U.S. Rep. Abigail Spanberger (D-VA) is commending the House Financial Services Committee for advancing the China Financial Threat Mitigation Act, which seeks to strengthen global ally coalitions to combat financial risks.
“To best know exactly what we’re up against, we need to conduct a thorough analysis of the potential threats posed to the U.S. economy by recent changes to the Chinese financial sector and the CCP’s longstanding trade and financial abuse practices,” said Spanberger, who introduced the measure with Rep. Roger Williams (R-TX). “Our bipartisan bill would strengthen our domestic response. I’m grateful to my colleagues on the Financial Services Committee for recognizing the need to better protect the long-term financial security of American families and businesses. We must continue to push this legislation to the President’s desk to be signed into law.”
The 40-0 Committee vote would aid the nation’s response to emerging CCP financial threats, with bill proponents citing a U.S. China Economic and Security Review Commission report indicating exchange rates are the most likely channel through which economic pain could be transmitted to U.S. investors, with a number of other channels raising the exposure of domestic investors and savers to China’s risky banking system.
Bill provisions include requiring the Treasury Department to study and issue a report assessing the impact of reforms to the financial sector of the CCP on the United States and global financial system and requiring the Treasury Department to provide recommendations for further actions the government can take to strengthen international cooperation to monitor and mitigate financial risks.