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Taiwan attack

What are the economic consequences of an attack on Taiwan?

The PLA's military options and what they could mean for regional and global economies and markets

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The world’s most dangerous geopolitical flashpoint is once again in the headlines amid fears that Beijing could attempt to aggressively resolve the cross-Strait question. But speculation about how China’s leadership could gain political control over Taiwan fails to take into account the military options short of a full-scale invasion – not to mention their economic and market implications.

This special report from Capital Economics shows you just some of the scenarios by which the People’s Liberation Army could coerce Taiwan and explains what they could mean for global economic outlook.

China’s leadership has options other than invasion to coerce Taiwan to submit to its political control... any scenario that upset the existing cross-Strait balance would come with a high risk of further escalation that would lead to a hard decoupling of China from the West.
Mark Williams
Mark Williams
Chief Asia Economist

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