U.S. House passes bill to limit China's access to finance if Taiwan threatened

Taipei, Feb. 10 (CNA) The U.S. House of Representatives on Monday (U.S. time) passed the PROTECT Taiwan Act, directing the United States to exclude China from international financial institutions if Chinese actions threaten Taiwan's security, by a 395-2 vote.

Under the bill, the United States would, "to the maximum extent practicable," remove Chinese representatives from the Group of 20 (G20), the Bank for International Settlements (BIS), the Financial Stability Board (FSB) and other financial institutions if China's actions pose "a threat to the security or the social or economic system of the people on Taiwan."

The PROTECT Taiwan Act was introduced by U.S. Representative Frank Lucas.

"This bill sends a clear message," Lucas said ahead of the vote. "If China intends to engage in conflict with Taiwan, then China should be prepared to withstand the consequences."

He cited Russia's invasion of Ukraine, saying the House previously approved similar mechanisms to demonstrate that disrupting the international order would result in swift and severe repercussions.

Lucas said China continues to display aggressive behavior in the South China Sea and argued that the United States should adopt a more forward-looking policy toward Beijing.

He said Washington must show clear resolve that aggression will not be tolerated and that any U.S. response to an invasion of Taiwan should be strong, including multiple sanctions and economic penalties.

Excluding China from international organizations must be part of that response, Lucas said.

U.S. Representative Greg Stanton said on social media platform X after the vote that "the Chinese Communist Party shouldn't benefit from global systems if it threatens its neighbors."

"America must be firm, consistent, & focused on maintaining peace in the region," he wrote.

The bill will next be sent to the U.S. Senate for deliberation and, if approved, will be signed into law by the U.S. president.