Sen. Cramer, Colleagues Introduce Bill to Sanction Communist China in the Event of Taiwan Invasion

Statement

U.S. Senator Kevin Cramer (R-ND), member of the Senate Armed Services Committee, joined Senators Rick Scott (R-FL) and John Kennedy (R-LA) in introducing the Deterring Communist Chinese Aggression Against Taiwan Through Financial Sanctions Act which would impose devastating financial sanctions on the Chinese government if Communist China invaded or blockaded Taiwan, or attempted to change the status of Taiwan's governance through use of force.

"The situation in Ukraine is the very real consequence of weak leadership and a lack of a true deterrence for Russia. Taiwan is a friend, good trading partner, and beacon of freedom and democracy. Our bill threatens crippling financial sanctions as a deterrence to China trying to follow in Putin's footsteps as it relates to Taiwan," said Senator Cramer.

"Taiwan is one of America's most important partners in the Asia-Pacific, and its peace and stability are in our political, security, and economic interests. We have watched Communist China's increasingly frequent actions to harass and intimidate the Taiwanese people, through regular military encroachments and cyberattacks. We must be clear that these intimidation tactics will not be ignored. As Beijing quietly watches Putin's invasion of and assault on Ukraine, America must stand strongly behind our partners in democracy and leave no ambiguity as to our resolve to condemn and punish tyrants who attack our partners. Passing this bill will make clear to General Secretary that if he mimics Putin's invasion then he will be met with economic isolation and severe financial sanctions. I urge my colleagues to join me in this important work, and I hope to see this bill move swiftly through the Senate," said Senator Scott.

The Deterring Communist Chinese Aggression Against Taiwan Through Financial Sanctions Act would:

Sever all financial transactions between the U.S. and China if China engages in an armed aggression against Taiwan or its territories, invades Taiwan or its territories, blockades Taiwan or its territories, or attempts to change the status of Taiwan's governance through the use of force. Penalties include:

Prohibition on transactions of property

Revocation of visas and restrictions on Chinese nationals involved in the use of force against Taiwan

Prohibition on any transfers of credit or payments between financial institutions with Communist China

Ban on investment in equity or debt of sanctioned persons

Prohibition on financial engagements with Chinese military companies, software companies, financial messaging systems, and digital currencies.

Require the President to implement such sanctions 30 days after a triggering event.

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