Priya Patel
TLDR:
– The US House of Representatives passed three finance bills concerning Taiwan and mainland China, aimed at bolstering American support for Taiwan and squeezing mainland China.
– One bill supports Taiwan’s inclusion in the IMF, another directs regulators to exclude China from banking organizations in the event of threats to Taiwan, and the third requires greater exchange rate transparency from China.
– The bills must now pass the Senate before heading to President Biden.
– Washington has been increasing its support for Taiwan’s participation in international organizations and expressing concerns about China’s role in them.
– The bills come ahead of Taiwan’s presidential election, where the ruling party faces a challenge from the more Beijing-friendly opposition.
– China sees Taiwan as part of its territory and opposes its participation in international institutions.
The US House of Representatives has passed three bipartisan finance bills aimed at bolstering American support for Taiwan and squeezing mainland China. The first bill supports Taiwan’s inclusion in the International Monetary Fund (IMF), the second directs regulators to exclude China from banking organizations if there are threats to Taiwan arising from Beijing’s actions, and the third requires greater exchange rate transparency from China. The bills passed in the Republican-controlled House and must now go through the Democratic-controlled Senate before reaching President Biden for approval.
These developments come as Washington has been showing increasing support for Taiwan’s participation in international organizations, while expressing concerns about China’s role in them. The bills were passed just ahead of Taiwan’s pivotal presidential election, where the ruling party is facing a challenge from a more conservative and Beijing-friendly opposition.
China considers Taiwan as part of its territory and opposes its participation in international institutions. Most countries, including the US, do not formally recognize Taiwan as an independent state. However, the US is committed to supplying Taiwan with weapons and opposes any attempt to take over the self-governed island by force.
The bill supporting Taiwan’s inclusion in the IMF aims to unlock potential membership in other international financial institutions, such as the World Bank. The bill also requires the US Treasury to actively support Taiwan’s admission into the IMF and employment for Taiwanese nationals at the organization.
The bill directed at China, if a threat to Taiwan is determined, would make it US policy to exclude China from the Group of 20 and other key organizations devoted to global economic stability. Supporters of the bill argue that it would make China a pariah in these organizations, similar to Russia after its invasion of Ukraine.
The bill requiring greater exchange rate transparency from China aims to hold China accountable for its promises to maintain orderly exchange rate arrangements without manipulation. It urges the IMF to publish any significant divergences between China’s exchange rate policies and those of other major economies.
The passing of these bills reflects the US’s growing support for Taiwan and its concerns about China’s actions. However, the bills must still navigate the Senate before becoming law and potentially further impacting US-China relations.
