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What would a Chinese invasion of Taiwan mean for the world?
In the shadow of an increasingly assertive China, the island of Taiwan finds itself at the centre of a geopolitical storm that threatens to unleash economic chaos on a global scale.
The elections in Taiwan next year is set to be a watershed moment, as the island's 23 million inhabitants grapple with their growing sense of national identity and the urgent need to safeguard their hard-won democratic freedoms. At the same time, Taiwan's strategic importance, particularly in semiconductor production, has made it a key battleground in the ongoing technological rivalry between Washington and Beijing.
Despite recent efforts to defuse tensions, including a high-profile summit between Presidents Xi Jinping and Joe Biden, the risk of conflict remains alarmingly high. Analysts at Bloomberg Economics estimate that a full-scale war could cost the global economy a staggering $10 trillion, dwarfing the impact of recent crises such as the COVID-19 pandemic and the war in Ukraine.
As policymakers and analysts keep a wary eye on the Taiwan Strait, the message is clear: the stakes could not be higher. With the fate of the global economy hanging in the balance, the international community must work tirelessly to maintain stability and prevent a catastrophic conflict that could plunge the world into an unprecedented economic abyss.
Source: Bloomberg
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