House passes bills to mitigate China financial threat, prevent financing of illegal drugs

The U.S. House of Representatives passed two bills this week that were first introduced in the House Financial Services Committee.

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The China Financial Threat Mitigation Act of 2023 (H.R. 1156), sponsored by U.S. Reps. Abigail Spanberger (D-VA) and Roger Williams (R-TX), looks to promote American financial resiliency by requiring the Treasury Secretary to report on global economic risks emanating from the Chinese financial sector.

The bill passed by a vote of 400 to 5.

“I am proud to announce the passage of the China Financial Threat Mitigation Act by the House of Representatives. As the threat of the Chinese Communist Party’s interference and aggression continues to rise, our financial systems must be prepared to proactively mitigate any wrongdoing by the CCP,” Williams said. “If enacted, my bill with Rep. Spanberger, would ensure no systemic threats are associated with China’s shadow banking sector and help mitigate risks effectively while allowing U.S. officials to work with allies to safeguard global financial stability. Our priority should always be to protect our Western values, and this bill is a step in holding the CCP accountable for financial abuses and promotes the interests of the United States.”

The Preventing the Financing of Illegal Synthetic Drugs Act (H.R. 1076), sponsored by Rep. Monica De La Cruz (R-TX), seeks to combat the flow of illicit Chinese fentanyl into American communities through a study on illicit financing in connection with the trafficking of synthetic drugs.

Both of these bills now move to the U.S. Senate for consideration.