S1027-118

Introduced

To require the imposition of sanctions with respect to the People's Republic of China if the People's Liberation Army initiates a military invasion of Taiwan.

118th Congress Introduced Mar 29, 2023

Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.

Summary

What This Bill Does

This bill establishes automatic, severe economic sanctions that would trigger within 3 days if China's military invades Taiwan. It aims to deter Chinese aggression by making the economic consequences of invasion catastrophic for China's economy and leadership.

Who Benefits and How

Taiwan and its government benefit from stronger deterrence against Chinese military action. US defense contractors may see increased demand as the bill reinforces commitment to Taiwan security. Domestic manufacturers in sectors where Chinese imports would be banned (all goods from China) could see market opportunities. US financial services firms may benefit from reduced competition from Chinese financial institutions.

Who Bears the Burden and How

Chinese government officials and CCP members face personal sanctions including asset freezes and visa bans. Chinese state-owned banks would be cut off from the US financial system. US companies doing business in China would face severe disruptions as fund transfers and investments become prohibited. US importers of Chinese goods would lose access to their supply chains. American consumers would face higher prices and shortages for products currently made in China.

Key Provisions

  • Personal sanctions on Chinese government officials and military commanders within 3 days of invasion
  • Full blocking sanctions on Chinese state-owned banks and any entity affiliated with the Chinese government
  • Prohibition on US financial institutions investing in Chinese priority industries (AI, semiconductors, quantum computing, etc.)
  • Ban on importing any goods mined, produced, or manufactured in China

Evidence Chain:

This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.

At a Glance

What This Bill Does

Requires automatic imposition of severe economic and financial sanctions against China if the People's Liberation Army initiates a military invasion of Taiwan

Key Policy Areas

National Security, Foreign Policy, Trade, Finance

Primary Purpose

Requires automatic imposition of severe economic and financial sanctions against China if the People's Liberation Army initiates a military invasion of Taiwan

Policy Domains

National Security Foreign Policy Trade Finance

Main Act - STAND with Taiwan Act

Identified Gains
  • Taiwan government and people
  • US defense industry
  • Domestic manufacturers
  • US financial services
Model: N/A | Version: bill_summary_v2 | Source: is
US defense industry:
US financial services:
Domestic manufacturers:
Taiwan government and people: ,
Identified Costs
  • Chinese government officials and CCP members
  • Chinese state-owned banks
  • US companies with China operations
  • US importers of Chinese goods
  • American consumers
Model: N/A | Version: bill_summary_v2 | Source: is
American consumers:
Chinese state-owned banks:
US importers of Chinese goods:
US companies with China operations: ,
Chinese government officials and CCP members:

Legislative Progress

Introduced
Introduced Committee Passed
Mar 29, 2023

Mr. Sullivan introduced the following bill; which was read twice …

Stakeholder Effects

cui bono?

How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.

Government
8 mentions across 6 clauses
+3 positive -5 negative

Chinese Communist Party and government officials, Chinese Communist Party senior members, Chinese government and military leadership

Positive-direction: Taiwan government and democratic institutions, US allies and partners, US intelligence community

Negative-direction: Chinese Communist Party and government officials, Chinese Communist Party senior members, Chinese government and military leadership, Chinese government officials and military commanders, Executive Branch

Financial Services
8 mentions across 4 clauses
+1 positive -7 negative

Chinese financial institutions, Chinese state-owned banks, US banks processing China transactions

Positive-direction: US domestic banks

Negative-direction: Chinese financial institutions, Chinese state-owned banks, US banks processing China transactions, US banks with Chinese correspondent relationships, US broker-dealers with Chinese clients, US investment firms with China exposure, US private equity and venture capital in China tech

Multi-sector
6 mentions across 4 clauses
+2 positive -4 negative

Chinese state-owned enterprises, Domestic competitors to Chinese SOEs, Entities potentially subject to sanctions

Positive-direction: Domestic competitors to Chinese SOEs, Entities seeking sanctions relief

Negative-direction: Chinese state-owned enterprises, Entities potentially subject to sanctions, US companies with China operations, US companies with Chinese joint ventures

Consumers
2 mentions across 2 clauses
-2 negative

American consumers, Family members of sanctioned officials

Technology
2 mentions across 1 clause
+1 positive -1 negative

Chinese AI and semiconductor companies, Domestic US tech companies

Positive-direction: Domestic US tech companies

Negative-direction: Chinese AI and semiconductor companies

Manufacturing
2 mentions across 1 clause
+1 positive -1 negative

Chinese exporters to US market, US domestic manufacturers

Positive-direction: US domestic manufacturers

Negative-direction: Chinese exporters to US market

Trade
1 mention across 1 clause
-1 negative

US importers of Chinese goods

Retail
1 mention across 1 clause
-1 negative

US retailers dependent on Chinese manufacturing

13/15
sections analyzed
Full impact breakdown

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
National Security Foreign Policy Trade Finance
Actor Mappings
"the_president"
→ President of the United States
"the_secretary"
→ Secretary of the Treasury

Key Definitions

Terms defined in this bill

3 terms
"financial institution" §5(e)

A financial institution specified in section 5312(a)(2) of title 31

"military invasion" §5(h)

Includes amphibious landing, airborne assault, aerial bombardment or blockade, missile attacks, naval bombardment or blockade, and attack on any territory controlled by Taiwan

"covered determination" §6(a)

Presidential determination within 24 hours that a military invasion occurred, or Congressional joint resolution

We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.

Learn more about our methodology