U.S. Sens. Mark R. Warner of Virginia, Mike Rounds of South Dakota and Cynthia Lummis of Wyoming introduced the China Financial Threat Mitigation Act in late March.
The legislation is aimed at shoring up America’s response to financial threats stemming from the Chinese Communist Party (CCP), and would require deeper analysis of potential financial threats from the CCP that may have substantial impacts on the U.S. economy.
“We continue to see increased aggression from the Chinese Communist Party toward the United States, including in the financial sector. This increased action requires us to take meaningful steps to protect U.S. institutions and interests. That’s why I’m proud to introduce this bipartisan legislation that will help to shore up our financial systems and ensure that the U.S. is prepared to counter the CCP’s attacks,” Warner, vice chair of the Senate Select Committee on Intelligence, said.
The legislation would also require the Department of the Treasury, in consultation with the Federal Reserve, U.S. Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and State Department, to issue a report on the exposure of the United States to the threats posed by China‘s financial sector.
The required report must include:
- Effects the reforms to China‘s financial sector have on U.S. and global financial systems;
- Description of the policies the United States is adopting to protect U.S. interests;
- Description and analysis of any risks presented by China to the financial stability of the United States and the global economy; and
- Recommendations for additional actions to strengthen international cooperation to mitigate risks and protect U.S. interests.
“The Chinese Communist Party has the ability to intervene in China’s banking system to achieve outcomes that benefit them the most, which has potential to harm American businesses. We must gain a clearer understanding of how China’s financial sector affects the U.S. economy and other global financial systems. Our legislation tasks the Treasury Department, working with other federal agencies, to assess and report on U.S. exposure to China‘s financial activities, providing a clearer picture of the threat,” Rounds said.
Lummis said the CCP “is a serious threat to our national and economic security. I am partnering with my colleagues to protect U.S. financial interests and hold the CCP accountable, and I look forward to getting this bipartisan legislation across the finish line.”
Warner has worked to ensure the U.S. is prepared to counter threats posed by foreign adversaries including the CCP across various sectors. He spearheaded the push to force CCP-based ByteDance to divest from TikTok in order to allow the app to continue operations in the U.S.
In 2024, Warner introduced the Countering CCP Drones and Supporting Drones for Law Enforcement Act, legislation to cut off dangerous CCP drone companies from the U.S. telecommunication infrastructure. He also introduced bipartisan and bicameral legislation to improve information sharing between private companies and the Intelligence Community in order to mitigate the threat that foreign adversaries including the CCP pose to United States companies in foreign jurisdictions on projects relating to energy generation and storage, including in the critical minerals industry. This legislation is the latest step in his efforts to safeguard American interests.
The legislation was introduced in the House of Representatives by U.S. Reps. Josh Gottheimer of New Jersey and Roger Williams of Texas.
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Rebecca Barnabi
