Last week, two U.S. federal senators proposed the cross-party "Stand with Taiwan Act of 2024" (STAND with Taiwan Act of 2024) aimed at deterring military invasion of Taiwan, stating that once Taiwan is invaded by force, it will be subject to comprehensive and severe economic, energy, financial and other sanctions.
This bill was introduced on July 26 by Alaska U.S. Senator Dan Sullivan, a Republican, and Illinois U.S. Senator Tammy Duckworth, a Democrat. Both senators are members of the Senate Armed Services Committee.
The "STAND" of this bill is the English abbreviation of "Sanctions Targeting Aggressors of Neighboring Democracies" (Sanctions Targeting Aggressors of Neighboring Democracies). The bill aims to curb China's military aggression against Taiwan with a series of sanctions on financial institutions and industries, as well as a ban on U.S. financial institutions, including investment companies, private capital companies, venture capital companies or hedge funds. The bill would also restrict imports of Chinese products.
The bill states that U.S. policy is based on the Taiwan Relations Act, the three U.S.-China joint communiqués of 1972, 1978 and 1982, and President Ronald Reagan's "Six Assurances" against Taiwan in 1982. However, as long as there is a military invasion of Taiwan, U.S. policy will use various economic, commercial and financial tools and forces to impose sanctions on financial institutions and other entities related to the two, and prohibit Chinese securities entities from being listed and traded on U.S. stock exchanges.
In addition, the bill also prohibits U.S. financial institutions from investing in China's economic industries, prohibits the import of specific goods mined, produced and manufactured in China, and coordinates with U.S. allies and partners to encourage them to take the same economic, commercial and financial actions against the Chinese government and the Chinese Communist Party.