China has launched large-scale military exercises around Taiwan, which is being seen as a strong warning against Taiwanese independence.
Why is this important?
- China considers Taiwan a breakaway province and has vowed to reunify it, by force if necessary.
- Taiwan, on the other hand, is a democratic island with 23 million people who mostly prefer maintaining their autonomy.
- The U.S. and Japan have shown support for Taiwan, and tensions are rising in the region.
Possible global impacts:
- 🌐 Tech Supply Chain Disruption – Taiwan produces over 60% of the world’s semiconductors (used in phones, computers, cars, etc.).
- 🛢️ Rising oil prices and instability in Asia could affect global markets.
- ⚔️ There is a risk of a U.S.-China military conflict, which would affect not only Asia but the entire world.
