China could potentially launch an economic assault on Taiwan in a bid to compel surrender, a recent report has disclosed. While US military officials and analysts have long warned about potential military attacks or blockades by China on the self-governing island of Taiwan, a new report has raised concerns about potential non-military tactics that could be employed effectively against Taiwan. The report suggested that Beijing might engage in an economic and cyber warfare campaign to coerce Taiwan into surrender without resorting to direct military action.
According to the Foundation for Defense of Democracies, a research institute based in Washington, such non-military strategies pose a challenge for the US, Taiwan’s major ally. The report highlighted the need for Washington to prepare responses to such scenarios. In a unique collaboration, researchers from FDD partnered with banking and finance experts in Taiwan to simulate potential non-military moves by China, including disinformation campaigns and cyber attacks on critical infrastructure.
The report emphasised the increasing economic connections that China could exploit to achieve coercive aims, aided by technological advancements that have created more digital connections susceptible to coercion. While Beijing has expressed readiness to take Taiwan by force if necessary, recent tensions in the Taiwan Strait have drawn global attention, with the US reaffirming its support for Taiwan’s defense.
The US government’s response to non-military tactics from China remains unclear, giving Beijing flexibility to undermine Taiwan without invoking a direct military confrontation. The experts who conducted the simulation exercises proposed recommendations for Taiwan, such as diversifying energy imports, relocating businesses, and forging new alliances. Similarly, they suggested that the US develop a range of options to counter China and enhance coordination with allies in the region.
The report also underscored the importance of Taiwan bolstering its financial resilience to withstand potential economic destabilisation by China. With the spectre of escalating non-military measures from Beijing looming, experts have urged closer collaboration between the US and Taiwan, along with their allies, to strengthen collective resilience against China’s economic coercion tactics.
In conclusion, the report serves as a stark reminder of the evolving threats faced by Taiwan and the critical need for strategic preparedness to navigate potentially turbulent times ahead.