WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA), joined by U.S. Sens. Mike Rounds (R-SD) and Cynthia Lummis (R-WY), introduced the China Financial Threat Mitigation Act, legislation aimed at shoring up America’s response to financial threats stemming from the Chinese Communist Party (CCP).

The China Financial Threat Mitigation Act would require deeper analysis of potential financial threats from the CCP that may have substantial impacts on the U.S. economy.

“We continue to see increased aggression from the Chinese Communist Party towards the United States, including in the financial sector. This increased action requires us to take meaningful steps to protect U.S. institutions and interests. That’s why I’m proud to introduce this bipartisan legislation that will help to shore up our financial systems and ensure that the U.S. is prepared to counter the CCP’s attacks,” said Sen. Warner.

“The Chinese Communist Party has the ability to intervene in China’s banking system to achieve outcomes that benefit them the most, which has potential to harm American businesses,” said Sen. Rounds. “We must gain a clearer understanding of how China’s financial sector affects the U.S. economy and other global financial systems. Our legislation tasks the Treasury Department, working with other federal agencies, to assess and report on U.S. exposure to China's financial activities, providing a clearer picture of the threat."

“The Chinese Communist Party is a serious threat to our national and economic security,” said Sen. Lummis. “I am partnering with my colleagues to protect U.S. financial interests and hold the CCP accountable, and I look forward to getting this bipartisan legislation across the finish line.”

The legislation would also require the Department of the Treasury, in consultation with the Federal Reserve, U.S. Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and State Department, to issue a report on the exposure of the United States to the threats posed by China's financial sector. Specifically, the required report must include:

• Effects the reforms to China's financial sector have on U.S. and global financial systems;
• Description of the policies the United States is adopting to protect U.S. interests;
• Description and analysis of any risks presented by China to the financial stability of the United States and the global economy; and
• Recommendations for additional actions to strengthen international cooperation to mitigate risks and protect U.S. interests.

As Vice Chairman of the Senate Select Committee on Intelligence, Sen. Warner has worked to ensure the U.S. is prepared to counter threats posed by foreign adversaries including the CCP across various sectors. Sen. Warner spearheaded the push to force CCP-based Bytedance to divest from TikTok in order to allow the app to continue operations in the United States. Last year, Sen. Warner introduced the Countering CCP Drones and Supporting Drones for Law Enforcement Act, legislation to cut off dangerous CCP drone companies from the U.S. telecommunication infrastructure. Sen. Warner also introduced bipartisan and bicameral legislation to improve information sharing between private companies and the Intelligence Community in order to mitigate the threat that foreign adversaries including the CCP pose to United States companies in foreign jurisdictions on projects relating to energy generation and storage, including in the critical minerals industry. This legislation is the latest step in his efforts to safeguard American interests.

The legislation was introduced in the House of Representatives by U.S. Reps. Josh Gottheimer (D-NJ) and Roger Williams (R-TX).

Full text of the legislation is available here. 

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