The global economy is still in a bleak state and the war in Ukraine is ongoing, but there has been significant tension between China’s and Taiwan.
Nancy Pelosi (the American representative from California) plans to visit Taiwan this coming week. White House officials claim that China is planning to launch “military provocations” against Taiwan. Reports have also indicated that the global economy may plummet if Taiwan is attacked militarily.
Sources told Reuters that Nancy Pelosi, a California representative, will be visiting Taiwan on Aug 2, 2022. CNN also confirmed Pelosi’s intention to visit Taiwan, despite the risk of China provoking it. Although the country is independent of China, Beijing has always considered Taiwan a part of the Chinese territory. Tsai Ingwen, Taiwan’s president, and the Democratic Progressive Party support Taiwan’s independent government, which has been operating independently since 1949.
Recent tensions between China and Taiwan have escalated. Xi Jinping, China’s leader, classifies Taiwan in the same manner as it classifies Hong Kong. He uses the “one nation, two systems” method. TsaiIng-wen, Kuomintang and Kuomintang (KMT), reject the People’s Republic of China’s concept, often called the ‘One China’ Rule. A report from the Financial Times (FT), indicates that Pelosi will be meeting with the Taiwanese president Wednesday.
Pelosi’s trip has sparked a lot discussion about China’s military use to assert its power in the Taiwan Strait. A report by ABC indicates that the White House warned against China launching “military provocations” against Taiwan during Pelosi’s visit. John Kirby, the U.S. strategic coordinator for National Security Council, stated to the press that “[America] and other countries around the globe believe that escalation does not serve any one.”
Kirby stated that China appears to be preparing to take additional steps in the near future, possibly over longer time frames. Kirby also stated that Beijing’s actions could have unintended results that only increase tensions.
Reports suggest that a conflict between Taiwan and China could spark ‘Economic Chaos.
A recession is not a good thing. However, the world is already dealing the the ongoing military conflict in Ukraine with Russia. A conflict between China-Taiwan could worsen the situation. According to Reuters, a top trade negotiator in Taipei said that global trade flow problems would be more severe than those arising from the Ukraine-Russia conflict. According to the Taipei trader, semiconductor shortages could be one of the greatest problems.
Bloomberg published a report at the end of June that confirmed the statements of Taipei traders. The article stated that a China-Taiwan conflict could cause “economic chaos.”
The New York Times’ Dealbook editorial last week highlighted that an “escalation by Beijing” could have devastating economic consequences. Much like the market volatility and financial crisis that occurred during the Ukraine-Russia conflict and the Covid-19 pandemic, escalating tensions between China, Taiwan, and other countries could lead to global financial markets going into recession.
Similar to the Ukraine-Russian war, the U.S. could join other countries by funding Taiwan’s military and enforcing financial sanctions against China. According to NYT’s Dealbook, one of the greatest fears is that Beijing will block access to the Taiwan Strait. This is where U.S. naval vessels pass regularly.
The tensions between China and Taiwan has also led to speculation about the possibility of World War III . In an interview, Gerald Celente , a trends forecaster, spoke to Bitcoin.com News about the conflict in Ukraine as well as the tensions between China, Taiwan, and the United States.
The Trends Journal publisher and trends forecaster has been tweeting over the past 24 hours about Taiwan and China. Celente responded by publishing a blogpost explaining that the U.S. sends a mixed message about foreign policy regarding Pelosi’s visit to Tsai Ing–wen.