One Year After the Ukraine War: Economic Implications of a Potential War in the Taiwan Strait

Vladimir Putin’s invasion of Ukraine has roiled energy markets and food supply chains, sending economic shockwaves around the world. This prompts an important question: What would happen to the world economy if China invaded Taiwan? Clearly, the economic impact would be much more devastating and profound than that of the Ukraine war, given the fact that Taiwan and China are both far more integrated into the global economy. Even without direct military intervention from the United States, a Taiwan-China war would devastate the global economy like a weapon of mass destruction.