Reports Say Beijing Attacking Taiwan Could Lead to ‘Far-Reaching Economic Consequences’ – Economics Bitcoin News

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.

Nancy Pelosi Is Visiting Taiwanese President Tsai Ing-wen This Week Despite Taiwan’s Tensions With China

Sources told Reuters that Nancy Pelosi (California representative) will be in Taiwan August 2nd, 2022. CNN also confirmed that Pelosi was going to visit Taiwan, even though there’s a risk of provoking China. The country can be governed by itself, but Beijing still considers Taiwan part of China. Taiwanese president Tsai Ing-wen and the Democratic Progressive Party, however, favor Taiwan’s independent government that’s been operating independently since 1949.

Reports Say Beijing Attacking Taiwan Could Lead to 'Far-Reaching Economic Consequences'
Amid escalating Taiwan-China tensions, Taiwan has issued the country’s first war survival handbook and Taiwanese army soldiers have been training and running readiness enhancement drills.

Tensions have increased between China, Taiwan Strait and mainland Asia in recent years. China’s Xi Jinping classifies Taiwan the same way China classifies Hong Kong, with the “one country, two systems” formula. Tsai Ing-wen, the Democratic Progressive Party, and Kuomintang (KMT) reject the People’s Republic of China’s (PRC) concept often called the ‘One China’ rule. According to Financial Times (FT), ReportPelosi will discuss Taiwanese President’s issues on Wednesday.

Pelosi’s visit has stirred a lot of discussions concerning China using its military to show force in the Taiwan Strait. ABC Report notes that the White House has warned of China carrying out “military provocations” against Taiwan during the visit. The strategic coordinator for the U.S. National Security Council, John Kirby, told the press “[America], and countries around the world, believe escalation serves no one.”

“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.”

Reports Note a Conflict Between China and Taiwan Could Spark ‘Economic Chaos’

A recession can be bad enough. However, there is already a military conflict in Ukraine with Russia. The situation could get worse if there is a conflict between China-Taiwan. A top trade negotiator from Taiwan’s capital of Taipei told Reuters that global trade flow issues would be greater than the issues stemming from the Ukraine-Russia war. A Taipei trader stated that semiconductor shortages would pose a major problem.

Reports Say Beijing Attacking Taiwan Could Lead to 'Far-Reaching Economic Consequences'
Over the last week, Taiwanese and American warships were positioned in Taiwan and the Taiwan Strait. According to reports, the USS Ronald Reagan (CVN76), an Nimitz-class nuclear powered supercarrier is also located in Taiwan. Tripoli (LHA-7) and Marine F-35B Lighting II Joint Strike Fighters ahead of Nancy Pelosi’s visit.

Bloomberg published an article at the end June Report that further verified the Taipei trader’s statements as the article said a China-Taiwan war could spark “economic chaos.” The report insists that China attacking Taiwan could “go well past semiconductors.” “A major war over Taiwan could create global economic chaos that would make the mess produced by Russia’s war in Ukraine look minor by comparison,” Bloomberg’s Hal Brands details.

Last week, the New York Times’ (NYT) Dealbook Editor highlighted that “an escalation from Beijing would have far-reaching economic consequences.” Similar to the financial disaster that occurred during the Covid-19 pandemic, and the volatility in the markets that began during the Ukraine-Russia war, the tensions between China and China have escalated. Global financial markets could be affected by Taiwan’s recession or depression.

Taiwan Strait Cut off Fears and World War III Speulation

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.”

Reports Say Beijing Attacking Taiwan Could Lead to 'Far-Reaching Economic Consequences'
The Taiwan Strait, a 180-kilometer wide strait that separates Taiwan Island from continental Asia is the Taiwan Strait. This region is well-known for its shipping routes. The strait is used by naval vessels from around the globe. The passageway is part of Xi Jinping’s “exclusive economic zone” that’s part of the ‘One China’ rule.

These issues have also led to speculation about the possibility that World War III could be triggered by these conflicts between China and Taiwan. The trends forecaster was updated during the first week in July. Gerald Celente spoke with News during an interview and he stressed that “World War III has already begun.” At the time, Celente discussed the conflict in Ukraine and the tensions between China and Taiwan.

Trends Journal publisher and trends forecaster, has been tweetingThe last 24 hours have been filled with information about Taiwan and China. In response, Celente published a blog post that explains the “U.S., once again, sends mixed message on foreign policy” in regard to Pelosi’s visit with Tsai Ing-wen.

This story contains tags
‘One China’ rule, 1949, Bloomberg, China, china military, Chinese Army, Democratic Progressive Party, economics, economics and war, Economy, financial times, Kuomintang, Nancy Pelosi, New York Times, Pelosi visit, provoking China, Semiconductors, Supply Chain, Taiwan, Taiwan army, Taiwan military, Taiwanese president Tsai Ing-wen, War, war economy, World War III, WWIII, Xi Jinping

How do you feel about economic implications of wars between China and Taiwan. Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman is the News Lead for News. He also lives in Florida and works as a journalist covering financial technology. Redman joined the cryptocurrency community in 2011 and has been an active member ever since. Since 2011, Redman has been an active member of the cryptocurrency community. Redman is a prolific writer for News, with over 5,700 articles on the most disruptive protocols currently in development.

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