Jefferson City News

On April 11, 2024, Congressman Blaine Luetkemeyer (R-MO) and Congressman Ritchie Torres (D-NY) introduced bipartisan legislation aimed at fortifying U.S. markets from potential Chinese military aggression towards Taiwan.

Luetkemeyer emphasized the need for preparedness, stating, "America is unprepared for the catastrophic economic impact of a Chinese invasion of Taiwan." He highlighted the interconnectedness of economies and the need for a strategic plan to address the potential fallout.

Torres echoed this sentiment, stressing the importance of maintaining a fair competition with the CCP and preparing the national economy for any global emergencies. He expressed concern over the CCP's actions towards Taiwan and the implications for peace and stability in the region.

The legislation proposed the establishment of an Advisory Committee under the Financial Stability Oversight Council to analyze and report on market implications and vulnerabilities related to Chinese military aggression towards Taiwan. The committee, comprising key stakeholders from capital markets, regulatory agencies, and experts on geopolitical risk, aims to develop recommendations to safeguard the economy from potential sanctions resulting from a conflict between China and Taiwan.

The proposed Act outlines detailed provisions for the Advisory Committee's composition, meetings, and reporting requirements, with a focus on assessing market vulnerabilities, potential losses, and actions to enhance market resilience against shocks and volatility.

Analysis from global financial firm GTS highlighted the potential short-term and long-term economic consequences of a military engagement over Taiwan, estimating significant stock market declines and GDP impact. The legislation aims to address these concerns and prepare the U.S. economy for any future conflicts involving China and Taiwan.

For more information on the Fortifying U.S. Markets from Chinese Military Aggression Act, constituents are encouraged to visit the official websites of the sponsoring congressmen or reach out to their offices.