[House Report 118-286]
[From the U.S. Government Publishing Office]
118th Congress } { Rept. 118-286
HOUSE OF REPRESENTATIVES
1st Session } { Part 1
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PRESSURE REGULATORY ORGANIZATIONS TO END CHINESE THREATS TO TAIWAN ACT
_______
December 1, 2023.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. McHenry, from the Committee on Financial Services, submitted the
following
R E P O R T
[To accompany H.R. 803]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
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, having considered the same,
reports favorably thereon with an amendment and recommends that
the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
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 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.
PURPOSE AND SUMMARY
Introduced on February 7, 2023, by Representative Frank
Lucas, H.R. 803, the Pressure Regulatory Organizations to End
Chinese Threats to Taiwan Act (PROTECT Taiwan Act), would
require the Department of the Treasury, Federal Reserve, and
Securities and Exchange Commission to seek China's exclusion
from proceedings of the G20, Bank for International
Settlements, Financial Stability Board, Basel Committee on
Banking Supervision, International Association of Insurance
Supervisors, and International Organization of Securities
Commissions, in the event of a Chinese threat to Taiwan.
BACKGROUND AND NEED FOR LEGISLATION
By excluding officials from international institutions, the
PROTECT Taiwan Act would make China a pariah in certain
multilateral organizations. The bill is a commonsense
initiative intended to deter Chinese aggression against Taiwan
by underscoring the consequences of hostilities for Beijing. It
sets out a proactive policy that forces China to more fully
consider downside risks to invading Taiwan, including risks to
China's position in multilateral institutions.
HEARING
Pursuant to clause 3(c)(6) of rule XIII, the following
hearing was used to develop H.R. 803: The Committee on
Financial Services held a hearing February 7, 2023, titled
``Combatting the Economic Threat from China.'' At this hearing,
H.R. 803 was listed as a discussion draft with the title
Ostracize China Act.
COMMITTEE CONSIDERATION
The Committee on Financial Services met in open session on
February 28, 2023, and ordered H.R. 803 to be reported
favorably to the House as amended by a recorded vote of 37 ayes
to 0 nays (Record vote no. FC-21), a quorum being present.
Before the question was called to order the bill favorably
reported, the Committee adopted an amendment in the nature of a
substitute offered by Mr. Lucas by voice vote.
COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the order to report legislation and amendments thereto. H.R.
803 was ordered reported favorably to the House as amended by a
recorded vote of 37 ayes to 0 nays (Record vote no. FC-21), a
quorum being present.
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COMMITTEE OVERSIGHT FINDINGS
Pursuant to clause 3(c) of rule XIII of the Rules of the
House of Representatives, the findings and recommendations of
the Committee based on oversight activities under clause
2(b)(1) of rule X of the Rules of the House of Representatives,
are incorporated in the descriptive portions of this report.
PERFORMANCE GOALS AND OBJECTIVES
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the goal of H.R. 803, in the event of
a Chinese threat to Taiwan, is to require the Department of the
Treasury, Federal Reserve, and Securities and Exchange
Commission to seek China's exclusion from proceedings of the
G20, Bank for International Settlements, Financial Stability
Board, Basel Committee on Banking Supervision, International
Association of Insurance Supervisors, and International
Organization of Securities Commissions.
CONGRESSIONAL BUDGET OFFICE ESTIMATES
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
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NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives, the Committee adopts as its own the
estimate of new budget authority, entitlement authority, or tax
expenditures or revenues contained in the cost estimate
prepared by the Director of the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1973.
FEDERAL MANDATES STATEMENT
Pursuant to section 423 of the Unfunded Mandates Reform
Act, the Committee adopts as its own the estimate of the
Federal mandates prepared by the Director of the Congressional
Budget Office.
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
EARMARK IDENTIFICATION
Pursuant to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee has carefully reviewed the
provisions of the bill and states that the provisions of the
bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
Federal program, including any program that was included in a
report to Congress pursuant to section 21 of the Public Law
111-139 or the most recent Catalog of Federal Domestic
Assistance.
SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Sec. 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
This section would direct the Federal Reserve, the
Secretary of Treasury, and the Securities and Exchange
Commission (if appropriate) to exclude representatives from the
People's Republic of China from proceedings of the G20, Bank
for International Settlements, Financial Stability Board, Basel
Committee on Banking Supervision, International Association of
Insurance Supervisors, and International Organization of
Securities Commissions. The exclusion must occur within 10 days
after the President, under 22 U.S.C. Sec. 3302, informs
Congress of any threat to Taiwan's security or social or
economic system. The President may waive the exclusion
requirement if it is in the national interest and if Congress
is informed. The requirements in the bill expire on the earlier
of 5 years after date of enactment or 30 days after the
President notifies Congress that the termination of the
requirements is in the national interest.
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