[House Report 119-21]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 119-21
======================================================================
CHINA FINANCIAL THREAT MITIGATION ACT OF 2025
_______
March 21, 2025.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Hill of Arkansas, from the Committee on Financial Services,
submitted the following
R E P O R T
[To accompany H.R. 1549]
The Committee on Financial Services, to whom was referred
the bill (H.R. 1549) 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, having considered the same,
reports favorably thereon with an amendment and recommends that
the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Committee Consideration.......................................... 3
Related Hearings................................................. 3
Committee Votes.................................................. 4
Committee Oversight Findings..................................... 6
Performance Goals and Objectives................................. 6
Committee Cost Estimate.......................................... 6
New Budget Authority and CBO Cost Estimate....................... 6
Unfunded Mandates Statement...................................... 6
Earmark Statement................................................ 6
Federal Advisory Committee Act Statement......................... 7
Applicability to the Legislative Branch.......................... 7
Duplication of Federal Programs.................................. 7
Section-by-Section Analysis of the Legislation................... 7
Changes in Existing Law Made by the Bill, as Reported............ 8
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 ``China Financial Threat Mitigation Act
of 2025''.
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 significant risks in 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 financial stability of
the United States and the global economy from any risks
described under paragraph (1);
(3) a description and evaluation of the transparency,
completeness, and reliability of Chinese economic data; 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) 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.
PURPOSE AND SUMMARY
Introduced on February 24, 2025, by Representative Rogers
Williams, H.R. 1549, the China Financial Threat Mitigation Act
of 2025, would require the Secretary of the Department of the
Treasury to report to Congress on global economic risks
emanating from the Chinese financial sector.
BACKGROUND AND NEED FOR LEGISLATION
H.R. 1549 results from previous bipartisan Committee
discussions to require a Treasury report on financial stability
risks emanating from China. Such risks have been addressed in
the annual report of the Financial Stability Oversight Council,
but in limited detail. Former Treasury Secretary Yellen has
also addressed Chinese financial risks in response to
Republican questioning before the Committee, particularly with
respect to China's real estate sector. Understanding these
risks more comprehensively will help U.S. officials better
evaluate vulnerabilities in the global economy and work through
bodies such as the IMF and Financial Stability Board to
mitigate them.
H.R. 1549 requires the Secretary of the Department of the
Treasury to report to Congress on global economic risks
emanating from the Chinese financial sector. The bill is
necessary to better understand the governance, opacity, and
potential instability of the Chinese financial system.
COMMITTEE CONSIDERATION
118TH CONGRESS
On September 24, 2023, Representative Abigail Spanberger
(D-VA) introduced H.R. 1156, China Financial Threat Mitigation
Act of 2023, with Representative Roger Williams (R-TX) as the
original cosponsor. Representatives Michael Lawler (R-NY),
Susie Lee (D-NV), and Patrick Ryan (D-NY) were subsequently
added as cosponsors. The bill was referred solely to the House
Committee on Financial Services. The Committee considered a
discussion draft of H.R. 1156 in legislative session on
February 7, 2023, in a hearing entitled ``Combatting the
Economic Threat from China''. On February 28, 2023, the
Committee ordered H.R. 1156 (as amended) reported favorably to
the House by a recorded vote of 40-0 (Record Vote No. FC-16) a
quorum being present. Before the question to report was called,
the Committee adopted an amendment in the nature of a
substitute offered by Ms. Spanberger by voice vote. H. Rept.
118-72 accompanying the bill was filed on May 22, 2023. H.R.
1156 was passed by the House the same day under suspension of
the rules by a recorded vote of 400-5 (Roll No. 229). On May
30, 2023, the bill was received in the Senate and referred to
the Committee on Banking, Housing, and Urban Affairs.
119TH CONGRESS
On February 24, 2025, Representative Roger Williams (R-TX)
introduced H.R. 1549, the China Financial Threat Mitigation Act
of 2025, with Representative Josh Gottheimer (D-NJ) as an
original cosponsor. Representative Michael Lawler (R-NY) was
added subsequently as a cosponsor. The bill was referred solely
to the Committee on Financial Services.
