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US warns of economic crisis over Taiwan conflict

US Secretary of State Anthony Blinken has warned that China’s invasion of Taiwan could lead to a global economic crisis.

“If a crisis erupts as a result of China’s unilateral action, the whole world will suffer,” Blinken told newspapers from Germany’s Funke media group (Friday Editions). “There will be a severe economic crisis.”

Blinken continued, Taiwan is of vital importance to the global economy: “Every day, 50 percent of the world’s commercial shipping passes through the Taiwan Strait. At least 70 percent of the semiconductors needed for smartphones, dishwashers or cars are made in Taiwan.

Arms exports to Taipei

America’s top diplomat accuses Beijing of toughening foreign policy. “We have seen in recent years that the status quo, which has brought decades of peace and stability to the Taiwan Strait, is no longer acceptable to the Chinese leadership.”

The US Secretary of State assured the island’s democratic republic that US arms assistance would continue. “We are providing what Taiwan needs to defend itself against any kind of aggression,” he said. At the same time, Blinken called on Beijing to resolve the conflict amicably: “As for relations with China, we believe that all differences should be resolved peacefully.”

Since the split between mainland China and Taiwan in 1949, Beijing has considered the island a breakaway territory that it wants to reunite with the mainland.