The U.S. House Committee on Financial Services Voted Unanimously to Pass the Congresswoman’s “China Financial Threat Mitigation Act”
WASHINGTON, D.C. — The U.S. House Financial Services Committee voted unanimously — 40 to 0 — to advance U.S. Representative Abigail Spanberger’s bipartisan bill that would build up America’s response to emerging financial threats from the Chinese Communist Party (CCP). Spanberger’s China Financial Threat Mitigation Act now goes to the U.S. House floor for a full vote.
According to a report from the U.S. China Economic and Security Review Commission, “exchange rates are the most likely channel through which economic pain could be transmitted to U.S. investors. But a number of other channels, such as the inclusion of Chinese equities into major international indexes, are also raising the exposure of U.S. investors and savers to China’s risky banking system.”
“To best know exactly what we’re up against, we need to conduct a thorough analysis of the potential threats posed to the U.S. economy by recent changes to the Chinese financial sector and the CCP’s longstanding trade and financial abuse practices,” said Spanberger. “Our bipartisan bill would strengthen our domestic response and build a stronger coalition with our global allies to combat financial risks. Today, I’m grateful to my colleagues on the Financial Services Committee for recognizing the need to better protect the long-term financial security of American families and businesses. We must continue to push this legislation to the President’s desk to be signed into law.”
Specifically, the bipartisan China Financial Threat Mitigation Act would require the U.S. Treasury Department to study and issue a report that assesses the effects of reforms to the financial sector of the CCP on the U.S. and global financial system, describes the U.S. government’s policies to protect U.S. interests during these financial system reforms, and analyzes risks to U.S. financial stability and the global economy emanating from the CCP. The Treasury Department would also be required to provide recommendations for further actions the U.S. government can take to strengthen international cooperation to monitor and mitigate financial risks.
Last week, Spanberger introduced the China Financial Threat Mitigation Act alongside U.S. Representative Roger Williams (R-TX-25). Click here to read the full bill text.