Fun

Reports Say Beijing Attacking Taiwan Could Lead to ‘Far-Reaching Economic Consequences’

News Feed - 2022-08-02 11:08:04

Reports Say Beijing Attacking Taiwan Could Lead to "Far-Reaching Economic Consequences"


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 have explained to Reuters that California representative Nancy Pelosi is expected to be visiting Taiwan on August 2, 2022. CNN also confirmed that Pelosi was going to visit Taiwan, even though there’s a risk of provoking China. While the country is governed independently of mainland China, Beijing has always considered Taiwan part of the Chinese territory. Taiwanese president Tsai Ing-wen and the Democratic Progressive Party, however, favor Taiwan’s independent government that’s been operating independently since 1949. 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.


In more recent times, tensions have grown sour between China and the island separated from continental Asia by the Taiwan Strait. 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 a Financial Times (FT) report, Pelosi is expected to discuss matters with the Taiwanese president on Wednesday. NOW – China"s People"s Liberation Army just posted a new video on WeChat ahead of Pelosi"s potential visit to Taiwan.pic.twitter.com/QaiFcdGCn1


— Disclose.tv (@disclosetv) August 1, 2022



Pelosi’s visit has stirred a lot of discussions concerning China using its military to show force in the Taiwan Strait. An ABC reportnotes 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’


While a recession is bad enough, the world is already dealing with the military conflict taking place in Ukraine against Russia. Adding a conflict between China and Taiwan could make matters much worse. 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. The Taipei trader said that one of the biggest problems that could occur would be semiconductor shortages. Chinese, American, and Taiwanese warships have been positioned outside Taiwan, and in the Taiwan Strait, during the last few weeks. Reports say the USS Ronald Reagan (CVN-76), a Nimitz-class nuclear-powered supercarrier, is located in Taiwan alongside the USS Tripoli (LHA-7) and Marine F-35B Lighting II Joint Strike Fighters ahead of Nancy Pelosi’s visit.


At the end of June, Bloomberg published a reportthat 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 editorialhighlighted that “an escalation from Beijing would have far-reaching economic consequences.” Much like the financial calamity that arose during the beginning of the Covid-19 pandemic and the market volatility that started during the Ukraine-Russia conflict, escalated tensions between China and Taiwan could cause global financial markets to tailspin from a recession to a depression. Taiwan Strait Cut-off Fears and World War III Speculation


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.” The Taiwan Strait is a 180-kilometer-wide strait separating the island of Taiwan and continental Asia. The region is a well-known shipping route and naval ships from all around the world pass through the strait. The passageway is part of Xi Jinping’s “exclusive economic zone” that’s part of the ‘One China’ rule.


The issues between China and Taiwan have also sparked speculation that these battles could start World War III. During the first week of July, the trends forecaster Gerald Celente spoke with Bitcoin.com 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.


The trends forecaster and publisher of the Trends Journal has been tweeting about China and Taiwan during the last 24 hours. 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. Tags in this story ‘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


What do you think about the economic consequences of a war between China and Taiwan? Let us know what you think about this subject in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today. Nigerian Central Bank Told to Consider Floating the Naira, Recent Interest Rate Hike Slammed ECONOMICS | 12 hours ago US Personal Consumption Expenditures Tap Record Highs, Stanford Economist Says Fed Should Increase Rates Above 9% ECONOMICS | 2 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons, Editorial Photo Credit: NurPhoto via Getty Images, Shutterstock.com, Previous articleBitcoin, Ethereum Technical Analysis: ETH Drops Below $1,600 as Prices Extend Recent Declines Next articleBiggest Movers: DOT Drops Below $8.45 Resistance Level, as CRO Rises to Multi-Week High  Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year


The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method

News Feed

Brayden Lindrea5 hours agoXRP ruling a ‘watershed moment,’ but we’re not out of the woods yet — LawyersThe crypto community has gathered to celebrate the recent ruling on XRP’s security status, but lawyers warn
DeFi lending giant Aave unveils V4 protocol overhaul
Martin Young4 hours agoDeFi lending giant Aave unveils V4 protocol overhaulAave Labs shared a proposal for the next version of its protocol, which included improvements to its stablecoin, GHO.891 Total views7 Total share
Want to Dodge Your Crypto Tax? Learn the Risks From Koinly
Want to Dodge Your Crypto Tax? Learn the Risks From Koinly sponsored In recent years, the IRS has made one thing abundantly clear – if you make money from crypto, they want t
HODL Fever: Bitcoin Holders Refuse To Sell As Data Shows Record BTC Stash
Este artículo también está disponible en español. Several investing strategies have emerged as Bitcoin and crypto continue to grow in value and expand their use cases. Fo
Locker Token and Euro Ice Hockey Champs Rögle BK To Host In-Person NFT Event
Locker Token and Euro Ice Hockey Champs Rögle BK To Host In-Person NFT Event press release PRESS RELEASE.Locker Token & Ice Hockey extraordinaires Rögle BK have officially ann
Bitcoin Cash Sees Mining Pool Shift and Hashrate Surpass 4 Exahash
Bitcoin Cash Sees Mining Pool Shift and Hashrate Surpass 4 Exahash While people have watched the BTC network surpass 100 exahash per second (EH/s), Bitcoin Cash (BCH) has been st
Leveraged MicroStrategy ETFs break $400M as ‘hot sauce arms race’ heat up
Alex O’Donnell8 hours agoLeveraged MicroStrategy ETFs break $400M as ‘hot sauce arms race’ heat upThe ETFs add leverage to MicroStrategy’s already levered-up Bitcoin strategy, and investors can’t seem to get en
Kraken Charged by CFTC Over Margined Crypto Transactions, $1.25 Million Penalty Imposed
Kraken Charged by CFTC Over Margined Crypto Transactions, $1.25 Million Penalty Imposed The Commodity Futures Trading Commission (CFTC) has charged Payward Ventures, the operator o
Meet the Solana memecoin that suffered two rug pulls but still survived
Christopher Roark3 hours agoMeet the Solana memecoin that suffered two rug pulls but still survivedCatwifhat’s first and second development teams dumped all of their tokens and disappeared, yet the token managed to bou
Vietnam, Philippines, India, China Among Top Countries for Crypto Adoption, Chainalysis Global Index Shows
Vietnam, Philippines, India, China Among Top Countries for Crypto Adoption, Chainalysis Global Index Shows Blockchain analytics firm Chainalysis has published its 2022 cryptocurren
On the Brink of a New Trend: Credit Suisse Receives 50 Billion Swiss Franc Bailout From Swiss National Bank
On the Brink of a New Trend: Credit Suisse Receives 50 Billion Swiss Franc Bailout From Swiss National Bank Credit Suisse has experienced a loss of confidence in the financial inst
David Attlee14 hours agoKraken will share data of 42,000 users with IRSThe information will be sent to the Internal Revenue Service in early November.5233 Total views19 Total sharesListen to article 0:00NewsJoin us on so