Luetkemeyer Presses Yellen On Potential Taiwan Invasion: 'I Think We Need To Have A Plan In Place'
On Tuesday, Rep. Blaine Luetkemeyer (R-MO) questioned Secretary of the Treasury Janet Yellen on the potential of China invading Taiwan during a House Financial Services Committee hearing.
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Transcript
00:00myself for five minutes. Welcome, Ms. Yellen. Good to see you again today. We've discussed
00:07this issue in the past. You know, my concern initially was a very slow response with regards
00:13to sanctions that were put on all the things that could be helpful to Russia whenever they
00:17invaded Ukraine. And so I ask you in the last couple of times you've been here, in your
00:24position as head of FSOC, is there a committee or a group that's being put together to be
00:30able to have sanctions immediately ready to put on China when China invades Taiwan? Our
00:36own generals say it's going to happen over the next three years. So therefore, I think
00:39we need to have a plan in place so it doesn't take several months like it did with Russia.
00:44Because I think in order for us to be impactful, we've got to do this very quickly. So you've
00:47indicated last time you were here that there is a committee that's working on this. Would
00:51you like to discuss it a little bit more? Sorry, there are inter-agency discussions
00:58around Taiwan. Those discussions include working with our allies to be able to identify different
01:07entities, different groups to be able to sanction and make it more difficult for China to economically
01:14continue once they invade and we put sanctions on them. I'm sorry, I'm not really able to
01:21discuss. I don't want specifics, I just want generality, so I understand. But I think it's
01:26important for us to know as a committee, to provide our oversight, that there is a concern
01:30about this, number one. And number two, that there are discussions going on and they include
01:34allies to be able to address this issue when and if it occurs. We have many discussions
01:41about common issues with our allies and I would include this in that list. But I'm not
01:50able to provide the specifics. Okay, I understand that. Thank you very much. Next question is
01:55a little bit different. What's your greatest concern when it comes to foreign finance issues
02:01like this? When it comes to what? With foreign finance. We're talking about foreign financial
02:05institutions and different issues today with regards to international financial system.
02:10What's your greatest concern about all of this? About foreign financial institutions?
02:14Yeah, things that you're involved in, things that are concerning to our country with regards
02:19to whether it be CFIUS or whether it be sanctions or whether it be, you know, international
02:23artificial intelligence. What's the biggest concern you have when it comes to international
02:29financial relationships and issues? Well, I have many different concerns, but in the
02:35realm of sanctions, we have very powerful sanctions that are available because of the
02:46important role of the dollar in international transactions. The ability to cut off foreign
02:54banks or other businesses or individuals from the ability to transact through the U.S. financial
03:03system and to participate in the dollar, the dollarized. Okay, so basically your protection
03:11of the dollar is one of your greatest concerns. I think that that's important, and the more
03:17we have used sanctions, the more countries look for ways to engage in financial transactions
03:28that don't involve the dollar. Okay, according to Executive Order 13818, a foreign person
03:34is to be sanctioned if the Treasury Secretary finds them responsible for or complicit in
03:39or have directly or indirectly engaged in serious human rights abuse. In Russia, we
03:44sanctioned Vladimir, with regards to Russia, we sanctioned Vladimir Putin and the Foreign
03:48Minister following the invasion of Ukraine. With respect to the Uyghur genocide, is Treasury's
03:53position that this standard for sanctions applies to, with respect to the Uyghurs, is
03:59it Treasury's position that this standard applies for sanctions against Xi Jinping?
04:05If not, why have the Chinese leadership been spared?
04:09Well, we have engaged in sanctions related to the Uyghurs under the force.
04:19My question is, you sanctioned the leadership of Russia, but you haven't sanctioned the
04:22leadership of China. Why? That's the basic question.
04:27This is a basic foreign policy issue that...
04:31Well, sanctions fall under your jurisdiction, so the administration and you working together
04:39have not felt that this is important yet.
04:42This is a question I would suggest that you refer to the State Department.
04:50Okay, well, I know that one of our members talked about the sanctions against various
04:54banks in China, with regards to drug money and mixing and cartel money. I think it's
04:59important that we continue that. I sat on the Chinese Select Committee, and it is a
05:03really, really big deal that we continue to sanction those banks that facilitate the money
05:08laundering of money from the drug cartels, because that's one of the ways we can kind
05:11of help thwart that.
05:12With that, I yield my time back.