This was doing the rounds a while back (not sure of the source, but the numbers seem plausible to me)t.co/5QQUZScubn
— The Baron of Watford 🇬🇧🇸🇬🇺🇦🇹🇼 (@rickysingtrader) June 11, 2024
- Supply Chain Disruption: Taiwan plays a crucial role in the global technology supply chain, particularly in semiconductor manufacturing. An invasion could disrupt the production and distribution of critical components, leading to shortages and affecting various industries worldwide.
- Stock Market Reaction: Like the unexpected Russian invasion of Ukraine, a Chinese invasion of Taiwan could trigger a tumultuous market reaction. The shortage of chips would cause ripples throughout the world, potentially leading to a sell-off by investors holding Chinese equities traded on U.S. capital markets.
- Economic Catastrophe: The severity of the economic impact would depend on the scale and duration of the conflict. A prolonged conflict could indeed have devastating consequences for global markets, including stock market declines and potential recessionary effects
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