Pressure Regulatory Organizations to End Chinese Threats to Taiwan Act

Floor Speech

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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 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.
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Mr. McHENRY. 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.

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.
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