WASHINGTON, D.C. – Today, Senator Rick Scott was joined by Senators Kevin Cramer and John Kennedy to introduce the Deterring Communist Chinese Aggression Against Taiwan Through Financial Sanctions Act which would impose devastating financial sanctions on the Chinese government if Communist China invaded or blockaded Taiwan, or attempted to change the status of Taiwan’s governance through use of force. This bill complements Senator Scott’s Taiwan Invasion Prevention Act, which reinforces the U.S.-Taiwan relationship and strengthens Taiwan’s ability to resist Communist China’s aggressive policies and military actions. Senator Scott has been fighting to pass this legislation for over a year.
Senator Rick Scott said, “Taiwan is one of America’s most important partners in the Asia-Pacific, and its peace and stability are in our political, security, and economic interests. We have watched Communist China’s increasingly frequent actions to harass and intimidate the Taiwanese people, through regular military encroachments and cyberattacks. We must be clear that these intimidation tactics will not be ignored. As Beijing quietly watches Putin’s invasion of and assault on Ukraine, America must stand strongly behind our partners in democracy and leave no ambiguity as to our resolve to condemn and punish tyrants who attack our partners. Passing this bill will make clear to General Secretary Xi that if he mimics Putin’s invasion then he will be met with economic isolation and severe financial sanctions. I urge my colleagues to join me in this important work, and I hope to see this bill move swiftly through the Senate.”
Senator Kevin Cramer said, “The situation in Ukraine is the very real consequence of weak leadership and a lack of a true deterrence for Russia. Taiwan is a friend, good trading partner, and beacon of freedom and democracy. Our bill threatens crippling financial sanctions as a deterrence to China trying to follow in Putin’s footsteps as it relates to Taiwan.”
Senator John Kennedy said, “Russia is not acting alone in its hostile war of aggression—Moscow is banding together with Beijing to bully the world. Now more than ever, we must make it clear to the Chinese Communist Party that armed aggression towards Taiwan would deal a devastating blow to China’s economy. As we know, waiting too long to sanction bad actors can create major national security risks at home. We can’t let China seize the moment to attack one of America’s key partners in the Pacific.”
The Deterring Communist Chinese Aggression Against Taiwan Through Financial Sanctions Act would:
- Sever all financial transactions between the U.S. and China if China engages in an armed aggression against Taiwan or its territories, invades Taiwan or its territories, blockades Taiwan or its territories, or attempts to change the status of Taiwan’s governance through the use of force. Penalties include:
- Prohibition on transactions of property
- Revocation of visas and restrictions on Chinese nationals involved in the use of force against Taiwan
- Prohibition on any transfers of credit or payments between financial institutions with Communist China
- Ban on investment in equity or debt of sanctioned persons
- Prohibition on financial engagements with Chinese military companies, software companies, financial messaging systems, and digital currencies
- Require the President to implement such sanctions 30 days after a triggering event.