PROTECT Taiwan Act

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 803) to direct certain financial regulators to exclude representatives of the People's Republic of China from certain banking organizations upon notice of certain threats or danger, 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 the bill.

Mr. Speaker, I yield myself such time as I may consume. I rise in support of H.R. 803, the PROTECT Taiwan Act, introduced by the chairman of the Science, Space, and Technology Committee and senior member of the House Financial Services Committee, Mr. Lucas.

In addition to its hostile rhetoric, China has sought to intimidate Taiwan by making large incursions into the island's airspace. In fact, according to the Global Taiwan Institute, there were 563 incursions in 2022. Between January and August 23, 2023, there were 461 median-line crossings and 560 southwest incursions. Those are a lot of incursions.

If the Xi Jinping regime seeks to provoke war in Taiwan, Congress must clearly signal the costs that will be imposed on the Chinese Communist Party if it acts against the island.

One of those costs should be China's exclusion from the international community, which is a bipartisan pressure point. Chinese leaders must understand that a threat to Taiwan is a threat to international order, and a threat to Taiwan is a threat to China's economic growth opportunities.

As a result, we think China should not be able to participate in multilateral organizations if they conduct this type of business.

We have already seen Russia's isolation on the international stage after its invasion of Ukraine. We must be clear that this is what awaits Beijing if they cross the line in Taiwan.

Mr. Lucas' bill would make China a pariah in key organizations devoted to ensuring global economic stability. This includes the G20, the Financial Stability Board, and other gatherings of international financial regulators. Participation in these groups should be reserved for countries that take international norms and values seriously.

A Chinese invasion of Taiwan would underscore that Beijing has surrendered its right to be included. I thank Mr. Lucas for his hard work on the PROTECT Taiwan Act and Congressman Vicente Gonzalez of Texas on the Democrat side for being an original cosponsor.

Now more than ever I think we must show that deterring Chinese aggression against Taiwan is a bipartisan issue for the United States Congress. I think this bill will send that right signal.

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

House of Representatives,

Committee on Foreign Affairs,

Washington, DC, February 28, 2023.

Hon. Patrick McHenry,

Chairman, Committee on Financial Services,

Washington, DC.

Dear Chairman McHenry: Thank you for consulting with the

Committee on Foreign Affairs on H.R. 803, the PROTECT Taiwan

Act.

I agree that the Foreign Affairs Committee may be

discharged from further action on this measure, subject to

the understanding that this waiver does not in any way

diminish or alter the jurisdiction of the Foreign Affairs

Committee, or prejudice its jurisdictional prerogatives on

this bill or similar legislation in the future. The Committee

also reserves the right to seek an appropriate number of

conferees to any House-Senate conference involving this bill

and would appreciate your support for any such request.

I ask that you place our exchange of letters into the

Congressional Record during floor consideration of the bill.

I appreciate your cooperation, and look forward to continuing

to work with you as this measure moves through the

legislative process.

Sincerely,

Michael T. McCaul,

Chairman.

Mr. Speaker, I yield such time as he may consume to the gentleman from Oklahoma (Mr. Lucas), the chair of the Committee on Science, Space, and Technology and a senior member of the House Financial Services Committee.

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

I reiterate that Chinese leaders must understand that a threat to Taiwan is a threat to international order, and it should be a threat to their standing in international institutions.

They will not be able to operate in major multilateral organizations as if it were business as usual.

We know the impact on Russia after its invasion of Ukraine. We have to let officials in Beijing know that that is what awaits them if they cross the line in Taiwan.

I urge adoption of this bill and support for the bill. I thank my colleague, Mr. Lucas, for his friendship and for his kind words, as well as his important leadership on this topic.

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

Mr. Speaker, I object to the vote on the ground that a quorum is not present and make the point of order that a quorum is not present.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 540) to require the Secretary of the Treasury to pursue more equitable treatment of Taiwan at the international financial institutions, 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. 540, the Taiwan Non- Discrimination Act of 2023, introduced by the vice chair of the National Security, Illicit Finance, and International Financial Institutions Subcommittee, the gentlewoman from California (Mrs. Kim).

