Wall Street executives join US House Committee's Taiwan war game

In a move aimed at shedding light on the risks associated with American investments in China, the US House of Representatives China committee is set to host a Taiwan war game in New York. According to a report from the Financial Times, this unique event, scheduled for Monday, will bring together financial and business executives to explore the potential economic consequences of a conflict between the United States and China over Taiwan.

The bipartisan delegation, led by Mike Gallagher, the committee's Republican head, and Raja Krishnamoorthi, its top Democrat, intends to engage representatives from investment banks, as well as current and former executives from pharmaceutical companies and retired four-star US military officers. While the committee has kept the names of participating financial executives under wraps, their insights are expected to be invaluable in assessing the risks tied to American capital flowing into China.

A move towards comprehensive national security?

In addition to the war game, the delegation will engage in discussions with the financial executives in New York. This outreach marks an escalation in the committee's scrutiny of how American investments in China could potentially undermine US national security.

Krishnamoorthi emphasized the significance of hearing from Wall Street executives regarding "the systemic risks that come with American capital flowing to China and how banks and other financial institutions think about their investments in China and exposure to the Chinese economy in the event of a political crisis."

War game will examine economic ramifications

The war game itself will delve into the economic ramifications of a hypothetical conflict between the United States and China concerning Taiwan. This isn't the committee's first foray into such scenarios. In April, lawmakers participated in a Taiwan war game on Capitol Hill, sparking discussions on whether the US and its allies were adequately prepared for potential sanctions on China and an economic showdown with Beijing in the event of a Chinese attack on Taiwan.

As tensions and uncertainties continue to swirl around US-China relations, particularly in the context of Taiwan, the committee's efforts seek to address the multifaceted challenges and risks associated with economic ties between the two global giants. The war game in New York stands as a symbol of ongoing efforts to safeguard American investors and national security interests amidst this complex geopolitical landscape.