China’s growing military posturing around Taiwan raises the specter of an invasion or quarantine, with profound implications for global stability. TSMC, producing 90% of the world’s advanced chips, is critical to industries like AI, autos, and medical devices. Any disruption could trigger an economic crisis worse than the COVID-19 shock. The U.S. lacks a contingency plan to counter China’s potential use of economic coercion, undermining allies and the global trading system. To mitigate these risks, Washington must focus on reshoring critical industries, building economic security coalitions, and ensuring market stability while avoiding self-defeating sanctions.
My Take
America’s best response to a Taiwan crisis isn’t confrontation but preparation—investing in semiconductor independence and diversifying supply chains now will pay dividends later.
#USChinaRelations #Semiconductors #TaiwanCrisis #Geopolitics #GlobalEconomy #SupplyChainResilience #EconomicSecurity
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Credit: NYT
This post was enhanced with AI assistance, thoroughly reviewed, edited, and reflects my own thoughts.