PROTECT Taiwan Act
PROTECT Taiwan Act
Plain Language Summary
# PROTECT Taiwan Act Summary **What the Bill Does:** The PROTECT Taiwan Act would authorize the U.S. President to work toward excluding China from participation in six major international financial organizations—including the Group of Twenty (G20), the Bank for International Settlements, and the Financial Stability Board—if the President determines that China's actions threaten Taiwan or U.S. interests. The bill establishes this as official U.S. policy and requires the President to notify Congress before taking such action. **Who It Affects:** This bill primarily affects U.S.
foreign policy toward China and Taiwan. It would impact international financial governance by potentially removing Chinese representation from key banking and financial regulatory bodies. Secondarily, it could affect global financial markets and international institutions, as well as countries with economic ties to China. **Current Status:** The bill has passed the House of Representatives. It now requires Senate approval and the President's signature to become law. The bill reflects congressional concern about Chinese actions toward Taiwan and represents an approach to leverage international financial institutions as a diplomatic tool.
CRS Official Summary
Pressure Regulatory Organizations To End Chinese Threats to Taiwan Act or the PROTECT Taiwan Act This bill requires certain federal entities to seek to exclude China from six international financial organizations if the President informs Congress that China's actions threaten Taiwan and pose a danger to U.S. interests.Specifically, the bill establishes that it is U.S. policy to seek to exclude Chinese representatives from participating in the activities of six international organizations if the President informs Congress that China's actions pose any (1) threat to Taiwan's security, economic system, or social system; and (2) danger to U.S. interests.The six specified organizations are the Group of Twenty,the Bank for International Settlements,the Financial Stability Board,the Basel Committee on Banking Supervision,the International Association of Insurance Supervisors, andthe International Organization of Securities Commissions.In the event that the President so informs Congress, the bill requires the Department of the Treasury, the Federal Reserve, and the Securities and Exchange Commission to take all necessary steps to advance the exclusion policy.The President may waive the application of this policy to an organization if doing so is in the national interest of the United States.
Latest Action
Received in the Senate and Read twice and referred to the Committee on Foreign Relations.