South OC Times

U.S. Representative Young Kim, along with Representatives Zach Nunn and Ritchie Torres, has introduced a bipartisan bill aimed at protecting the U.S. economy from potential military aggression by the Chinese Communist Party (CCP) against Taiwan. The proposed legislation, named the Fortifying U.S. Markets from Chinese Military Aggression Act, seeks to establish an advisory committee under the Financial Stability Oversight Council (FSOC). This committee would be tasked with creating a plan to safeguard the American economy in case of CCP military escalation.

Representative Kim emphasized Taiwan's critical role as a major producer of advanced semiconductors and its importance to both global markets and American economic stability. "Taiwan is not just a steadfast partner to the United States – it is home to 90% of the world’s advanced semiconductors that power our lives," said Rep. Kim.

Rep. Nunn highlighted the absence of an economic strategy despite existing military plans for such scenarios: “While the United States has long-standing military plans in place to respond to a potential Chinese invasion of Taiwan, there’s no economic game plan.” He stressed that this bill aims to provide a coordinated response plan.

Rep. Torres pointed out that American financial markets should not support regimes that threaten U.S. values and allies: “American investors should never be in the business of bankrolling the CCP’s military."

Ari Rubenstein, CEO of Global Trading Systems, supported this legislative initiative, stating it addresses significant risks by enhancing market resilience and coordination among regulators.

The bill comes amid concerns about China's geopolitical maneuvers and their potential impact on global supply chains and national security due to Taiwan's semiconductor production dominance. Economists predict severe economic repercussions if such tensions escalate into conflict.

The legislation proposes establishing a 12-member FSOC Advisory Committee composed of various financial experts who will develop reports identifying market vulnerabilities related to China-Taiwan tensions. The FSOC would also issue annual public reports on these risks while providing recommendations for regulatory preparedness against possible market disruptions.