Reports Say Beijing Attacking Taiwan Could Lead to ‘Far-Reaching Economic Consequences’

While the global economy remains gloomy and the war in Ukraine continues, there’s been significant tension between China and Taiwan. The American representative from California, Nancy Pelosi, plans to visit Taiwan this week and White House officials say China is preparing to carry out “military provocations.” Moreover, during the last few weeks, reports note that the global economy could crater if there’s a Chinese military attack on Taiwan.

“China appears to be positioning itself to potentially take further steps in the coming days and perhaps over longer time horizons,” Kirby said. Furthermore, Kirby added that “Beijing’s actions could have unintended consequences that only serve to increase tensions.”

Similar to the Ukraine-Russia war, the U.S. and other countries could get involved by enacting financial sanctions against China and funding Taiwan’s military. NYT’s Dealbook explains that one of the biggest fears is that “Beijing will cut off access to all or part of the Taiwan Strait, through which U.S. naval ships regularly pass.”

What do you think about the economic consequences of a war between China and Taiwan? Let us know what you think about this subject in the comments section below.

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