An article published by an Australian think tank on Monday says that a blockade of Taiwan would cripple China’s economy.
Researcher David Uren of the Australian Strategic Policy Institute said that China’s recent live-fire drills have prevented ships from entering major ports in Taiwan and diverted vessels from North Asia away from the Taiwan Strait. This simulated blockade of Taiwan has revealed China’s own economic vulnerability. He says if China were to block Taiwan and the United States were to launch countermeasures, then all trade finance and insurance for all shipping in the area would vanish.
Uren says that if Taiwan’s east and west sea lanes are disrupted, they would cripple China’s economy, since its major ports in Shanghai, Dalian and Tianjin are dependent on passage through Taiwan waters. The Taiwan Strait is also a major waterway for shipping from China, Japan and Korea to the rest of the world, as well as a direct route from South China to the US.
Uren says any blockade of Taiwan from China could meet up with countermeasures. He says that means not only Taiwan’s trade will come to a halt, but any shipment of raw materials to North China and finished product exports from China will be affected.