[Congressional Record Volume 171, Number 124 (Monday, July 21, 2025)]
[House]
[Pages H3514-H3517]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TAIWAN CONFLICT DETERRENCE ACT OF 2025
Mr. HILL of Arkansas. Mr. Speaker, I move to suspend the rules and
pass the bill (H.R. 1716) to deter Chinese aggression towards Taiwan by
requiring the Secretary of the Treasury to publish a report on
financial institutions and accounts connected to senior officials of
the People's Republic of China, to restrict financial services for
certain immediate family of such officials, and for other purposes, as
amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 1716
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 ``Taiwan Conflict Deterrence
Act of 2025''.
SEC. 2. REPORT ON FINANCIAL INSTITUTIONS AND ACCOUNTS
CONNECTED TO CERTAIN CHINESE GOVERNMENT
OFFICIALS.
(a) Financial Institutions Report.--
(1) In general.--Not later than 90 days after the date that
the President, pursuant to section 3(c) of the Taiwan
Relations Act (22 U.S.C. 3302(c)), informs the Congress of a
threat resulting from actions of the People's Republic of
China and any danger to the interests of the United States
arising therefrom, and annually thereafter for 3 years, the
Secretary of the Treasury shall submit a report to the
appropriate Members of Congress containing the following:
(A) With respect to each of at least 10 natural persons
described under subsection (b), at least 1 of whom is a
natural person listed under paragraph (1) of such subsection
(b) and at least 1 of whom is a natural person listed under
paragraph (2) of such subsection (b), the estimated total
funds that are held in financial institutions and are under
direct or indirect control by such natural person and a
description of such funds.
(B) A list of any financial institutions that--
(i) maintain an account in connection with significant
funds described in subparagraph (A); or
(ii) otherwise provide significant financial services to a
natural person covered by the report.
(2) Briefing required.--Not later than 30 days after
submitting a report described under paragraph (1), the
Secretary of the Treasury, or a designee of the Secretary,
shall provide to the appropriate Members of Congress an
unclassified or classified briefing (as determined
appropriate by the Secretary) on the funds covered by the
report, including a description of how the funds were
acquired, and any illicit or corrupt means employed to
acquire or use the funds.
(3) Exemptions.--The requirements described under paragraph
(1) may not be applied with respect to a natural person or a
financial institution, as the case may be, if the President
determines:
(A) The funds described under paragraph (1)(A) were
primarily acquired through legal and noncorrupt means.
(B) The natural person has agreed to provide significant
cooperation to the United States for an important national
security purpose with respect to China.
(C) A financial institution has agreed to--
(i) no longer maintain an account described under paragraph
(1)(B)(i);
(ii) no longer provide significant financial services to a
natural person covered by the report; or
(iii) provide significant cooperation to the United States
for an important national security purpose with respect to
China.
(4) Waiver.--The President may waive any requirement
described under paragraph (1) with respect to a natural
person or a financial institution upon reporting to the
appropriate Members of Congress that--
[[Page H3515]]
(A) the waiver would substantially promote the objective of
ending the threat described under paragraph (1);
(B) the threat described under paragraph (1) is no longer
present; or
(C) the waiver is essential to the national security
interests of the United States.
(b) Natural Persons Described.--The natural persons
described in this subsection are persons who, at the time of
a report, are the following:
(1) A member of the Politburo Standing Committee of the
Chinese Communist Party.
(2) A member of the Politburo of the Chinese Communist
Party that is not described under paragraph (1).
(3) A member of the Central Committee of the Chinese
Communist Party that--
(A) is none of the foregoing; and
(B) performs any official duty that directly or indirectly
affects Taiwan.
(c) Form of Reports; Public Availability.--
(1) Form of reports.--The reports required under paragraphs
(1) and (4) of subsection (a) shall be submitted in
unclassified form but may contain a classified annex.
(2) Public availability.--The Secretary of the Treasury
shall make the unclassified portion of the report required
under subsection (a)(1) available to the public on the
website and social media accounts of the Department of the
Treasury--
(A) in English, Chinese, and any other language that the
Secretary finds appropriate; and
(B) in precompressed, easily downloadable versions that are
made available in all appropriate formats.
SEC. 3. PROHIBITION ON FINANCIAL SERVICES FOR CERTAIN
IMMEDIATE FAMILY.
