Washington, May 23 (Agency) The US House of Representatives passed legislation requiring the Treasury Department lead an interagency analysis of the exposure of the United States’ economy to China’s financial sector. House lawmakers passed the bill, entitled the China Financial Threat Mitigation Act, on Monday evening in a vote of 400-5, with two-thirds support required for passage. The legislation requires the US Treasury Secretary, in consultation with the heads of the State Department, Federal Reserve, Securities and Exchange Commission and Commodity Futures Trading Commission, to conduct a study on the “exposure of the United States to the financial sector of the People’s Republic of China,” according to the text of the measure.
The bill requires the report to Congress to cover policies that the United States is taking to protect its interests as China reforms its financial sector, as well as an analysis of risks to US financial stability and global economy emanating from China. The legislation also requires recommendations for actions the US government or its representatives at international organizations could take to mitigate financial stability risks and protect US interests. The bill requires the US Treasury Secretary to submit the report to Congress no later than one year after enactment of the legislation. The report shall be unclassified, but may contain a classified annex, according to the bill.