This bill is designed to put pressure on China through international organizations if the President determines that China is threatening Taiwan or harming U.S. interests. Here's how it works: if the President tells Congress that China has taken actions threatening Taiwan's security, economy, or stability—and those actions also endanger America—then U.S. government agencies must work to kick China's representatives out of major international financial and economic clubs. These organizations include the Group of 20 (which brings together the world's largest economies), the Financial Stability Board (which oversees global financial systems), and the Basel Committee on Banking Supervision (which sets banking rules). Essentially, the U.S. would use its influence to isolate China from these important international forums as a consequence for aggressive actions toward Taiwan.

The bill does include a safety valve: the President can skip these requirements if he or she decides that doing so is more important for U.S. national interests. This gives the President flexibility to handle sensitive diplomatic situations where excluding China might actually hurt America more than help. The bill is meant to give the U.S. a concrete tool to respond to Chinese aggression toward Taiwan without going to military action, using economic and diplomatic pressure instead.

PROTECT Taiwan Act

Lucas, Frank D.

Pressure Regulatory Organizations To End Chinese Threats to Taiwan Act or the PROTECT Taiwan Act This bill requires certain actions if the President informs Congress about actions by China that result in (1) threats to Taiwan's security or social or economic system, and (2) any danger to U.S. interests. Specifically, after the President informs Congress, various federal agencies must take all necessary steps to exclude China's representatives from the activities of specified international organizations, including the Group of 20, the Financial Stability Board, and the Basel Committee on Banking Supervision. The President may waive these requirements if doing so is in the national interest of the United States.