The Economist Intelligence Unit (EIU) warned that a potential conflict over Taiwan would have the most significant impact on Japan, the Philippines, and South Korea. This comes amid escalating tensions between Beijing and Taipei.
What Happened: The EIU report suggests that a military conflict over Taiwan would have severe implications for the economies of these three Asian nations, CNBC reports. This is due to their close economic ties with both China and Taiwan, as well as their strategic locations in the region.
These warnings come amid escalating tensions between China and Taiwan. China’s President Xi Jinping has reportedly set a timeline for the annexation of Taiwan, a move that could potentially escalate tensions in the region.
Xi’s aggressive stance towards Taiwan has been a cause for concern among international observers, with the Chinese leader repeatedly asserting his commitment to the “reunification” of Taiwan with mainland China.
Why It Matters: The escalating tensions between China and Taiwan have significant implications for regional stability and international relations. China’s aggressive actions towards Taiwan have been met with concern from the international community, including the United States, which has reaffirmed its commitment to Taiwan’s defense.
Despite the international support for Taiwan, the island nation faces a significant threat from China. Under Xi, Beijing has massively ramped up military and political pressure to try and get Taipei to accept its sovereignty, including staging war games near the island and sending warplanes into Taiwan's air defense zone.
Read Next: Xi Jinping Reiterates ‘One Country, Two Systems’ Proposal As China Eyes Taiwan Reunification
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