China Financial Threat Mitigation Act of 2023

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 1156) to require the Secretary of the Treasury to conduct a study and report on the exposure of the United States to the financial sector of the People's Republic of China, and for other purposes, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on this bill.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of H.R. 1156, the China Financial Threat Mitigation Act. This is a measure that originated in the Committee on Financial Services, where it was first introduced by our former colleague, Anthony Gonzalez of Ohio. I am pleased to see his cosponsor, Ms. Spanberger, continue to champion the measure in this Congress.

The China Financial Threat Mitigation Act is based on the notion that China's financial system is so opaque that it may hide risks for the global economy of which we aren't aware. The bill requires the Treasury Secretary to study and report on these risks so we can take effective countermeasures.

As we all know, China has been cracking down on Western firms and executives due to fears that the private sector's information gathering and due diligence efforts pose a threat to the Chinese Communist Party. The CCP clearly views transparency as inconsistent with its self- interest. This should alarm us all.

Due to the state-owned nature of many Chinese financial institutions, there are already fewer market signals that can alert us to problems in time, and the central government may be on the hook for liabilities of unknown scope.

The Financial Stability Oversight Council has touched on the possibility of risks in the country, including those arising from China's housing sector, but these have been broad-brush efforts. We need to dig deeper, and that is what the reporting in this legislation will require.

Mr. Speaker, I urge my colleagues to support this measure, and I reserve the balance of my time.

Mr. Speaker, I yield such time as he may consume to the gentleman from Texas (Mr. Williams), our baseball coach who has distinguished himself not only here in Congress but also on the baseball field.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield myself the balance of my time.

I thank the sponsors of the bill, Mr. Williams, Mrs. Beatty, and Ms. Spanberger for their hard work on this good piece of legislation. I think it is something that is very important. They have already expressed the need for it.

Mr. Speaker, I urge adoption of this bill, and I yield back the balance of my time.

Mr. Speaker, on that I demand the yeas and nays.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of H.R. 1156, the China Financial Threat Mitigation Act of 2023, sponsored by Representative Spanberger of Virginia.

It is crucial that we closely monitor any risk to our financial system and economy that may arise from the financial sector and economy of the People's Republic of China.

Our financial regulators have already raised some concerns about such risks. For example, the Financial Stability Oversight Council highlighted in their 2022 report that ``difficulties in the real estate sector could cause strains across China's financial system, including at banks, nonbanks, corporate bond markets, and local government finances.''

However, further analysis is needed, as China's size and interconnectedness with the global economy may pose risks to the United States if those kinds of risks spill over.

H.R. 1156 would require a comprehensive report by our Treasury Department looking at these different types of financial risks, in consultation with relevant agencies, to better inform Congress and provide actionable recommendations to our representatives at various international bodies, such as the Financial Stability Board, in order to mitigate these risks.

Ranking Member Waters was pleased to work with Chair McHenry last Congress to advance this bipartisan bill through the House. I join her in hoping that we can pass this bill again with the support of the Senate so this work can begin quickly.

Mr. Speaker, I urge my colleagues to support this bill, and I reserve the balance of my time.

Mr. Speaker, I yield such time as she may consume to the gentlewoman from Ohio (Mrs. Beatty).

Mr. Speaker, I yield myself the balance of my time.

I commend Representative Spanberger for her leadership on these important issues and her work in drafting this bipartisan bill.

I also thank Chair McHenry and Representative Williams of Texas on the other side of the aisle for working with us Democrats on this important legislation.

This bipartisan work resulted in a vote of 40-0 on this bill during a Financial Services Committee markup earlier this year.

I, again, urge my colleagues to support this bill, and I yield back the balance of my time.

Mr. Speaker, I thank the gentlewoman for yielding me time.

Mr. Speaker, I am pleased to rise in support of the China Financial Threat Mitigation Act, or H.R. 1156.

Certainly, I agree with my colleague and friends across the aisle that we need to dig deeper. We understand that, yes, China is trying to weaken our country. Because of its size and deep connection to the global economy, the People's Republic of China represents a potential threat to our economy and our financial system.

We must have a clear picture of the systemic risks we face so we can respond appropriately to safeguard our economic interests and mitigate these threats.

Mr. Speaker, this bipartisan bill will require the Treasury Department to study and issue a report that analyzes risks to the United States' financial stability and the global economy stemming from China.

I thank my colleague, the vice chair of this subcommittee, for participating today, along with our Republican colleagues.

As the ranking member of the Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions, I am very happy to work across the aisle to address the issues of competitiveness with China.

Mr. Speaker, this is the right thing to do, and I urge all Members to support this bipartisan bill.

Mr. Speaker, lastly, I don't think I need to remind my colleagues that this legislation was brought three times in the last Congress. I certainly thank then-Congressman Gonzalez from Ohio, who sponsored this legislation.

Mr. Speaker, I thank the chairman for that great introduction.

Mr. Speaker, China is attempting to weaken our country in any way possible. The interference and aggression coming from the Chinese Communist Party pose a significant threat to our families, businesses, and country. The CCP's track record of abusing our financial system is jeopardizing our national and economic security.

H.R. 1156, the China Financial Threat Mitigation Act, requires the Department of the Treasury to report on the risks coming from the Chinese financial sector, along with recommendations on strengthening international cooperation to monitor and mitigate these risks.

Our top priority should always be to protect our Western values and promote the greatest country in the world and the interests of the United States.

My bill is a critical step in holding the CCP accountable for their continued abuse of the financial sector.

Mr. Speaker, I urge all of my colleagues to support this important piece of legislation. In God We Trust.

Mr. Speaker, due to unforeseen circumstances, I was unable to participate in voting on H.R. 1076 and H.R. 1156. Had I been present, I would have voted YEA on Roll Call No. 228, and YEA on Roll Call No. 229.