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US House Passes Bill to Exclude China from Global Finance Over Taiwan Threat

The US House of Representatives has passed the PROTECT Taiwan Act, which would make it US policy to seek China's removal from major international financial bodies if the President determines China poses an immediate threat to Taiwan's security. The bill's sponsors argue that exclusion from organizations like the G20 must be part of a robust response to any aggression. Supporters emphasize Taiwan's critical role in producing the world's most advanced semiconductor chips. The legislation now moves to the Senate amid ongoing tensions over China's claim over Taiwan and US commitments under the Taiwan Relations Act.

Key Points: US House Passes Bill Targeting China Over Taiwan Security

  • Bill seeks China's removal from G20, FSB, Basel Committee
  • Triggered if President notifies Congress of immediate threat
  • Aims to impose financial and diplomatic consequences
  • Highlights Taiwan's key role in global semiconductor supply
  • Passed unanimously by House Financial Services Committee
2 min read

US House passes bill targeting China over Taiwan

US House passes PROTECT Taiwan Act, seeking to exclude China from major international financial institutions if it threatens Taiwan's security.

"The United States' response to an invasion of Taiwan should be robust and include numerous sanctions and economic penalties. - Rep. Frank D. Lucas"

Washington, Feb 11

The US House of Representatives has passed a bill that would push to exclude China from major international financial institutions if Beijing poses an immediate threat to Taiwan.

The legislation, introduced by Rep. Frank D. Lucas of Oklahoma, is known as the PROTECT Taiwan Act. It would make it US policy to seek the removal of Chinese representatives from key multilateral bodies if the president notifies Congress that China poses an immediate threat to Taiwan's security.

Under the Taiwan Relations Act, the president must inform Congress if such a threat arises. If that notification is made, the bill calls for excluding China from organizations such as the Group of 20 major economies, the Financial Stability Board and the Basel Committee on Banking Supervision.

"The United States' response to an invasion of Taiwan should be robust and include numerous sanctions and economic penalties. Exclusion from international bodies must be part of that response," Lucas said on the House floor.

He added that if China "seeks to disrupt the global order," it "cannot continue to be party to international organizations that seek to preserve that order."

Rep. French Hill of Arkansas, chairman of the House Financial Services Committee, also backed the measure.

"The Protect Taiwan Act ensures that there will be significant financial and diplomatic consequences were China to invade Taiwan. Full stop," Hill said. "The US must send a clear message that China's aggression toward Taiwan will not and is not tolerated."

The bill previously passed unanimously out of the House Financial Services Committee. It is co-sponsored by Rep. Vicente Gonzalez of Texas.

Supporters pointed to Taiwan's central role in the global semiconductor industry. About 90 per cent of the world's most advanced semiconductor chips are produced by Taiwan Semiconductor Manufacturing Co., a key supplier for technology and defense companies worldwide. The legislation now goes to the Senate.

China claims Taiwan as its own territory and has not ruled out the use of force to bring the self-governing island under its control. The United States does not have formal diplomatic relations with Taiwan but is its main security partner under the Taiwan Relations Act.

- IANS

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Reader Comments

P
Priya S
The semiconductor angle is critical for India's tech ambitions. 90% of advanced chips from Taiwan! If there's a crisis, our startups and IT sector could face massive supply chain disruptions. We need to fast-track our own semiconductor manufacturing plans. Atmanirbhar Bharat is more important than ever. 🇮🇳
R
Rohit P
Honestly, the US is being hypocritical. They talk about preserving global order, but their actions often create instability. Remember Iraq? Libya? India should maintain its strategic autonomy and not get pulled into this. Our focus should be on our own border security and development.
S
Sarah B
As someone living in India, I see this as a positive deterrent. China needs to know there are real consequences for aggression. They've been bullying neighbors for years. Strong international rules are needed. Hope the Indian government supports such measures in multilateral forums.
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Vikram M
The One-China policy is a reality. But so is Taiwan's de facto independence and its incredible economic contribution. It's a delicate balance. India's position has been wise—engaging with Taiwan economically while respecting diplomatic sensitivities. We must continue that pragmatic approach.
K
Karthik V
This bill passing unanimously shows the mood in Washington. China's assertiveness is uniting others against it. For India, this could mean more strategic space and potential partnerships. But we must ensure our core interests in the region are not compromised by US-China tensions. Jai Hind!

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