Taiwan Conflict Deterrence Act of 2023
Floor Speech
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Mrs. KIM of California. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 554) to deter Chinese aggression towards Taiwan by requiring the Secretary of the Treasury to publish a report on financial institutions and accounts connected to senior officials of the People's Republic of China, to restrict financial services for certain immediate family of such officials, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows: H.R. 554
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.
This Act may be cited as the ``Taiwan Conflict Deterrence Act of 2023''. SEC. 2. REPORT ON FINANCIAL INSTITUTIONS AND ACCOUNTS CONNECTED TO CERTAIN CHINESE GOVERNMENT OFFICIALS.
(a) Financial Institutions Report.--
(1) In general.--Not later than 90 days after the date that the President, pursuant to section 3(c) of the Taiwan Relations Act (22 U.S.C. 3302(c)), informs the Congress of a threat resulting from actions of the People's Republic of China and any danger to the interests of the United States arising therefrom, and annually thereafter for 3 years, the Secretary of the Treasury shall submit a report to the appropriate Members of Congress containing the following:
(A) With respect to each of at least 10 natural persons described under subsection (b), at least 1 of whom is a natural person listed under paragraph (1) of such subsection (b) and at least 1 of whom is a natural person listed under paragraph (2) of such subsection (b), the estimated total funds that are held in financial institutions and are under direct or indirect control by such natural person and a description of such funds.
(B) A list of any financial institutions that--
(i) maintain an account in connection with significant funds described in subparagraph (A); or
(ii) otherwise provide significant financial services to a natural person covered by the report.
(2) Briefing required.--Not later than 30 days after submitting a report described under paragraph (1), the Secretary of the Treasury, or a designee of the Secretary, shall provide to the appropriate Members of Congress an unclassified or classified briefing (as determined appropriate by the Secretary) on the funds covered by the report, including a description of how the funds were acquired, and any illicit or corrupt means employed to acquire or use the funds.
(3) Exemptions.--The requirements described under paragraph (1) may not be applied with respect to a natural person or a financial institution, as the case may be, if the President determines:
(A) The funds described under paragraph (1)(A) were primarily acquired through legal and noncorrupt means.
(B) The natural person has agreed to provide significant cooperation to the United States for an important national security purpose with respect to China.
(C) A financial institution has agreed to--
(i) no longer maintain an account described under paragraph (1)(B)(i);
(ii) no longer provide significant financial services to a natural person covered by the report; or
(iii) provide significant cooperation to the United States for an important national security purpose with respect to China.
(4) Waiver.--The President may waive any requirement described under paragraph (1) with respect to a natural person or a financial institution upon reporting to the appropriate Members of Congress that--
(A) the waiver would substantially promote the objective of ending the threat described under paragraph (1);
(B) the threat described under paragraph (1) is no longer present; or
(C) the waiver is essential to the national security interests of the United States.
(b) Natural Persons Described.--The natural persons described in this subsection are persons who, at the time of a report, are the following:
(1) A member of the Politburo Standing Committee of the Chinese Communist Party.
(2) A member of the Politburo of the Chinese Communist Party that is not described under paragraph (1).
(3) A member of the Central Committee of the Chinese Communist Party that--
(A) is none of the foregoing; and
(B) performs any official duty that directly or indirectly affects Taiwan.
(c) Form of Reports; Public Availability.--
(1) Form.--The reports required under paragraphs (1) and (4) of subsection (a) shall be submitted in unclassified form but may contain a classified annex.
(2) Public availability.--The Secretary of the Treasury shall make the unclassified portion of the report required under subsection (a)(1) available to the public on the website and social media accounts of the Department of the Treasury--
(A) in English, Chinese, and any other language that the Secretary finds appropriate; and
(B) in precompressed, easily downloadable versions that are made available in all appropriate formats. SEC. 3. PROHIBITION ON FINANCIAL SERVICES FOR CERTAIN IMMEDIATE FAMILY.
(a) In General.--The Secretary of the Treasury shall prohibit a United States financial institution, and any person owned or controlled by a United States financial institution, from engaging in a significant transaction with--
(1) a natural person covered by a report made under section 2(a); and
(2) the immediate family of a person described under paragraph (1), if the Secretary finds that such immediate family benefits from funds described in the report.
(b) Exceptions.--
(1) Exception for intelligence, law enforcement, and national security activities.--Subsection (a) shall not apply with respect to any intelligence, law enforcement, or national security activity of the United States.
(2) Waiver.--The President may waive the application of subsection (a) with respect to a person upon reporting to the appropriate Members of Congress that--
(A) the waiver would substantially promote the objective of ending the threat described under section 2(a)(1);
(B) the threat described under section 2(a)(1) is no longer present; or
(C) the waiver is essential to the national security interests of the United States.
(3) Form of reports.--The reports required under paragraph (2) shall be submitted in unclassified form but may contain a classified annex.
(4) Rule of construction.--
(A) In general.--Nothing in this section shall be construed as authorizing or requiring any sanction with respect to the importation of any good.
(B) Good defined.--In this paragraph, the term ``good'' means any article, natural or manmade substance, material, supply or manufactured product, including inspection and test equipment, and excluding technical data.
(c) Implementation; Penalties.--
(1) Implementation.--The President may exercise all authorities provided to the President under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this section. Not later than 60 days after issuing a license pursuant to this section, the President shall submit a copy of the license to the appropriate Members of Congress.
