Financial TimesFinancial Times

US warns Europe a conflict over Taiwan could cause global economic shock

By Kathrin Hille and Demetri Sevastopulo

10 Nov 2022 · 3 min read

Editor's Note

In the event of a military conflict over Taiwan, the global economic damage would be massive. The FT reports that the U.S. and the EU are preparing contingency plans for just such a scenario.

The US has warned European countries that a conflict over Taiwan would trigger a huge global economic shock, in an effort to step up contingency planning amid rising concern about military action in the Indo-Pacific.

The state department has shared research with partners and allies that estimates that a Chinese blockade of Taiwan would spark $2.5tn in economic losses, according to six people familiar with the material, which was commissioned from the research firm Rhodium Group.

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