Spanberger, Williams Introduce Bipartisan Legislation Targeting Financial Threats from the Chinese Communist Party

The “China Financial Threat Mitigation Act” Would Require a Risk Assessment of the CCP’s Impact on U.S. Financial Stability, Provide Recommendations for Further Actions to Strengthen America’s Response & International Cooperation in the Face of Major Financial Risks

WASHINGTON, D.C. — U.S. Representatives Abigail Spanberger (D-VA-07) and Roger Williams (R-TX-25) today introduced bipartisan legislation to build up America’s response to emerging financial threats from the Chinese Communist Party (CCP). 

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.”

The China Financial Threat Mitigation Act would require financial regulators to analyze potential financial threats emanating from the Chinese economy that may have substantial impacts on the U.S. economy. The Spanberger-Williams legislation would also require leaders at the U.S. Treasury Department to identify and recommend where the United States and international partners can take concrete actions to mitigate Chinese financial threats and protect American interests.

“The Chinese Communist Party poses a threat to the very foundations of America’s financial system — and these threats jeopardize the long-term security of families and businesses in Virginia and across the country. To hold the CCP accountable, we need clear information about the risks ahead, as well as a commitment to protecting American economic interests and working with international partners to mitigate these threats,” said Spanberger. “Our bipartisan bill would oppose the CCP’s longstanding trade and financial abuse practices. By building a strategy for leveling the playing field and holding the CCP accountable for its lack of financial transparency, the China Financial Threat Mitigation Act is a step in the right direction as we work to keep America competitive. I want to thank Congressman Williams for his partnership on this pressing issue of economic and national security.”

“As the threat of the Chinese Communist Party’s interference and aggression continues to rise, our financial systems must be prepared to proactively mitigate any wrongdoing by the CCP. The CCP has a track record of abusing the systems in place, which in return has jeopardized our national and economic security,” said Williams. “To stop this malpractice, I joined my colleague Rep. Spanberger in introducing the China Financial Threat Mitigation Act which would ensure no systemic threats are associated with China’s shadow banking sector and help mitigate risks effectively while allowing U.S. officials to work with allies to safeguard global financial stability. Our priority should always be to protect our Western values, and this bill is a step in holding the CCP’s financial abuse accountable and promoting the interests of the United States.”

Specifically, the 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.

Click here to read the full bill text.

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