WATCH
contributing around 6 %, or US $ 6trn annually , to sectors worldwide ,” he explains . “ The strategic importance of the Taiwan Strait , particularlyas a high-tech hub and a leading semiconductor supplier , contributes to an estimated US $ 10trn potential cost to the world economy and represents about 10 % of global GDP .”
Taiwan ' s role in producing advanced semiconductors makes it a linchpin in the global supply chain . The Taiwan Strait is also a vital shipping lane , adding to its significance , which has been highlighted by the Red Sea Conflict .
Yet Taiwan ' s top trading partners are China and the US , both being powerful economic powers , further emphasising the potential far-reaching consequences of any conflict involving Taiwan .
“ Overall , in a wartime scenario , Taiwan ' s economy would face severe consequences , causing extensive disruptions across manufacturing sectors and leading to prolonged unpredictability and supply chain issues ,” Mehmet adds . “ This could result in increased costs and prices , triggering market imbalances , economic vulnerabilities and potential recession .”
EVMAGAZINE . COM [ May 2024 ] 121