[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

[[Page H34]]

     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

[[Page H35]]

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.

                          ____________________