Patrick McHenryChairman

Washington, February 4, 2022 -

Today, the top Republican on the House Financial Services Committee, Patrick McHenry (NC-10), issued the following statement after voting against House Democrats’ partisan, so-called China competitiveness legislation:

“Congressional Democrats are more focused on stifling American innovation than confronting the generational threat posed by the Chinese Communist Party,” said Republican Leader McHenry. “For example, Democrats slipped cryptocurrency prohibitions into this unrelated, 3,000-page bill, which would create a back door for the Treasury Secretary to strangle financial innovation. To ensure our continued leadership, including in the digital assets space, we must focus on what has defined our nation’s success. Last year, Committee Republicans released three key principles on how the U.S. can outcompete China by: recommitting to free markets and free people, preventing China from rewriting the international rules of the road, and maintaining an open, vibrant, and resilient financial system. House Democrats’ bill misses the mark on all counts.”

Background:

Last year, the Republican Leaders on the House Financial Services Committee released principles to guide Congress’ evaluation of legislation intended to counter the rise of the Chinese Communist Party. Democrats’ partisan bill misses the mark.

Last week, Republican Leader McHenry released a statement slamming House Democrats for forgoing bipartisanship and introducing this so-called competitiveness bill full of partisan poison pills.

Financial Services Committee Republican Proposals to Actually Counter the Global Threat of China:

• The Chinese Military Company Sanctions Act, introduced by Rep. Andy Barr (KY-06), Closes loopholes in U.S. restrictions on publicly traded securities of Chinese military and surveillance companies by requiring the President to impose OFAC sanctions following the listing of such companies by the Department of Defense and Treasury.

• The IMF Reform and Integrity Act, introduced by Rep. Bill Huizenga (MI-02), prohibits an International Monetary Fund (IMF) quota increase for China unless China abides by the principles of the IMF and is committed to Paris Club rules.

• The Special Drawing Rights Oversight Act, introduced by Rep. French Hill (AR-02), limits Treasury’s unilateral authority to allocate Special Drawing Rights, which could be used without conditions to send China billions of dollars in hard currency and allow its borrowers to repay Chinese loans.

• The International Nuclear Energy Financing Act, introduced by Republican Leader McHenry, responds to Chinese financing of energy infrastructure abroad, including nuclear power, by requiring the U.S. Executive Director at the World Bank to support financial assistance for the generation and distribution of nuclear energy.

• The Neutralizing Unfair Chinese Export Subsidies Act, introduced by Rep. Lee Zeldin (NY-01), requires a Treasury strategy and progress reports to advance international negotiations to bring China into compliance with the OECD Arrangement on Officially Supported Export Credits.

• The Taiwan Non-Discrimination Act, introduced by Rep. Anthony Gonzalez (OH-16), requires the U.S. to support Taiwan’s membership and meaningful participation in the IMF.

• The Chinese Currency Accountability Act, introduced by Rep. Warren Davidson (OH-08), makes any increase in the Chinese renminbi’s weighting in the IMF’s Special Drawing Rights currency basked conditional on Treasury certifying that China is complying with key provisions of the IMF’s Articles of Agreement, the Paris Club, and the OECD Arrangement on Officially Supported Export Credits.

• The 21^st Century Dollar Act, introduced by Rep. Hill, requires Treasury to assess the risk regarding internationalization of the Chinese renminbi and a U.S. strategy on maintaining the U.S. dollar’s position as the global reserve currency.

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