Should the U.S. enact punitive economic measures against China if they invade Taiwan?
This bill would require the U.S. government to keep a closer eye on the finances of specific Chinese officials if there is a threat from China to U.S. interests. Under the Taiwan Relations Act, the President is directed to promptly inform 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.'' If the President decides such a threat exists, the Treasury Department would have to 1) report to Congress on the money and financial activities of certain Chinese Communist Party members, including details about where the money is held and which banks are involved and 2) explain how these officials got their funds and whether illegal or corrupt methods were used. After this report, U.S. banks would be banned from doing significant business with these officials and possibly their families, except for specific reasons like national security or law enforcement. The President can make exceptions to the ban in certain cases.
Sponsor: Rep. French Hill (Republican, Arkansas, District 2)
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Opponents say
At the time of research and publication, no official opposing statements have been identified. This does not mean that nobody opposes the bill, nor does it mean that opposing statements will not be made in the future.
Proponents say
• "This bill I think is a step in the right direction. As the bill title suggests, it is designed to put the government of China on notice that the United States is closely watching its increasing threats toward Taiwan. It serves as a warning that the U.S . will respond economically and that that is locked into statute should its aggression amount to a violation of section 3C of the Taiwan Relations Act." Source: Rep Brad Sherman (Democrat, California, District 32)
• "Russia's brutal and illegal invasion of Ukraine should serve as a wakeup call to the world. As members of Congress, we should do everything in our power now to send a message that similar behavior will not be tolerated in the future. This bill would help deter Chinese aggression against Taiwan by requiring the Treasury Secretary to publish and freeze the financial assets of senior Chinese Communist Party (CCP) officials and their relatives held at domestic and foreign banks should China threaten Taiwan. I thank my friend, Rep. Sherman, for joining me in introducing this bipartisan bill." Source: Rep. French Hill (Republican, Arkansas, District 2)
• "The Financial Services Committee has repeatedly pressed administration officials to devise a plan that imposes real costs on the Chinese Communist Party in the event that it invades Taiwan. The time to formulate those measures is now. We must publicly communicate what we intend to do so that Beijing thinks twice before launching an attack against our friends on the island. This is why Mr. Hill’s legislation is so important. If Beijing chooses to invade Taiwan, this bill requires the treasury secretary to publish the ill-gotten gains of the Chinese Communist Party’s top leadership, no matter where they may be held around the world." Source: Rep. Young Kim (Republian, California, District 40)
- Rep. Hill’s bill to expose financial corruption of China’s leaders passes House (Press Release)
- Taiwan Conflict Deterrence Act Cost Estimates (Congressional Budget Office)
- Confrontation Over Taiwan: Global Conflict Tracker (Council on Foreign Relations)
- What's behind China-Taiwan tensions? (BBC News)
- How China could take Taiwan without even needing to invade (CNN)
- Rep. French Hill’s Largest Donors (OpenSecrets)
