Taiwan News https://www.taiwannews.com.tw/news/6104983
TAIPEI (Taiwan News) — US lawmakers introduced a bill on Tuesday to protect the US from the economic fallout of a possible Chinese attack on Taiwan.
Representatives Young Kim, Zach Nunn, and Ritchie Torres introduced the Fortifying US Markets from Chinese Military Aggression Act in response to concerns about the lack of an economic contingency plan for a Taiwan Strait conflict.
The bill requires the Financial Stability Oversight Council to form a 12-member advisory committee to assess China-related geopolitical risk, draft reports and recommendations to pinpoint market weaknesses, and ensure financial stability.
The FSOC would have to publish annual public reports detailing the economic impacts of a Taiwan conflict, including on US banking, and retaliatory actions from China. Additionally, the committee must share recommendations to regulators to prepare US capital markets for potential market volatility or trade disruptions.
A Chinese invasion of Taiwan would result in a short-term US market drop of up to 34%, according to Kim’s office.
“The impact of a CCP attack on Taiwan on the lives of all Americans cannot be overstated,” Kim said. “The United States must be proactive in protecting our economy in case of an attack or blockade against Taiwan.”
Nunn warned that “the economic impact of that capacity falling into the hands of the CCP would be devastating.” The bill “ensures we have a clear, coordinated plan to respond,” he said.
Torres said the bill “is a clear-eyed effort to ensure American financial markets are not exploited to strengthen an authoritarian regime that threatens our values and our allies.”
