China Financial Threat Mitigation Act of 2025
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Would require the Treasury Department to study and report on U.S. exposure to China's financial sector within one year, covering systemic risks, the reliability of Chinese economic data, and recommendations to strengthen international cooperation on financial stability.
What this bill would do
What it would do
The bill would direct the Secretary of the Treasury, in consultation with the Federal Reserve, the Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Secretary of State, to conduct a study and issue a public report within one year of enactment. The report would assess risks posed by China's financial sector to U.S. and global financial systems, describe U.S. policies already in place to protect financial stability, evaluate the transparency and reliability of Chinese economic data, and recommend additional steps — including through international organizations — to monitor and reduce those risks.
The report would be transmitted to four congressional committees (House Financial Services, House Foreign Affairs, Senate Banking, and Senate Foreign Relations) and published on Treasury's website. It would be unclassified but may include a classified annex. The bill does not itself impose new regulations, restrict investments, or change existing law; its sole operative requirement is the study and report.
Key provisions
- 1Would require the Treasury Secretary, in consultation with the Fed, SEC, CFTC, and State Department, to study and report on U.S. exposure to China's financial sector within one year of enactment.
- 2Would require the report to assess systemic risks from China's financial sector, evaluate the reliability of Chinese economic data, and recommend U.S. and international actions to mitigate those risks.
- 3Would require the unclassified report (with a permitted classified annex) to be transmitted to four congressional committees and published on Treasury's website.
Who would be affected
The Department of the Treasury and the federal financial regulators it must consult — the Federal Reserve, SEC, and CFTC — bear the primary reporting obligation. Congressional committees overseeing finance and foreign affairs would receive the report. Financial institutions, investors, and policymakers with exposure to China's financial sector would be the downstream audience for its findings.
Why it matters
If enacted, policymakers and the public would gain an official, unclassified assessment of how stress in China's financial system — including concerns about opaque economic data — could ripple into U.S. markets. The report's recommendations could inform future legislation or regulatory action, but the bill itself imposes no immediate requirements on private actors or markets.
What would change
Agencies directed to act
Effective dates
- Treasury must complete and publish the report on China financial sector exposure
Funding and costs
Congressional Budget Office estimate
CBO estimates H.R. 1549 would cost about $1 million over the 2025–2030 period, with no significant effect on the deficit, as all spending would be subject to future appropriations.
H.R. 1549 would direct the Treasury Secretary to study and report on U.S. and global financial exposure to China, in consultation with the Federal Reserve, the SEC, the CFTC, and the State Department. CBO estimates implementing the bill would cost federal agencies approximately $1 million over the 2025–2030 period; that spending is discretionary, meaning it depends on funds being appropriated by Congress. Any costs incurred by the Federal Reserve would reduce its remittances to the Treasury (recorded as revenues), but CBO estimates that reduction would not be significant over the 2025–2035 period. The bill contains no intergovernmental or private-sector mandates and would not increase on-budget deficits in any future ten-year window.
How implementation would work
The Secretary of the Treasury would lead the study, coordinating with the Federal Reserve, SEC, CFTC, and State Department. The completed report must be transmitted to four specified congressional committees and published on Treasury's website within one year of enactment. A classified annex is permitted for sensitive findings. No rulemaking, grant cycles, or enforcement mechanisms are established; the bill's entire implementation arc is the production and delivery of a single report.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Official CRS summary
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This bill requires the Department of the Treasury, in consultation with specified federal financial agencies, to report on the exposure of the United States to the activity of China's financial sector.
The report must include
- the effects that risks in China's financial sector have on U.S. and global financial systems,
- a description of the policies the United States is adopting to protect U.S. financial stability,
- a description and evaluation of the reliability of Chinese economic data, and
- recommendations for additional actions to strengthen international cooperation to mitigate risks and protect U.S. interests.
Legislative subjects
Asia; China; Congressional oversight; Finance and Financial Sector; Financial crises and stabilization; Government information and archives; Government studies and investigations
Committee report
H. Rept. 119-21