
me repeat that one more time: A threat to Taiwan is a threat to the
international order.
We should make it clear that if China acts to throw the world into
instability, China will be excluded from international bodies that work
to uphold that very stability.
I thank my colleague from Texas, Congressman Gonzalez, for working
with me on this bill. I encourage my colleagues to support this piece
of legislation.
Mrs. BEATTY. Mr. Speaker, I yield myself the balance of my time.
This legislation from Congressmen Lucas and Gonzalez is designed to
send a message to China, discouraging escalation of its aggression
toward Taiwan.
I again note that while I agree that sending a strong signal to China
regarding the United States' support for the prevention of conflict in
the Taiwan Strait is important, we must also send a strong signal to
Russia by providing additional funding to our fellow democracy,
Ukraine.
I urge my colleagues to support this bill, and I yield back the
balance of my time.
Mr. McHENRY. Mr. Speaker, I yield myself such time as I may consume.
I reiterate that Chinese leaders must understand that a threat to
Taiwan is a threat to international order, and it should be a threat to
their standing in international institutions.
They will not be able to operate in major multilateral organizations
as if it were business as usual.
We know the impact on Russia after its invasion of Ukraine. We have
to let officials in Beijing know that that is what awaits them if they
cross the line in Taiwan.
I urge adoption of this bill and support for the bill. I thank my
colleague, Mr. Lucas, for his friendship and for his kind words, as
well as his important leadership on this topic.
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 North Carolina (Mr. McHenry) that the House suspend the
rules and pass the bill, H.R. 803, 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. McHENRY. Mr. Speaker, I object to the vote on the ground that a
quorum is not present and make the point of order that a quorum is not
present.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this question will be postponed.
The point of no quorum is considered withdrawn.
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