Taiwan-Pelosi update: safe landing, cyber-attacks and military exercises
Tensions are rising globally as U.S. House Speaker Nancy Pelosi descended into Taiwan yesterday. If you were wondering, yes, she landed safely — and so far, no World War III.
Her flight to Taiwan — with over 700K viewers, was the most watched ever per Flightradar24.
Some have called her trip reckless, and Chinese publications have repeatedly warned Pelosi not to land.
- Chinese media outlet Global Times suggested warplanes could be sent over Taiwan.
- Taiwan’s presidential office website was also briefly taken down by overseas cyber-attacks.
- China said it would conduct missile tests and military drills between August 4 and 7 in six areas surrounding Taiwan.
It’s a delicate situation: Last week, China’s President Xi Jinping told Biden on a call, “whoever plays with fire will get burnt” — in reference to Taiwan.
But according to Control Risks’ Director of Analysis for China and North Asia — war would be “too costly from either side’s perspective” (BBG).
A one-year war could reduce America’s GDP by 5-10% and China’s GDP by 25-35% — per a RAND Corporation study.
- It’s a risk both sides are unlikely to take as both economies are still recovering from COVID.
China’s economy is looking even more sensitive as a significant property crisis hangs over its economy.