Wall Street firms and retired generals will meet next week to discuss a hypothetical Chinese invasion of Taiwan, sources told the New York Times' DealBook.

The "tabletop exercise" will take place in New York, and participants will explore the potential geopolitical and business implications of an invasion, the report said.

It comes as the congressional China committee plans to go to New York, where lawmakers will meet with banks, hedge funds and venture capital firms, according to the New York Times.

The Select Committee on the Chinese Communist Party has scheduled a hearing on September 12 at the Council on Foreign Relations called "Systemic Risk: The Chinese Communist Party's Threat to U.S. Financial Stability."

Witnesses include former Securities and Exchange Commission Chairman Jay Clayton, Kynikos Associates founder and President Jim Chanos, as well as J Capital Research founder Anne Stevenson-Yang.

The committee's chairman, Rep. Mike Gallagher, R-Wisconsin, appealed last month to the Biden administration to introduce stricter curbs on US investment in China.

"If American capital continues to flow to Chinese military companies, we are at risk of funding our own destruction," he later told the Financial Times.

Meanwhile, the committee is also probing BlackRock and MSCI over the asset manager and the index provider's roles in funneling American investments into shares of Chinese firms that have been flagged by the US over security concerns or human rights abuses, the Wall Street Journal reported last month. 

According to the committee, stocks in some of BlackRock's funds or MSCI's emerging markets indexes include those of companies on US "red flag lists," some of which have helped advance Chinese military interests or have been involved in abuses in the China's Xinjiang region, where most of the country's Uyghur population is located.