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TradeChina

China-Taiwan conflict: How it could ruin the global economy

August 29, 2023

Taiwan matters hugely to the global economy because of its dominance in chip production. A Chinese blockade of Taiwan would shatter that all-important sector and as a result would wreak havoc on the global economy.

https://p.dw.com/p/4VgYq

Tensions between China and Taiwan have increased dramatically in recent years. Chinese President Xi Jinping has not ruled out the use of force. Taiwan matters hugely to the global economy because of its complete dominance in the production of semiconductors. A Chinese blockade or invasion of Taiwan would shatter that all-important sector and as a result would wreak havoc on the global economy.

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