US lawmakers propose to exclude China from international financial system if it threatens Taiwan’s security

Remembering the lessons of Russia’s invasion of Ukraine, US Congressman Lucas proposed the “China Exclusion Act” on the 6th. Once China poses any threat to Taiwan’s security or social and economic systems, the bill will exclude China from the international financial system.

U.S. Treasury Secretary Janet Yellen also said at a House Financial Services Committee hearing that the U.S. is prepared to impose sanctions on China if China, as some fear, acts of aggression against Taiwan, just as the U.S. and its allies sanctioned Russia for its invasion of Ukraine .

US Congressman Frank Lucas introduced the “Ostracize China Act” on the 6th. Lucas said in a statement that the greatest generational challenge facing the United States comes from China’s economic, political and national security threats. To prevent China from following the example of Russia’s aggression, Congress should take the necessary steps to subject the People’s Republic of China to significant financial and economic sanctions if Beijing threatens the security, social, or economic system of Taiwan’s people.

He pointed out that coercion and growing efforts to reshape the Indo-Pacific region by China’s use of economic influence and military power must not be left unchecked. The “China Exclusion Act” sends a signal to Beijing that Chinese aggression against Taiwan will Facing accountability from both economic and financial parties.

According to the bill, the bill will seek to exclude Chinese government officials from meetings and related activities of some international financial organizations, including the Group of 20 (G20), Bank for International Settlements (BIS), International Financial Stability Board (Financial Stability Board, Barcelona) Banking Supervisory Commission (BCBS), International Association of Insurance Supervisors (IAIS), International Organization of Securities Commissions (IOSCO) and other international financial organizations.

Russia’s military invasion of Ukraine has sparked international concerns about whether China will follow suit to threaten Taiwan’s security. Yellen said in response to a question from Republican Chief Congressman Patrick McHenry at the House Finance Committee hearing that the U.S. government and the Treasury Department opposed Any practice that unilaterally changes the status quo in Taiwan. The United States is working closely with allies to ensure that the tools are available to address possible threats to Taiwan.

She said the United States has imposed sanctions on China due to China’s forced labor in Xinjiang and provocation of Hong Kong. “Of course we care about Taiwan and will take appropriate action.” The U.S. actions after Russia’s invasion of Ukraine proved that the U.S. can do it with significant consequences, “and should not doubt our ability and determination to do the same in other circumstances”.

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