Federal

China Financial Threat Mitigation Act of 2023

Source: Congress.gov · 646 words in original text

What This Bill Does

This bill requires the Secretary of the Treasury to study and report on how much financial risk the United States faces from China's financial sector. The Secretary must work with leaders from the Federal Reserve (the nation's central bank), the Securities and Exchange Commission (the agency that regulates stock markets), the Commodity Futures Trading Commission (the agency that oversees futures markets), and the State Department. The report must be completed within one year of the bill becoming law.

Who It Affects

The Secretary of the Treasury, the Federal Reserve, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the State Department, the House of Representatives, the Senate and international organizations that the United States participates in.

Key Provisions

- The Treasury Secretary must assess how changes to China's financial sector could affect the United States and global financial systems (Sec. 2(a)(1)) - The Treasury Secretary must describe what policies the U.S. government is using to protect American interests while China's financial sector changes (Sec. 2(a)(2)) - The Treasury Secretary must identify and analyze any risks to U.S. financial stability and the global economy coming from China (Sec. 2(a)(3)) - The Treasury Secretary must recommend additional actions the U.S. government and international organizations should take to monitor and reduce these financial risks (Sec. 2(a)(4)) - The Treasury Secretary must send the report to specific House and Senate committees and publish the non-secret version on the Treasury Department's website (Sec. 2(b) and 2(d))

What Changes

The Treasury Department will conduct a comprehensive study on China's financial sector and its potential impact on America. Congress and the public will receive a public report on the findings within one year.

Important Definitions

None defined in bill text.

IIB 118TH CONGRESS 1ST SESSION H. R. 1156 IN THE SENATE OF THE UNITED STATES MAY 30, 2023 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT To require the Secretary of the Treasury to conduct a study and report on the exposure of the United States to the financial sector of the People’s Republic of China, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 00:21 May 31, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1156.RFS H1156 kjohnson on DSK79L0C42PROD with BILLS 2 HR 1156 RFS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘China Financial 2 Threat Mitigation Act of 2023’’. 3 SEC. 2. CHINA FINANCIAL THREAT MITIGATION. 4 (a) REPORT.—Not later than one year after the date 5 of the enactment of this Act, the Secretary of the Treas- 6 ury, in consultation with the Chairman of the Board of 7 Governors of the Federal Reserve System, the Chairman 8 of the Securities and Exchange Commission, the Chair- 9 man of the Commodity Futures Trading Commission, and 10 the Secretary of State, shall conduct a study and issue 11 a report on the exposure of the United States to the finan- 12 cial sector of the People’s Republic of China that in- 13 cludes— 14 (1) an assessment of the effects of reforms to 15 the financial sector of the People’s Republic of 16 China on the United States and global financial sys- 17 tems; 18 (2) a description of the policies the United 19 States Government is adopting to protect the inter- 20 ests of the United States while the financial sector 21 of the People’s Republic of China undergoes such re- 22 forms; 23 (3) a description and analysis of any risks to 24 the financial stability of the United States and the 25 VerDate Sep 11 2014 00:21 May 31, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1156.RFS H1156 kjohnson on DSK79L0C42PROD with BILLS 3 HR 1156 RFS global economy emanating from the People’s Repub- 1 lic of China; and 2 (4) recommendations for additional actions the 3 United States Government, including United States 4 representatives at relevant international organiza- 5 tions, should take to strengthen international co- 6 operation to monitor and mitigate such financial sta- 7 bility risks and protect United States interests. 8 (b) TRANSMISSION OF REPORT.—The Secretary of 9 the Treasury shall transmit the report required under sub- 10 section (a) not later than one year after the date of enact- 11 ment of this Act to the Committees on Financial Services 12 and Foreign Affairs of the House of Representatives, the 13 Committees on Banking, Housing, and Urban Affairs and 14 Foreign Relations of the Senate, and to the United States 15 representatives at relevant international organizations, as 16 appropriate. 17 (c) CLASSIFICATION OF REPORT.—The report re- 18 quired under subsection (a) shall be unclassified, but may 19 contain a classified annex. 20 (d) PUBLICATION OF REPORT.—The Secretary of the 21 Treasury shall publish the report required under sub- 22 section (a) (other than any classified annex) on the 23 VerDate Sep 11 2014 00:21 May 31, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1156.RFS H1156 kjohnson on DSK79L0C42PROD with BILLS 4 HR 1156 RFS website of the Department of the Treasury not later than 1 one year after the date of enactment of this Act. 2 Passed the House of Representatives May 22, 2023. Attest: CHERYL L. JOHNSON, Clerk. By LISA P. GRANT, Deputy Clerk. VerDate Sep 11 2014 00:21 May 31, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1156.RFS H1156 kjohnson on DSK79L0C42PROD with BILLS

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