(VitalNews.org) – House Foreign Affairs Chairman Michael McCaul said that the global economy could face huge consequences if a Chinese invasion of Taiwan happened.
Says McCaul, “The thing that really, I think, makes this island extremely important…is that 90% of the advanced semiconductor manufacturing for the world happens right here. And if an invasion happens, I don’t see a scenario where that survives.”
He continued to talk about how in America, we’ve outsourced many of our products and manufacturing, which could put us in a vulnerable position if anything happens in China.
“Everybody that has phones, cars – we have advanced weapons systems – everything’s dependent on semiconductors and this island, over time, because we’ve offshored manufacturing…we put ourselves in a very vulnerable position by doing that,” he said.
He continued, “And the shutdown of what’s happening here, semiconductors, would really shut down the world.” During the US first delegation to sit down with officials, McCaul met with the foreign minister and president of Taiwan.
This comes after China staged some of the most aggressive military drills they’ve sent off of Taiwan’s coast. They sent dozens of warships and planes to the territory in retaliation for comments made by its new leader regarding separation from the Chinese Communist Party.
Said McCaul, “These war games to intimidate and protest the election from China are probably the most provocative I’ve ever seen in terms of the numbers of ships and planes.” He also stressed that an invasion by China could lead to an “electronic shutdown” and also an economic spiral, which would be similar to what was seen during the pandemic.
The biggest issue that we would see here in terms of the supply is that semiconductors, which would be disrupted in the event of an invasion, are used in all electronics and for healthcare or transportation.
McCaul stated, “It’s why we want to move more manufacturing back to the United States, but that’s going to take time, and I don’t know what timeline Chinese President Xi Jinping is on.”
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