Although the war in Ukraine caused the prices of some commodities to skyrocket, it was nothing compared to what a war over Taiwan would do to the world economy. The island nation’s foreign minister, Joseph Wu, thinks so. He warned that such a conflict would soon disrupt 40% of world trade.
Nearly half of world trade is threatened, in addition to fatal shortages in microchip and semiconductor production, as would be the direct impact, according to Taiwan’s foreign minister, if the Chinese Communists attacked the island.
Wu said this in an interview in Spanish ABC.es newspaper. “The economic impact will be enormous. Look at Taiwan’s geography. More than 40% of the world’s volume of goods transported flows through the Taiwan Strait. A war on Taiwan will disrupt 40% of world trade,” Wu warned.
And this is not the only impact of China’s attack on the island. Wu also mentioned that Taiwan produces 60% of the world’s microchip production, as well as 90% of the most advanced semiconductors.
The minister stressed in the interview that he hoped China would not start a devastating war. Taiwan has a modern armed force, even for China an attempt to take control of the island by force would mean heavy losses, but the island nation feels that it is not sufficiently prepared for war.
Therefore, Wu asked the United States through the media to provide additional equipment to Taiwan and also help train Taiwan’s soldiers.
China has stepped up pressure on Taiwan in recent months. For example, in early April, its armed forces conducted a siege of the island, and in the process the air force repeatedly violated zones that Taiwan regards as areas its air defenses should protect. At the same time, Taiwan’s president made a trip to the United States, which Beijing strongly condemned.
China launched a major maneuver. Taiwan Air Defense Zone breached (8/4/2023):
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