The Congresswoman’s “China Financial Threat Mitigation Act” Would Help Provide Recommendations for Mitigating the Exposure of the U.S. Economy to the CCP’s Financial System
WASHINGTON, D.C. — An overwhelming majority of the U.S. House of Representatives tonight voted 400 to 5 to pass U.S. Representative Abigail Spanberger’s bipartisan bill to strengthen 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.”
Spanberger’s China Financial Threat Mitigation Act would require the U.S. Treasury Department to review and assess the effects of the CCP’s recent financial sector reforms on the U.S. economy and the global financial system. Additionally, the bill would help outline U.S. government policies that can protect American interests.
“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,” said Spanberger. “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.”
Under Spanberger’s bipartisan bill, the U.S. 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.
Earlier this year, 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.
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