Taiwan-PRC Crisis: What Cross-Strait Conflict Could Cost Europe

The escalating tensions between Taiwan and China pose significant economic and strategic challenges to the European Union, such as the inaccessibility of Taiwanese inputs, market, and capital. This issue brief aims to examine Europe’s economic stake in the peace and stability of the Taiwan Strait. By outlining EU-Taiwan’s economic ties and emphasizing European interest in the self-governing island, this issue brief highlights the potential costs of a cross-strait crisis in Europe and what actions Europe needs to take. It additionally examines two scenarios of an armed conflict: a blockade and an all-out war. In its conclusion, the issue brief provides a perspective of Europe’s stake in cross-strait peace and stability.

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