US House Advances Bipartisan Finance Bills in Support of Taiwan
Bills aim to bolster American support for Taiwan and address concerns about China’s influence
The US House of Representatives has taken a significant step towards strengthening American support for Taiwan by advancing three bipartisan finance bills. These bills address concerns about China’s influence and aim to bolster Taiwan’s participation in international organizations. The legislation comes at a crucial time, just ahead of Taiwan’s pivotal presidential election, where the ruling Democratic Progressive Party faces a strong challenge from the more conservative Kuomintang, which is seen as being more friendly towards Beijing.
Inclusion of Taiwan in International Monetary Fund
One of the bills, sponsored by California Republican Young Kim, supports Taiwan’s inclusion as a member of the International Monetary Fund (IMF). The Taiwan Non-Discrimination Act of 2023 would require the US Treasury to actively support Taiwan’s admission into the IMF, as well as employment opportunities for Taiwanese nationals within the organization. This bill aims to send a strong message of solidarity and support for Taiwan’s democracy. In addition, IMF membership for Taiwan could pave the way for membership in other international financial institutions, such as the World Bank and Inter-American Development Bank.
Exclusion of China from Banking Organizations
Another bill, introduced by Oklahoma Republican Frank Lucas, focuses on excluding the People’s Republic of China from banking organizations in the event of threats to Taiwan. The Protect Taiwan Act would make it US policy to exclude China from the Group of 20 and other key bodies like the Bank for International Settlements and the International Organization of Securities Commissions if the US president notifies Congress of threats from Beijing. This measure aims to make China a pariah in organizations dedicated to ensuring global economic stability, similar to Russia’s exclusion after its invasion of Ukraine.
Pushing for Exchange Rate Transparency
The third bill, sponsored by Pennsylvania Republican Dan Meuser, addresses concerns about China’s lack of transparency regarding its exchange-rate policies. The China Exchange Rate Transparency Act of 2023 would require the US Treasury to push the IMF to publish any significant divergences between Chinese exchange-rate policies and those of other major economies. It also calls for IMF members to consider China’s performance as a responsible stakeholder when deciding on increases to its shareholding at the fund. The bill aims to hold China accountable for its promise to maintain orderly exchange-rate arrangements without manipulation.
Conclusion:
The advancement of these bipartisan finance bills in the US House of Representatives signals a growing commitment to bolstering American support for Taiwan and addressing concerns about China’s influence. By supporting Taiwan’s inclusion in the IMF, excluding China from key banking organizations in the event of threats to Taiwan, and pushing for exchange rate transparency, the US aims to send a strong message of solidarity and support for Taiwan’s democracy. These bills now await approval from the Democratic-controlled Senate before reaching President Joe Biden’s desk. As tensions between the US and China continue to rise, the outcome of these bills could have significant implications for the future of US-Taiwan relations and regional stability in East Asia.