🇨🇳 China vs Taiwan: The #1 Global Market Threat 🇹🇼
As geopolitical tensions rise, China’s potential invasion of Taiwan remains one of the biggest black swans for global markets. Here’s why it matters — and how it could shock the entire world economy.
🔥 What’s the deal?
China views Taiwan as a breakaway province. Taiwan, on the other hand, acts as a fully self-governed democracy.
In recent years, China has increased military pressure — with airspace violations, war games, and political threats.
Many experts believe the chance of conflict is increasing over the next 5–10 years.
🏭 Why Does It Matter So Much?
🖥️ TSMC, located in Taiwan, produces over 90% of the world’s most advanced semiconductors. These chips power everything:
→ iPhones 📱
→ AI servers 🤖
→ Military tech 🚀
→ Cars 🚗
→ Laptops 💻
📉 What happens to the markets?
It would be catastrophic for risk assets.
Here’s a quick impact breakdown:
🚫 Tech stocks collapse – Apple, Nvidia, AMD, and others rely heavily on TSMC
🔗 Supply chains freeze – Delays in phones, computers, vehicles, defense equipment
🇺🇸 US & Japan would get involved – Major military & economic conflict
📉 Global equities crash – Risk-off sentiment floods markets
💰 Gold & oil soar – Investors rush to safety & expect energy disruptions
📊What should you do in that case?
✅ Diversify away from only tech
✅ Hold some gold, energy, and defense stocks
✅ Follow geopolitical developments closely
✅ Understand your exposure to Asian supply chains
