Patrick McHenryChairman

Washington, September 9, 2024 -

Confronting the generational threat posed by the Chinese Communist Party (CCP) has been a top priority for the House Financial Services Committee under Republican leadership. Building on Financial Services Republicans’ work in the 117th Congress, the Committee has used hearings, legislation, and letters to lead House Republicans’ efforts to stand up to the CCP.

Financial Services Bills on the Floor for House Republicans’ China Week:

H.R. 9456, the Protecting American Agriculture from Foreign Adversaries Act, sponsored by Rep. Dan Newhouse (WA-04)

Strengthens the Committee on Foreign Investment in the United States’ (CFIUS) capacity to inspect sales of American agriculture land to entities associated with foreign adversaries, including China. The bill adds the Secretary of Agriculture as a permanent member of CFIUS. It also ensures agriculture related CFIUS cases are reviewed by requiring the Department of Agriculture to share information on all foreign investments in agriculture with CFIUS. 

H.R. 554, the Taiwan Conflict Deterrence Act of 2023, sponsored by Rep. French Hill (AR-02)

Disincentivizes Chinese aggression towards Taiwan by publishing the assets of top Chinese leaders, as well as cutting them and their family members off from the U.S. financial system, if Beijing acts against Taiwan. H.R. 554 passed out of Committee with unanimous support on February 28, 2023.

H.R. 510, the Chinese Currency Accountability Act of 2023, sponsored by Rep. Warren Davidson (OH-08)

Prevents the CCP from coopting critical international institutions like the International Monetary Fund by requiring the Treasury Secretary to oppose an increase in the weight of China's renminbi in the basket of currencies determining the value of Special Drawing Rights. H.R. 510 passed out of Committee with unanimous support on February 28, 2023.

Financial Services Committee Initiatives to Combat the CCP:

Developing Principles to Guide Legislative Action on China:

In the 117^th Congress, recognizing the generational threat posed by the CCP, then-Ranking Member Patrick McHenry (NC-10) led Financial Services Subcommittee Republican Leaders to develop a set of principles to guide legislative action to win the economic competition with the CCP, without sacrificing core American values. Subcommittee leaders published a series of essays explaining the principles, which culminated in a Morning Consult op-ed authored by then-Ranking Member McHenry. The principles are:

• Walk the Walk–For the U.S. to outcompete China, it cannot become more like the CCP.
• Play by the Rules–The U.S. and its allies must prevent China from rewriting the international rules of the road.
• Lead by Example–National security requires the U.S. financial sector to remain open, vibrant, and resilient, even as we prevent Chinese companies from advancing Beijing’s strategic goals.

Holding Hearings:

Republicans are confronting the generational threat posed by the CCP. That’s why the House Financial Services Committee held its first hearing of the 118^th Congress—entitled “Combatting the Economic Threat from China”—to examine ways to counter the CCP’s malign economic influence. That hearing led to a markup of 10 consequential and related bills in February of 2023. The National Security, Illicit Finance, and International Financial Institutions Subcommittee—led by Chairman Blaine Luetkemeyer (MO-03)—continues to build on that work. For example, the Subcommittee held a hearing entitled, “Follow the Money: The CCP’s Business Model Fueling the Fentanyl Crisis” in March of 2023. In addition to highlighting the Biden-Harris Administration’s failures along the Southern Border, this hearing served as a much-needed reminder for the American people that the Chinese Communist Party plays a key role in the production, distribution, and financing of Fentanyl.

Targeting the CCP’s Military-Industrial Complex:

Following the hearings in 2023, the Financial Services Committee advanced the most effective legislation ever considered by the House targeting global funding for the CCP’s military-industrial complex—the Chinese Military and Surveillance Company Sanctions Act—by voice vote. H.R. 760 limits China’s ability to wage war by cutting off funding and technologies to listed, CCP-linked entities using our strongest time-tested tool—sanctions.

Scrutinizing Foreign Purchases of U.S. Farmland:

To protect the homeland from foreign adversaries like the CCP, the Financial Services Committee secured enactment of legislation to bolster the Committee on Foreign Investment in the United States’ (CFIUS) capacity to appropriately inspect sales of American agriculture land to entities associated with foreign adversaries, including China. This includes adding the Agriculture Secretary as a permanent member of CFIUS and enabling CFIUS to more effectively examine land deals registered by the Agriculture Department. 

Supporting Taiwan:

Taiwan is a critical ally in the United States’ fight against the CCP’s global aggression. Under Republican leadership, the Financial Services Committee has acted on several bills to support Taiwan and ensure its sovereignty is respected. This includes passing legislation through the House to isolate the CCP from the international financial system by requiring the U.S. government to work to exclude representatives from the CCP from proceedings of various international financial groups and organizations in the event of an attack on Taiwan. In addition, the House passed legislation requiring the Treasury Department to take several actions to strengthen Taiwan’s participation in the International Monetary Fund.

