Reports say Beijing’s attack on Taiwan could lead to “far-reaching economic consequences” – Economy Bitcoin News

As the global economy remains bleak and the war in Ukraine continues, there has been significant tension between China and Taiwan. US California representative Nancy Pelosi plans to visit Taiwan this week and White House officials say China is preparing to carry out “military provocations.” Furthermore, in recent weeks, reports have noted that the global economy could collapse if there is a Chinese military attack on Taiwan.

Nancy Pelosi visits Taiwanese President Tsai Ing-wen this week, despite Taiwan’s tensions with China

Sources told Reuters that California representative Nancy Pelosi is expected to visit Taiwan on August 2, 2022. CNN also confirmed that Pelosi would visit Taiwan, although there is a risk of provoking China. Although the country is independently governed by mainland China, Beijing has always considered Taiwan to be part of the Chinese territory. Taiwanese President Tsai Ing-wen and the Democratic Progressive Party, however, are in favor of Taiwan’s independent government which has operated independently since 1949.

Amid mounting tensions between Taiwan and China, Taiwan published the country’s first war survival manual, and Taiwanese army soldiers trained and conducted readiness-enhancing drills.

In more recent times, tensions have escalated between China and the island separated from mainland Asia by the Taiwan Strait. Chinese Xi Jinping ranks Taiwan the same way China ranks Hong Kong, with the formula “one country, two systems”. Tsai Ing-wen, the Democratic Progressive Party, and the Kuomintang (KMT) reject the concept of the People’s Republic of China (PRC) often called the “One China” rule.. According to a Financial Times (FT) reportPelosi is expected to discuss the matter with the Taiwanese president on Wednesday.

Pelosi’s visit sparked much discussion about China using its military to show strength in the Taiwan Strait. An ABC report notes that the White House warned that China would carry out “military provocations” against Taiwan during the visit. US National Security Council Strategic Coordinator John Kirby told the press “[America]and countries around the world believe that escalation is of no use to anyone. “

“It appears that China is 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”.

Reports Find China-Taiwan Conflict Could Trigger “Economic Chaos”

Although a recession is bad enough, the world is already facing the ongoing military conflict in Ukraine against Russia. Adding a conflict between China and Taiwan could make matters worse. A leading trade negotiator in the Taiwanese capital Taipei told Reuters that global trade flow problems would be greater than the problems stemming from the Ukraine-Russia war. The Taipei trader said one of the biggest problems that could occur would be the shortage of semiconductors.

Chinese, American and Taiwanese warships have been deployed out of Taiwan and into the Taiwan Strait in recent weeks. Reports say that the USS Ronald Reagan (CVN-76), a Nimitz-class nuclear-powered supercarrier, is located in Taiwan next to the USS Tripoli (LHA-7) and Marine F-35B Lighting II Joint Strike Fighters prior to Nancy Pelosi’s visit.

In late June, Bloomberg released a report this further verified the Taipei merchant’s claims as the article stated that a China-Taiwan war could spark “economic chaos”. The report insists that China attacking Taiwan could “go far beyond semiconductors”. “A major war on Taiwan could create global economic chaos that would make the mess produced by Russia’s war in Ukraine seem insignificant,” explains Bloomberg’s Hal Brands.

Last week, the New York Times (NYT) Dealbook. editorial he stressed that “an escalation by Beijing would have far-reaching economic consequences”. Just like the financial calamity that arose at the start of the Covid-19 pandemic and the market volatility that began during the Ukraine-Russia conflict, tensions between China have intensified. and Taiwan could cause global financial markets to rotate from a recession to a depression.

Fears of the interruption of the Taiwan Strait and speculation about the third world war

Similar to the Ukraine-Russia war, the United States and other countries could get involved by issuing financial sanctions against China and funding the Taiwanese military. The NYT 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 US military ships regularly pass.”

The Taiwan Strait is a 180-kilometer-wide strait that separates the island of Taiwan from mainland Asia. The region is a well-known sea route as well military ships from all over the world pass through the strait. The passage is part of Xi Jinping’s “exclusive economic zone” which is part of the “One China” rule.

The problems between China and Taiwan have also sparked speculation that these battles could start World War III. During the first week of July, the forecaster trend Geraldo Celente spoke to Bitcoin.com News during an interview and stressed that “World War III has already begun”. Celente was then discussing the conflict in Ukraine and the tensions between China and Taiwan.

The trendsetter and editor of the Trends Journal was tweeting on China and Taiwan in the last 24 hours. In response, Celente posted a blog post explaining that “the United States, once again, is sending mixed messages on foreign policy” regarding Pelosi’s visit with Tsai Ing-wen.

Tag in this story

“One China” Rule, 1949, Bloomberg, China, Chinese Army, Chinese Army, Democratic Progressive Party, Economy, Economy and War, Economy, Financial Times, Kuomintang, Nancy Pelosi, New York Times, Pelosi’s visit, provoking China, Semiconductors , Supply Chain, Taiwan, Taiwan Army, Taiwan Army, Taiwanese President Tsai Ing-wen, War, War Economy, World War III, World War III, Xi Jinping

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

Jamie Redman

Jamie Redman is the News Lead of Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News on the disruptive protocols emerging today.




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