In the report prepared by the Atlantic Council and Rhodium Group, it was stated that sanctions against China in a possible China-Taiwan conflict could cause 3 trillion dollars in damage to the world economy.
According to the news of the Hong Kong-based South China Morning Post newspaper, in the report, in the event of a war between China and Taiwan, the sanctions to be applied to Beijing, one of the G7 countries, may cause a loss of 3 trillion dollars in the global economy, which will almost affect the UK’s gross domestic product in 2022. (GDP) has been determined to correspond to.
The Atlantic Council and Rhodium Group’s report “Possible Sanctions on China in the Taiwan Crisis: Scenario and Risks” examined what can be done, costs and options against China’s attempt to seize Taiwan by force.
While preparing the report, the lessons learned from Russia’s attack on Ukraine, which is almost one-tenth of the Chinese economy and less integrated into the world economy, were used.
Charlie Vest, Deputy Director of Rhodium Group, said: “A tension in the Taiwan Strait has a high cost to everyone. We have seen this clearly in the case of Ukraine. It is very important that people think about this and understand the consequences.”
In the report, it was noted that in China’s attempt to seize Taiwan by force, it was noted that the sanctions that the G7 countries could impose on China’s finance sector, defense industry, and individuals and companies in contact with its military and political leadership were examined.
In the report, which stated that the G7 will probably prioritize options such as financial sanctions and export controls that will affect China more, it was evaluated that if the sanctions are prolonged, the target companies and countries can adapt to the situation more easily, as in the case of Russia, by changing their trade orientations and circumventing the sanctions.