The US House of Representatives has passed the PROTECT Taiwan Act, a bill that would allow the exclusion of China from six major global financial organisations if the president determines its actions threaten Taiwan and run counter to US interests.
Trigger for exclusion
Introduced by Representative Frank Lucas and co-sponsored by Representatives French Hill and Greg Stanton, the legislation states it is US policy to remove China from these bodies when the president notifies Congress that Beijing’s conduct poses any threat to Taiwan’s security, economic system, or social system while undermining American interests.
The six organisations named are the Group of Twenty, Bank for International Settlements, Financial Stability Board, Basel Committee on Banking Supervision, International Association of Insurance Supervisors, and International Organization of Securities Commissions.
Agencies tasked with implementation
Upon such notification, the bill requires the Department of the Treasury, the Federal Reserve, and the Securities and Exchange Commission to carry out the necessary measures to effect the exclusion.
Lucas emphasised that if China moves toward conflict with Taiwan, it must face serious consequences. He said Washington’s response to any invasion should be robust, incorporating multiple sanctions and economic penalties, with exclusion from these international forums forming an essential part.
Reinforcing Taiwan Relations Act principles
Hill pointed out that under the 1979 Taiwan Relations Act, China is prohibited from using force, coercion, boycotts, or embargoes to force Taiwan to accept rule by the Chinese Communist Party or join a “one China” framework.
Stanton, posting on X, said the Chinese Communist Party should not enjoy the benefits of global systems while threatening its neighbours. He added that America needs to remain firm, consistent, and focused on preserving peace in the region.
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