Bipartisan US Measure Targets China's Financial Access if Taiwan Threatened

The U.S. House of Representatives has overwhelmingly approved the PROTECT Taiwan Act (H.R. 1531), a bipartisan measure that aims to link Taiwan's security to potential restrictions on China's role in major global financial institutions.

Passed on February 9, 2026, under suspension of the rules by a vote of 395–2, the bill reflects strong cross-party backing amid ongoing concerns about cross-strait tensions. Sponsored by RepresentativeFrank Lucas (R-OK) and co-sponsored by RepresentativeVicente Gonzalez (D-TX), it advanced through the House Financial Services Committee in late 2025 with unanimous support (49–0).

The legislation establishes U.S. policy to push for the exclusion of Chinese representatives from six key multilateral bodies if the President notifies Congress—under section 3(c) of the Taiwan Relations Act—of actions by the People's Republic of China that threaten Taiwan's security, social system, or economic system, and that endanger U.S. interests.

The targeted organizations include:

- Group of Twenty (G20), a premier forum for global economic coordination
- Bank for International Settlements (BIS), the central bank for central banks
- Financial Stability Board (FSB), which monitors global financial stability
- Basel Committee on Banking Supervision (BCBS), setter of international banking standards
- International Association of Insurance Supervisors (IAIS)
- International Organization of Securities Commissions (IOSCO)

The Treasury Department, Federal Reserve, and Securities and Exchange Commission would lead efforts to advance this exclusion policy "to the maximum extent practicable" within these forums.

Designed as a conditional deterrent rather than automatic sanctions, the bill includes built-in flexibility. The President may waive implementation for any organization if deemed in the national interest, provided Congress receives a formal justification.A five-year sunset provision would also terminate the law unless renewed or ended earlier by presidential certification.

Proponents frame the measure as a way to raise the economic and diplomatic costs for Beijing of any coercive moves against Taiwan, drawing parallels to financial restrictions imposed on Russia after its 2022 invasion of Ukraine. Effective enforcement, however, would hinge on cooperation from other member states in these consensus-driven bodies, where isolating a major economy like China could prove challenging.

The bill now heads to the Senate for further consideration. No immediate response has been reported from Beijing.

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