"The Iranian choke hold on the Strait of Hormuz evidently had a lot to do with it. By cutting off roughly one-fifth of the world's oil supply over the past five weeks, Iran's blockade of that narrow waterway caused an energy crisis and fears of a global recession that the White House could not abide for long."
"Although Beijing has numerous options for conquering Taiwan, the most appealing for the Chinese military would begin with a partial blockade of the island, much like the one Iran imposed on the strait."
"Factories in Taiwan produce more than a third of the world's microchips. Without them, manufacturers would be forced to halt production of computers, cars, smartphones, home appliances, and countless other goods."
"Taiwan's leaders have tended to see their chip industry as a source of security. In the fall of 2021, then-President Tsai Ing-wen called the industry a 'silicon shield.'"
China observes that U.S. military power struggles against low-cost drone swarms and that economic factors influence U.S. military decisions. The Iranian blockade of the Strait of Hormuz, which disrupted global oil supply and threatened a recession, forced the U.S. to retreat from aggressive posturing. This situation suggests that a similar blockade of Taiwan could have severe global economic repercussions, particularly due to Taiwan's critical role in microchip production, which is essential for various industries and technologies.
Read at The Atlantic
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