Yahoo Finance 3 things to watch in D.C. this week
Geopolitical concerns remain in focus as the World Economic Forum congregates in Davos, Switzerland this week while stocks look to bounce back from the brink of a bear market.
That's not to say domestic issues don't also abound, with primaries for midterm elections heating up, gas prices hitting record highs, and the Biden administration hoping new actions will ease a nationwide shortage of baby formula.
Given investor concerns in the U.S. and abroad, here are three political headlines making waves in the business world:
Taiwan
President Biden said on Monday that the U.S. would be prepared to use force to defend Taiwan against China if need be.
When asked at a press conference in Tokyo if the U.S. would defend Taiwan against an attack from China, Biden said: “Yes – that’s the commitment we made.”
"We agree with a One China policy," Biden continued. "We've signed on to it and all the intended agreements made from there. But the idea that [Taiwan] can be taken by force — just taken by force — is just not appropriate.”
The Chinese Foreign Ministry pushed back against Biden's remarks.
"We urged the US side to earnestly follow the One China principle, ... be cautious in words and deeds on the Taiwan issue, and not send any wrong signal to pro-Taiwan independence and separatist forces — so it won't cause serious damage to the situation across the Taiwan Strait and China-US relations," the Ministry said in a statement.
The White House later stated that U.S. policy on Taiwan “has not changed,” adding that the president "reiterated our One China Policy and our commitment to peace and stability across the Taiwan Strait. He also reiterated our commitment under the Taiwan Relations Act to provide Taiwan with the military means to defend itself.”
The question about Taiwan comes as Biden has sought to build an international coalition to defend Ukraine against Russia’s aggression. Washington lawmakers and world leaders have grown concerned that China would take a similar approach to Russia's in an attack on Taiwan.
Operation Fly Formula
The Biden administration says it has launched Operation Fly Formula to quickly import baby formula into the United States after a breakdown in supply chains and a recall sparked panic among consumers.
The first cargo shipment containing 39 tons of baby formula arrived in Indianapolis on Sunday, CBS reported.
Additionally, Biden invoked the Defense Production Act to help alleviate the nationwide shortage. The law mandates that manufacturers of formula ingredients prioritize distribution to baby formula manufacturers.
Georgia gubernatorial Republican primary
Political watchers have Georgia on their mind as former Senator David Perdue challenges the incumbent Republican Governor Brian Kemp in a GOP gubernatorial primary.
Former President Donald Trump has endorsed Perdue, but polls suggest that Kemp is likely to win the nomination.
However, should Trump’s MAGA base not support Kemp in the general election against presumptive-Democratic nominee Stacey Abrams, it would be a 2018 governor rematch between Abrams and Kemp.
Kemp won in 2018, but since that race, Trump has attacked Kemp for certifying the presidential election results of 2020.
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
