Rep. Mike Gallagher (R-WI) and Sen. Dan Sullivan (R-AK) have introduced the Sanctions Targeting Aggressors of Neighboring Democracies (STAND) with Taiwan Act of 2023, which proposes imposing comprehensive economic and financial sanctions on China if the People’s Liberation Army or its proxies invade Taiwan. The sanctions would target the Chinese Communist Party (CCP), any Chinese financial institutions and industrial sectors and ban U.S. financial institutions from investing in Chinese entities affiliated with the CCP.
According to a press release, the STAND with Taiwan Act will prevent future aggression by China into Taiwan by promising economic sanctions against the CCP.
“When I met with President Tsai of Taiwan last month, she told me she wakes up every day trying to increase the cost of a PLA invasion. In Congress, we need to help her achieve that goal. We can do so not only by clearing the backlog of foreign military sales to Taiwan and increasing American hard power in the Indo-Pacific, but also by outlining the severe economic costs of an invasion," Gallagher said, according to the press release. "The STAND with Taiwan Act makes clear that should Xi choose to invade, the U.S. will not hesitate to respond with crippling and comprehensive economic sanctions on any person or company supporting a CCP invasion of Taiwan.”
Sullivan said Taiwan "stands on the frontline of the struggle" between America and the Chinese Communist Party regime.
"No one in America wants a war in the Taiwan Strait, but we cannot be blind to the implications of a successful CCP military takeover of Taiwan. This would deliver a devastating blow to the U.S. and global economy, lead our allies in Asia to question America’s commitments, allow the CCP to break out further into the Pacific and give Xi and his global authoritarian model extraordinary new legitimacy at home and abroad," Sullivan said.
In early March, Focus Taiwan CNA English News reported that Sullivan was pushing for legislation to protect Taiwan. If there is conflict with China over Taiwan, the U.S. economy could see a $2.5 trillion economic loss due to Taiwan being the made producer of high-end semiconductors. ln January 2022, Sullivan introduced a similar bill, saying "I think one of the things that we've learned from the brutal invasion of Ukraine by Russia is that comprehensive economic and financial sanctions have the best chance of deterring a conflict when they're clearly defined and ready to go before the conflict begins." Sullivan also warned how an invasion of Taiwan by China would severely hurt U.S. national security as many U.S. defense systems rely on the semiconductor chips.
According to the Council of Foreign Relations, the relationship between the U.S. and China over Taiwan has escalated recently due to the Russian invasion of Ukraine. Beijing claims Taiwan is part of China, while Taiwan has been functioning as an independent government since 1949. Chinese President Xi Jinping has affirmed this position stating China's goal "to seek national reunification.” The U.S. maintains a strong but unofficial relationship with Taiwan, recently selling defense systems and material to Taiwan. The U.S. seeks peace between China and Taiwan and maintains an ambiguous strategy to prevent tensions.