(a) In General.--The Secretary of the Treasury shall
prohibit a United States financial institution, and any
person owned or controlled by a United States financial
institution, from engaging in a significant transaction
with--
(1) a natural person covered by a report made under section
2(a); and
(2) the immediate family of a person described under
paragraph (1), if the Secretary finds that such immediate
family benefits from funds described in the report.
(b) Exceptions.--
(1) Exception for intelligence, law enforcement, and
national security activities.--Subsection (a) shall not apply
with respect to any intelligence, law enforcement, or
national security activity of the United States.
(2) Waiver.--The President may waive the application of
subsection (a) with respect to a person upon reporting to the
appropriate Members of Congress that--
(A) the waiver would substantially promote the objective of
ending the threat described under section 2(a)(1);
(B) the threat described under section 2(a)(1) is no longer
present; or
(C) the waiver is essential to the national security
interests of the United States.
(3) Form of reports.--The reports required under paragraph
(2) shall be submitted in unclassified form but may contain a
classified annex.
(4) Exception relating to importation of goods.--
(A) In general.--The authorities and requirements
authorized under this section shall not include the authority
or requirement to impose sanctions on the importation of
goods.
(B) Good defined.--In this section, the term ``good'' means
any article, natural or man-made substance, material, supply
or manufactured product, including inspection and test
equipment, and excluding technical data.
(c) Implementation; Penalties.--
(1) Implementation.--The President may exercise all
authorities provided to the President under sections 203 and
205 of the International Emergency Economic Powers Act (50
U.S.C. 1702 and 1704) to carry out this section. Not later
than 60 days after issuing a license pursuant to this
section, the President shall submit a copy of the license to
the appropriate Members of Congress.
(2) Penalties.--A person that violates, attempts to
violate, conspires to violate, or causes a violation of this
section or any regulation, license, or order issued to carry
out this section shall be subject to the penalties set forth
in subsections (b) and (c) of section 206 of the
International Emergency Economic Powers Act (50 U.S.C. 1705)
to the same extent as a person that commits an unlawful act
described in subsection (a) of that section 206.
(d) Termination.--This section shall have no force or
effect on the earlier of--
(1) the date that is 30 days after the date that the
President reports to the appropriate Members of Congress that
the threat described under section 2(a)(1) is no longer
present; or
(2) the date that is 25 years after the date that the
Secretary of the Treasury submits the final report required
under section 2(a)(1).
SEC. 4. DEFINITIONS.
For purposes of this Act:
(1) Appropriate members of congress.--The term
``appropriate Members of Congress'' means the Speaker and
minority leader of the House of Representatives, the majority
leader and minority leader of the Senate, the Chairman and
Ranking Member of the Committee on Financial Services of the
House of Representatives, and the Chairman and Ranking Member
of the Committee on Banking, Housing, and Urban Affairs of
the Senate.
(2) Financial institution.--The term ``financial
institution'' means a United States financial institution or
a foreign financial institution.
(3) Foreign financial institution.--The term ``foreign
financial institution'' has the meaning given that term in
section 561.308 of title 31, Code of Federal Regulations.
(4) Funds.--The term ``funds'' has the meaning given to
such term by the Secretary of the Treasury.
(5) Immediate family.--The term ``immediate family'' of any
natural person means the following (whether by the full or
half blood or by adoption):
(A) Such person's spouse, father, mother, children,
brothers, sisters, and grandchildren.
(B) The father, mother, brothers, and sisters of such
person's spouse.
(C) The spouse of a child, brother, or sister of such
person.
(6) United states financial institution.--The term ``United
States financial institution'' has the meaning given the term
``U.S. financial institution'' under section 561.309 of title
31, Code of Federal Regulations.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Arkansas (Mr. Hill) and the gentlewoman from California (Ms. Waters)
each will control 20 minutes.
The Chair recognizes the gentleman from Arkansas.
General Leave
Mr. HILL of Arkansas. 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 Arkansas?
There was no objection.
{time} 1810
Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in strong support of H.R. 1716, the Taiwan
Conflict Deterrence Act of 2025.
This excellent bill, introduced by our Conference chair, Mrs.
McClain, demonstrates that the United States is a vital partner in
supporting Taiwan. We must remain committed to supporting Taiwan as
China continues to increase its military presence across the Taiwan
Strait.
The U.S. and Taiwan have maintained a firm stance against any
forceful efforts to change Taiwan's status for nearly five decades.
That posture is as important now as ever.
A component of the Taiwan Relations Act mandates that the President
inform Congress when China makes any attempt to threaten Taiwan's
national security. Once that notification is made to Congress,
Conference Chair McClain's bill would require the Secretary of the
Treasury to disclose the estimated illicit funds of China's top
officials in Beijing.
