The United States is considering a package of sanctions against China in the Taiwan dispute – an economist raises the alarm
‘Supply chains will collapse’
China threatens to take over the island of Taiwan militarily. According to informed sources, the United States is now considering a set of sanctions. Economist Tobias Stocky explains the potential consequences for Switzerland.
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The island republic of Taiwan is under military pressure from China.
What happens to the island republic of Taiwan? There is disagreement between the United States and China over the answer to this question. According to informed sources, Washington is now considering a new package of sanctions against the Asian superpower. According to media reports, this should come into effect in the event of further provocations by Beijing.
China considers Taiwan’s 23 million people to be part of the People’s Republic of China. On the other hand, the island considers itself independent. Washington establishes diplomatic relations with Taiwan and supplies it with weapons.
China continues to flex its military muscles. They regularly send aircraft to the Taiwanese air defense zone and have maneuvers not far from the island. The situation worsened in early August.
Military technology affected?
The catalyst was the visit of US House Speaker Nancy Pelosi (82) to Taiwan. China responded with large-scale military exercises. About 11 missiles are said to have been launched towards Taiwan. The United States then allowed two combat ships to slide through the strait in front of the island. The fronts continued to harden.
This is one reason why the United States is currently working on a potential sanctions package. According to insiders, measures are being planned in the field of military technology. Americans are already restricting trade in sensitive Chinese technology such as computer chips and communications.
What is happening in Switzerland?
According to Tobias Stocky, an expert on circular economy at Berne University of Applied Sciences, US sanctions will continue the trend: “The West has always wanted to become more independent of Asia.”
Stucki sees many opportunities in this: “Given the increasing scarcity of resources, it should be a competitive advantage in the future – especially for a resource-poor country like Switzerland – if the economy is geared towards the efficient use of available resources at an early stage.”
However, some sanctions may be devastating to some sectors of the economy. Supply chains will collapse. Switzerland will also be affected. “It is very likely that this will increase the prices of some products.”
Why does Europe hesitate?
The US Senate Foreign Affairs Committee approved a new bill on Wednesday. Taiwan receives approximately 4.5 billion Swiss francs in military aid. This is spread over a four-year period. At the beginning of the week, China threatened to take “decisive countermeasures” if more arms shipments from Americans arrived.
In the background, Washington is said to be trying to engage allied nations. A move that would increase pressure on the European Union. Those responsible for Taiwan are also fighting there to impose sanctions on China. Perhaps the hesitant behavior of the Europeans can be explained by their economic dependence on the Asian superpower. (tusk)
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