Oklahoma Republican Rep. Frank Lucas has proposed a bill in the U.S. House of Representatives that would force Chinese banks out of certain international financial mechanisms should Beijing threaten Taiwan.

The Ostracize China Act would require the U.S. to take all necessary steps to exclude entities linked to the Chinese Communist Party (CCP) from a range of international financial and political organizations in the event of any threat to the security or the social or economic system of Taiwan.

Under the proposed bill, the U.S. must take steps to block Chinese participation in the G20, the Bank for International Settlements, the Financial Stability Board, the Basel Committee on Banking Supervision, the International Association of Insurance Supervisors, and the International Organization of Securities Commissions, within 10 days of a triggering event as outlined by the Taiwan Relations Act of 1979.

Stating that the bill was aimed at deterring Beijing from emulating Russia’s “rogue aggression” against Ukraine, Rep. Lucas said in a press release that “China’s coercive and increasing efforts leveraging their economic influence and military strength to reshape the Indo-Pacific region must not go unchecked.”

Rep. Lucas added that the bill would send a signal to Beijing that “China would be held accountable, both economically and financially, for its aggression towards Taiwan.”

However, some analysts have cast doubt on the viability of the bill’s proposed measures, given the almost intractable entanglement of Washington and Beijing’s economies.

Despite headline rhetoric around punitive decoupling, a 2021 Brookings Institute briefing stated that “trade and investment data continue to point stubbornly in the direction of deep interdependence” between China and the U.S.

Indeed, the Ostracize China Act includes a provision that would waive the requirement to impose sanctions if it “is in the national interest of the United States.”

Source: Focus Taiwan News Channel