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A China blockade of Taiwan will hurt everyone 

The global economy will bear the consequences of an all-out economic war between the United States and China should the latter try to shut off Taiwan

Pushan Dutt
Published Thu, Sep 15, 2022 · 06:00 AM

A NARROW strip of water has become the world’s hottest flashpoint bar Ukraine since US House Speaker Nancy Pelosi visited Taiwan in August. China, which claims the self-ruled island as its own, has fired missiles and sailed warships across the 180km-wide Taiwan Strait that separates Taiwan from the mainland and which also happens to be one of the world’s major shipping routes. Security experts and Taiwan officials say the unprecedented show of strength amounted to a simulated blockade.

While it remains unclear whether Beijing would make good on its threat, the world must brace itself for an all-out economic war between the China and the United States should a Taiwan blockade come to pass.

A cold economic war, while not as devastating as a “hot” conflict, would be disruptive and costly for the global economy and almost all of us. Ships would have to divert from the Taiwan Strait, the primary route between East Asia and the rest of the world. Consumers and companies would pay more for goods that would take longer to ship. Like in the Russia-Ukraine conflict, governments and multinationals would be forced to take sides and bear the consequences as the US and its allies impose sanctions on Chin…

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