(2) Penalties.--A person that violates, attempts to violate, conspires to violate, or causes a violation of this section or any regulation, license, or order issued to carry out this section shall be subject to the penalties set forth in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) to the same extent as a person that commits an unlawful act described in subsection (a) of that section 206.
(d) Termination.--This section shall have no force or effect on the earlier of--
(1) the date that is 30 days after the date that the President reports to the appropriate Members of Congress that the threat described under section 2(a)(1) is no longer present; or
(2) the date that is 25 years after the date that the Secretary of the Treasury submits the final report required under section 2(a)(1). SEC. 4. DEFINITIONS.
For purposes of this Act:
(1) Appropriate members of congress.--The term ``appropriate Members of Congress'' means the Speaker and minority leader of the House of Representatives, the majority leader and minority leader of the Senate, the Chairman and Ranking Member of the Committee on Financial Services of the House of Representatives, and the Chairman and Ranking Member of the Committee on Banking, Housing, and Urban Affairs of the Senate.
(2) Financial institution.--The term ``financial institution'' means a United States financial institution or a foreign financial institution.
(3) Foreign financial institution.--The term ``foreign financial institution'' has the meaning given that term in section 561.308 of title 31, Code of Federal Regulations.
(4) Funds.--The term ``funds'' has the meaning given to such term by the Secretary of the Treasury.
(5) Immediate family.--The term ``immediate family'' of any natural person means the following (whether by the full or half blood or by adoption):
(A) Such person's spouse, father, mother, children, brothers, sisters, and grandchildren.
(B) The father, mother, brothers, and sisters of such person's spouse.
(C) The spouse of a child, brother, or sister of such person.
(6) United states financial institution.--The term ``United States financial institution'' has the meaning given the term ``U.S. financial institution'' under section 561.309 of title 31, Code of Federal Regulations.
Mr. Speaker, I rise in support of H.R. 554, the Taiwan Conflict Deterrence Act, authored by the gentleman from Arkansas (Mr. Hill).
The Financial Services Committee has repeatedly pressed administration officials to devise a plan that imposes real costs on the Chinese Communist Party in the event it invades Taiwan. The time to formulate those measures is now. We must publicly communicate what we intend to do so that Beijing thinks twice before launching an attack against our friends on the island.
This is why Mr. Hill's legislation is so important. If Beijing chooses to invade Taiwan, this bill requires the Treasury Secretary to publish the ill-gotten gains of the Chinese Communist Party's top leadership no matter where they may be held around the world.
It would also require Treasury to expose the financial institutions that maintain accounts for those officials while prohibiting U.S. banks from letting their immediate families benefit from any of the funds.
Too often, Washington chooses to be reactive when it comes to our adversaries, scrambling to develop sanctions and other measures after the fact. Russia's invasion of Ukraine is a case in point. Mr. Hill's legislation is proactive. It signals what is at stake to the Chinese Communist Party before Beijing goes too far.
I also point out that this legislation underscores an important point that Republicans and Democrats alike have made. Our problem lies with the Chinese Government, not the people of China, many of whom suffer daily under the thumb of Beijing's dictatorship. The Taiwan Conflict Deterrence Act recognizes this.
By promising to publish the corrupt assets of PRC's top leadership, the bill would force CCP officials to face the ire of their own people, so many of whom are fed up with the illicit wealth of the CCP insiders.
I again commend Mr. Hill for his leadership in crafting this measure, which received unanimous support from the Financial Services Committee when we marked it up last year.
Mr. Speaker, I urge all of my colleagues to vote in support of H.R.
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Mrs. KIM of California. Mr. Speaker, I thank my colleague, the gentleman from California, for his support of this very important bill, and I thank Mr. Hill for his outstanding leadership and for introducing this thoughtful legislation.
Mr. Speaker, I urge my colleagues to support H.R. 554, and I yield back the balance of my time.
Mr. SMITH of New Jersey. Mr. Speaker, I rise in strong support of the Taiwan Conflict Deterrence Act, H.R. 554, first and foremost, because it underscores support for Taiwan, a true democracy and bastion of freedom in the Chinese-speaking world, and an example to which the repressed people of China can aspire.
Secondly, however, this bill would illuminate the extent to which the Chinese Communist Party, centered around Xi Jinping, is a gang of thieves who have exploited the Chinese people struggling to make ends meet in a ``9-9-6 economy--working 9 a.m. to 9 p.m. six days a week for a pittance with no job security.
All while Xi Jinping himself has amassed a Putin-like fortune.
We know that in 2012, when he was on the cusp of assuming supreme power, he had already squirreled away corporate investments worth approximately $375 million.
Since then, it is estimated that his wealth has grown by leaps and bounds.
No wonder then that the Chinese government has lobbied extensively against the release of a long-delayed report by the Director of National Intelligence on the corrupt wealth of Xi and his Politburo cronies. They know that revelation of their ill-gotten gains undermines the Communist Party's so-called claims to revolutionary legitimacy.
The report that this bill calls for would also strip away any vestiges of Xi Jinping's claim to being an anti-corruption reformer. He never was. When he went against party rival Bo Xilai at the beginning of his regime, he was using ``anti-corruption'' as a weapon.
Sadly, many in America at the time called him a ``rule-of-law'' reformer. That was completely wrong. Xi never believed in rule-of-law; it was always ``rule-by-law''--the dictates of the Chinese Communist Party and Xi Jinping cloaked in law that was selectively enforced.
For all these reasons, I urge my colleagues to support this bill.
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