The US House of Representatives approved the PROTECT Taiwan Act, a bill introduced by Rep. Frank D. Lucas of Oklahoma. This legislation aims to remove Chinese representatives from major global financial bodies if China poses an immediate threat to Taiwan’s security. If the President alerts Congress of such a threat under the Taiwan Relations Act, China could be excluded from organizations like the Group of 20 and the Financial Stability Board.
Rep. Lucas emphasized the need for a strong US response to a Taiwan invasion, including sanctions and economic penalties. He argued that excluding China from international bodies should be a crucial part of this response. Rep. French Hill of Arkansas, supporting the bill, highlighted the importance of imposing financial and diplomatic consequences on China in case of a Taiwan invasion.
The bill, endorsed by the House Financial Services Committee and co-sponsored by Rep. Vicente Gonzalez of Texas, stresses the significance of Taiwan in the global semiconductor industry. Taiwan Semiconductor Manufacturing Co. produces around 90% of the world’s most advanced semiconductor chips, crucial for technology and defense sectors globally. The legislation has now advanced to the Senate for further consideration.
