- 16 May 2004 06:50
#169671
China's one china policy and Taiwan's pro-independence policy look set to put both China and Taiwan into serious political tension. A possibility of a war between Taiwan and China seems very unreal to me but let's just assume a war do really break out in the straits, there will be ripple effects affecting not just the North Asia but the whole world as well.
Given that US is Taiwan's closest ally and the former pledged to support the latter in times of war, this will cause a war in the straits to be a long drawn one gievn china's resolution for a one china policy.
Economically, a war beyween china and Taiwan blocks the trade route of Japan, causing Japan's exports to outside world to slow down. At the same time, raw materials such as oil to resource-scarce Japan will also be affected. This will derail the recent recovery of the world's second largest economy. A long drawn war wil also hurt consumer sentiment in China, one of the main factors for the economic recovery for Japan and Asia. Thus, the well being of the Chinese economy has a direct effect on export-driven Asia, given China's huge appetitie for Asian goods and services. A fall in investments in china due to political instability is tantamount to a partial, if not a full shutdown of the world's "factory". When this happens, it will put the world into a global inflation, and worse come to worse a recession.
When resource scarce Japan is starve of resources that is essential to her survival, they will take any action to resolve their crisis including going to war. Neighbouring countries such as china and south korea are wary of Japan ever since world war II will be faced with great pressure to arm themselves in order to counter the threat of a stronger Japan. India, being a nuclear country, might also arm themselves due to their political tension with china. Pakistan, another nuclear country might be pressured to arm themselves too and so on. This domino effect will therefore spark off an arms race in Asia, making Asia very instable as well as a dangerous place to live or do business in. To add oil to fire, North korea might make use of its nuclear capabilities to demand for more aid. Thus, bringing even more political instability to the region as well as the world.
In conclusion, Taiwan definitely has to gain by reuniting with china. By doing so, they can also avert a disaster.
Given that US is Taiwan's closest ally and the former pledged to support the latter in times of war, this will cause a war in the straits to be a long drawn one gievn china's resolution for a one china policy.
Economically, a war beyween china and Taiwan blocks the trade route of Japan, causing Japan's exports to outside world to slow down. At the same time, raw materials such as oil to resource-scarce Japan will also be affected. This will derail the recent recovery of the world's second largest economy. A long drawn war wil also hurt consumer sentiment in China, one of the main factors for the economic recovery for Japan and Asia. Thus, the well being of the Chinese economy has a direct effect on export-driven Asia, given China's huge appetitie for Asian goods and services. A fall in investments in china due to political instability is tantamount to a partial, if not a full shutdown of the world's "factory". When this happens, it will put the world into a global inflation, and worse come to worse a recession.
When resource scarce Japan is starve of resources that is essential to her survival, they will take any action to resolve their crisis including going to war. Neighbouring countries such as china and south korea are wary of Japan ever since world war II will be faced with great pressure to arm themselves in order to counter the threat of a stronger Japan. India, being a nuclear country, might also arm themselves due to their political tension with china. Pakistan, another nuclear country might be pressured to arm themselves too and so on. This domino effect will therefore spark off an arms race in Asia, making Asia very instable as well as a dangerous place to live or do business in. To add oil to fire, North korea might make use of its nuclear capabilities to demand for more aid. Thus, bringing even more political instability to the region as well as the world.
In conclusion, Taiwan definitely has to gain by reuniting with china. By doing so, they can also avert a disaster.