During the Cold War, most Americans would have been alarmed if they discovered their everyday purchases and government-backed retirement funds were financing the Soviet Union's military, its strategic initiatives, and even providing employment opportunities. Unfortunately, many policymakers in Washington D.C. and business leaders across the country fail to apply this same logic when considering the Chinese Communist Party (CCP).
The United States and the USSR competed for world dominance for four decades. Much like the CCP today, the USSR denied its citizens fundamental human rights, silenced free speech, dismantled civil society, and crushed any opposition. In Soviet Russia, political dissidents, ethnic and religious minorities, and anyone who disagreed with the government were often sent to labor camps. "Sound familiar?" Fast forward to today: the CCP is committing genocide against the Uyghur people, arresting opposition leaders, and controlling every aspect of its citizens' daily lives. The tactics of the USSR and the CCP are not that different, nor is their quest to overthrow the United States as a leader on the world stage.
"It is just as absurd today to send our resources, investments, and technology to Communist China as it was during the height of the first Cold War," stated one observer. While trade might theoretically benefit the U.S. economy, outsourcing good-paying jobs can stimulate an adversary's economy at America's expense. Every dollar sent to Communist China potentially builds a larger and stronger Chinese military—resources that should be invested in American people, economy, and financial infrastructure.
"The more goods we purchase from Communist China equals fewer jobs in our communities," another commentator noted. This shift results in fewer opportunities for small businesses and fewer resources being invested into Main Street America. Although it may be convenient to have cheap goods delivered quickly, there are costs associated with offshoring manufacturing and supply chains.
"Is 2-day shipping for a shirt that costs $3 less really worth it?" asks a concerned citizen.
With each passing day, China inches closer to waging war on Taiwan. Despite being thousands of miles away from such conflict zones, Americans would feel significant economic impacts from a foreign war due to deep economic integration between both countries' economies.
To address these concerns proactively, Congressman Ritchie Torres (D-NY) introduced a bipartisan bill requiring the Financial Stability Oversight Council (FSOC) to develop an economic plan mitigating potential fallout from Chinese military aggression towards Taiwan. The advisory committee would include key federal financial regulatory agencies, capital market participants, and policymakers tasked with identifying risks to financial markets and banking systems while developing solutions to manage their impact.