As China continues to threaten Taiwan, Congress must consider ways to deter Beijing from future aggression. The House Financial Services Committee has developed numerous bills to do just that, but countering China's military ambitions isn't our only focus when it comes to Taiwan policy.

The U.S. has long supported Taiwan's membership in international organizations where statehood is not a prerequisite. We also support longstanding policy to help Taiwan's voice be heard in these organizations when membership is impossible.

This is positive for Taiwan on the world stage and should be a priority for the United States Congress.

Unfortunately, over the past 3 years, the Biden administration has repeatedly fallen short when it comes to our Taiwan policy at the International Monetary Fund, or the IMF.

The IMF is the world's lender of last resort as well as a key institution monitoring global economic conditions. As one of the world's most advanced and innovative economies, Taiwan should be included under the Fund's activities, yet it has been left out due to ridiculous concerns over offending China.

The IMF's rules already allow Taiwan to become a member, as Mrs. Kim's bill clearly lays out in detail. That means our representation and our representatives at the IMF should support Taiwan if it chooses to apply.

Mrs. Kim's legislation would make this support explicit and ensure the Treasury Department voices our support on the board of the IMF.

Joining the IMF would also open up opportunities for Taiwan in other international financial institutions. This includes the World Bank, where IMF membership is a prerequisite.

The IMF has no fewer than 190 countries, nearly the totality of the world. An economy as vital as Taiwan should have a seat at this important table.

Mr. Speaker, I thank our Democratic colleagues for their support in keeping this a bipartisan issue, and I thank the bill's sponsor, Mrs. Kim, for her important leadership, as well.

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

Mr. Speaker, I yield 3 minutes to the gentlewoman from California (Mrs. Kim).

Mr. Speaker, I yield 2 minutes to the gentleman from Missouri (Mr. Luetkemeyer), the chair of the National Security, Illicit Finance, and International Financial Institutions Subcommittee.

Mr. Speaker, I am prepared to close, and I reserve the balance of my time.

Mr. Speaker, I would just reiterate that Mrs. Kim's bill is critical to strengthening both our national security and the global economy. I think it is important that we state clearly as the United States Congress our support for Taiwan.

Taiwan has one of the world's most advanced and innovative economies and should be included under the IMF's activities.

I urge my colleagues to support this bill and thank my Democratic colleagues on the House Financial Services Committee for working with committee Republicans on supporting this bill.

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

Mr. Speaker, I object to the vote on the ground that a quorum is not present and make the point of order that a quorum is not present.

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

Mr. Speaker, I rise in support of H.R. 540, the bipartisan Taiwan Non-Discrimination Act, sponsored by Congresswoman Kim of California and Congressman Green of Texas.

This bill would require the United States to advocate for Taiwan's membership and meaningful participation at the International Monetary Fund, or IMF, to the extent that admission is sought by Taiwan.

IMF membership provides several nonprofit benefits to participants, such as access to information on members' economic policies; access to technical assistance related to banking, fiscal affairs, and exchange issues; financial support in times of payment distress; and opportunities for trade and investment.

If IMF admission is sought by Taiwan, this bill would further require the United States to press the IMF to monitor and evaluate the health of Taiwan's economy; provide technical support to Taiwanese officials regarding microeconomic, monetary, and budget policies; and support employment opportunities at the IMF for Taiwan nationals.

To date, Taiwan has not formally requested membership at the IMF. I also understand that Taiwan does not intend to request membership this Congress and is, instead, focusing on other organizations such as the World Health Organization and the International Criminal Police Organization, INTERPOL. We respect that and appreciate the structure of this bill that positions the United States to act should Taiwan request membership.

I also believe it is critical that the United States continue to signal unequivocal opposition to the prospect of China using force in an effort to take control of Taiwan, especially as China is watching Russia's invasion of Ukraine. Democrats have been sounding the alarm, and I will repeat this warning here today: We must provide additional funding for Ukraine or we risk emboldening China's aggression against Taiwan.

While I support this bill and all efforts to prevent conflict in the Taiwan Strait, I am concerned that if Congress cannot come together to provide additional funding for Ukraine, our efforts here today will be in vain.

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

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

Mr. Speaker, since the gentleman from North Carolina has no further speakers, I yield myself the balance of my time to close.

