South Iowa News

Representative Zach Nunn, along with Representatives Ritchie Torres and Young Kim, has introduced a bipartisan bill aimed at protecting the U.S. economy from potential Chinese military aggression. The proposed legislation, known as the Fortifying U.S. Markets from Chinese Military Aggression Act, seeks to establish an advisory committee under the Financial Stability Oversight Council (FSOC) to create a plan to shield American markets in case of a Chinese invasion of Taiwan.

Rep. Nunn emphasized the lack of an economic strategy despite existing military plans for such a scenario: “90% of the world’s advanced semiconductors are manufactured in Taiwan. The economic impact of that capacity falling into the hands of the CCP would be devastating, not just for global markets, but for Main Street Iowa businesses.”

Rep. Torres highlighted the need for transparency and accountability: “American investors should never be in the business of bankrolling the CCP’s military... I’m proud to work with Congressman Nunn to push for a bipartisan solution to safeguard the integrity of our markets and defend American interests.”

Rep. Young Kim stressed Taiwan's significance: “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.”

Ari Rubenstein, CEO of Global Trading Systems, supported the bill: “This bipartisan bill takes a critical step toward strengthening market resilience... Capital markets thrive on stability and preparedness.”

The bill addresses concerns about a lack of an economic contingency plan for Chinese aggression in Taiwan Strait. Economists predict severe market impacts if China invades Taiwan, including a short-term market drop up to 34% and a global GDP loss estimated by Bloomberg at $10 trillion.

While military plans exist, this legislation aims to build an economic response framework through interagency and private sector coordination.