China's ambitions and their impact on regional stability and democracy

The adoption of U.N. Resolution 2758 in 1971, which recognized the People’s Republic of China as the legitimate representative of China at the United Nations, has been leveraged by Beijing to assert its claims over Taiwan. This resolution is often misinterpreted as settling Taiwan’s status, leading to international neglect of Taiwan’s rights and aspirations. Furthermore, China’s anti-secession law formalizes its intent to use force if necessary to achieve unification with Taiwan, framing this aggression as a historical inevitability. This legal framework allows China to justify military actions against Taiwan, thereby destabilizing the Indo-Pacific region.

Economic Implications

Taiwan plays a critical role in the global semiconductor industry, producing over 90% of the world’s advanced chips essential for technologies like artificial intelligence. A disruption in Taiwan due to conflict could have catastrophic effects on global supply chains and technological advancements, impacting economies worldwide. The Taiwan Strait is also a vital maritime route, with a significant portion of global trade passing through it. Any military conflict in this area could lead to severe economic repercussions not only for Taiwan and China but for the global economy as a whole.

Regional Security Dynamics

China’s ambitions extend beyond Taiwan, as annexing the island would provide a strategic foothold in the Pacific, enabling China to project military power and challenge the influence of the United States and its allies. This scenario could embolden authoritarian regimes globally, undermining democratic values and stability in other regions. The international community’s response to China’s actions in Taiwan will be crucial in shaping the future balance of power in the Indo-Pacific and in protecting democratic institutions worldwide.