Bolstering the China and Transformational Exports Program (CTEP):

In negotiations surrounding the reauthorization of the Export-Import Bank of the United States (EXIM) in 2019, then-Ranking Member McHenry secured the creation of a first of its kind program—CTEP—to leverage EXIM’s resources in our economic competition with the CCP. More recently in June of 2024, the Committee held an oversight hearing of EXIM to ensure that American businesses are postured to compete on a level playing field with those from countries like China. EXIM’s President and Chair of the Board of Directors outlined for Committee Members the successes and challenges that EXIM faces, with an emphasis on CTEP. 

Confronting TikTok:

To combat the threat posed by TikTok’s U.S. operations, Chairman McHenry sent a letter to President Biden urging him to implement the 2020 national security finding by the Committee on Foreign Investment in the United States (CFIUS) that TikTok’s operations pose a national security risk in the United States. Subcommittee Chairman Luetkemeyer also introduced legislation to force the Biden Administration to enforce CFIUS’ national security finding regarding TikTok’s U.S. operations.

Financial Services Republican Sponsored Bills Enacted into Law:

H.R. 5409, the Safeguarding American Farms from Foreign Influence Act, sponsored by Rep. Blaine Luetkemeyer (MO-03)

Ensures important agriculture related CFIUS cases do not slip through the cracks by requiring Treasury to review agriculture related cases referred by the Department of Agriculture for CFIUS designation. H.R. 5409 was enacted as part of the Continuing Appropriations Act of 2024.

H.R. 3378, the Agricultural Security Risk Review Act, sponsored by Rep. Frank Lucas (OK-03)

Ensures foreign purchases of American farmland are appropriately scrutinized by formally adding the Secretary of Agriculture to CFIUS for reviews of foreign investments involving the control of an agribusiness and purchase of U.S. farmland. H.R. 3378 was enacted as part of the Continuing Appropriations Act of 2024.

H.R. 5923, the Iran-China Energy Sanctions Act of 2023, sponsored by Rep. Mike Lawler (NY-17)

Expands secondary sanctions involving Iran to cover all transactions between Chinese financial institutions and sanctioned Iranian banks that transact for the purchase of petroleum and petroleum products. The bill also requires an annual determination as to whether Chinese financial institutions have engaged in sanctionable conduct. H.R. 5923 was enacted as part of H.R.8038, the 21st Century Peace through Strength Act, also known as the “sidecar national security supplemental.”

Financial Services Republican Sponsored Bills Passed by the House:

H.R. 1076, the Preventing the Financing of Synthetic Drugs Act, sponsored by Rep. Monica De La Cruz (TX-15)

Combats the flow of illicit Chinese fentanyl into American communities through a study on illicit financing in connection with the trafficking of synthetic drugs. The study will provide policy makers with better information on how traffickers operate and facilitate illicit activity to draft effective legislation. H.R. 1076 passed the House on May 22, 2023.

H.R. 839, the China Exchange Rate Transparency Act of 2023, sponsored by Rep. Dan Meuser (PA-09)

Protects global market participants from the CCP’s exploitative practices by requiring the U.S. Director at the International Monetary Fund to advocate for greater transparency in China’s disclosure of its exchange rate policies. H.R. 839 passed the House on January 12, 2024.

H.R. 803, the PROTECT Taiwan Act, sponsored by Rep. Frank Lucas (OK-03)

Isolates the CCP from the international financial system by directing the Federal Reserve, the Secretary of Treasury, and the Securities and Exchange Commission to exclude representatives from the People’s Republic of China from proceedings of various international financial groups and organizations in the event of an invasion of Taiwan. H.R. 803 passed the House on January 12, 2024.

H.R. 540, the Taiwan Non-Discrimination Act of 2023, sponsored by Rep. Young Kim (CA-40)

Requires the Treasury Department to take several actions to strengthen Taiwan’s participation in the International Monetary Fund. H.R. 540 passed the House on January 12, 2024.

Republican Sponsored Bills Advanced by the Committee:

H.R. 3244, the Stop Fentanyl Money Laundering Act of 2023, sponsored by Rep. Blaine Luetkemeyer (MO-03)

Provides authority to the Secretary of the Treasury to take special measures to thwart money laundering in connection with illicit fentanyl and narcotics financing. It also alters suspicious activity reports to make it easier for law enforcement to identify illegal narcotics trafficking. H.R. 3244 was passed out of Committee with unanimous support on July 26, 2023.

H.R. 760, the Chinese Military and Surveillance Company Sanctions Act, sponsored by Rep. Andy Barr (KY-06)

Limits China’s ability to wage war by cutting off funding and technologies to listed, CCP-linked entities using our strongest time-tested tool—sanctions. The bill requires the President to impose sanctions on companies involved with China's defense or surveillance technology sectors. H.R. 760 is the most effective legislation ever considered by the House targeting global funding for the CCP’s military-industrial complex. H.R. 760 was passed out of Committee by voice vote on September 20, 2023.

###