Asia-Pacific, China, International Trade & Finance, Power & Security China Could Crush Taiwan’s Economy. Why Beijing Won’t Bring the Hammer Down

April 4, 2023
By Thomas J. Shattuck | Barrons

Taiwanese President Tsai Ing-wen is in the midst of her first major international trip to the U.S. and Central America since the Covid-19 pandemic emerged. Beijing has often punished Taiwan in similar circumstances, and it’s likely to do so again. But even though China could bring the hammer down, it probably won’t. The reasons why not reveal important facts about China’s ability to use its economic weight against the rest of the global economy.

Tsai is expected to meet with U.S. House Speaker Kevin McCarthy in California on Wednesday following a stop in New York last week. Every time that Taiwan works to carry out or expand its international relations, Beijing administers some form of military or economic pressure to send a message not only to Taiwan but to the rest of the world. The message is simple: Don’t engage further with Taipei. The success of Beijing’s strategy has been quite mixed, but given the high-profile nature of this trip, it will almost certainly result in additional punitive measures against Taiwan.

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