Three U.S. lawmakers introduced a new bill to prepare American markets for the potential fallout from a Taiwan Strait crisis. Representatives Young Kim, Zach Nunn, and Ritchie Torres announced the Fortifying U.S. Markets from Chinese Military Aggression Act on Tuesday. This move underscores rising concern over the lack of Taiwan Strait conflict preparedness.
The bill directs the Financial Stability Oversight Council (FSOC) to create a 12-member advisory panel. This committee will identify market vulnerabilities linked to a possible Chinese attack on Taiwan. It must also issue regular reports and offer strategic recommendations to key financial regulators.
Under the bill, the FSOC will publish annual public reports on the risks of a Taiwan conflict. These documents will detail the potential impacts on U.S. banking and capital markets. They will also include analysis of possible Chinese retaliatory actions in trade and finance.
Importantly, the advisory panel will focus on strengthening Taiwan Strait conflict preparedness. It must help regulators prepare for disruptions like stock market shocks, trade slowdowns, or investment volatility.
Kim’s office warned that a Chinese invasion could trigger a U.S. market drop of up to 34%. Kim said the bill is vital to protect American families and businesses from this risk. “The U.S. must act now to guard against economic chaos from a Taiwan blockade or attack,” she stated.
Nunn added that China gaining control over Taiwan’s semiconductor production would be disastrous. He stressed that the bill ensures a coordinated response to such a scenario.
Torres emphasized the bill’s message to Wall Street and foreign adversaries. “This is a clear-eyed plan to block authoritarian threats from shaking our markets,” he said.
As tensions rise in the Asia-Pacific, U.S. lawmakers are taking action. This bill strengthens Taiwan Strait conflict preparedness and aims to shield American financial stability from global shockwaves.