RELATED HEARINGS
Pursuant to clause 3(c)(6) of rule XIII of the Rules of the
House of Representatives, the following hearing was used to
develop H.R. 1549:
The Full Committee held a hearing on February 25, 2025,
titled ``Examining Policies to Counter China.'' A discussion
draft of the bill was considered in the hearing. The following
witnesses testified: John Miller, Senior Vice President of
Policy, Trust, Data, and Technology, and General Counsel,
Information Technology Industry Council; Nicholas McMurray,
Managing Director of International and Nuclear Policy,
ClearPath; John Cassara, retired United States Treasury
Department Special Agent; Martin Muhleisen, Nonresident Senior
Fellow at the GAO Economic Center at the Atlantic Council; and
Dr. Rush Doshi, C.V. Starr Senior Fellow for Asian Studies, and
Director of the China Strategy Initiative at the Council on
Foreign Relations, and an assistant professor at Georgetown
University. Among other discussion regarding risks emanating
from China's financial sector, Dr. Doshi testified the U.S.
needs better information about our vulnerabilities in the
financial sector.
The Committee on Financial Services met in open session on
March 5, 2025 to consider, among others, H.R. 1549.
COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee Report to include for
each record vote on a motion to report the measure or matter
and on any amendments offered to the measure or matter the
total number of votes for and against and the names of the
Members voting for and against.
On March 5, 2025, The Committee ordered H.R. 1549, as
amended, to be reported favorably to the House by a recorded
vote of 49 yeas to 0 nays, a quorum being present. (Record Vote
No. FC-20). Before the question to report was called, the
Committee adopted an amendment in the nature of a substitute
offered by Mr. Williams that made minor technical changes by
voice vote.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
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. 1549 is to require
the Secretary of the Department of the Treasury to report to
Congress on global economic risks emanating from the Chinese
financial sector so Congress can better understand the
governance, opacity, and potential instability of the Chinese
financial system.
COMMITTEE COST ESTIMATE
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 1549.
The Committee has requested but not received a cost
estimate from the Director of the Congressional Budget Office.
However, pursuant to clause 3(d)(1) of rule XIII of the House
of Representatives, the Committee will adopt as its own the
cost estimate by the Director of the Congressional Budget
Office once it has been prepared.
NEW BUDGET AUTHORITY AND CBO COST ESTIMATE
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, a cost estimate was not made
available to the Committee in time for the filing of this
report. The Chairman of the Committee shall cause such estimate
to be printed in the Congressional Record upon its receipt by
the Committee.
UNFUNDED MANDATES STATEMENT
The Committee has requested but not received from the
Director of the Congressional Budget Office an estimate of the
Federal mandates pursuant to section 423 of the Unfunded
Mandates Reform Act. The Committee will adopt the estimate once
it has been prepared by the Director.
EARMARK STATEMENT
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the resolution 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.
FEDERAL ADVISORY COMMITTEE ACT STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
APPLICABILITY TO THE 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.
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
The following is a section-by-section analysis of H.R.
1549, the China Financial Threat Mitigation Act of 2025:
Section 1. Short title
Section 1 provides that the short title is the ``China
Financial Threat Mitigation Act of 2025''.
Section 2. China financial threat mitigation
This section requires, 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, 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--
an assessment of the effects of significant
risks in the financial sector of the People's Republic
of China on the United States and global financial
systems;
a description of the policies the United
States Government is adopting to protect the financial
stability of the United States and the global economy
from any risks described in the Act;
a description and evaluation of the
transparency, completeness, and reliability of Chinese
economic data; and
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.
The Secretary of the Treasury shall transmit the report
required under the Act 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.
The report required under the Act shall be unclassified,
but may contain a classified annex.
The Secretary of the Treasury shall publish the report
required under the Act (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.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
H.R. 1549 does not repeal or amend any section of a
statute. Therefore, the Office of Legislative Counsel did not
prepare the report required under clause 3(e) of rule XIII of
the House of Representatives.
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