This legislation from Congresswoman Kim and Congressman Green directs the United States to support Taiwan should the island pursue participation in the IMF.

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

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

I rise in support of H.R. 803, the PROTECT Taiwan Act, sponsored by Congressman Lucas of Oklahoma and Congressman Vicente Gonzalez of Texas.

This bill would impose financial consequences on China if it launched a major act of aggression against Taiwan. Specifically, this bill would require Treasury, the Federal Reserve, and the Securities and Exchange Commission to seek China's exclusion from the proceedings of the major financial institutions and international organizations. These include the G20, the Bank for International Settlements, the Financial Stability Board, the Basel Committee on Banking Supervision, the International Association of Insurance Supervisors, and the International Organization of Securities Commissions.

In short, this bill would deny China the economic, political, and diplomatic benefits of participation in the international organizations that ensure stability of financial markets and businesses if it were to engage in a major act of aggression against Taiwan.

This bill imposes a high threshold with regard to what kind of aggression would trigger this action. Specifically, it requires a Presidential notification to Congress under section 3(c) of the Taiwan Relations Act, which would only occur if there were a substantial threat to Taiwan. For reference, section 3(c) was not triggered during the tensions of the Third Taiwan Straits Crisis of the 1990s.

I also thank the bill's sponsor for working with Democrats to adopt changes to the bill that ensures it closely mirrors a similar law passed in the last Congress aimed at Russia following its unlawful invasion of Ukraine.

Accordingly, the United States is now actively seeking Russia's exclusion from these international bodies.

If China were to cross the line Russia crossed by invading Ukraine, we would similarly seek to exclude them from these international bodies.

For all of these reasons, I urge my colleagues to support the passage of this bill, and I reserve the balance of my time.

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

This legislation from Congressmen Lucas and Gonzalez is designed to send a message to China, discouraging escalation of its aggression toward Taiwan.

I again note that while I agree that sending a strong signal to China regarding the United States' support for the prevention of conflict in the Taiwan Strait is important, we must also send a strong signal to Russia by providing additional funding to our fellow democracy, Ukraine.

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

Mr. Speaker, I thank Mr. McHenry for yielding and supporting my legislation. I also thank Representative Green of Texas for co-leading this bill, H.R. 540, and making it a bipartisan effort.

Mr. Speaker, I rise in strong support of this bill, H.R. 540, the Taiwan Non-Discrimination Act.

Longstanding U.S. policy towards Taiwan has supported its membership

in international organizations where statehood is not a prerequisite.

The U.S. also advocates for Taiwan's voice to be heard where membership is not possible. This principle has lasted decades across Republican and Democratic administrations, and it has repeatedly been reaffirmed in bills passed by Congress.

My bill is straightforward. It requires the Treasury Department to implement our Taiwan policy at the International Monetary Fund, or IMF.

Taiwan is not required to be a member state of the United Nations in order to gain membership in the IMF. For example, Kosovo, also not a U.N. member, has belonged to the IMF for over a decade.

If Taiwan seeks admission to the IMF, then the Treasury Department should carry out our longstanding U.S. policy and support its application. While Taiwan awaits its admission to the IMF, H.R. 540 encourages the U.S. Governor of the IMF to support integrating Taiwan into the IMF's regular economic monitoring activities and Taiwanese nationals with equal employment opportunities at the IMF.

The IMF is devoted to monetary cooperation, exchange rate stability, and the growth of international trade. Taiwan is one of our top 10 trading partners, and it has the fifth largest cash reserves of any foreign country; greater than Brazil, South Korea, Mexico, or any European country except Switzerland.

At a time when China has been threatening the work of the IMF through its nontransparent lending abroad and its lack of cooperation with other creditors, we must focus the IMF on effective international cooperation.

Mr. Speaker, advocating for Taiwan's membership in the IMF would also unlock additional opportunities for the country in other international financial institutions, as was mentioned, one of which is the World Bank which requires countries to first be members of the IMF before becoming a member of World Bank.

With Taiwan's election taking place this week, I urge my colleagues to vote in favor of H.R. 540 and send the Taiwanese people a strong message of solidarity and support for their democracy.