This bill is modeled after the Holding Iranian Leaders Accountable
Act, a bipartisan bill that I was pleased to sponsor, which became law
last year.
Congresswoman McClain's bill does exactly what the title says. It
seeks to deter China from making a terrible mistake and promises
financial penalties for senior Chinese officials should they make the
wrong decision and choose to attack Taiwan.
Mr. Speaker, I urge all of my colleagues to join me in supporting
this excellent bill, and I reserve the balance of my time.
Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 1716, the Taiwan Conflict
Deterrence Act of 2025, sponsored by Representative McClain and
cosponsored by Representative Sherman.
Recognizing that China is a threat to Taiwan and to democracy
globally, the United States must strongly and overtly support Taiwan,
in part by pushing back on China's overt provocation toward Taiwan.
As recently as last month, China flew over 70 warplanes over the
Taiwan Strait, encroaching into Taiwanese territory and raising new
concerns about Chinese Government aggression.
The commander of the U.S. Indo-Pacific Command shared in his April
congressional testimony that the Chinese military pressure on Taiwan
has reached a ``rapid boil.''
Month after month, the Chinese Communist Party and Government further
press at the edges of Taiwan's security and America's support for
Taiwan.
[[Page H3516]]
This Congress must speak loudly about our concern about such
international actions by the Chinese Government, actions that could
intentionally or unintentionally lead to an escalation of China's
conflict with Taiwan.
H.R. 1716, the Taiwan Conflict Deterrence Act of 2025, is one
sensible avenue to do so, requiring the Treasury Secretary to publish a
report on and restrict senior officials of the People's Republic of
China and their families from financial institutions and accounts in
the United States.
The report mandated by the bill is intended to raise public awareness
of hidden and corruptly gained funds that are directly or indirectly
controlled by such officials--for those listed in the report, and their
immediate family members.
The bill would also restrict U.S.-based financial services, intending
to limit the financial options for these officials and to extend the
deterrent or punitive impacts to their families.
Both actions would only occur under the bill if the President uses a
never-applied--and hopefully unnecessary--clause in the Taiwan
Relations Act, which would require congressional notification due to a
China-led 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.''
Mr. Speaker, I urge my colleagues to support this bill, and I reserve
the balance of my time.
Mr. HILL of Arkansas. Mr. Speaker, I include in the Record the CBO
estimate on this bill.
H.R. 1716, TAIWAN CONFLICT DETERRENCE ACT OF 2025, AS ORDERED REPORTED
BY THE HOUSE COMMITTEE ON FINANCIAL SERVICES ON MARCH 27, 2025
------------------------------------------------------------------------
By fiscal year, millions of
dollars--
-------------------------------
2025 2025-2030 2025-2035
------------------------------------------------------------------------
Direct Spending (Outlays)............... * * *
Revenues................................ * * *
Increase or Decrease (-) in the Deficit. * * *
Spending Subject to Appropriation * * **
(Outlays)..............................
------------------------------------------------------------------------
* = between -$500,000 and $500,000.
** = not estimated.
Increases net direct spending in any of the four
consecutive 10-year periods beginning in 2036? No.
Increases on-budget deficits in any of the four consecutive
10-year periods beginning in 2036? No.
Statutory pay-as-you-go procedures apply? Yes.
Mandate Effects:
Contains intergovernmental mandate? No.
Contains private-sector mandate? Yes, Under Threshold.
H.R. 1716 would require the Department of the Treasury to
publish a report listing estimated total funds held by
certain Chinese leaders and the financial institutions where
significant portions of the funds are held. The report would
be due within 90 days of the Congress receiving a notice from
the President concerning a threat to Taiwan by China. That
list would be updated every three years unless the threat is
deemed no longer present. The bill also would direct the
department to prohibit the listed Chinese leaders or their
families from using any U.S. financial services. That
requirement would terminate either 30 days after the
President deems that Taiwan is no longer under threat or 25
years after the department submits a final report.
The 1979 Taiwan Relations Act directs the President to
promptly inform the Congress of any threat to the security or
the social or economic systems of the people of Taiwan and of
any danger to the interests of the United States that arises
from that threat. CBO cannot determine when actions by China
could result in the President providing such notice and thus
invoking the bill's reporting requirements. In the event of
such a notice, CBO estimates that the required report and
other actions would cost less than $500,000 over the 2025-
2030 period; any related spending would be subject to the
availability of appropriated funds.
