Chinese Invasion of Taiwan Could Have Catastrophic Economic Consequences: US Intelligence

US intelligence officials predicted that a Chinese invasion of Taiwan or an attack as early as 2025 on the island nation could cost the world economy USD 1 trillion, reported Taipei Times.US Director of National Intelligence Avril Haines presented what she called a “general estimate” during testimony before the US Senate Armed Services Committee on Thursday.”A Chinese invasion of Taiwan could halt production by the world’s largest advanced chipmaker, wiping out up to USD 1 trillion per year from the global economy in the first few years,” said the top US intelligence official.

While tensions between China and Taiwan have been high for some time, recent military posturing by China has raised concerns over the possibility of an invasion. The US, which has long supported Taiwan’s independence, has warned China against taking any aggressive actions and has pledged to defend the island nation in the event of an attack.

However, the economic consequences of a Chinese invasion would likely be felt far beyond the Asia-Pacific region. With China being a major player in global trade and supply chains, disruptions caused by a military conflict could have ripple effects throughout the world economy. The report from US intelligence underscores the need for a peaceful resolution to the ongoing tensions between China and Taiwan. While the US has vowed to defend Taiwan against aggression, a military conflict would have catastrophic consequences for the global economy, underscoring the need for diplomacy and international cooperation to find a peaceful solution to the situation

–Re-reported from the story originally published in LokmatTimes English