H.R. 1716: Taiwan Conflict Deterrence Act of 2025

The Taiwan Conflict Deterrence Act of 2025 is designed to address potential threats from the People's Republic of China towards Taiwan through financial measures. Here are the key components of the bill:

1. Reporting Requirements

The Secretary of the Treasury is mandated to compile and submit a report to Congress within 90 days after being informed of a threat from China, and then annually for three years. The report should include:

• A list of at least 10 individuals who are either senior officials in the Chinese Communist Party or who have duties affecting Taiwan, along with details about the finances they control.
• A list of financial institutions that hold accounts or provide significant services to these individuals.

Additionally, a briefing on the report's contents will be provided to Congress within 30 days of submission.

2. Exemptions and Waivers

Some individuals or financial institutions may be exempt from the reporting requirements if:

• The funds were acquired legally.
• The individual cooperates with U.S. national security interests.
• The financial institution agrees to discontinue services to the listed individuals.

The President can waive requirements if the waiver would help address the threat or if the threat is no longer present.

3. Restrictions on Financial Transactions

The bill prohibits U.S. financial institutions from engaging in significant transactions with:

• The individuals identified in the report.
• The immediate family members of those individuals if they benefit from the identified funds.

This prohibition includes exceptions for intelligence, law enforcement, and national security activities. The President may also waive these prohibitions in certain circumstances.

4. Enforcement and Penalties

The President is authorized to use various powers to enforce the provisions of the bill, and violations may lead to penalties as outlined in existing laws related to international economic powers.

5. Definitions

The bill defines various terms, including:

• “Appropriate Members of Congress” refers to specific congressional leaders and committee members.
• “Financial institution” encompasses both U.S. and foreign financial institutions.
• “Immediate family” includes a range of close relatives.

The bill ensures that the unclassified portions of reports are made publicly available in multiple languages and formats.

Relevant Companies

• JPM (JPMorgan Chase & Co.): As a significant U.S. financial institution, it could be impacted by restrictions related to transactions with the specified officials or their families.
• BAC (Bank of America Corp.): Similar to JPMorgan, it may face restrictions on dealings with designated individuals under this bill.
• GS (Goldman Sachs Group, Inc.): This investment bank could also be affected by limitations on financial services to the individuals outlined in the reports.
• BLK (BlackRock, Inc.): As an asset management firm, BlackRock may be restricted from managing funds connected to those specified by the Treasury reports.