Biden says U.S. will defend Taiwan against China

Biden says U.S. will defend Taiwan against China

Geopolitical concerns remain in focus as the World Economic Forum gathers in Davos, Switzerland this week, while stocks look to bounce back from the brink of a bear market.

Domestic issues don't always abound, with the primaries for midterm elections heating up, gas prices hitting record highs, and the Biden administration hoping new actions will help with a nationwide shortage of baby formula.

There are three political headlines making waves in the business world because of investor concerns in the U.S. and abroad.

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. Biden said that we agree with a One China policy. We signed on to it and all the intended agreements made from there. But the idea that Taiwan can be taken by force is not appropriate. The US side should be careful 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 stated that we have a commitment under the Taiwan Relations Act to provide Taiwan with the military means to defend itself. The question about Taiwan comes as Biden has tried to build an international coalition to defend Ukraine against Russia's aggression. Washington lawmakers and world leaders have grown worried that China would take a similar approach to Russia's attack on Taiwan.

After a breakdown in supply chains and a recall sparked a panic among consumers, the Biden administration launched Operation Fly Formula to quickly import baby formula into the United States.

The first cargo shipment containing 39 tons of baby formula arrived in Indianapolis on Sunday, CBS reported.

Biden invoked the Defense Production Act to help alleviate the nationwide shortage. The law requires manufacturers of formula ingredients to prioritize distribution to baby formula manufacturers.

Political watchers have Georgia on their mind as former Senator David Perdue challenges 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 election.

If Trump's MAGA base does 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 Trump has attacked Kemp for certifying the presidential election results of 2020.