South OC Times

U.S. Representative Young Kim (CA-40) questioned Treasury Secretary Janet Yellen at the Financial Services Committee hearing titled, “The Annual Testimony of the Secretary of the Treasury on the State of the International Financial System.” Rep. Kim serves as vice chairwoman of the House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions and chairwoman of the House Foreign Affairs Subcommittee on the Indo-Pacific.

On supporting Taiwan’s participation in the International Monetary Fund (IMF), Rep. Kim highlighted her bill, H.R. 540, the Taiwan Nondiscrimination Act. "As you know, Taiwan already belongs to WTO and the Asian Development Bank," she stated. "If Taiwan seeks its membership at the IMF, would you support it?" Sec. Yellen responded that "Taiwan has not expressed any interest in joining the IMF."

Rep. Kim pressed further: "With all due respect, Secretary Yellen...we are hoping that you will work with us and fully support Taiwan’s membership at the IMF." Sec. Yellen acknowledged U.S. support for greater engagement between IMF and Taiwan but noted that formal membership had not been pursued by Taiwan.

Addressing economic coercion by China, Rep. Kim asked about efforts to increase transparency in China's sovereign lending through initiatives like G20's Common Framework. Sec. Yellen described ongoing but challenging engagements with China to encourage active participation in debt restructurings.

Rep. Kim emphasized vigilance against yielding to CCP demands: "We cannot afford to cave in to CCP demands that private creditors should be ignored in debt restructuring negotiations."

Regarding sanctions and counternarcotics efforts with China, Rep. Kim expressed concerns over lifting sanctions while engaging with China on illicit synthetic drugs trafficking through bilateral working groups established earlier this year.

Sec. Yellen detailed Treasury's involvement: "We participated in the Counternarcotics Working Group...and established an anti-money laundering forum." She noted actions taken against Chinese firms involved in production.

Rep. Kim urged firmness: "I hope that you will do more to ensure that CCP abides by commitments established by the Working Group."

Sec. Yellen confirmed continued sanctions actions against Chinese firms related to these issues.