The Department of the Treasury would need information from
the federal financial regulatory agencies, including the
Federal Deposit Insurance Corporation and the Office of the
Comptroller of the Currency, among others, to carry out the
bill's requirements. H.R. 1716 could affect direct spending
by those agencies, some of which are allowed to use fees to
cover their operating costs. CBO estimates that the net
change in direct spending by federal financial regulatory
agencies would be less than $500,000 over the 2025-2035
period.
Administrative costs incurred by the Federal Reserve,
another federal financial regulatory agency, would reduce
remittances to the Treasury; such remittances are recorded in
the budget as revenues. CBO estimates that the cost to the
Federal Reserve would be insignificant.
The bill also would establish civil and criminal penalties
for failure to comply with the new authorities. Civil fines
are recorded in the budget as revenues. Criminal fines are
recorded as revenues, deposited in the Crime Victims Fund,
and subsequently spent without further appropriation. CBO
estimates that any additional collections and associated
spending would be insignificant because of the relatively
small number of additional cases likely to occur over the
2025-2035 period.
H.R. 1716 would impose a private-sector mandate as defined
in the Unfunded Mandates Reform Act (UMRA) on U.S. financial
institutions if the Treasury prohibits transactions between
them and certain Chinese leaders or their families. The cost
of the mandate would include the forgone revenue that would
be attributable to those transactions. Because the
restriction would apply only in a small number of cases, CBO
estimates that the cost of the mandate would not exceed the
private-sector threshold established in UMRA ($206 million in
2025, adjusted annually for inflation).
The bill would not impose intergovernmental mandates.
The CBO staff contacts for this estimate are Matthew
Pickford (for federal costs), Nathaniel Frentz (for the
Federal Reserve), and Andrew Laughlin (for mandates). The
estimate was reviewed by H. Samuel Papenfuss, Deputy Director
of Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
Mr. HILL of Arkansas. Mr. Speaker, I yield such time as she may
consume to the gentlewoman from Michigan (Mrs. McClain), our Conference
chair and the author of this bill.
Mrs. McCLAIN. Mr. Speaker, I rise today in strong support of my bill,
the Taiwan Conflict Deterrence Act.
The United States cannot afford to be complacent in the face of
growing Chinese aggression. As a proud Representative from the State of
Michigan, a State that knows the value of manufacturing, trade, and
international stability, I know firsthand how vital peace in the Indo-
Pacific is to American jobs and our economy.
Taiwan is not only a democratic partner. It is also a key player in
the global supply chain, especially for semiconductors that power
everything from our cars to our national defense system.
This bill sends a clear and bipartisan message: If the CCP wages war
against Taiwan, there will be consequences. We are talking real,
targeted consequences for corrupt CCP elite. Their financial dealings
and offshore accounts will be exposed and published for the Chinese
people to see.
We are not provoking conflict. We are actually working to prevent it.
Deterrence is strongest when it is credible, and right now, credibility
means passing this bill.
The Taiwan Conflict Deterrence Act is not just about Taiwan. It is
about standing up for American values, protecting American interests,
and preserving peace through strength.
Mr. Speaker, I urge my colleagues on both sides of the aisle to
support this important legislation that I was proud to introduce. Let's
show the world that the United States stands firm against Communist
aggression and alongside our allies.
Mr. HILL of Arkansas. Mr. Speaker, I reserve the balance of my time.
Ms. WATERS. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, I support H.R. 1716, cosponsored by my colleagues
Representative McClain and Representative Sherman.
This bill supports Taiwan in combating Chinese provocations against
Taiwan. This bipartisan bill proposes to restrict top officials in
China from having significant transactions or engagement at American
financial institutions and aims to expose hidden funds of Chinese
officials if the Taiwan Relations Act congressional notification is
ever triggered by a United States President.
Especially now, as China increases its forays into Taiwanese
territory, the United States Congress should support stricter measures
against China's Government, sending the message that we will not
tolerate the next step beyond its incursions.
{time} 1820
I support H.R. 1716 to protect global security and democracy, and I
support doing more to accomplish this goal.
Mr. Speaker, I, again, urge my colleagues to support this bill, and I
yield back the balance of my time.
Mr. HILL of Arkansas. Mr. Speaker, I urge a ``yes'' vote on this
important bill to deter China, and I yield back the balance of my time.
[[Page H3517]]
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Arkansas (Mr. Hill) that the House suspend the rules and
pass the bill, H.R. 1716, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________