S.1113 - China Financial Threat Mitigation Act of 2025 (119th Congress)
Summary
S.1113, the China Financial Threat Mitigation Act of 2025, directs the Secretary of the Treasury to conduct a study and prepare a report on the exposure of the United States to the financial sector of the People's Republic of China. The report must include an assessment of risks, a description of US policies to protect financial stability, an evaluation of Chinese economic data, and recommendations for additional actions. The report is to be transmitted to relevant congressional committees and international organizations, and published on the Treasury's website.
Expected Effects
This act will likely lead to a more comprehensive understanding of the potential financial risks posed by China to the US economy. It may also result in new policies and international collaborations aimed at mitigating these risks. The increased transparency through the published report could influence investment decisions and public discourse on US-China financial relations.
Potential Benefits
- Enhanced understanding of financial risks posed by China.
- Potential for improved US policies to protect financial stability.
- Increased international cooperation on monitoring and mitigating financial risks.
- Greater transparency through the publication of the report.
- Informed decision-making by policymakers and investors.
Potential Disadvantages
- Potential for increased tensions with China due to the critical assessment of its financial sector.
- The study and report may divert resources from other important areas within the Treasury Department.
- The report's recommendations may be difficult or costly to implement.
- The classified annex could limit public access to important information.
- The one-year deadline for the report may be insufficient for a thorough analysis.
Constitutional Alignment
The bill aligns with the Constitution's broad mandate to "provide for the common defence" and "promote the general Welfare" (Preamble). Congress has the power to regulate commerce with foreign nations (Article I, Section 8, Clause 3). The requirement for the Secretary of the Treasury to conduct a study and prepare a report falls within the executive branch's responsibility to execute laws passed by Congress (Article II, Section 3).
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).