Lawmaker Asks Sec. Scott Bessent Why Treasury Hasn't Submitted Report On China Buying Iranian Oil

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At a House Financial Services Committee hearing on Wednesday, Rep. Ann Wagner (R-MO) questioned Sec. Scott Bessent about a report on China buying oil from Iran.

Transcript

00:00This is recognized for five minutes.

00:02I thank you, Mr. Chairman, and I will try to keep my tone down.

00:08And I thank Secretary Besant for your testimony.

00:12I, sir, am going to try to stick to the actual title of this hearing

00:20and why we're supposed to be here today,

00:21which is the state of the international financial system.

00:25So here we go.

00:26Mr. Secretary, under the Biden administration,

00:30Congress required Treasury to determine whether any Chinese financial institutions

00:37were engaged in oil purchases from Iran,

00:43no matter how small or how large the transaction.

00:49This determination would subject these Chinese entities to secondary sanctions, sir.

00:55And just last week, the president himself ordered such sanctions for any purchase of Iranian oil,

01:03which helps, obviously, the Ayatollah finance terrorism around the world.

01:08Mr. Secretary, can you describe how, well, I think we all know how Iran uses oil sales to fund its proxies,

01:16including Hamas, Hezbollah, the Houthis in Yemen, to the extent that there's any Yemen left.

01:21But Treasury is now over half a year late with its statutory determination on Chinese buyers of Iranian oil.

01:30And I have three questions, sir, related to missing this deadline.

01:35The first is, why has it not been submitted to Congress?

01:40Had the previous administration done anything to prepare this determination?

01:48And third, when can Congress expect to receive it?

01:52To all three of those, I will have my staff get back to you on that.

01:56And the, Representative Wagner, what I will tell you is that since I become Treasury Secretary,

02:03the Treasury has repeatedly sanctioned so-called Chinese teapot refiners,

02:11who are very large buyers of Iranian oil.

02:14These are independent refiners away from the state-owned enterprises.

02:19We have begun that program over the past few weeks, and we will continue as needed.

02:25Good. Well, and I know that you're in negotiations with, I'll say, that 18th country, which is China.

02:32We are thrilled to hear of your trip there.

02:37And I hope that there's something that you will discuss with them

02:41in terms of their purchasing of Iranian oil that does nothing but lift up a regime

02:46that is funding terrorism throughout our world, I'll say.

02:55What actions has Treasury taken to combat cooperation between Iran and China on illicit finance and money laundering?

03:04Well, again, the secondary sanctions on these teapot refiners has been a very fulsome effort,

03:13and we will continue that.

03:15When President Trump left office, Iranian oil exports were between 100,000 and 300,000 barrels per day.

03:24Now they are 1.6 million barrels per day, which allows the regime to finance its terror proxies,

03:31not just in the Middle East, but all around the world.

03:34Correct. Yes, and we've seen it, and we've lived it, and it has caused unbelievable death, devastation,

03:46and grief, and resources, and loss of life throughout our world.

03:51And I am proud that the President himself endorsed sanctions just last week for any purchase, any purchase,

03:58not just from China, of Iranian oil.

04:01So I hope that these, we can get a report on what's been happening with China.

04:09Switching gears, in February, several members of this committee and the Senate, including myself and the Chairman,

04:16and the Senate Banking Committee sent you a letter voicing concerns about the European Union's Corporate Sustainability Due Diligence Directive,

04:24or CSDDD.

04:27This directive, which was finalized by the EU last year, will require many American companies to evaluate their supply chains

04:34and end certain business activities, not based on U.S. law, but due to U.N. principles.

04:42This directive not only hurts our economic competitiveness, but also undermines our jurisdictional sovereignty, sir.

04:48It would force both public and private companies to comply with regulations that have not been approved by Congress,

04:55while also exposing them to increased litigation and risk in the EU.

04:59I am running out of time, Mr. Chairman, but this is something I feel very strongly about.

05:04It is in with the international realm here, and I have two questions regarding this.

05:10Gentlewoman, time has expired.

05:11That I will submit for the record. Thank you.

05:13It will be submitted for the record. Recognize, Mr.

05:15President.

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