One thing, maybe the only thing, you will see Democrats and Republicans in Washington agree on is that China is bad.
The latest example of this is the 400-5 vote in the U.S. House late Monday to pass the China Financial Threat Mitigation Act, bipartisan legislation introduced by Abigail Spanberger (D-VA-07) and Roger Williams (R-TX-25).
The legislation would require the Treasury Department to review and assess the effects of the Chinese Communist Party’s recent financial sector reforms on the U.S. economy and the global financial system, and help outline U.S. government policies that can protect American interests.
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.
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.”
“America’s exposure to the Chinese economy brings significant risks. Xi Jinping’s changes to the Chinese financial sector — combined with the Chinese Communist Party’s long history of trade abuses — mean that we need to better understand potential threats,” Spanberger said. “As a former CIA case officer, I know that threats to our financial security are threats to our national security. This bipartisan bill would help identify ways to strengthen our domestic response, as well as ways to work with our allies in the face of a rising and aggressive CCP in many corners of the world. I look forward to this legislation now moving to the U.S. Senate and the President’s desk — so that we can protect the financial stability of American families, businesses, and our overall economy.”
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Chris Graham
