Image: Reuters Berita 24 English - Any Chinese military attack on Taiwan would have a larger impact on global trade flows than the Ukraine c...
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| Image: Reuters |
Berita 24 English - Any Chinese military attack on Taiwan would have a larger impact on global trade flows than the Ukraine conflict, according to Taipei's chief trade negotiator, who predicted a semiconductor chip scarcity.
Following Russia's invasion of Ukraine in February, commodities prices have risen and food export bans have been imposed, raising worries of hunger in poorer countries. The potential disruptions, according to John Deng, would be severe if China attacked Taiwan, noting the world's reliance on Taiwan for semiconductors used in electric vehicles and mobile phones.
"The disruption to international supply chains, the disturbance to the world economic order, and the opportunity to expand would be much, much (more) substantial than this," he told Reuters on the margins of a critical World Trade Organization ministerial conference in Geneva.
"There would be a global supply scarcity."
Although no indicators of an imminent attack from China have been reported by the Taipei government, Taiwan has boosted its alert level since the Ukraine war began, apprehensive of Beijing's intentions.
The Chinese government claims it wants "peaceful reunification" but that Taiwan, which it considers a Chinese colony, has "alternative options," which the democratically elected government in Taipei fiercely opposes.
Taiwan dominates the global market for advanced chip production, with $118 billion in exports last year, according to official data.
Deng stated that he aimed to reduce China's 40 percent share of the country's exports.
The Russian invasion is the first time a WTO member has attacked another in the 27-year history of the global trade watchdog. The group is seeking to secure a package of agreements, notably on food security to alleviate strained supplies, but trade insiders fear that tensions caused by the war may make that more difficult.
Taiwan, which has supported Western sanctions against Russia, gave Ukraine's WTO delegate a standing ovation on Sunday.
Because Beijing prohibits Taiwan's involvement in other multilateral organisations, the WTO is one of the few places where the two countries can work together.
Taiwan's Deng said the WTO meetings this week have so far been encouraging for the island, which is known as 'Chinese Taipei' at the WTO. It's also hoping to resolve a three-year-old dispute over technology tariffs with India before a formal WTO judgement https://www.wto.org/english/tratop e/dispu e/cases e/ds588 e.htm.
"We're collaborating with them," Deng explained.
