Why a Taiwan Invasion Would Trigger Trillions in Global Losses | Amb. Alexander Yui

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An island nation only one-third the size of Virginia, Taiwan produces over 90 percent of the world’s most advanced chips and more than 90 percent of the servers powering the AI revolution. And last year, Taiwan became the United States’ fourth largest trading partner—after Mexico, Canada, and China.

Over one-fifth of global maritime trade goes through the Taiwan Strait, according to a CSIS analysis, and any conflict over Taiwan would be devastating for the global economy—and likely far worse than the economic disruptions caused by the Iran War.

Chinese leader Xi Jinping has told the People’s Liberation Army (PLA) to be ready for a successful Taiwan invasion by 2027, the PLA’s 100th anniversary.

In this episode, I’m sitting down with Taiwan’s representative to the United States, Ambassador Alexander Yui, to understand why Taiwan matters, and what’s at stake as the Chinese Communist Party has ramped up its campaign to isolate, intimidate, and encircle Taiwan in recent years.

Taiwan President Lai Ching-te’s recent visit to Eswatini—Taiwan’s only African ally—had to be abruptly postponed when Seychelles, Madagascar, and Mauritius revoked overflight permissions—presumably due to pressure from Beijing.

“They are constantly harassing our naval and air surroundings, trying to create panic and uneasiness,” Yui says.

Since 2013, Beijing has built over two dozen militarized outposts in disputed waters in the South China Sea and has recently been militarizing yet another artificial island known as Antelope Reef.

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