China-Taiwan War: Understanding the Tensions and Potential Consequences

China could attack Taiwan – Polish Prime Minister Mateusz Morawiecki

“If Ukraine loses, China could attack Taiwan the next day. So Ukraine needs to be supported if we want Taiwan to remain independent,” Polish Prime Minister Mateusz Morawiecki said during his visit to the United States.

Recall the Chinese army, from April 8 to April 10, conducted large-scale exercises around Taiwan in response to the meeting of the head of the Taiwanese administration, Tsai Ing-wen, with the Speaker of the US House of Representatives, Kevin McCarthy. All this was accompanied by aggressive rhetoric from the Chinese authorities.

And in Taiwan, they even said that China is probably preparing to start a full-scale war. Xi Jinping says about a real war, but so far, without specifics. The 70-year-old enmity of the countries has reached its peak.

A new war is on the way?

There is a possibility of a war between Taiwan and China, but it is difficult to predict the likelihood of such an event. The relationship between Taiwan and China has been tense for many years, with both sides claiming sovereignty over Taiwan. China considers Taiwan a renegade province that must be reunified with the mainland, while Taiwan considers itself a sovereign state.
The situation is complicated because the United States has pledged to defend Taiwan against Chinese aggression, which could further escalate tensions between the two sides. However, it is essential to note that both Taiwan and China have much to lose in a war, and the potential consequences of such a conflict could be catastrophic for both sides and the wider region.

But how would this impact us?

War could disrupt trade and economic activity, causing harm to businesses and consumers in the US, Europe, and even the world.
Imagine that around 70% of the world’s foundry semiconductor chips are used in various electronic devices such as smartphones, laptops, and automobiles. Now imagine the semiconductor demand will go wild if the war breaks out. It means the prices for smartphones and any electronic device will be off the roof.

To summarize, we don’t need another conflict; we already have a full-scale war in the middle of Europe. Nevertheless, we will end up in the biggest crisis of the century.