Taiwan's President Meeting with Speaker McCarthy Raises Concerns Over China's Reaction.

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Source: Barron's
Taiwan's President Meeting with Speaker McCarthy Raises Concerns Over China's Reaction.
Photo: Barron's
TL;DR Summary

Taiwan's President Tsai Ing-wen is on her first major international trip since the pandemic, and China is likely to administer some form of military or economic pressure to send a message not only to Taiwan but to the rest of the world. However, China's ability to use its economic weight against the rest of the global economy is limited, and it has only exerted limited economic pressure on specific sectors and industries in Taiwan. Beijing's trade bans often hit specific parts of an economy that do not necessarily cause widespread damage, but do send a clear message.

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