I would think that China's calculation about action of a hostile nature against Taiwan would encompass not just military might but also the response diplomatically of nations around the world, but also economic impact.
Romney discusses the multifaceted implications of China's potential aggression towards Taiwan.
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I completely agree with you on we need to stop subsidizing building in high risk areas.
I think perhaps Energy and Natural Resources (ENR) would be the committee that would be focused on this more than Budget.
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