PROTECT Taiwan Act
The PROTECT Taiwan Act would direct key U.S. financial regulators to push for excluding representatives from the People's Republic of China (PRC) from participation in several major international financial governance bodies, whenever the President reports a threat to Taiwan’s security or to U.S. interests stemming from PRC actions. Specifically, the bill targets involvement in the Group of Twenty (G20), the Bank for International Settlements (BIS), the Financial Stability Board (FSB), the Basel Committee on Banking Supervision (BCBS), the International Association of Insurance Supervisors (IAIS), and the International Organization of Securities Commissions (IOSCO). The aim is to use regulatory influence to deter PRC actions seen as threatening Taiwan, aligning financial governance with national security concerns. The bill would require the Secretary of the Treasury, the Chair of the Federal Reserve, and the Chair of the Securities and Exchange Commission to take steps to advance this policy. It includes a waiver mechanism (requiring a congressional report and a determination that the waiver is in the national interest) and a sunset clause (the act expires the earlier of five years or 30 days after the President notifies Congress that termination is in the national interest). In short, it creates a time-limited, regulator-driven push to push PRC exclusion from key international financial forums in response to Taiwan-related threats.
Key Points
- 1Targeted organizations: Exclusion would apply to PRC representatives in six major international financial bodies — G20, BIS, FSB, BCBS, IAIS, IOSCO.
- 2Trigger for action: The policy activates upon the President’s notice to Congress that there is a threat to Taiwan’s security or to U.S. interests arising from PRC actions (per the Taiwan Relations Act).
- 3Implementation by regulators: The Treasury Secretary, the Federal Reserve Chair, and the SEC Chair must take steps to advance the policy of exclusion “to the maximum extent practicable.”
- 4Waiver provision: The President may waive the exclusion for a given organization if a report to Congress demonstrates it is in the national interest and provides the reasons.
- 5Sunset provision: The act expires automatically at the earlier of five years from enactment or 30 days after the President notifies Congress that termination is in the national interest.