Future Chinese attack on Taiwan would spark global semiconductor crisis, Blinken warns

U.S. and Canadian officials have been vocal about China's potential hostility as Xi Jinping calls for military growth and refuses to rule out using force against Taiwan.

A hypothetical attack on Taiwan by China would spark a global economic crisis, particularly if the manufacturing of crucial semiconductors is disrupted, U.S. Secretary of State Antony Blinken warned this week.

Speaking at Stanford University on Monday with former secretary of state Condoleezza Rice, Blinken said the risk of “enormous” economic suffering in the event of a military attack in the Taiwan Strait was immense, making the need for a peaceful resolution to tensions in the region more important.

“On semiconductors, if Taiwanese production were disrupted as a result of a crisis, you would have an economic crisis around the world,” Blinken said.

“So there’s a profound stake — not just for us, but for countries around the world — in preserving peace and stability when it comes to Taiwan and the straits, and to making sure that the differences that exist are resolved peacefully.”

Western allies have been sounding increased alarms over China’s aggressive pursuit of reunification with Taiwan, which has a democratic self-ruling government and insists it is independent from Beijing’s influence.

The two sides split in 1949 after a civil war, yet the Chinese Communist Party has repeatedly claimed the island nation as its territory and has stepped up military presence in the region.

During his opening speech to the party’s congress on Sunday, President Xi Jinping said the potential use of force against Taiwan remained an option.

“We will continue to strive for peaceful reunification,” Xi said during the televised address. “But we will never promise to renounce the use of force. And we reserve the option of taking all measures necessary.”