Here’s what would happen to markets and the economy if China attacked Taiwan

Russia’s invasion of Ukraine this year has roiled global energy markets and caused food shortages in some parts of the world. The disruptions could intensify during the winter, with soaring energy costs causing a recession in Europe and weakening the economies of the United States and many other nations. A broader and more devastating conflict remains possible.

A war involving China would be orders of magnitude worse. House Speaker Nancy Pelosi’s recent visit to Taiwan enraged China’s communist government, which has launched missiles over the island and conducted threatening military exercises meant to remind the world that China plans to annex Taiwan someday, whether peaceably or by force.

If that involved armed conflict, it would probably cause more damage to the world economy and global markets than any military confrontation since World War II. Unlike Russia or Ukraine, China’s powerhouse manufacturing sector is deeply linked with economies…

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